56.520 Revenue bonds -- Investment of proceeds of authorized bonds.

Loading PDF...

56.520 Revenue bonds -- Investment of proceeds of authorized bonds. (1) The commission may issue and sell revenue or other authorized bonds, in carrying out the provisions of this chapter, in denominations and amounts, as is deemed to be for the best interest of the Commonwealth, for any of the following purposes: (a) To acquire real estate for state governmental use; (b) To pay all or any part of the expense or cost of or incidental to a building project for state governmental use; (c) To defray the cost of plans, specifications, blueprints, architectural fees, and other expenses authorized to be incurred for state governmental use. (2) The payment of bonds issued, together with the interest thereon, may be secured by a pledge and a first lien on all of the receipts and revenue derived, or to be derived, from the rental or operation of the property involved. Neither the payment of any bond, nor the interest thereon issued under the authority of this chapter, shall constitute an indebtedness of the Commonwealth of Kentucky, nor shall any bond or interest thereon be payable out of any fund except funds derived from rentals or other revenues derived from the operation of the properties or from revenues as are available for the purpose by law. (3) All competitive bids for the sale of revenue bonds shall be opened and read publicly by the secretary of the Finance and Administration Cabinet or the secretary's representative at a designated place, day, and hour, all of which shall be indicated in the notice made relative thereto. (4) If the commission issues and sells bonds for a building project as authorized by this chapter, insurance, including fire and windstorm, casualty, catastrophe, use and occupancy, and such other insurance as the commission may deem advisable, shall be carried in connection with the building project, and it may so obligate and bind itself in a trust indenture securing the payment of the bonds. Any insurance shall be paid for out of funds available for the project. (5) The commission may invest proceeds from the sale of its revenue or other authorized bonds in financial instruments and investments as provided in KRS 42.500 for the State Investment Commission. Effective: July 15, 1998 History: Amended 1998 Ky. Acts ch. 120, sec. 26, effective July 15, 1998; 207, sec. 1, effective July 15, 1998; and ch. 554, sec. 2, effective July 15, 1998. -- Amended 1990 Ky. Acts ch. 476, Pt. V, sec. 288, effective July 13, 1990. -- Amended 1988 Ky. Acts ch. 395, sec. 3, effective July 15, 1988. -- Amended 1976 Ky. Acts ch. 205, sec. 4, effective October 1, 1976. -- Amended 1968 Ky. Acts ch. 110, sec. 2; and ch. 152, sec. 22. -- Amended 1962 Ky. Acts ch. 15, sec. 3. -- Amended 1956 (1st Extra. Sess.) Ky. Acts ch. 7, Art. XVI, sec. 10. -- Amended 1956 Ky. Acts ch. 90, sec. 1. -- Created 1949 (1st Extra. Sess.) Ky. Acts ch. 11, sec. 9. Legislative Research Commission Note (7/13/90). The two Acts amending this section prevail over the repeal and reenactment in House Bill 940, Acts Ch. 476, pursuant to Section 653(1) of Acts Ch. 476. Because there is a conflict between these two amending Acts, the amending Act which was last enacted by the General Assembly prevails, pursuant to KRS 446.250. Legislative Research Commission Note (7/15/98). This section was amended by 1998 Ky. Acts chs. 120, 207, and 554 which do not appear to be in conflict and have been codified together.