67A.883 Ordinance of bond authorization -- Trust indenture.
(1) Following compliance with the foregoing provisions of KRS 67A.871 to 67A.882,
the urban-county council of the government may adopt an ordinance known as the <br>ordinance of bond authorization. The ordinance of bond authorization shall make <br>provision, for the following: <br>(a) Determining and confirming the nature and scope of the project, the real
properties to be benefited thereby (which shall be all benefited properties <br>identified in the ordinance of initiation and the ordinance of determination, <br>excepting properties as to which lump sum payment of improvement benefit <br>assessment levies has been made within the statutory period), the exact <br>method of assessment of benefited properties and the costs of the projects;
(b) Authorizing the issuance of bonds of the government from time to time which
shall be designated "improvement lien bonds" and which shall additionally <br>identify the project by reference to its name or title;
(c) Determining the principal amount of the bond issue, subject to the provisions
of KRS 67A.891;
(d) Establishing the denomination and maturity dates of the bonds, which may be
term or serial maturities not to exceed thirty (30) years from date of issue, and <br>providing for the issuance of the bonds in series, if so ordered, each such <br>series to be equally secured on a pari passus basis by improvement benefit <br>assessments levied on all benefited properties and by liens in respect thereto;
(e) Levying an annual improvement benefit assessment effective upon the
benefited properties, except such properties for which lump sum payment of <br>the improvement benefit assessment has been made pursuant to KRS <br>67A.882(3), pursuant to the assessed value basis according to either their <br>respective assessed land values as determined for purposes of general ad <br>valorem taxation, or upon a basis of equality by zones, pursuant to findings of <br>fact by the urban-county council that benefited properties in particular zone <br>classifications are to be treated equally for assessment purposes because of <br>substantial equality of benefits conferred, such assessments to be made <br>without regard to any constitutional or other limits otherwise applicable to <br>taxation for general ad valorem purposes, the annual rate of such improvement <br>assessment to be fixed when regular county ad valorem taxes are levied and to <br>be sufficient in each year to provide for the payment of the bonds and interest <br>coupons as they mature; and, in each year until accrual of the debt service <br>reserve requirement, to be sufficient to provide in addition a sum equal to <br>twenty percent (20%) of maximum annual principal and interest requirements, <br>the same to constitute a debt service reserve fund as a precaution against <br>possible default by reason of failures in the collection of the annual levies as <br>hereinafter provided; provided, however, that in the event the government <br>shall have provided that the debt service reserve requirement be financed from <br>bond proceeds as one of the costs of the project, such additional levies to <br>accrue, the debt service reserve requirement shall be omitted, but it shall be
promptly instituted at any time in order to maintain the debt service reserve <br>requirement at its prescribed level;
(f) Covenanting with the holders of the bonds and coupons that until the payment
in full thereof the government will levy annually an improvement benefit <br>assessment upon each benefited property, as provided in the foregoing <br>subsection (e) hereof; provided, that the government may provide by <br>ordinance that certain benefited properties shall be omitted from assessment <br>during initial periods not to exceed three (3) years because of construction <br>scheduling;
(g) Covenanting with the holders of the bonds and coupons that until payment in
full thereof, the government will pursue and exhaust at the expense of the <br>government all remedies available to the government for the benefit and <br>protection of the bondholders, including both termination of water service to <br>delinquent real properties and enforcement of judgment and decretal sale of <br>the liens upon benefited properties which are granted by KRS 67A.871 to <br>67A.894;
(h) Designating one or more places of payment of principal and interest within or
without the Commonwealth;
(i) Specifying or omitting provisions for redemption and payment prior to stated
maturities and the terms thereof;
(j) Providing for the payment by the government of any and all reasonable and
customary charges for the services of trustees and paying agents to the end <br>that the holders of the bonds and coupons will receive the sums therein <br>stipulated without deduction for such charges; and
(k) Any other provisions not contrary to law. The government is expressly
authorized and empowered to finance any particular project by an issue of <br>bonds which may be sold and delivered in one or more series, each of which <br>series is equally and indistinguishably secured, as provided in KRS 67A.871 <br>to 67A.894, by improvement benefit assessments levied upon all benefited <br>properties, except such properties for which lump sum payment of the <br>improvement benefit assessment has been made pursuant to KRS 67A.882(3) <br>and liens granted for the security of bondholders by KRS 67A.871 to 67A.894 <br>on benefited properties shall apply to each such benefited property and in <br>favor of every bond of each such series, whenever issued.
(2) In the discretion of the urban-county council of the government, any improvement
lien bonds or bond anticipation notes issued under the provisions of KRS 67A.871 <br>to 67A.894 may be secured by a trust indenture by and between the government and <br>a corporate trustee, which may be any trust company or bank having the powers of a <br>trust company within or without the Commonwealth of Kentucky. The trust <br>indenture of the government providing for the issuance of improvement lien bonds <br>or notes may pledge or assign for the security of improvement lien bonds or notes <br>all or any part of the totality of improvement benefit assessments levied, collected, <br>enforced and received by the government. The trust indenture shall contain <br>provisions for protecting and enforcing the rights and remedies of the bondholders
as may be reasonable, proper and not in violation of law, including covenants and <br>provisions setting forth the duties of the government in relation to the purposes to <br>which improvement lien bond proceeds may be applied; the disposition and <br>pledging of receipts of improvement benefit assessments; and the custody, <br>safeguarding and application of all improvement benefit assessment revenues. It <br>shall be lawful for any bank or trust company incorporated under the laws of the <br>Commonwealth which may act as depository of the proceeds of bonds, notes or of <br>government revenues, to furnish indemnity bonds or to pledge securities as may be <br>required by the trust indenture of the government. Any trust indenture may set forth <br>the rights and remedies of the bondholders and of the indenture trustee and may <br>restrict the individual right of action by bondholders. In addition to the foregoing, <br>any trust indenture may contain any other provisions as the government may <br>determine to be reasonable and proper for the further security of the holders of the <br>bonds. All expenses incurred in carrying out the provisions of the trust indenture <br>shall be treated as a part of the costs of the project and shall be paid from either the <br>proceeds of the bonds or, during the life of the bond issue, from the proceeds of <br>improvement benefit assessments levied against and collected from, benefited <br>properties.
(3) All bonds issued under the provisions of KRS 67A.871 to 67A.894 shall have and
are hereby declared to possess all of the qualities and incidences of negotiable <br>instruments under the laws of Kentucky. The bonds may be issued in coupon or in <br>registered form or in both, as the government may determine, and provision may be <br>made for the registration of any coupon bonds as to principal only and also as to <br>both principal and interest and for the reconversion into coupon bonds of any bonds <br>registered as to both principal and interest. The government may sell the bonds in <br>any manner either at public or private sale, and for any price as it may determine <br>will best effect the purposes of KRS 67A.871 to 67A.894.
(4) Any government initiating a project pursuant to KRS 67A.871 to 67A.894 shall
have and possess all powers and the authority set forth in KRS 58.150.
Effective: July 15, 1982 <br>History: Amended 1982 Ky. Acts ch. 334, sec. 2, effective July 15, 1982. -- Created
1976 Ky. Acts ch. 371, sec. 13, effective March 30, 1976.
67A.883 Ordinance of bond authorization -- Trust indenture.
(1) Following compliance with the foregoing provisions of KRS 67A.871 to 67A.882,
the urban-county council of the government may adopt an ordinance known as the <br>ordinance of bond authorization. The ordinance of bond authorization shall make <br>provision, for the following: <br>(a) Determining and confirming the nature and scope of the project, the real
properties to be benefited thereby (which shall be all benefited properties <br>identified in the ordinance of initiation and the ordinance of determination, <br>excepting properties as to which lump sum payment of improvement benefit <br>assessment levies has been made within the statutory period), the exact <br>method of assessment of benefited properties and the costs of the projects;
(b) Authorizing the issuance of bonds of the government from time to time which
shall be designated "improvement lien bonds" and which shall additionally <br>identify the project by reference to its name or title;
(c) Determining the principal amount of the bond issue, subject to the provisions
of KRS 67A.891;
(d) Establishing the denomination and maturity dates of the bonds, which may be
term or serial maturities not to exceed thirty (30) years from date of issue, and <br>providing for the issuance of the bonds in series, if so ordered, each such <br>series to be equally secured on a pari passus basis by improvement benefit <br>assessments levied on all benefited properties and by liens in respect thereto;
(e) Levying an annual improvement benefit assessment effective upon the
benefited properties, except such properties for which lump sum payment of <br>the improvement benefit assessment has been made pursuant to KRS <br>67A.882(3), pursuant to the assessed value basis according to either their <br>respective assessed land values as determined for purposes of general ad <br>valorem taxation, or upon a basis of equality by zones, pursuant to findings of <br>fact by the urban-county council that benefited properties in particular zone <br>classifications are to be treated equally for assessment purposes because of <br>substantial equality of benefits conferred, such assessments to be made <br>without regard to any constitutional or other limits otherwise applicable to <br>taxation for general ad valorem purposes, the annual rate of such improvement <br>assessment to be fixed when regular county ad valorem taxes are levied and to <br>be sufficient in each year to provide for the payment of the bonds and interest <br>coupons as they mature; and, in each year until accrual of the debt service <br>reserve requirement, to be sufficient to provide in addition a sum equal to <br>twenty percent (20%) of maximum annual principal and interest requirements, <br>the same to constitute a debt service reserve fund as a precaution against <br>possible default by reason of failures in the collection of the annual levies as <br>hereinafter provided; provided, however, that in the event the government <br>shall have provided that the debt service reserve requirement be financed from <br>bond proceeds as one of the costs of the project, such additional levies to <br>accrue, the debt service reserve requirement shall be omitted, but it shall be
promptly instituted at any time in order to maintain the debt service reserve <br>requirement at its prescribed level;
(f) Covenanting with the holders of the bonds and coupons that until the payment
in full thereof the government will levy annually an improvement benefit <br>assessment upon each benefited property, as provided in the foregoing <br>subsection (e) hereof; provided, that the government may provide by <br>ordinance that certain benefited properties shall be omitted from assessment <br>during initial periods not to exceed three (3) years because of construction <br>scheduling;
(g) Covenanting with the holders of the bonds and coupons that until payment in
full thereof, the government will pursue and exhaust at the expense of the <br>government all remedies available to the government for the benefit and <br>protection of the bondholders, including both termination of water service to <br>delinquent real properties and enforcement of judgment and decretal sale of <br>the liens upon benefited properties which are granted by KRS 67A.871 to <br>67A.894;
(h) Designating one or more places of payment of principal and interest within or
without the Commonwealth;
(i) Specifying or omitting provisions for redemption and payment prior to stated
maturities and the terms thereof;
(j) Providing for the payment by the government of any and all reasonable and
customary charges for the services of trustees and paying agents to the end <br>that the holders of the bonds and coupons will receive the sums therein <br>stipulated without deduction for such charges; and
(k) Any other provisions not contrary to law. The government is expressly
authorized and empowered to finance any particular project by an issue of <br>bonds which may be sold and delivered in one or more series, each of which <br>series is equally and indistinguishably secured, as provided in KRS 67A.871 <br>to 67A.894, by improvement benefit assessments levied upon all benefited <br>properties, except such properties for which lump sum payment of the <br>improvement benefit assessment has been made pursuant to KRS 67A.882(3) <br>and liens granted for the security of bondholders by KRS 67A.871 to 67A.894 <br>on benefited properties shall apply to each such benefited property and in <br>favor of every bond of each such series, whenever issued.
(2) In the discretion of the urban-county council of the government, any improvement
lien bonds or bond anticipation notes issued under the provisions of KRS 67A.871 <br>to 67A.894 may be secured by a trust indenture by and between the government and <br>a corporate trustee, which may be any trust company or bank having the powers of a <br>trust company within or without the Commonwealth of Kentucky. The trust <br>indenture of the government providing for the issuance of improvement lien bonds <br>or notes may pledge or assign for the security of improvement lien bonds or notes <br>all or any part of the totality of improvement benefit assessments levied, collected, <br>enforced and received by the government. The trust indenture shall contain <br>provisions for protecting and enforcing the rights and remedies of the bondholders
as may be reasonable, proper and not in violation of law, including covenants and <br>provisions setting forth the duties of the government in relation to the purposes to <br>which improvement lien bond proceeds may be applied; the disposition and <br>pledging of receipts of improvement benefit assessments; and the custody, <br>safeguarding and application of all improvement benefit assessment revenues. It <br>shall be lawful for any bank or trust company incorporated under the laws of the <br>Commonwealth which may act as depository of the proceeds of bonds, notes or of <br>government revenues, to furnish indemnity bonds or to pledge securities as may be <br>required by the trust indenture of the government. Any trust indenture may set forth <br>the rights and remedies of the bondholders and of the indenture trustee and may <br>restrict the individual right of action by bondholders. In addition to the foregoing, <br>any trust indenture may contain any other provisions as the government may <br>determine to be reasonable and proper for the further security of the holders of the <br>bonds. All expenses incurred in carrying out the provisions of the trust indenture <br>shall be treated as a part of the costs of the project and shall be paid from either the <br>proceeds of the bonds or, during the life of the bond issue, from the proceeds of <br>improvement benefit assessments levied against and collected from, benefited <br>properties.
(3) All bonds issued under the provisions of KRS 67A.871 to 67A.894 shall have and
are hereby declared to possess all of the qualities and incidences of negotiable <br>instruments under the laws of Kentucky. The bonds may be issued in coupon or in <br>registered form or in both, as the government may determine, and provision may be <br>made for the registration of any coupon bonds as to principal only and also as to <br>both principal and interest and for the reconversion into coupon bonds of any bonds <br>registered as to both principal and interest. The government may sell the bonds in <br>any manner either at public or private sale, and for any price as it may determine <br>will best effect the purposes of KRS 67A.871 to 67A.894.
(4) Any government initiating a project pursuant to KRS 67A.871 to 67A.894 shall
have and possess all powers and the authority set forth in KRS 58.150.
Effective: July 15, 1982 <br>History: Amended 1982 Ky. Acts ch. 334, sec. 2, effective July 15, 1982. -- Created
1976 Ky. Acts ch. 371, sec. 13, effective March 30, 1976.
67A.883 Ordinance of bond authorization -- Trust indenture.
(1) Following compliance with the foregoing provisions of KRS 67A.871 to 67A.882,
the urban-county council of the government may adopt an ordinance known as the <br>ordinance of bond authorization. The ordinance of bond authorization shall make <br>provision, for the following: <br>(a) Determining and confirming the nature and scope of the project, the real
properties to be benefited thereby (which shall be all benefited properties <br>identified in the ordinance of initiation and the ordinance of determination, <br>excepting properties as to which lump sum payment of improvement benefit <br>assessment levies has been made within the statutory period), the exact <br>method of assessment of benefited properties and the costs of the projects;
(b) Authorizing the issuance of bonds of the government from time to time which
shall be designated "improvement lien bonds" and which shall additionally <br>identify the project by reference to its name or title;
(c) Determining the principal amount of the bond issue, subject to the provisions
of KRS 67A.891;
(d) Establishing the denomination and maturity dates of the bonds, which may be
term or serial maturities not to exceed thirty (30) years from date of issue, and <br>providing for the issuance of the bonds in series, if so ordered, each such <br>series to be equally secured on a pari passus basis by improvement benefit <br>assessments levied on all benefited properties and by liens in respect thereto;
(e) Levying an annual improvement benefit assessment effective upon the
benefited properties, except such properties for which lump sum payment of <br>the improvement benefit assessment has been made pursuant to KRS <br>67A.882(3), pursuant to the assessed value basis according to either their <br>respective assessed land values as determined for purposes of general ad <br>valorem taxation, or upon a basis of equality by zones, pursuant to findings of <br>fact by the urban-county council that benefited properties in particular zone <br>classifications are to be treated equally for assessment purposes because of <br>substantial equality of benefits conferred, such assessments to be made <br>without regard to any constitutional or other limits otherwise applicable to <br>taxation for general ad valorem purposes, the annual rate of such improvement <br>assessment to be fixed when regular county ad valorem taxes are levied and to <br>be sufficient in each year to provide for the payment of the bonds and interest <br>coupons as they mature; and, in each year until accrual of the debt service <br>reserve requirement, to be sufficient to provide in addition a sum equal to <br>twenty percent (20%) of maximum annual principal and interest requirements, <br>the same to constitute a debt service reserve fund as a precaution against <br>possible default by reason of failures in the collection of the annual levies as <br>hereinafter provided; provided, however, that in the event the government <br>shall have provided that the debt service reserve requirement be financed from <br>bond proceeds as one of the costs of the project, such additional levies to <br>accrue, the debt service reserve requirement shall be omitted, but it shall be
promptly instituted at any time in order to maintain the debt service reserve <br>requirement at its prescribed level;
(f) Covenanting with the holders of the bonds and coupons that until the payment
in full thereof the government will levy annually an improvement benefit <br>assessment upon each benefited property, as provided in the foregoing <br>subsection (e) hereof; provided, that the government may provide by <br>ordinance that certain benefited properties shall be omitted from assessment <br>during initial periods not to exceed three (3) years because of construction <br>scheduling;
(g) Covenanting with the holders of the bonds and coupons that until payment in
full thereof, the government will pursue and exhaust at the expense of the <br>government all remedies available to the government for the benefit and <br>protection of the bondholders, including both termination of water service to <br>delinquent real properties and enforcement of judgment and decretal sale of <br>the liens upon benefited properties which are granted by KRS 67A.871 to <br>67A.894;
(h) Designating one or more places of payment of principal and interest within or
without the Commonwealth;
(i) Specifying or omitting provisions for redemption and payment prior to stated
maturities and the terms thereof;
(j) Providing for the payment by the government of any and all reasonable and
customary charges for the services of trustees and paying agents to the end <br>that the holders of the bonds and coupons will receive the sums therein <br>stipulated without deduction for such charges; and
(k) Any other provisions not contrary to law. The government is expressly
authorized and empowered to finance any particular project by an issue of <br>bonds which may be sold and delivered in one or more series, each of which <br>series is equally and indistinguishably secured, as provided in KRS 67A.871 <br>to 67A.894, by improvement benefit assessments levied upon all benefited <br>properties, except such properties for which lump sum payment of the <br>improvement benefit assessment has been made pursuant to KRS 67A.882(3) <br>and liens granted for the security of bondholders by KRS 67A.871 to 67A.894 <br>on benefited properties shall apply to each such benefited property and in <br>favor of every bond of each such series, whenever issued.
(2) In the discretion of the urban-county council of the government, any improvement
lien bonds or bond anticipation notes issued under the provisions of KRS 67A.871 <br>to 67A.894 may be secured by a trust indenture by and between the government and <br>a corporate trustee, which may be any trust company or bank having the powers of a <br>trust company within or without the Commonwealth of Kentucky. The trust <br>indenture of the government providing for the issuance of improvement lien bonds <br>or notes may pledge or assign for the security of improvement lien bonds or notes <br>all or any part of the totality of improvement benefit assessments levied, collected, <br>enforced and received by the government. The trust indenture shall contain <br>provisions for protecting and enforcing the rights and remedies of the bondholders
as may be reasonable, proper and not in violation of law, including covenants and <br>provisions setting forth the duties of the government in relation to the purposes to <br>which improvement lien bond proceeds may be applied; the disposition and <br>pledging of receipts of improvement benefit assessments; and the custody, <br>safeguarding and application of all improvement benefit assessment revenues. It <br>shall be lawful for any bank or trust company incorporated under the laws of the <br>Commonwealth which may act as depository of the proceeds of bonds, notes or of <br>government revenues, to furnish indemnity bonds or to pledge securities as may be <br>required by the trust indenture of the government. Any trust indenture may set forth <br>the rights and remedies of the bondholders and of the indenture trustee and may <br>restrict the individual right of action by bondholders. In addition to the foregoing, <br>any trust indenture may contain any other provisions as the government may <br>determine to be reasonable and proper for the further security of the holders of the <br>bonds. All expenses incurred in carrying out the provisions of the trust indenture <br>shall be treated as a part of the costs of the project and shall be paid from either the <br>proceeds of the bonds or, during the life of the bond issue, from the proceeds of <br>improvement benefit assessments levied against and collected from, benefited <br>properties.
(3) All bonds issued under the provisions of KRS 67A.871 to 67A.894 shall have and
are hereby declared to possess all of the qualities and incidences of negotiable <br>instruments under the laws of Kentucky. The bonds may be issued in coupon or in <br>registered form or in both, as the government may determine, and provision may be <br>made for the registration of any coupon bonds as to principal only and also as to <br>both principal and interest and for the reconversion into coupon bonds of any bonds <br>registered as to both principal and interest. The government may sell the bonds in <br>any manner either at public or private sale, and for any price as it may determine <br>will best effect the purposes of KRS 67A.871 to 67A.894.
(4) Any government initiating a project pursuant to KRS 67A.871 to 67A.894 shall
have and possess all powers and the authority set forth in KRS 58.150.
Effective: July 15, 1982 <br>History: Amended 1982 Ky. Acts ch. 334, sec. 2, effective July 15, 1982. -- Created
1976 Ky. Acts ch. 371, sec. 13, effective March 30, 1976.
