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177.595 Full faith and credit of state pledged -- Funds derived from certain taxes to be set aside in amount sufficient to pay principal and interest -- Exception.

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177.595 Full faith and credit of state pledged -- Funds derived from certain taxes to be set aside in amount sufficient to pay principal and interest -- Exception. The bonds herein provided for shall be direct obligations of the Commonwealth of <br>Kentucky, and the full faith and credit of the Commonwealth hereby is pledged for the <br>payment of said bonds and the interest thereon. In order to provide for the payment of the <br>principal of all of said bonds at their maturity and the interest thereon annually as same <br>shall accrue, there shall be levied and collected in each of the thirty (30) years from <br>January 1, 1957, to January 1, 1987, taxes for the benefit of the state road fund in the <br>form of license, excise taxes and fees relating to registration, operation and use of <br>vehicles on public highways and excise taxes, use and license taxes relating to gasoline <br>and other motor fuels used upon the public highways in Kentucky at rates not less than <br>the rates now imposed by law or so adjusted as to produce for the road fund not less than <br>the amount now derived from all of such taxes. All funds derived from such taxes hereby <br>are appropriated to the extent necessary for the payment of the principal and interest on <br>said bonds. From the funds derived from said taxes in each year, beginning January 1, <br>1957, there shall be set aside and held inviolable for that purpose, a fund sufficient to pay <br>the principal and interest on said bonds in each year as and when due until all of said <br>bonds and the interest thereon shall have been paid in full. In each year, after setting aside <br>the funds hereinabove provided, the remainder of the funds derived from such taxes may <br>be expended and used for the cost of administration, statutory refunds and adjustment, <br>payment of highway obligations, costs of construction, reconstruction, rights-of-way, <br>maintenance and repair of public highways, tunnels and bridges and the expense of <br>enforcing state traffic and motor vehicle laws, provided that all the funds collected under <br>KRS Chapter 138 and required by KRS 138.220 and 138.660(2) to be set aside by the <br>Department of Highways for the construction, reconstruction and maintenance of rural <br>and secondary roads shall be first set aside and used for such purposes. Effective: July 15, 1986 <br>History: Amended 1986 Ky. Acts ch. 331, sec. 30, effective July 15, 1986. -- Created 1956 (2nd Extra. Sess.) Ky. Acts ch.3, sec. 4, effective June 26, 1956.