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164A.160 Reserve or replacement funds.

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164A.160 Reserve or replacement funds. The corporation shall be authorized and empowered in connection with the issuance of its <br>bonds and notes for student loan purposes pursuant to this chapter to establish in respect <br>of such bonds and notes such reserve funds or replacement funds as may be required in <br>the sound discretion of the board of directors of the corporation to enable the corporation <br>to effectuate its proper public purposes. In the event any such reserve fund or replacement <br>fund created by the corporation in connection with any such bonds or notes issued <br>pursuant to a general bond resolution adopted prior to January 1, 2003, should, in <br>violation of any contract made by the corporation with any bondholder or noteholder, be <br>monetarily deficient in any respect as of any date of accounting so stipulated by the <br>corporation, the corporation shall immediately make formal request in writing to the <br>secretary of the Finance and Administration Cabinet, and to the Governor of Kentucky <br>that sums adequate to restore such reserve fund or replacement fund to its contractually <br>required level and to pay any overdue principal and interest on any outstanding bonds and <br>notes of the corporation be included in the next succeeding executive budget, and that <br>such budget request with recommendation for approval by the General Assembly of an <br>appropriated legislative appropriation by the General Assembly to the corporation for the <br>use and benefit of such reserve fund or replacement fund be submitted to such session of <br>the General Assembly. In the event the next scheduled even-numbered-year regular <br>session of the General Assembly of Kentucky shall occur more than six (6) months after <br>any such request by the corporation, the corporation shall request that sums adequate to <br>restore such reserve fund or replacement fund to such contractually required level and to <br>pay any overdue principal and interest on any outstanding bonds and notes of the <br>corporation be made available from the Governor's contingency fund, and if such funds <br>are so made available the budget request hereinabove described in this section shall be <br>correspondingly reduced. Effective: June 24, 2003 <br>History: Amended 2003 Ky. Acts ch. 8, sec. 2, effective June 24, 2003. -- Amended 2001 Ky. Acts ch. 58, sec. 28, effective June 21, 2001. -- Created 1978 Ky. Acts <br>ch. 387, sec. 16, effective June 17, 1978.