ACQUISITION AND DEVELOPMENT OF PUBLIC PROJECTS THROUGH REVENUE BONDS

KRS tit. VII, ch. 58

in effect

KRS 58.010 Definitions

58.010. Definitions As used in KRS 58.010 to 58.140, unless the context requires otherwise: (1) "Public project" means any lands, buildings, or structures, works or facilities (a) suitable for and intended for use as public property for public purposes or suitable for and intended for use in the promotion of the public health, public welfare or the conservation of natural resources, including medical office buildings contiguous to hospital facilities, and shall also include the planning of any such lands, buildings, structures, works or facilities; or (b) suitable for and intended for use for the purpose of creating or increasing the public recreational, cultural and related business facilities of a community, including such structures as concert halls, museums, stadiums, theaters and other public facilities, together with related and appurtenant parking garages, offices and office buildings for rental in whole or in part to private tenants, dwelling units and apartment buildings for rental in whole or in part to private tenants, commercial and retail businesses, stores or other establishments, and any structure or structures or combination of the foregoing, or other structures having as their primary purpose the creation, improvement, revitalization, renewal or modernization of a central business or shopping community, and shall also include existing lands, buildings, structures, works and facilities, as well as improvements or additions to any such lands, buildings, structures, works or facilities. (2) "Public project" as defined herein shall include projects intended for use as public property for public purposes by another governmental agency, including the United States government, other than the governmental agency acquiring the land or constructing the building, structure or facility. (3) "Governmental agency" means the Commonwealth of Kentucky as such acting by or through any department, instrumentality or agency thereof, or any county, city, agency, or instrumentality, including a regional wastewater commission established under KRS 65.8901 to 65.8923, or other political subdivision of the Commonwealth. Effective: June 8, 2011 History: Amended 2011 Ky. Acts ch. 98, sec. 16, effective June 8, 2011. -- Amended 1984 Ky. Acts ch. 111, sec. 41, effective July 13, 1984. -- Amended 1978 Ky. Acts ch. 106, sec. 1, effective June 17, 1978. -- Amended 1968 Ky. Acts ch. 154, sec. 1. -- Amended 1958 Ky. Acts ch. 150, sec. 1. -- Created 1946 Ky. Acts ch. 126, sec. 1.

KRS 58.020 Power of governmental agency to acquire or develop public project and issue revenue bonds

58.020. Power of governmental agency to acquire or develop public project and issue revenue bonds A governmental agency acting separately or jointly with one (1) or more of any such agency, may acquire, construct, maintain, add to, and improve any public project as defined in KRS 58.010, which public project may be located within or without or partly within and partly without the territorial limits of such governmental agency or agencies, and for the purpose of defraying the cost thereof may borrow money and issue negotiable revenue bonds. Before any department or agency of the state government shall borrow money and issue bonds under KRS 58.010 to 58.140, the head of the department or agency shall file with the Secretary of State a written order, approved by the Governor, the Attorney General and the secretary of the Finance and Administration Cabinet, setting forth the proposed public project, the amount of the bonds to be issued, and the maximum rate of interest the bonds are to bear. Any governmental agency other than agencies of the state government may borrow money and issue revenue bonds under KRS 58.010 to 58.140 pursuant to an order, resolution, or ordinance of its legislative or administrative body, which order, resolution, or ordinance shall set forth the proposed public project, the amount of the revenue bonds to be issued, and the maximum rate of interest. In every instance the order, resolution, or ordinance shall provide that the public project is being undertaken under the provisions of KRS 58.010 to 58.140. History: Amended 1948 Ky. Acts ch. 226, sec. 1. -- Created 1946 Ky. Acts ch. 126, sec. 2.

KRS 58.025 Facsimile signatures

58.025. Facsimile signatures It shall be lawful for public bodies, when issuing bonds pursuant to this chapter, to issue and execute said bonds with either the manual or facsimile signatures of its officers as may be determined by the governing bodies of the respective public bodies which are the issuers thereof; but subject nevertheless to such approvals as may now or hereafter be applicable thereto according to law. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 258, sec. 1, effective July 15, 1986.

KRS 58.030 Interest rate and maturity of bonds -- Leasing of project -- Acceptance of donations and government aid

58.030. Interest rate and maturity of bonds -- Leasing of project -- Acceptance of donations and government aid (1) The bonds may be issued to bear interest at the rate or rates or method of determining rates, payable at least annually, and shall be executed in such manner, and be payable at such times not exceeding forty (40) years from date thereof and at such place or places as the governmental agency determines. (2) The bonds may provide that they or any of them may be called for redemption prior to maturity, on any date not earlier than one (1) year from the date of issuance of the bonds, under conditions fixed by the governmental agency before issuing the bonds. (3) Any governmental agency is authorized to rent or lease such public project or any portion thereof to or contract concerning same with any persons, partnerships, associations, or corporations either public or private, profit or nonprofit. Notwithstanding any of the other provisions of KRS 58.010 to 58.140 or any other laws, any such renting, leasing, or contracting may be accomplished without the necessity of awarding such lease or contract by advertisement or competitive bidding, provided the governmental agency so leasing such project or any portion thereof or contracting concerning same first makes a legislative determination that it is in the best interest of such governmental agency to enter into such lease or contract without the necessity for such advertisement or competitive bidding; and such lease may provide that the lessee therein is permitted or obligated to sublease the project or any portion thereof for the purpose of accomplishing the creation, improvement, revitalization, renewal or modernization of a central business or shopping community. (4) A governmental agency is empowered to accept donations or gifts to the public project from any source and to accept appropriations and grants to the public project from the federal government or its agencies and appropriations from the state or any county, city, or other political subdivision and, at the option of the governmental agency, to pledge such donations, gifts, or appropriations to the payment of revenue bonds issued to finance the cost of a public project. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 274, sec. 2, effective July 15, 1996. -- Amended 1968 Ky. Acts ch. 110, sec. 3; and ch. 154, sec. 2. -- Amended 1948 Ky. Acts ch. 226, sec. 1. -- Created 1946 Ky. Acts ch. 126, sec. 3.

KRS 58.040 Bonds negotiable and tax-free -- Method of sale -- Payable solely from revenue

58.040. Bonds negotiable and tax-free -- Method of sale -- Payable solely from revenue (1) Bonds issued pursuant to KRS 58.010 to 58.140 shall be negotiable and shall not be subject to taxation. (2) If any officer whose signature or countersignature appears on the bonds or coupons ceases to be an officer before delivery of the bonds, the officer's signature or countersignature shall be valid and sufficient for all purposes as if the officer had remained in office until delivery. (3) The bonds shall be sold in a manner and upon the terms as the governmental agency determines and as provided in KRS 424.360. Any contract for the acquisition of a public project may provide that payment shall be made in bonds. (4) The bonds shall be payable solely from the revenue derived from the public project and shall not constitute an indebtedness of the state, county, city, or political subdivision within the meaning of the Constitution. (5) It shall be plainly stated on the face of each bond that the bond has been issued under the provisions of KRS 58.010 to 58.140 and that the bond does not constitute an indebtedness of the governmental agency within the meaning of the Constitution. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 35, sec. 3, effective June 27, 2019. -- Amended 1996 Ky. Acts ch. 274, sec. 3, effective July 15, 1996. -- Amended 1968 Ky. Acts ch. 110, sec. 4; and ch. 154, sec. 3. -- Created 1946 Ky. Acts ch. 126, sec. 4.

KRS 58.050 Application of proceeds of bonds -- Supplementation by contributions of issuing agency

58.050. Application of proceeds of bonds -- Supplementation by contributions of issuing agency All money received from the bonds shall be applied solely for the acquisition, construction, maintenance or improvement of the public project, and the necessary expense of preparing, printing and selling said bonds, or to advance the payment of the interest on the bonds during the first three (3) years following the date of the bonds, or to provide an initial debt service reserve; and the proceeds of such bonds may be supplemented by contributions from the issuing governmental agency or from any other source toward the cost of construction of the project or toward the creation of a debt service reserve for the protection and benefit of the bondholders, or for any other purpose related to the financing of the acquisition and construction of such public project; and it may be further provided that any contribution made for the purpose of assisting in the initial establishment of a debt service reserve for the benefit and protection of the bondholders may be returned or reimbursed to the contributor thereof whenever other equivalent funds have been provided from the revenues of said project or from any other source toward the establishment of such debt service reserve. History: Amended 1968 Ky. Acts ch. 154, sec. 4. -- Created 1946 Ky. Acts ch. 126, sec. 5.

KRS 58.060 Receiver -- Provision for foreclosure through trustee authorized

58.060. Receiver -- Provision for foreclosure through trustee authorized (1) If there is any default in the payment of principal or interest of any bond, any court having jurisdiction of the action may appoint a receiver to administer the public project on behalf of the governmental agency, with power to charge and collect rents, royalties, fees, rates and charges and to receive any other available revenue sufficient to provide for the payment of any bonds or obligations outstanding against the public project, and for the payment of operating expenses, and to apply the income and revenue in conformity with KRS 58.010 to 58.140 and the order, resolution or ordinance referred to in KRS 58.020. (2) Notwithstanding any of the other provisions of KRS 58.010 to 58.140, inclusive, it may be provided in the proceedings authorizing bonds issued for the purpose of financing a project under KRS 58.010(1)(b), as amended, that the governmental agency, in connection with the issuance of its bonds, execute a mortgage deed of trust in favor of a trustee, on the project acquired or constructed through the application of the proceeds of the bonds, providing that in the event of default by the agency in the payment of interest or principal of its bonds or in the event of default of any other covenant contained in such mortgage deed of trust the trustee, on behalf of the bondholders, may institute and carry through foreclosure proceedings, with the property secured by the mortgage deed of trust put up for sale on foreclosure proceedings, the proceeds of such sale to be used for the benefit of the bondholders. In connection with such plan of financing, such provisions may be inserted in the bonds themselves and in the mortgage deed of trust as may be necessary to protect the bondholders and in order to make such bonds salable with the lowest net interest cost to the agency. If the agency declares its intent by ordinance or resolution to follow the provisions of this section, and in doing so determines it cannot comply with any provision of KRS 58.010 to 58.140, as such provision is inconsistent with the provisions of this section, the agency is not required to comply with the inconsistent provision of KRS 58.010 to 58.140. History: Amended 1968 Ky. Acts ch. 153, sec. 1. -- Created 1946 Ky. Acts ch. 126, sec. 6.

KRS 58.070 Maintenance, operating and depreciation funds -- Rentals, rates and charges

58.070. Maintenance, operating and depreciation funds -- Rentals, rates and charges At or before the issuance of bonds the governmental agency shall, by order, resolution or ordinance, set aside and pledge the income and revenue of the public project including rents, royalties, fees and proceeds of sales of property and from rates and charges for services derived from or rendered by the public project into a separate and special fund to be used and applied in payment of the cost thereof and in the maintenance, operation and depreciation thereof. The order, resolution or ordinance shall definitely fix and determine the amount of revenue necessary to be set apart and applied to the payment of principal and interest of the bonds, and the proportion of the balance of the income and revenue to be set aside as a proper and adequate depreciation account, and the remaining proportion of such balance shall be set aside for the reasonable and proper operation and maintenance of the public project. The rents, royalties, fees, rates and charges for the services or sale of the public project shall be fixed and revised from time to time so as to be sufficient to provide for payment of interest upon all bonds and to create a sinking fund to pay the principal thereof when due, and to provide for the operation and maintenance of the public project and an adequate depreciation account. History: Created 1946 Ky. Acts ch. 126, sec. 7.

KRS 58.080 Transfer of surplus to depreciation account

58.080. Transfer of surplus to depreciation account If a surplus is accumulated in the operating and maintenance funds equal to the cost of maintaining and operating the public project during the remainder of the calendar, operating or fiscal year, and during the succeeding like year, any excess over such amount may be transferred at any time by the governmental agency to the depreciation account, to be used for improvements, extensions or additions to the public project. History: Created 1946 Ky. Acts ch. 126, sec. 8.

KRS 58.090 Expenditure and investment of depreciation fund

58.090. Expenditure and investment of depreciation fund The funds accumulating to the depreciation account shall be expended in balancing depreciation in the public project or in making new constructions, extensions or additions thereto. Any such accumulations may be invested as the governmental agency may designate, and if invested the income from such investment shall be carried into the depreciation account. History: Created 1946 Ky. Acts ch. 126, sec. 9.

KRS 58.100 Refunding bonds

58.100. Refunding bonds The governmental agency may issue new bonds to provide funds for the payment of any outstanding bonds, in accordance with the procedure prescribed by KRS 58.010 to 58.140. The new bonds shall be secured to the same extent and shall have the same source of payment as the bonds refunded. Furthermore, the maturity schedule of the new bonds shall not extend beyond the remaining life of the original bonds unless the original bonds were issued by a county, urban-county, city, or an agency or instrumentality of a county, urban-county, or city. Effective: July 14, 1992 History: Amended 1992 Ky. Acts ch. 191, sec. 1, effective July 14, 1992. -- Created 1988 Ky. Acts ch. 83, sec. 1, effective July 15, 1988.

KRS 58.110 Additional bonds

58.110. Additional bonds If the governmental agency finds that the bonds authorized will be insufficient to accomplish the purpose desired, additional bonds may be authorized and issued in the same manner. History: Created 1946 Ky. Acts ch. 126, sec. 11.

KRS 58.120 Bonds for extensions and improvements

58.120. Bonds for extensions and improvements Any governmental agency acquiring any public project pursuant to the provisions of KRS 58.010 to 58.140 may, at the time of issuing the bonds for such acquisition, provide for additional bonds for extensions and permanent improvements to be placed in escrow and to be negotiated from time to time as proceeds for that purpose may be necessary. Bonds placed in escrow shall, when negotiated, have equal standing with bonds of the same issue. History: Created 1946 Ky. Acts ch. 126, sec. 12.

KRS 58.125 Sale of housing mortgage bonds

58.125. Sale of housing mortgage bonds Any public body as defined in KRS 58.410 when issuing bonds for the purpose of facilitating the construction, renovation or purchase of new or existing housing, including single family mortgage revenue bonds and multifamily housing revenue bonds, may issue and sell the bonds upon such terms, for such prices, and at such interest rates, as are deemed appropriate by the public body, including by public sale pursuant to KRS Chapter 424 or by private negotiated sale without advertisement. Effective: July 15, 1986 History: Created 1986 Ky. Acts ch. 259, sec. 1, effective July 15, 1986.

KRS 58.130 Use of general funds or revenues for public project

58.130. Use of general funds or revenues for public project Any governmental agency may use, for the purpose of acquiring, constructing, maintaining, extending or improving a public project, or for the payment of interest or principal on any revenue bonds issued by the agency pursuant to KRS 58.010 to 58.140, any funds or tax revenues available for general purposes of the agency and not required by law to be devoted to some other purpose. History: Created 1946 Ky. Acts ch. 126, sec. 13.

KRS 58.140 Condemnation

58.140. Condemnation In the event a governmental agency is unable to acquire, by purchase or agreement, any real property deemed necessary for the purposes of a public project, such agency may acquire the same by condemnation. The procedure for condemnation shall be as provided in the Eminent Domain Act of Kentucky. History: Amended 1976 Ky. Acts ch. 140, sec. 20. -- Created 1946 Ky. Acts ch. 126, sec. 14.

KRS 58.150 Revenue bond anticipation notes

58.150. Revenue bond anticipation notes (1) When the governing body of any county, city, or other municipal corporation, or agency thereof, shall make a determination that, in accordance with the provisions of any section of the statutes authorizing it to issue revenue bonds, assessment bonds, or mortgage bonds to finance any project, it will finance a project by the issuance of bonds, then in anticipation of financing, the governing body may provide for the interim financing of a project by the sale and issuance of revenue bond, assessment bond, or mortgage bond anticipation notes, as the case may be, bearing interest at a rate or rates not exceeding the maximum rate permitted for the issuance of the bonds so anticipated, and payable within a specified period of time only from the proceeds of the bonds, when issued, or from the revenues or income of the project as may be available prior to or at maturity of the notes; provided that the initial term of the notes shall not be in excess of five (5) years from the date of issuance. The term "revenue bond" means bonds, notes, or other obligations for the payment of money issued by the state, any county, municipality, or other public district or authority except a school district, or any corporation or other corporate body acting as an instrumentality of the unit, and payable from a special fund into which some or all of the revenues of a public project have been or will be paid. "Assessment bond" means bonds, notes, or other obligations for the payment of money issued by any one (1) or more of the same issuing authorities payable from a special fund into which assessments levied on properties for benefits conferred have been or will be paid in accordance with law. "Mortgage bond" means revenue bonds which are secured by a mortgage deed of trust. A school district shall not be excluded from these definitions if it is authorized by the Kentucky Board of Education, by general or special authorization, to proceed under the authority of this section or KRS 56.513 through the agency of the appropriate city or county. (2) The notes authorized herein shall be sold in the same manner as the bonds in anticipation of which they are issued. (3) Each bond anticipation note may include prepayment provisions which will allow the issuing authority to prepay the note after giving reasonable notice to the holder; shall identify the bond issue from the proceeds of which the note or notes and any interest thereon are to be paid; and shall include a statement that the note is being issued in anticipation of the identified bond issue, and that neither the note, nor the interest, shall constitute or evidence an indebtedness of the issuing authority. Each note and the interest, to the extent not previously paid from other sources, shall be paid from the proceeds of the identified bond issue, when the proceeds have been received and are available; provided, however, that payment from the revenues of the project, for the financing of which the bonds will eventually be issued, shall be permitted, and provision shall be made for payment of that portion of the principal of any note issue which represents the principal of the proposed bonds scheduled to mature on or prior to the maturity of the notes. (4) The notes authorized herein may be issued in a principal amount sufficient to include all interest due on the notes at or prior to maturity, if the notes shall be issued for a term of three (3) years or less, and the notes may be sold at a discount representing the interest due to the purchaser during the term. (5) When, prior to the maturity of any notes issued under the authority of this section or KRS 56.513, the governing body of the issuing authority shall make a determination that by reason of construction delays, changes in plans, uncertainties in the bond market, or other causes justifying delay in the final offering of the bond issue, the bond issue should not immediately be offered, renewal notes may be issued subject to the same limitations contained in this section or KRS 56.513 relative to the original issue of notes, and the proceeds of the sale of the renewal notes shall be applied to the payment of the principal of the notes originally issued, or any prior issue of renewal notes, or to the payment of interest due or to become due on the notes or renewal notes; provided, however, that the interest, including discount, if any, payable from the proceeds of notes or renewal notes shall not exceed an amount equal to three (3) years' interest from the date of the original notes at the rate per annum established for the original notes. (6) Counties, cities, and other municipal corporations, or agencies, in the discretion of the governing body in each case, may, as an alternative to this section and for interim financing purposes, solicit proposals, issue bond anticipation notes, and make commitment agreements in the same manner as provided for the State Property and Buildings Commission by KRS 56.513; provided, however, that in the case of notes issued on behalf of a school district, general or special approval of the Kentucky Board of Education shall be required in substitution for the approval of the State Property and Buildings Commission; and provided further, that the approval of the State Property and Buildings Commission will not be required for any issue of a county, city, or other municipal corporation, or any agency, and references to the commission shall be interpreted to be references to the governing body of the issuing authority. (7) Nothing herein shall be deemed to invalidate any bond anticipation notes sold or issued under general statutes prior to the adoption of this section and KRS 56.513. (8) Each bond anticipation note issued according to this section or KRS 56.513, and the receipt of interest on the note, shall be exempt from all taxation by the Commonwealth and all of its subdivisions, municipalities, and taxing authorities; and this may be stated as a representation in the text of each bond anticipation note. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 152, sec. 3, effective June 29, 2021. -- Amended 1996 Ky. Acts ch. 274, sec. 62, effective July 15, 1996; and ch. 362, sec. 6, effective July 15, 1996. -- Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 290, effective July 13, 1990. -- Amended 1978 Ky. Acts ch. 155, sec. 82, effective June 17, 1978. -- Created 1970 Ky. Acts ch. 152, sec. 2.

KRS 58.155 Grant anticipation notes

58.155. Grant anticipation notes (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. Effective: April 9, 1980 History: Created 1980 Ky. Acts ch. 273, sec. 1, effective April 9, 1980.

KRS 58.170 Repealed, 1996

58.170. Repealed, 1996 Catchline at repeal: Maximum possible interest rate on bonds issued after March 25, 1968 -- Alternative nature of this provision. History: Repealed 1996 Ky. Acts ch. 274, sec. 65, effective July 15, 1996. -- Created 1968 Ky. Acts ch. 110, secs. 25 to 27.

KRS 58.180 Creation of nonprofit corporation to act as an instrumentality of governmental agency in the financing of public projects

58.180. Creation of nonprofit corporation to act as an instrumentality of governmental agency in the financing of public projects (1) (a) As used herein, the term "public project" shall have the same meaning as ascribed to such term by KRS 58.010, and the term "public project" shall include, inter alia, but not by way of limitation, public facilities such as sewers, sewage treatment works, water systems, streets, sidewalks and other public ways, both vehicular and pedestrian, parks and recreational and sports facilities, hospitals and health facilities, educational facilities, drainage and reclamation projects, jails, municipal buildings, public docks, wharves and port facilities, solid waste disposal facilities, pollution control systems, mass commuting and transport systems, industrial parks, courthouses and other public buildings, public parking and garage facilities, and other edifices, projects and like things and objects intended for governmental and public purposes. (b) As used herein, the term "governmental agency" shall mean any division of the Commonwealth which is a municipal corporation and political subdivision of the Commonwealth of Kentucky, or to which has been delegated the right to exercise part of the sovereign power of the Commonwealth. (2) Any governmental agency may create a nonprofit corporation pursuant to the provisions of KRS 273.161 to 273.390, inclusive, to act as the agency and instrumentality and the constituted authority of such governmental agency in the acquisition and financing of any public project which may be undertaken by such governmental agency pursuant to the provisions of Kentucky law and thus accomplish a public purpose of such governmental agency. Such corporation, upon direction of such governmental agency, shall be authorized to issue its bonds, notes or other obligations on behalf of such governmental agency for the acquisition and financing of one or more public projects on behalf of such governmental agency, and may pledge for the amortization of such bonds, notes or other obligations all revenues derived from the operation of such public project or public projects, including specifically all revenues derived from the leasing of such public project or public projects directly to the governmental agency upon whose behalf and upon whose direction such bonds, notes or other obligations are issued. Provided, however, that no bonds or other obligations shall be authorized under the provisions of this chapter for the construction or acquisition of telephone, gas, or electric facilities unless such electric facilities are constructed or maintained to provide service solely to the customers of the municipal utility. (3) It shall be provided in any such financing (i) that upon the retirement and discharge of the bonds, notes or other obligations issued by such corporation at the direction of and on behalf of such governmental agency, title to the public project or public projects so acquired shall vest in such governmental agency; (ii) that in the event of default with respect to such bonds, notes or other obligations, the governmental agency shall have the exclusive option to acquire the public project or public projects for the amount required to discharge such bonds, notes or other obligations, and is provided a reasonable time to exercise such option; (iii) that the issuance of such bonds, notes or other obligations shall be directed by and approved by such governmental agency not more than sixty (60) days prior to the date of issue of such obligations; and (iv) that no bonds, notes or other obligations shall be issued by such corporation for and on behalf of such governmental agency except upon express direction of such governmental agency. (4) Any governmental agency creating a corporation pursuant to this section to act for and on behalf of, and as the agency and instrumentality of, such governmental agency in the acquisition and financing of a public project or public projects shall, at all times either (i) exercise organizational control over such corporation by creating the corporation pursuant to this section, and retain authority at any and all times to alter or change the structure, organization, programs or activities of the corporation, including the power to terminate existence of the corporation, subject to any limitation on the impairment of contracts entered into by such corporation, or shall (ii) exercise supervisory control over such corporation as may be deemed proper by the governmental agency in the administration of the corporation's activities as a constituted authority of such governmental agency, and as may be required from time to time by federal law in order to qualify the corporation to issue bonds, notes or other obligations on behalf of the governmental agency. (5) It shall be provided, inter alia, in the articles of incorporation of any such corporation and constituted authority created to act as the agency and instrumentality of a governmental agency and to finance public projects for such governmental agency on its behalf and thereby accomplish a public purpose of such governmental agency, (i) that any net revenues of such corporation beyond those necessary for retirement of indebtedness, or implementation of the public purpose or purposes of the corporation and the governmental agency shall not inure to the benefit of any person other than the governmental agency; (ii) that upon dissolution of the corporation, title to all property owned by such corporation shall vest in the governmental agency; and (iii) that the corporation shall be created and operated solely and only to accomplish one or more of the public purposes of the governmental agency and for the acquisition and financing of public projects for and on behalf of such governmental agency. (6) The governing body of such corporation shall consist solely and only of the following individuals: (a) Public officials of the governmental agency as ex officio members; or (b) Persons appointed by the governmental agency or by public officials of the governmental agency. Effective: June 20, 2005 History: Amended 2005 Ky. Acts ch. 146, sec. 1, effective June 20, 2005. -- Created 1976 Ky. Acts ch. 334, sec. 1.

KRS 58.190 Action challenging validity of ordinance or resolution authorizing bond issue

58.190. Action challenging validity of ordinance or resolution authorizing bond issue (1) As used in this section, "lease" has the same meaning as in KRS 65.940. (2) Any action challenging the validity or enforceability of: (a) Any ordinance or resolution adopted by any governmental agency approving the issuance of bonds, notes, or leases; or (b) Any bond, note, or lease approved by an ordinance or resolution; shall be brought within thirty (30) days from the date on which notice of the adoption of the ordinance or resolution is published in accordance with KRS Chapter 424. (3) If the action challenging the validity or enforceability of the ordinance, resolution, bond, note, or lease is not brought within the time provided by subsection (2) of this section, the action shall be forever barred. Effective: June 27, 2019 History: Amended 2019 Ky. Acts ch. 35, sec. 1, effective June 27, 2019. -- Created 1986 Ky. Acts ch. 260, sec. 1, effective July 15, 1986.

KRS 58.200 Restroom requirements for certain public buildings used for specified purposes

58.200. Restroom requirements for certain public buildings used for specified purposes (1) As used in this section: (a) "Public building" means a building, or a portion thereof, with a capacity of ten thousand (10,000) or more people, owned or leased by a state or local governmental agency, as defined in KRS 58.010, in which the general public congregates to observe or participate in arts, sports, entertainment, and other types of assembly uses as defined by the Kentucky building code; (b) "Restroom facility" means a toilet, chemical toilet, or water closet; and (c) "Newly-constructed public building" means: 1. A new public building; 2. A new addition to or expansion of an existing public building; or 3. The altered or renovated portion of an existing public building if the alteration or renovation requires more than fifty percent (50%) of the floor area of the entire building to be rebuilt. Cosmetic work, including painting, wall covering, wall paneling, floor covering, or suspended ceiling work, shall not be considered an alteration or renovation. (2) Any newly-constructed public building shall be equipped with twice the number of restroom facilities for use by women as it provides restroom facilities for use by men. This section shall apply to newly-constructed public buildings for which a contract for design or construction is awarded after July 15, 1996. Effective: July 15, 1996 History: Created 1996 Ky. Acts ch. 354, sec. 1, effective July 15, 1996.

KRS 58.205 Issuance of revenue bonds for housing project outside jurisdictional boundaries

58.205. Issuance of revenue bonds for housing project outside jurisdictional boundaries After July 12, 2006, no city, county, charter county, urban-county, consolidated local government, or special district shall issue revenue bonds as provided in this chapter for any housing project which is located outside the jurisdictional boundaries of the issuing entity without the express written consent of the elected legislative body of the city, county, charter county, urban-county, or consolidated local government in which the housing project will be located. Effective: July 12, 2006 History: Created 2006 Ky. Acts ch. 178, sec. 2, effective July 12, 2006.

KRS 58.210 Repealed, 1998

58.210. Repealed, 1998 Catchline at repeal: Definitions. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 1.

KRS 58.215 Repealed, 1998

58.215. Repealed, 1998 Catchline at repeal: Capital Plaza Authority -- Powers -- Members -- Appointment -- Compensation -- Officers -- Records. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Amended 1996 Ky. Acts ch. 194, sec. 3, effective July 15, 1996. -- Amended 1984 Ky. Acts ch. 159, sec. 1, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 393, sec. 36, effective July 15, 1982. -- Created 1966 Ky. Acts ch. 207, sec. 2.

KRS 58.220 Repealed, 1998

58.220. Repealed, 1998 Catchline at repeal: Powers of authority. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Amended 1976 Ky. Acts ch. 140, sec. 21. -- Created 1966 Ky. Acts ch. 207, sec. 3.

KRS 58.225 Repealed, 1998

58.225. Repealed, 1998 Catchline at repeal: Agreements for financing or construction of projects. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 4.

KRS 58.230 Repealed, 1998

58.230. Repealed, 1998 Catchline at repeal: Leases by authority -- Terms. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Amended 1978 Ky. Acts ch. 384, sec. 15, eff4ective June 17, 1978. -- Amended 1974 Ky. Acts ch. 74, Art. II, sec. 9(1). -- Created 1966 Ky. Acts ch. 207, sec. 5.

KRS 58.235 Repealed, 1998

58.235. Repealed, 1998 Catchline at repeal: Revenue bonds, issuance -- Contents. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Amended 1968 Ky. Acts ch. 110, sec. 5. -- Created 1966 Ky. Acts ch. 207, sec. 6.

KRS 58.240 Repealed, 1998

58.240. Repealed, 1998 Catchline at repeal: Bonds not obligations of state -- How paid. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 7.

KRS 58.245 Repealed, 1998

58.245. Repealed, 1998 Catchline at repeal: Security for bonds, forms -- Terms of trust indenture. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 8.

KRS 58.250 Repealed, 1998

58.250. Repealed, 1998 Catchline at repeal: Bondholders may enforce rights. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 10.

KRS 58.255 Repealed, 1998

58.255. Repealed, 1998 Catchline at repeal: Bonds of authority, legal investments. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 12.

KRS 58.260 Repealed, 1998

58.260. Repealed, 1998 Catchline at repeal: Refunding bonds. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 15.

KRS 58.265 Repealed, 1998

58.265. Repealed, 1998 Catchline at repeal: Funds received as trust funds. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 9.

KRS 58.270 Repealed, 1998

58.270. Repealed, 1998 Catchline at repeal: Authority tax-exempt. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 9.Created 1966 Ky. Acts ch. 207, sec. 11.

KRS 58.275 Repealed, 1998

58.275. Repealed, 1998 Catchline at repeal: Acquisition of property -- Condemnation. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 14.

KRS 58.280 Repealed, 1998

58.280. Repealed, 1998 Catchline at repeal: Operation and maintenance of project by lessee. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 13(1).

KRS 58.285 Repealed, 1998

58.285. Repealed, 1998 Catchline at repeal: Local governments may convey or lease to authority, procedure. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created Ky. Acts ch. 207, sec. 13(3).

KRS 58.290 Repealed, 1998

58.290. Repealed, 1998 Catchline at repeal: Conveyance to lessee, when. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 16.

KRS 58.295 Repealed, 1998

58.295. Repealed, 1998 Catchline at repeal: Compensation for damage to private property. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 13(2).

KRS 58.300 Repealed, 1998

58.300. Repealed, 1998 Catchline at repeal: Engineering and other studies authorized -- Expense, how paid. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 17.

KRS 58.305 Repealed, 1998

58.305. Repealed, 1998 Catchline at repeal: Annual report of authority -- Audit. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Amended 1978 Ky. Acts ch. 384, sec. 14, effective June 17, 1978. -- Created 1966 Ky. Acts ch. 207, sec. 13(4).

KRS 58.310 Repealed, 1998

58.310. Repealed, 1998 Catchline at repeal: Officer or employee not to purchase bonds, penalty. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 13(5).

KRS 58.315 Repealed, 1998

58.315. Repealed, 1998 Catchline at repeal: Act supplemental to other powers. History: Repealed 1998 Ky. Acts ch. 83, sec. 7, effective July 15, 1998. -- Created 1966 Ky. Acts ch. 207, sec. 18.

KRS 58.410 Definitions for KRS 58.410 to 58.440

58.410. Definitions for KRS 58.410 to 58.440 (1) As used in KRS 58.410 to 58.440, unless the context otherwise requires: (a) "Public body" means the Commonwealth, its political subdivisions, its municipalities, its school and other taxing districts, its nontaxing public bodies and institutions, and any and all agencies and instrumentalities thereof, whether such agencies or instrumentalities be now existing or hereafter created and established under and pursuant to specific statutory authority, or whether such agencies or instrumentalities be now existing or hereafter organized, established, and caused to exist as nonprofit corporations under applicable general laws, having performance as such agencies or instrumentalities as their sole corporate purposes; (b) "Public obligation" means bonds, notes, warrants, or other obligations of any public body; (c) "Rate of interest" means both the coupon or stated interest rate applicable to any public obligation, and the effective interest rate or interest cost percentage, computed upon the basis of the coupon or stated interest rate or rates and the price actually to be received by the issuing public body; provided, however, KRS 58.410 to 58.440 is not intended, and shall not be construed, to amend, alter, or repeal any existing law requiring that certain public obligations be sold at not less than the face amount thereof. (2) KRS 58.410 to 58.440 does not relate to or affect borrowing by any person or corporation except such as are within the definition of "public body" as set forth in this section. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 291, effective July 13, 1990. -- Created 1970 Ky. Acts ch. 24, sec. 1.

KRS 58.420 Public policy as to bond interest rates

58.420. Public policy as to bond interest rates It is hereby determined and declared to be the public policy of the Commonwealth that interest rates payable by public bodies upon public obligations be such as to be competitive with those rates which are permitted by other states, in order that necessary public projects may be financed and may be undertaken in the interest of the public health, safety, and general welfare. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 292, effective July 13, 1990. -- Created 1970 Ky. Acts ch. 24, sec. 2.

KRS 58.430 Removal of interest rate limits

58.430. Removal of interest rate limits From and after March 9, 1970, notwithstanding any other acts or laws of other import which may presently prevail, wherever the same may be found in the Kentucky Revised Statutes as of such date, it shall be lawful for public bodies to establish, agree, and bind themselves to pay interest upon their public obligations at any rate or rates which may be determined upon by the governing bodies of the respective public bodies which are the issuers thereof; but subject, nevertheless, to such approvals as may now or hereafter be applicable thereto according to law. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 293, effective July 13, 1990. -- Created 1970 Ky. Acts ch. 24, sec. 3.

KRS 58.440 Refinancing at higher rate than that of original issue

58.440. Refinancing at higher rate than that of original issue If any public body shall determine: (1) That financing of a public project may be accomplished to the best advantage in the public interest only by combining the same with refinancing of previously issued and outstanding public obligations at a rate or rates of interest higher than the rate or rates otherwise applicable thereto; (2) That refinancing of a public project at a higher interest rate or rates is necessary in order to prevent or anticipate default in payment of interest or principal of public obligations with regard thereto; or (3) That any combination of the circumstances described in subsection (1) or (2) of this section exists; then such refinancing is recognized to be lawful; provided, however, that prior to any such refinancing at a higher rate or rates of interest, the issuing public body shall make and spread at large upon its public records its determination that such action is necessary or desirable in the public interest, and its reasons therefor. Effective: July 13, 1990 History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 294, effective July 13, 1990. -- Created 1970 Ky. Acts ch. 24, sec. 4.

KRS 58.500 Authority created to acquire Churchill Downs -- Appointment of members - - Terms of office -- Compensation -- Officers

58.500. Authority created to acquire Churchill Downs -- Appointment of members - - Terms of office -- Compensation -- Officers (1) (a) A Churchill Downs authority is hereby created, initially consisting of three (3) prominent citizens and residents of Kentucky to be appointed by the Governor, one (1) of whom is an owner and breeder of Thoroughbred horses, and all of whom have no official connection with the government of the Commonwealth or Churchill Downs. The foregoing members shall serve as such until the acquisition of Churchill Downs, its real estate, franchises, rights, privileges and other properties by the authority as an agency of the Commonwealth. (b) Upon the completion of such acquisition, the then members of the authority shall be replaced by other members thereof as follows: nine (9) persons to be appointed by the Governor, who are residents or owners of real estate located in the Commonwealth and who are of outstanding character, business experience and at least six (6) of whom have knowledge of racing and the affairs of Churchill Downs, and not less than three (3) of whom shall be residents of Jefferson County. The Governor shall initially appoint nine (9) persons having such qualifications, two (2) each for staggered terms ranging from one (1) to four (4) years as he may designate and one (1) person for a term of four (4) years. (c) As such terms expire, the then remaining members of the authority, by majority vote, shall select and submit to the Governor for his consideration the names of three (3) qualified nominees to fill each vacancy, one (1) of whom may be a member whose term has expired, from which the Governor shall appoint, for a four (4) year term, a member to fill the vacancy. After all members of the authority appointed as aforesaid have been appointed for a four (4) year term following the expiration of their initial staggered terms, the procedure outlined above shall be continued in filling vacancies of members of the authority as they occur through the expiration of terms. (d) When and if any member dies, resigns or becomes incapacitated, the then remaining members of the authority, by majority vote, shall select and submit to the Governor for his consideration the names of three (3) qualified nominees to fill such vacancy, from which the Governor shall appoint a member to fill the vacancy for the unexpired term. (e) The members shall be a body corporate constituting a public corporation, governmental agency and instrumentality of the Commonwealth by the name of "The Churchill Downs Authority" (herein sometimes referred to as the "authority"), with the perpetual succession and with power in that name to contract and be contracted with, to acquire and convey property, sue and be sued, to have and use a corporate seal, and exercise, in addition to the powers and functions specifically stated in KRS 58.500 to 58.590, all of the usual powers of private corporations to the extent that the same are not inconsistent with specifically enumerated powers or limitations upon public corporations. (2) The members of the authority shall receive no compensation for their services in that capacity, but shall be entitled to reimbursement for all reasonable expenses necessarily incurred in the performance of their duties. (3) A majority of the members of the authority shall constitute a quorum for the transaction of business, and in the absence of a quorum, one (1) or more members may adjourn from time to time until a quorum is convened. (4) From among its members, the authority shall annually elect a chairman and a vice chairman, each to serve for a term of one (1) year and until his successor is elected and accepts his election. (5) The authority shall elect a president, a secretary and a treasurer, each of whom shall serve for a term of years fixed by contract or an annual term, all terminable for cause deemed sufficient by the authority, and each of whom shall receive such compensation as may be determined by the authority. These officers shall not be members of the authority, but the president and the secretary shall attend all meetings of the authority. The treasurer shall give bond to the authority and the Commonwealth conditioned upon his faithful accounting for all funds coming into his custody from time to time, the same to be in such amount as the authority may prescribe, with corporate surety given by a surety company qualified to do business in the Commonwealth, the premium therefor to be paid by the authority. The authority shall establish and maintain an office at Churchill Downs, and the secretary of the authority shall at all times maintain therein complete records of all of the authority's actions and proceedings, which shall constitute public records open to inspection at reasonable times. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 1, effective June 17, 1978.

KRS 58.510 Powers of authority

58.510. Powers of authority The authority may: (1) Purchase Churchill Downs, its real estate, franchises, rights, privileges and other properties, and acquire such additional real estate as may become desirable in connection with the activities of Churchill Downs, and may construct, reconstruct, maintain and repair improvements on Churchill Downs, and operate the same for appropriate purposes, including, but not limited to, holding and conducting race meetings for stake, purse or reward, and providing and operating a pari-mutuel system of wagering in accordance with the provisions of KRS Chapter 230 or as may otherwise be authorized by law. (2) Lease properties and concessions at Churchill Downs not needed by the authority for its current operations and sell such property as is not needed for the future operation of Churchill Downs at its present site. (3) Make and enter into such contracts and agreements with the Commonwealth of Kentucky or any federal, city or county government, or other person or corporation, as may be necessary or incidental to the performance of its duties and the execution of its powers under KRS 58.500 to 58.590. (4) Employ consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers and such other employees and agents as may be necessary in the judgment of the authority, and fix their compensation. (5) Receive and accept from the Commonwealth or any of its departments, any federal agency and the city or county, grants for or in aid of the construction or operation of any project, and receive and accept aid or contributions from any source of either money, property, labor or other things of value, to be held, used and applied for the purposes for which such grants and contributions may be made in furtherance of the business of the authority. (6) Expend any funds provided under the authority of KRS 58.500 to 58.590 in advertising the facilities, services and projects of the authority. (7) Do all acts necessary and proper to carry out the powers expressly or impliedly granted in KRS 58.500 to 58.590. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 2, effective June 17, 1978.

KRS 58.520 Development of museum

58.520. Development of museum If the authority deems it advisable, it may further develop the museum at Churchill Downs and, in connection therewith, establish a facility and devices through which prior Kentucky Derby and other important races run at Churchill Downs may be exhibited to patrons of Churchill Downs during race meetings and to off-season tourist visitors. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 3, effective June 17, 1978.

KRS 58.530 Use of facilities for events other than horse racing

58.530. Use of facilities for events other than horse racing The authority may also conduct or permit the conduct of other athletic and entertainment events at Churchill Downs and the use of its facilities in connection therewith, provided such activities or events do not conflict with or impinge upon the proper operation thereof primarily as a racetrack. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 4, effective June 17, 1978.

KRS 58.540 Power to issue revenue bonds for particular purposes -- Interim financing

58.540. Power to issue revenue bonds for particular purposes -- Interim financing (1) The authority may provide for the issuance of revenue bonds to pay all or any part of the cost of the acquisition of the properties of Churchill Downs or expenses incident thereto referred to in KRS 58.510, or any part thereof or interest therein, and secure the payment thereof by a lien on the properties acquired with the proceeds of the bonds. The bonds shall bear interest at such rate not exceeding ten percent (10%) per annum and shall mature at such time not exceeding fifteen (15) years from their date, as may be provided by the authority, and may be made redeemable before maturity, at the option of the authority, at a price not less than the face amount thereof and accrued interest thereon. The proceeds of the bonds shall be used solely for the payment of the cost of the acquisition of Churchill Downs or expenses incident thereto, and shall be disbursed in such manner and under such restrictions, if any, as the authority may provide in the proceedings authorizing the issuance of the bonds or in the trust indenture securing the same. (2) Notwithstanding KRS Chapter 56, the authority, in addition to the revenue bonds originally issued for the acquisition of Churchill Downs or expenses incident thereto as provided for in subsection (1) of this section, may issue revenue bonds payable solely from the charges, revenues, rentals and other funds pledged for their payment, for the purpose of paying all or any part of the cost of the acquisition of additional property, the reconstruction of improvements or the erection of additional improvements, but such revenue bonds shall be subordinate to the revenue bonds issued for the original acquisition of Churchill Downs or expenses incident thereto. (3) Notwithstanding KRS Chapter 56, the authority, in addition to the revenue bonds originally issued for the acquisition of Churchill Downs or expenses incident thereto as provided for in subsection (1) of this section, and for the acquisition of additional property, the reconstruction of improvements or the erection of additional improvements provided for in subsection (2) of this section, may issue revenue bonds payable solely from the charges, revenues, rentals and other funds pledged for their payment, for the purpose of paying all or any part of the cost of further developing the museum at Churchill Downs and establishing a facility for the exhibition of prior Kentucky Derby and other important races held at Churchill Downs as aforesaid, but such revenue bonds shall be subordinate to any then outstanding previously issued revenue bonds. (4) The authority may agree to or establish any method of interim financing by the authority during the acquisition of additional property, the reconstruction of improvements or the erection of additional improvements hereinbefore provided for and in developing the museum at Churchill Downs and establishing a facility for the exhibition of prior Kentucky Derby and other important races held at Churchill Downs as aforesaid, with borrowed funds from any bank, trust company, or banking institution, such borrowings to be paid from earnings or through the sale of revenue bonds before, during or at completion of such project, but such revenue bonds shall be subordinate to any then outstanding previously issued revenue bonds; and the interest rates, maturities and other provisions shall be such as the authority may at the time of issuance deem to be proper. (5) If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than the cost for which issued, additional bonds may in like manner be issued to provide the amount of the deficit, and, unless otherwise provided in the proceedings authorizing the issuance of the bonds or in the trust indenture securing the same, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue exceed such cost, the surplus shall be deposited to the credit of the sinking fund for such bonds or any account therein as the authority shall have provided in the proceedings or trust indenture authorizing and securing the bonds. (6) Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds have been executed and are available for delivery. The authority may also provide for the replacement of any bonds that become mutilated or are destroyed or lost. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 5, effective June 17, 1978.

KRS 58.550 Bonds may be issued without any departmental consent -- Bond sale not governed by KRS 56.450

58.550. Bonds may be issued without any departmental consent -- Bond sale not governed by KRS 56.450 The issuance of revenue bonds by the authority under the provisions of KRS 58.500 to 58.590 need not comply with the requirements of any other law applicable to the issuance of bonds. Bonds may be issued under the provisions of KRS 58.500 to 58.590 without obtaining the consent of any department, division, commission, board, bureau or agency of the Commonwealth, and without any proceedings or any other conditions or things, except as specifically required by KRS 58.500 to 58.590. The provisions of KRS 58.500 to 58.590 will supersede KRS 56.450 in regard to the sale of revenue bonds by this authority. Utilization may be made by the authority, however, of the provisions of sections of this chapter relating to issuance of revenue bonds for public projects generally in respect to: form, coupons, denominations, place of payment, signing, facsimile signatures, negotiability and method of sale. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 6, effective June 17, 1978.

KRS 58.560 Bonds not indebtedness of Commonwealth

58.560. Bonds not indebtedness of Commonwealth Bonds issued by the authority under the provisions of KRS 58.500 to 58.590 are issued on behalf of the Commonwealth but do not constitute a debt of the Commonwealth or of any political subdivision thereof, or a pledge of the faith and credit of the Commonwealth or of any such political subdivision, but such bonds and the interest thereon shall be payable solely from the funds and security provided therefor under the provisions of KRS 58.500 to 58.590, and all such bonds shall contain on the face thereof a statement to that effect. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 7, effective June 17, 1978.

KRS 58.570 Bonds may be secured by indenture

58.570. Bonds may be secured by indenture In the discretion of the authority, any bonds issued under the provisions of KRS 58.500 to 58.590 may be secured by a trust indenture by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company in the Commonwealth. If obtainable, insurance adequate to cover the unpaid amount of outstanding revenue bonds shall be carried on the improvements of Churchill Downs. All expenses incurred in carrying out the provisions of such trust indenture or proceedings may be treated as a part of the cost of the operation of the project. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 8, effective June 17, 1978.

KRS 58.580 Property of authority is public property -- Payment in lieu of taxes to local taxing units -- Revenues exempt from taxation

58.580. Property of authority is public property -- Payment in lieu of taxes to local taxing units -- Revenues exempt from taxation All projects and other property of the authority are hereby declared to be public property devoted to an essential public and governmental function and purpose, and shall be exempt from all taxes and special assessments of the Commonwealth or any political subdivision thereof, provided that the authority shall annually contribute to Louisville, Jefferson County, and the Jefferson County School District an amount equal to the local property taxes Churchill Downs would have paid under private ownership. All bonds or notes issued pursuant to KRS 58.500 to 58.590 are hereby declared to be issued by a body corporate and public of the Commonwealth and for an essential public and governmental purpose and such bonds and notes, and the interest thereon and the income therefrom, and all funds, revenues, income, and other moneys received or to be received by the authority and pledged or available to pay or secure the payment of such bonds or notes, or interest thereon, shall at all times be exempt from taxation except for transfer, inheritance, and estate taxes. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 9, effective June 17, 1978.

KRS 58.590 Annual report to Governor and General Assembly -- Annual audit

58.590. Annual report to Governor and General Assembly -- Annual audit By January 30 each year, the authority shall make an annual report of its activities for the preceding calendar year to the Governor and to the General Assembly. Each such report shall set forth a complete operating and financial statement covering its operations during the year. The authority shall provide for an audit of its books and accounts to be made at least once in each year by certified public accountants, and the cost thereof may be treated as a part of the cost of acquisition or operation of the project. Such audits shall be public records within the meaning of KRS 61.870. Effective: June 17, 1978 History: Created 1978 Ky. Acts ch. 111, sec. 10, effective June 17, 1978.

KRS 58.600 Definitions for KRS 58.600 to 58.610

58.600. Definitions for KRS 58.600 to 58.610 As used in KRS 58.600 to 58.610, unless the context requires otherwise: (1) "Energy conservation revenue bonds" or "bonds" means securities issued by a local public agency in accordance with the provisions of KRS 58.600 to 58.610 to pay for energy conservation measures under guaranteed energy savings contracts; (2) "Energy conservation measure" means a facility alteration designed to reduce energy consumption or operating costs, and may include one (1) or more of the following: (a) Insulation of building structure or systems within buildings; (b) Storm windows or doors, caulking or weatherstripping, multiple pane windows or doors, heat absorbing or heat reflective glazing for windows and doors, additional glazing, reductions in glass area or other window and door systems modifications that reduce energy consumption; (c) Automated or computerized energy control systems; (d) Heating, ventilating, or air conditioning system modifications or replacements; (e) Replacement or modification of lighting fixtures to increase energy efficiency of the lighting system without increasing the overall illumination of the building, unless an increase in illumination is necessary to conform to applicable state or local building codes for the lighting system after the proposed modifications are made; (f) Energy recovery systems; (g) Cogeneration systems that produce steam or forms of energy such as heat as well as electricity for use primarily within a building or complex of buildings; (h) Energy conservation measures that provide long-term operating cost reductions; or (i) Any life safety measures that provide long-term operating cost reductions; (3) "Local public agency" means a city, county, charter county, urban-county, school district, special district, or an agency formed by a combination of these agencies under KRS Chapter 79; (4) "Capital cost avoidance" has the same definition as in KRS 45A.345; and (5) "Guaranteed energy savings contract" has the same definition as in KRS 45A.345. Effective: July 15, 2010 History: Amended 2010 Ky. Acts ch. 63, sec. 13, effective July 15, 2010. -- Amended 1998 Ky. Acts ch. 375, sec. 6, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 213, sec. 1, effective July 15, 1996. Legislative Research Commission Note (7/12/2006). In subsection (5) of this statute, the Reviser of Statutes has changed a reference to "KRS 45A.345(26)" to read "KRS 45A.345(27)," in order to correct an error resulting from the renumbering of subsections in 1998 Ky. Acts ch. 120, sec. 12, and ch. 375, sec. 2. See KRS 7.136(1)(e) and (h).

KRS 58.605 Energy conservation revenue bonds for energy conservation measures -- Procedure

58.605. Energy conservation revenue bonds for energy conservation measures -- Procedure (1) Subject to the reporting and approval requirements in KRS 45A.352, 45A.353, and 58.610, any local public agency may issue energy conservation revenue bonds to pay for the cost of energy conservation measures under guaranteed energy savings contracts for the purpose of reducing the cost of energy to buildings owned or operated by the local public agency by making energy-saving improvements to these buildings. (2) A local public agency, or an agency acting on its behalf, may issue energy conservation revenue bonds to finance the energy conservation measures under guaranteed energy savings contracts, with the following limitations: (a) Any energy conservation measure, financed through bonds, shall comply with the provisions set forth in KRS 45A.345, 45A.352, and 45A.353; (b) The term of the bonds shall run coterminous with the term of guaranteed energy savings contract; (c) A local public agency shall not enter into a guaranteed energy savings contract where the total cost of the energy conservation measures exceeds the cost of the energy savings plus the operational costs plus the capital cost avoidance that is estimated for the term of the guaranteed energy savings contract commencing from the date of the energy conservation measure's installation; and (d) The use of capital cost avoidance shall be subject to the following restrictions: 1. The amount expended shall not exceed fifty percent (50%) of the project cost; and 2. Capital cost avoidance shall be restricted to payment for permanent equipment replacement as follows: a. Storm windows or doors, multiglazed windows or doors, additional glazing, and reduction in glass area; b. Replacement of heating, ventilating, or air conditioning major components or systems; c. New lighting fixtures where required to achieve Illuminating Engineering Society of North America (IES) standards, provided the existing light fixtures shall have been determined to be obsolete and incapable of achieving IES standards; and d. Life safety system replacements or upgrades which shall have been determined to be necessary to conform with existing state and local codes and standards. (3) Energy conservation revenue bonds shall be issued in accordance with the provisions of KRS 58.010 to 58.140 and shall be sold at a competitive sale preceded by adequate public notice and shall bear interest at an interest rate or rates determined by the local public agency at the time of the sale. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 120, sec. 31, effective July 15, 1998; and ch. 375, sec. 7, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 213, sec. 2, effective July 15, 1996. Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts chs. 120 and 375 which do not appear to be in conflict and have been codified together.

KRS 58.610 Issuance by school districts, county and city government, or special district - - Special procedure

58.610. Issuance by school districts, county and city government, or special district - - Special procedure (1) Energy conservation revenue bonds authorized under KRS 58.600 to 58.610 issued by or on behalf of a school district shall be approved or disapproved by the chief state school officer based on consideration of the following criteria: (a) Funding capability of the school; (b) The availability of general fund, capital outlay allotment under KRS 157.420, or state and local funds from the Facility Support Program of Kentucky under KRS 157.440, that are to be contributed by the school district as capital cost avoidance; and (c) Proper bond documentation. (2) Guaranteed energy savings and guaranteed operational savings of a guaranteed energy savings contract shall be exempt from current or future debt limitations, except that capital cost avoidance, as defined in KRS 58.600, shall not be exempt from current or future debt limitations. (3) No energy conservation revenue bonds authorized under KRS 58.600 to 58.610 shall be issued by or on behalf of a county, urban-county government, charter county government, city, or special district without the prior approval of the state local debt officer, except that this approval shall not be required if the principal amount of energy conservation revenue bonds is less than five hundred thousand dollars ($500,000). (4) Any issuance of energy conservation revenue bonds shall be reported to the state local debt officer. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 375, sec. 8, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 213, sec. 3, effective July 15, 1996.

KRS 58.615 Repealed, 1998

58.615. Repealed, 1998 Catchline at repeal: Authority for administrative regulations. History: Repealed 1998 Ky. Acts ch. 375, sec. 11, effective July 15, 1998; amended ch. 69, sec. 22, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 213, sec. 4, effective July 15, 1996. Legislative Research Commission Note (7/15/98). Under KRS 446.260, the repeal of this section in 1998 Ky. Acts ch. 375 prevails over its amendment in 1998 Ky. Acts ch. 69.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37286Fetched: 10/20/2026