Find Legal Information

67A.770 Deposit of prepayments and bond sale proceeds -- Security -- Disbursements.

Download pdf

67A.770 Deposit of prepayments and bond sale proceeds -- Security -- Disbursements. As prepayments are received and when the bonds are delivered and the proceeds are <br>received by the urban-county government, the same shall be deposited in an interest-<br>bearing account in a bank or trust company, or combined bank and trust company, and to <br>the extent such deposit may exceed insurance provided by federal deposit insurance <br>corporation (if the depository be a member thereof, otherwise the full amount), the same <br>shall be secured by a valid pledge of bonds or notes of the United States government, or <br>fully guaranteed thereby, having at all times a market value equal to the undisbursed <br>balance of such deposit; or shall be secured in such other manner as the governing body <br>may prescribe or approve. Costs of the project which may then be earned and payable, <br>may be paid forthwith. There shall be set aside into the sinking fund, hereinafter created, <br>a sum from bond proceeds equal to all interest which will accrue on said bonds until the <br>date when the first improvement assessment levied in connection therewith will become <br>due and payable. The remainder may be disbursed from time to time in payment of costs <br>of the project, as herein defined, except that payments on account of the construction <br>contracts shall not exceed ninety percent (90%) of the amount shown by a written <br>certificate of the engineer to have been earned for materials furnished and/or labor <br>performed by any contractor, the retained ten percent (10%) to be disbursed only upon <br>final acceptance of the finished work of such contractor. If, after completion, acceptance <br>and payment of the work of all contractors, and the payment of all costs of the <br>improvement project, as herein defined, there shall remain an unexpended balance of <br>bond proceeds, such balance shall be transferred to the sinking fund created and <br>maintained in connection with the project, as provided in KRS 67A.800. The advanced <br>installment and the one-half of one percent (0.5%) collected pursuant to KRS 67A.755 <br>shall be part of the sinking fund. Effective: June 21, 1974 <br>History: Created 1974 Ky. Acts ch. 394, sec. 13, effective June 21, 1974.