162.540 Interpretation of terms in KRS 162.120 to 162.300 when applied to KRS 162.520 to 162.620.

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162.540 Interpretation of terms in KRS 162.120 to 162.300 when applied to KRS 162.520 to 162.620. Upon receiving a request in writing from a board of education, the authority may, in its <br>discretion, assist such board of education in financing any project by acting in the <br>capacity and manner authorized to be performed by cities under KRS 162.120 to 162.290, <br>and by counties under KRS 162.300. When applied to the authority, KRS 162.120 to <br>162.300 shall be so read that the following terms and passages have the following <br>respective meanings or interpretations: <br>(1) &quot;City&quot; or &quot;county&quot; means &quot;authority&quot;; <br>(2) &quot;City clerk&quot; or &quot;county clerk&quot; means &quot;secretary or assistant secretary of the authority&quot;; (3) &quot;Governing body of the city&quot; or &quot;fiscal court&quot; means &quot;authority&quot;; <br>(4) &quot;Mayor&quot; or &quot;county judge/executive&quot; means &quot;chairman or vice chairman of the authority&quot;; (5) &quot;Ordinance&quot; in the case of a city, or &quot;resolution&quot; in the case of a county, means a resolution of the authority; (6) &quot;Building and appurtenances&quot; means &quot;project&quot; as defined in subsection (4) of KRS 162.520; (7) The last sentence of KRS 162.190 shall read, &quot;It shall be plainly stated on the face of each bond that it was or is issued under the provisions of KRS 162.520 to <br>162.620 (omitting reference to KRS 162.150 to 162.280 as such), and that it does <br>not constitute an indebtedness of the authority or of the Commonwealth&quot;; (8) KRS 162.200 is modified to permit use of money received from bonds for the additional purpose of paying reasonable expenses incurred in the authorization, <br>advertising, preparation, sale, and delivery of bonds, and may include a fee <br>contracted to be paid to a fiscal agent for financial advice and services if the <br>contract or agreement therefor shall have been approved by the board of education <br>and by the authority; (9) As used in KRS 162.140, &quot;lease&quot; shall have the meaning defined in subsection (5) of KRS 162.520, and the same shall be recorded or filed for recording in the office <br>of the county clerk of the county in which the project is situated, as evidenced by a <br>written receipt or acknowledgment of filing issued by such clerk, or by a copy of the <br>lease attested or certified by such clerk as being of record in his office. It shall be <br>the duty of the secretary of the authority to obtain such evidence before delivery of <br>the bonds to a purchaser thereof; but failure to obtain the same shall not affect the <br>validity of the bonds in the hands of any purchaser or holder; (10) KRS 162.240 shall not apply; and the following provisions shall govern in lieu thereof: &quot;One (1) or more depositories and paying agents may be selected and designated by the board of education, subject to the approval of the authority, which <br>approval shall not unreasonably be withheld; but each depository and paying agent <br>shall be a financial institution, within or without the Commonwealth, which is a <br>member of the Federal Deposit Insurance Corporation. All deposits of sinking funds and of bond proceeds shall continuously be secured by a pledge to the authority of <br>direct obligations of the United States, exclusive of accrued interest, at all times at <br>least equal to the balance on deposit in the fund or account, such securities to be <br>deposited with the authority or held by a trustee or agent designated by the <br>authority; provided, however, in lieu of requiring such security the authority may in <br>its discretion invest, or cause to be invested and reinvested, any moneys in direct <br>obligations of the United States until such time as cash funds may be needed, and <br>the authority may prescribe for the custody and safekeeping of such securities. <br>When cash funds are needed, the authority shall direct the conversion into cash of <br>such securities, or a sufficient portion thereof, and may require that the same be <br>secured until disbursement, as herein provided. All income from such securities <br>shall accrue to the board of education, but may be retained by the authority and <br>credited upon any rental obligation of the board of education under the lease, or <br>applied to supplement bond proceeds if the same should for any reason turn out to <br>be insufficient to defray the costs and expenses of the project.&quot; Effective: July 13, 1990 <br>History: Repealed and reenacted 1990 Ky. Acts ch. 476, Pt. V, sec. 585, effective July 13, 1990. -- Amended 1986 Ky. Acts ch. 23, sec. 13, effective July 15, 1986. -- <br>Amended 1978 Ky. Acts ch. 384, sec. 293, effective June 17, 1978. -- Amended <br>1976 (1st Extra. Sess.) Ky. Acts ch. 20, sec. 6, effective January 2, 1978. -- Created <br>1960 Ky. Acts ch. 81, sec. 4, effective June 16, 1960.