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66.031 Calculation of net indebtedness of issuer.

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Page 1 of 1 66.031 Calculation of net indebtedness of issuer. (1) For purposes of this chapter, the principal amount of outstanding bonds includes: (a) The payment or reimbursement requirements of the issuer under credit enhancement facilities relating to the principal amount of outstanding bonds; (b) The unpaid principal portion of all lease rental payments of tax-supported leases; (c) The principal amount of obligations of any instrumentality of an issuer created for the purpose of financing projects which obligations are outstanding within <br>the meaning of the mortgage, trust indenture, or legislation approving those <br>obligations and which were issued prior to July 15, 1996, unless the <br>obligations would constitute self-supporting obligations; and (d) Leases under KRS 65.940 to 65.956 entered into prior to July 15, 1996, unless the lease would constitute self-supporting obligations. (2) In calculating the net indebtedness of an issuer, none of the following obligations or bonds shall be considered: <br>(a) Obligations issued in anticipation of the levy or collection of special assessments which are payable solely from those assessments or are otherwise <br>self-supporting obligations; (b) Obligations issued in anticipation of the collection of current taxes or revenues for the fiscal year which are payable within that fiscal year; (c) Obligations, which are not self-supporting obligations, issued after July 15, 1996, by any instrumentality of the issuer created for the purpose of financing <br>public projects for which there has been no pledge to the payment of debt <br>charges of any tax of the issuer or for which there is covenant by the issuer to <br>collect or levy a tax to pay debt charges; (d) Self-supporting obligations and other obligations for which there has been no pledge to the payment of debt charges of any tax of the issuer or for which <br>there is no covenant by the issuer to collect or levy a tax to pay debt charges; (e) Obligations issued to pay costs of public projects to the extent they are issued in anticipation of the receipt of, and are payable as to principal from, federal <br>or state grants within that fiscal year; (f) Leases entered into under KRS 65.940 to 65.956 which are not tax-supported leases; (g) Bonds issued in the case of an emergency, when the public health or safety should so require; or (h) Bonds issued to fund a floating indebtedness. Effective: July 15, 1996 <br>History: Created 1996 Ky. Acts ch. 280, sec. 3, effective July 15, 1996.