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67A.885 Deposit of funds -- Security -- Interest.

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67A.885 Deposit of funds -- Security -- Interest. When any bonds are delivered and the proceeds are received by the government, they <br>shall be deposited in a bank or trust company or combined bank and trust company, and <br>to the extent the deposit may exceed insurance provided by federal deposit insurance <br>corporation, the same shall be secured by a valid pledge of direct bonds or notes of the <br>United States government or bonds or notes fully guaranteed thereby having at all times a <br>market value equal to the undisbursed balance of such deposit; or shall be secured in any <br>other manner as the urban-county council may approve. Costs of the project shall be paid <br>from the proceeds of the bonds pursuant to such regulations and requirements as shall be <br>determined by the government and incorporated into the ordinance of bond authorization. <br>There shall be set aside into the sinking fund hereinafter created a sum from bond <br>proceeds equal to all interest which will accrue on the bonds until the date when the first <br>improvement benefit assessment levied in connection therewith will become due and <br>payable, together with such further sum as may be provided in the ordinance of bond <br>authorization, not to exceed interest on the bonds for a period of three (3) years. If <br>provided in the ordinance of bond authorization, all or any portion of the debt service <br>reserve requirement shall be set aside into the debt service reserve fund. If after <br>completion, acceptance and payment of the work of all contractors and the payment of all <br>costs of the project there shall remain an unexpended balance of bond proceeds, the <br>balance shall be transferred to the sinking fund created and maintained in connection with <br>the project as provided by KRS 67A.871 to 67A.894. Effective: March 30, 1976 <br>History: Created 1976 Ky. Acts ch. 371, sec. 15, effective March 30, 1976.