<br><br> <br>Page 1 of 1 <br>56.868 Funding notes -- Purposes -- Sale and issuance -- Approval -- Status of notes <br>with respect to the Commonwealth and its political subdivisions. <br>(1) The commission may issue and sell funding notes for the purposes of funding <br>judgments against the Commonwealth or any state agency and financing or <br>refinancing obligations owed under KRS 161.550(2) or 161.553(2). Funding notes <br>may be sold and issued in a manner and have terms relating to the payment of <br>interest, principal, and premiums or discounts as market conditions warrant. <br>(2) Appropriations requests for payment of principal and interest on funding notes shall <br>be made by the state agency against which a judgment has been rendered or, in the <br>case of financing or refinancing obligations owed under KRS 161.550(2) or <br>161.553(2), to the Kentucky Teachers' Retirement System. Funding notes, together <br>with interest thereon, shall be repaid from payments received by the commission <br>from the cabinet under a financing agreement. <br>(3) Funding notes may be issued for the following purposes: <br>(a) To pay for judgments, which shall include legal settlements, court-ordered <br>actions against the Commonwealth or any state agency, and any part of any <br>expense or cost incidental to legal settlements or court-ordered actions against <br>the Commonwealth or any state agency;(b) To <br>finance <br>or <br>refinance <br>obligations owed under KRS 161.550(2) or 161.553(2); and <br>(c) To refund outstanding issues of funding notes. <br>(4) The issuance of funding 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>(5) The cabinet, in providing for the expenditure of funds for any of the purposes <br>mentioned in this section, may provide by a financing agreement with the state <br>agency so affected for the funding of the Commonwealth's or that state agency's <br>judgment, and the state agency so affected is authorized to enter into a financing <br>agreement with the cabinet for that purpose. <br>(6) Funding 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, but the notes shall be payable solely from payments received <br>under the financing agreement relating to the funding notes. <br>Effective: April 26, 2010 <br>History: Amended 2010 Ky. Acts ch. 172, sec. 2, effective April 26, 2010. -- Created <br>1997 (1st Extra. Sess.) Ky. Acts ch. 4, sec. 10, effective May 30, 1997. <br><br>