<br><br>66.527 Indebtedness of board, how secured -- Refunding of obligations -- <br>Negotiability. <br>(1) The board may incur indebtedness, buy, lease, rent, sell, operate, manage, accept <br>gifts and grants, and do anything else necessary or proper to obtain for the county in <br>accordance with the board's plan the public improvements described therein. To <br>secure its obligations the board may pledge its assets subject to any prior pledges or <br>charges against them. The board may incur indebtedness the security for the <br>payment of which is a special fund rather than the unencumbered assets of the <br>board. The board may pledge its expected receipts from one or more sources to <br>secure payment of its various debts and obligations. The board may make such <br>covenants and agreements with its creditors as may be necessary or proper to reduce <br>the cost to the board of the indebtedness. Those covenants or agreements may <br>include arrangements for the operation of public improvements by trustees for the <br>benefit of creditors in the event of a default by the board in the timely payment of <br>indebtedness. <br>(2) In addition to any method of refunding established by covenants in the board's <br>obligations, the board may for any indebtedness refund it in advance of its maturity <br>by borrowing against the same security as pledged for the original indebtedness and <br>substituting as security for the original indebtedness general obligations of the <br>United States or its agencies if (a) the principal and interest of the obligations of the <br>United States (or its agencies) are payable in time and sufficient in amount to defray <br>seasonably and fully the board's outstanding obligation on the original indebtedness, <br>and (b) the net annual interest cost of the indebtedness to the board will be reduced. <br>(3) Obligations of the board may be made negotiable. Except as otherwise provided <br>herein, the board's obligations shall be in the form established by KRS 58.010 to <br>58.140. <br>History: Created 1966 Ky. Acts ch. 232, sec. 7. <br><br>