56.8605 Definitions for KRS 56.860 to 56.869.
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56.8605 Definitions for KRS 56.860 to 56.869.
As used in KRS 56.860 to 56.869: <br>(1) "Authorized project" means:
(a) Any project approved by the General Assembly and included in an enacted
budget; or
(b) Any project approved by the General Assembly that is certified by the
secretary of the Finance and Administration Cabinet in accordance with the <br>provisions of KRS 56.870, to be of a type that will independently produce <br>revenues or will be payable from receipts of federal transportation funds that <br>are projected by the commission to be sufficient to fully meet debt service, <br>issuance costs, reserve fund requirements, insurance premiums, or any other <br>expenditures necessary for financing so that no appropriation of state funds is <br>required;
(2) "Cabinet" means the Finance and Administration Cabinet; <br>(3) "Commercial paper" means obligations that by their terms mature not more than
three hundred sixty-six (366) days from the date of their issuance and that may be <br>refunded;
(4) "Commission" means the Kentucky Asset/Liability Commission; <br>(5) "Estimated revenues" means the official revenue estimates established pursuant to
KRS 48.120 on or before the dates on which tax and revenue anticipation notes are <br>awarded to the purchaser;
(6) "Financial agreements" means interest rate swaps, options, or other agreements
between two (2) parties to exchange or have the conditional right to exchange <br>interest rate exposure from fixed rate to variable rate or from variable rate to fixed <br>rate, or to provide other economic benefit to an issuance of notes or a portfolio of <br>notes, or to hedge the net interest margin of the Commonwealth;
(7) "Financing agreement" means an agreement between the commission and the
cabinet, or between the cabinet and a state agency, relating to the funding of <br>projects or items associated with projects as described in KRS 56.867(3), a <br>judgment against a state agency or the Commonwealth, or the finance or refinance <br>of obligations owed under KRS 161.550(2) or 161.553(2). The provisions of a <br>financing agreement shall require either the cabinet to make payments to the <br>commission relating to the commission's issuance of notes, or the state agency to <br>make payments to the cabinet reimbursing the cabinet for its payments to the <br>commission on the agency's behalf. The obligations of the cabinet or the state <br>agency under a financing agreement shall be contingent upon appropriations by the <br>General Assembly to the cabinet or to the agency for the payment of those <br>obligations;
(8) "Fixed-rate obligations" means obligations on which the interest rate remains
constant to maturity;
(9) "Funding notes" means notes issued under the provisions of KRS 56.860 to 56.869
by the commission for the purpose of funding:
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(a) Judgments, with a final maturity of not more than ten (10) years; and <br>(b) The finance or refinance of obligations owed under KRS 161.550(2) or
161.553(2);
(10) "Interest-sensitive assets" means tangible and intangible property held by the
Commonwealth whose market value is dependent upon the level of interest rates;
(11) "Interest-sensitive liabilities" means interest-bearing debts or other obligations of
the Commonwealth or a state agency;
(12) "Multimodal obligations" means obligations for which the time period for
establishing the rate of interest may be selectively determined and altered;
(13) "Net interest margin" means the net income or expense associated with the
difference between the Commonwealth's interest-sensitive assets and interest-<br>sensitive liabilities;
(14) "Project notes" means notes issued under the provisions of KRS 56.860 to 56.869
by the commission with a final maturity of not more than twenty (20) years for the <br>purpose of funding authorized projects, which may include bond anticipation notes;
(15) "State agency" means any state administrative body, agency, department, or division
as defined in KRS 42.005, and set out in KRS Chapter 12, or any board, <br>commission, institution, state university, or division exercising any function of the <br>Commonwealth;
(16) "Tax and revenue anticipation notes" means notes that are issued under the
provisions of KRS 56.860 to 56.869 by the commission with a final maturity that is <br>no later than the last day of the fiscal year during which the tax and revenue <br>anticipation notes are issued and that are issued in anticipation of estimated <br>revenues to be received in that fiscal year; and
(17) "Variable-rate demand obligations" means obligations on which the rate of interest
is set by reference to a predetermined index or formula, by auction, by an agent that, <br>in the sole judgment of the commission, has the financial expertise to establish <br>market interest rates, or by similar means.
Effective: April 26, 2010 <br>History: Amended 2010 Ky. Acts ch. 172, sec. 1, effective April 26, 2010. -- Amended
2009 Ky. Acts ch. 78, sec. 36, effective June 25, 2009. -- Amended 2004 Ky. Acts <br>ch. 99, sec. 1, effective July 13, 2004. -- Created 1997 (1st Extra. Sess.) Ky. Acts <br>ch. 4, sec. 2, effective May 30, 1997.
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