<br><br> <br>Page 1 of 1 <br>56.867 Project notes -- Sale and issuance -- Purposes -- Approval -- Status of notes <br>with respect to the Commonwealth and its political subdivisions. <br>(1) The commission may issue and sell project notes for authorized projects upon <br>request by the cabinet. Project notes may be sold and issued in a manner and have <br>terms relating to the payment of interest, principal, and premiums or discounts as <br>market conditions warrant. <br>(2) Appropriations requests for payments under the financing agreements on project <br>notes shall be made by the state agency requesting an authorized project unless the <br>payments are to be payable from funds not subject to appropriation. Project notes, <br>together with interest thereon, shall be repaid from payments received by the <br>commission from the cabinet under a financing agreement. The cabinet shall enter <br>into financing agreements with the commission for the issuance of project notes. <br>State agencies requesting funding for an authorized project shall enter into an <br>agreement with the cabinet for the issuance of project notes by the commission for <br>that state agency. Agreements authorized by this section shall be either financing <br>agreements, or alternative agreements which specify that any payments shall be <br>made from funds that are not subject to appropriation by the General Assembly. <br>(3) Project notes may be issued for the following purposes: <br>(a) To pay any or all the costs of an authorized project for any state agency; and <br>(b) To refund outstanding project notes or other obligations of any state agency. <br>(4) Project notes shall have a maximum maturity not to exceed one hundred twenty <br>percent (120%) of the expected useful economic life of the project as estimated by <br>the commission, and if more than one (1) project is being financed by the project <br>notes, then the weighted average of the expected useful economic lives shall be <br>used. <br>(5) The issuance of project notes shall be subject to KRS 56.870, to approval by the <br>State Property and Buildings Commission, and to review by the Capital Projects and <br>Bond Oversight Committee pursuant to KRS 45.810. <br>(6) Project notes may be refunded, in whole or in part, from the proceeds of bonds or <br>other obligations issued by any state agency authorized to issue bonds or other <br>obligations. <br>(7) Project notes shall not constitute a debt of the Commonwealth or any political <br>subdivision thereof or a pledge of the faith and credit of the Commonwealth or any <br>political subdivision. <br>Effective: May 30, 1997 <br>History: Created 1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 9, effective May 30, 1997. <br><br>