58.155 Grant anticipation notes.
380 words·~2 min read·
/ky/chapter-58/58-155A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)In the case of any public work or public project, in connection with which the
Commonwealth of Kentucky, or any department, agency or bureau thereof, or any
political subdivision or governmental unit of the Commonwealth of Kentucky
("governmental agency") has applied for and received federal grants-in-aid or is
entitled as a matter of law to receipt of federal grants-in-aid which may be applied
for the purpose of providing a portion of or all of the funds required for construction
and installation of any such public work or public project, such governmental
agency may authorize and issue grant anticipation notes payable from grant
proceeds when received, and any other assets which may be lawfully pledged by any
such governmental agency and which are so pledged.
(2)Any grant anticipation notes issued pursuant to authority of this section shall be
scheduled to mature at such time or times, not to exceed three
(3)years from the
date of issuance thereof, and shall bear such rate or rates of interest as the governing
body of the governmental agency shall determine. Grant anticipation notes may be
sold at public sale or pursuant to private, negotiated sale at the election of the
governing body of the governmental agency issuing any such grant anticipation
notes. Interest on any such grant anticipation notes may be capitalized in grant
anticipation note issues for periods not exceeding three
(3)years.
(3)Grant anticipation notes issued pursuant to the authority of this section shall be
payable as to principal and interest, if interest is capitalized, from the federal grants
in anticipation of which the grant anticipation notes are authorized and issued, and
any governmental agency is authorized and empowered to pledge such grant
proceeds when received, either as sole security for the repayment of grant
anticipation notes, or together with any other assets and revenues of such
governmental agency which may be lawfully pledged for such repayment.
(4)Grant anticipation notes issued pursuant to the authority of this section are hereby
declared to be issued for public, governmental purposes and the interest derived
thereon shall be exempt from taxation by the Commonwealth and by all political
subdivisions of the Commonwealth. Grant anticipation notes shall also be exempt
from ad valorem taxation by the Commonwealth or any political subdivision
thereof.