<br><br> <br>Page 1 of 1 <br>42.200 Water project interest rate buy down fund -- Funding sources, purposes, <br>uses, and administration. <br>(1) The water project interest rate buy down fund is hereby created as a special fund in <br>the State Treasury. The fund may receive state appropriations, gifts, grants, and <br>federal funds and shall include earnings from investments of moneys in the fund. <br>Any fund balance at the close of the fiscal year shall not lapse but shall be carried <br>forward to the next fiscal year, and moneys in this fund shall be continuously <br>appropriated only for the purposes specified in this section. <br>(2) The fund shall be used to provide financial assistance to government agencies for <br>the construction of publicly owned water supply projects located in rural areas of <br>the Commonwealth. In order to qualify for the financial assistance, the <br>governmental agency shall obtain a loan from a bank or combined bank and trust <br>company organized under the laws of this Commonwealth and at an interest rate no <br>greater than two (2) percentage points higher than the current prime rate. The <br>financial assistance provided shall consist of an annual grant to the governmental <br>agency to be made over the life of the loan obtained by the governmental agency for <br>the construction of the publicly owned water supply project. The amount of the <br>annual grant shall be calculated over the life of the loan to provide to the <br>governmental agency each year the portion of the interest on the loan calculated at a <br>four percent (4%) interest rate. The governmental agency shall be responsible for <br>the payment of the interest on the loan in excess of the four percent (4%) interest <br>rate and for the payment of the principal on the loan. <br>(3) The Finance and Administration Cabinet shall administer the fund and may <br>promulgate administrative regulations as necessary to implement the provisions of <br>this section. The Department for Local Government shall advise government <br>agencies of the fund and how to apply for moneys from the fund. <br>(4) The provisions of this section shall be known and may be cited as the Kentucky <br>Rural Water Act. <br>Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 117, sec. 20, effective July 15, 2010. -- Amended <br>2007 Ky. Acts ch. 47, sec. 14, effective June 26, 2007. -- Amended 1998 Ky. Acts <br>ch. 69, sec. 6, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 322, sec. 1, <br>effective July 15, 1996. <br><br>