66.081 Maintenance of sinking funds.

236 words·~1 min read·/ky/chapter-66/66-081

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)At any time while the bonds are outstanding, an issuer shall maintain a sinking fund

which shall be pledged for the retirement of all of the issuer's outstanding bonds,

and tax-supported leases. The issuer shall deposit moneys in the sinking fund at

times and in amounts so adequate moneys will be available in the sinking fund for

the payment of debt charges on all outstanding bonds and tax-supported leases.

(2)Except in the case of bonds issued for the purpose of refunding, all proceeds from

the sale of bonds, except accrued interest, shall be paid into a special fund for the

public purpose related to the bonds, and any interest and other income earned on

money in that special fund may be used for that purpose or may be credited to the

general fund or other fund or account as the issuer authorizes and used for the

purposes of that fund or account. The accrued interest received from the sale of

bonds shall be paid into the sinking fund.

(3)If a public project that was financed by bonds is sold, the amount received from the

sale shall be paid into the sinking fund or into a special fund for the construction or

acquisition of public projects.

(4)The unexpended balance in a sinking fund remaining after bonds and tax-supported

leases are no longer outstanding may be transferred to any other fund of the issuer.