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65.7711 Notes to be secured by pledge, lien, and charge -- Sinking fund or note retirement fund.

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65.7711 Notes to be secured by pledge, lien, and charge -- Sinking fund or note retirement fund. Notes issued in a single fiscal year, shall be equally and ratably secured by the pledge of, <br>security interest in, and a lien and charge on, the taxes or revenues, or both, of the <br>governmental agency specified in the authorizing legislation which are in the process of <br>collection and are to be received during the period when the notes will be outstanding. <br>The pledge, lien, and charge shall be fully perfected as against the governmental agency, <br>all creditors, and all third parties in accordance with the terms of the legislation from and <br>after the delivery of the notes until the notes are paid in full. The legislation may establish <br>one (1) or more sinking funds or note retirement funds and provide for periodic or other <br>deposits therein, and may contain such covenants or other provisions as the governmental <br>agency shall determine. In every case, the taxes and revenues pledged shall be those taxes <br>and revenues which are the subject of appropriation for the current fiscal year. The <br>holders or owners of notes may be given the right to have the notes continually secured by <br>the faith and credit of the governmental agency, and each note shall bear on its face a <br>statement to that effect and to the effect that the right of payment on the note is limited to <br>the taxes or revenues pledged under the legislation of the governmental agency <br>authorizing the notes. Effective: July 13, 1990 <br>History: Created 1990 Ky. Acts ch. 76, sec. 6, effective July 13, 1990.