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96A.120 Permissible types of financing.

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Page 1 of 2 96A.120 Permissible types of financing. For the purposes of acquiring or otherwise establishing one (1) or more transit systems, or <br>parts thereof, or for the purpose of adding to, extending, operating, or improving one (1) <br>or more mass transportation systems owned or to be acquired or established, or for any <br>combination of these purposes, an authority may, in addition to other methods permitted <br>by law, resort to financing according to any of the following financing methods, or any <br>combination thereof, to the extent not inconsistent, one with another: <br>(1) Upon determination of its financing needs, an authority, by resolution of its board, may request the public body responsible for its creation and establishment, or any <br>one (1) or more of the public bodies if there be more than one (1): <br>(a) To appropriate and pay over to the authority all or any part of the amount determined to be necessary; or (b) To provide the amount determined to be necessary, or any part thereof, from the proceeds of general obligation bonds of the public body or public bodies, <br>in which event the governing body or governing bodies of the public body or <br>public bodies may, in its or their discretion, take action as may be required by <br>the Constitution and applicable statutes of the Commonwealth to submit to the <br>voters thereof, at one (1) or more elections to be held for that purpose, a <br>proposal or proposals that the issuance of general obligation bonds be <br>approved and authorized, and if so approved and authorized, the general <br>obligation bonds may be issued and the proceeds may be appropriated to the <br>authority in the manner requested; (2) An authority may issue revenue bonds in its own name, payable solely from its income and revenues, and not constituting or purporting to constitute an <br>indebtedness of the authority or of any other public body within the meaning of <br>debt-limiting provisions of the Constitution and applicable statutes of the <br>Commonwealth, in the manner and in accordance with the procedures set forth in <br>KRS 58.010 to 58.170, inclusive, and KRS 61.390, subject to any interest rate <br>limitations which may be applicable as provided by law; (3) An authority may issue its mortgage bonds, as authorized by statute and may make provision for obtaining revenues for the payment of the principal of and interest <br>thereon, and for the payment of costs of operating and maintenance, and for the <br>accumulation of reserves for renewals, replacements, extensions, and <br>improvements, and for debt service reserves, by leasing any mass transportation <br>system owned by the authority, or to be acquired or established by the authority, or, <br>if there be more than one (1) mass transportation system, by leasing the same <br>individually or in any combination, to one (1) or more public bodies, whether or not <br>the public bodies, or any of them, shall have participated in the creation and <br>establishment of the authority. Any lease shall be a written instrument, executed by <br>the authority as lessor, and by one (1) or more public bodies, as a lessee or lessees, <br>for a period of one (1) year, which may be from the date of the mortgage bonds, or <br>from the date of acquisition or other establishment of the mass transit system or <br>systems, with exclusive options to the lessee or lessees to renew the same thereafter, Page 2 of 2 from year to year, upon the rentals and other terms and provisions as will provide to <br>the authority annual sums sufficient to provide for the purposes of this subsection; (4) General obligation bonds issued for the benefit of an authority, or revenue bonds or mortgage bonds issued by an authority may, in the discretion of the parties involved <br>in the issuance, be refinanced, whether at maturity or upon prior redemption in <br>accordance with the terms, by the issuance of bonds, according to any of the <br>financing plans herein authorized. Effective: July 15, 1996 <br>History: Amended 1996 Ky. Acts ch. 274, sec. 63, effective July 15, 1996. -- Amended 1980 Ky. Acts ch. 342, sec. 4, effective July 15, 1980. -- Created 1970 Ky. Acts <br>ch. 243, sec. 13.