74.290 Issuance of bonds for additions.

347 words·~2 min read·/ky/chapter-74/74-290

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

(1)For the purpose of defraying the cost of constructing or acquiring any additions,

extensions, and necessary appurtenances under KRS 74.280, the water district may

borrow money and issue negotiable bonds. Before any bonds are issued an

ordinance shall be enacted by the commission specifying the amount of the bonds

and the rate of interest they are to bear, and reciting that the proposed additions,

extensions, or necessary appurtenances that are to be constructed or acquired are to

be made pursuant to the provisions of KRS 74.280 to 74.310.

(2)All bonds issued under this section shall bear interest at a rate or rates or method of

determining rates payable at least annually, and shall be executed in a manner, and

be payable at times not exceeding fifty

(50)years from the date of issue, and at a

place, as the commission shall determine.

(3)All bonds shall be negotiable and shall not be subject to taxation. If any officer

whose signature or countersignature appears on the bonds or coupons ceases to be

an officer before delivery of the bonds, his signature or countersignature shall

nevertheless be valid the same as if he had remained in office until delivery. The

bonds shall be sold in a manner as the commission shall deem for the best interest

of the water district, or the contract for the acquisition of any additions, extensions,

and appurtenances to the waterworks may provide that payment shall be made in

bonds. The bonds shall be payable solely from the revenues of the waterworks and

shall not constitute an indebtedness of the water district within the meaning of the

Constitution. It shall be plainly stated on the face of each bond that it has been

issued under the provisions of KRS 74.280 to 74.310 and that it does not constitute

an indebtedness of the water district within the meaning of the Constitution.

(4)If the commission finds that the bonds authorized will be insufficient to accomplish

the purpose desired, additional bonds may be authorized and issued subject to the

limitations prescribed for the original bonds.