Find Legal Information

160.160.160 Boards of education -- Powers and procedures -- Approval of Department of Education required for mortgages, leases -- Rental payments under lease.

Download pdf

160.160 Boards of education -- Powers and procedures -- Approval of Department of Education required for mortgages, leases -- Rental payments under lease. (1) Each school district shall be under the management and control of a board of education consisting of five (5) members, except in counties containing a city of the <br>first class wherein a merger pursuant to KRS 160.041 shall have been accomplished <br>which shall have seven (7) members elected from the divisions and in the manner <br>prescribed by KRS 160.210(5), to be known as the &quot;Board of Education of ...., <br>Kentucky.&quot; Each board of education shall be a body politic and corporate with <br>perpetual succession. It may sue and be sued; make contracts; expend funds <br>necessary for liability insurance premiums and for the defense of any civil action <br>brought against an individual board member in his official or individual capacity, or <br>both, on account of an act made in the scope and course of his performance of legal <br>duties as a board member; purchase, receive, hold, and sell property; issue its bonds <br>to build and construct improvements; and do all things necessary to accomplish the <br>purposes for which it is created. Each board of education shall elect a chairman and <br>vice chairman from its membership in a manner and for a term prescribed by the <br>board not to exceed two (2) years. (2) No board of education shall participate in any financing of school buildings, school improvements, appurtenances thereto, or furnishing and equipment, including <br>education technology equipment without: <br>(a) First establishing the cost of the project in advance of financing, based on the receipt of advertised, public, and competitive bids for such project, in <br>accordance with KRS Chapter 424; and (b) Establishing the cost of financing in advance of the sale of any bonds, certificates of participation in any leases, or other evidences of financial <br>commitments issued by or on behalf of such board. Any bonds, leases, <br>participations, or other financial arrangements shall not involve a final <br>commitment of the board until the purchaser or lender involved shall have <br>been determined by public advertising in accordance with KRS Chapter 424. (3) No board of education shall make a mortgage, lien, or other encumbrance upon any school building owned by the board, or transfer title to any such school building as <br>part of any financing arrangement, without the specific approval of the Department <br>of Education, and without the transaction being entered into pursuant to a detailed <br>plan or procedure specifically authorized by Kentucky statute. (4) Without the approval of the Department of Education, no board may lease, as lessee, a building or public facility that has been or is to be financed at the request <br>of the board or on its behalf through the issuance of bonds by another public body <br>or by a nonprofit corporation serving as an agency and instrumentality of the board, <br>or by a leasing corporation. Any lease, participation, or other financial arrangement <br>shall not involve a final commitment of the board unless and until the purchaser or <br>lender involved in same shall have been determined by public advertising in <br>accordance with KRS Chapter 424. No transaction shall be entered into by the <br>board except upon the basis of public advertising and competitive bidding in <br>accordance with KRS Chapter 424. (5) Rental payments due by a board under a lease approved by the Department of Education in accordance with subsection (4) of this section shall be due and payable <br>not less than ten (10) days prior to the interest due date for the bonds, notes, or other <br>debt obligations issued to finance the building or public facility. If a board fails to <br>make a rental payment when due under a lease, upon notification to the Department <br>of Education by the paying agent, bond registrar, or trustee for the bonds not less <br>than three (3) days prior to the interest due date, the Department of Education shall <br>withhold or intercept any funds then due the board to the extent of the amount of the <br>required payment on the bonds and remit the amount to the paying agent, bond <br>registrar, or trustee as appropriate. Thereafter, the Department of Education shall <br>resolve the matter with the board and adjust remittances to the board to the extent of <br>the amount paid by the Department of Education on the board's behalf. (6) Bonds, notes or leases negotiated to provide education technology shall not be sold for longer than seven (7) years or the useful life of the equipment as established by <br>the state technology master plan, whichever is less. Effective: July 15, 1994 <br>History: Amended 1994 Ky. Acts ch. 288, sec. 1, effective July 15, 1994. </p> <BR></DIV><!-- /.col.one --><!-- /.col.two --></DIV><!-- /.col.main --></DIV><!-- /div id = content --> <BR class=clear></DIV> <!-- /div id = livearea --> <DIV></DIV><!-- /.col.one --> <DIV></DIV><!-- /.col.main --> <DIV></DIV><!-- /#content --><BR class=clear> <DIV></DIV><!-- /#livearea --> <!-- Footer--> <DIV id=footer> <DIV class=container> <P class=copyright>Copyright &copy; 2012-2022 Laws9.Com All rights reserved. </P><!-- /.copyright --> <P class=footerlinks><A href="/contactus.html">Contact Us</A> | <A href="/aboutus.html">About Us</A> | <A href="/terms.html">Terms</A> | <A href="/privacy.html">Privacy</A></P><!-- /.footerlinks --> </DIV><!-- /.container --> </DIV><!-- /footer --> </BODY></HTML>