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198A.165 Authorization for establishing reserve and replacement funds.

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198A.165 Authorization for establishing reserve and replacement funds. The corporation shall be authorized and empowered in connection with the issuance of its <br>bonds and notes for housing purposes pursuant to this chapter to establish in respect of <br>such bonds and notes such reserve funds or replacement funds as may be required in the <br>sound discretion of the board of directors of the corporation to enable the corporation to <br>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 bond issue or note issue <br>should, in violation of any contract made by the corporation with any bondholder or note <br>holder be monetarily deficient in any respect as of any date of accounting so stipulated by <br>the 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 to the <br>corporation for the use and benefit of such reserve fund or replacement fund. In the event <br>the next scheduled even-numbered-year regular session of the General Assembly of <br>Kentucky shall occur more than six (6) months after any such request by the corporation, <br>the corporation shall request that sums adequate to restore such reserve fund or <br>replacement fund to such contractually required level and to pay any overdue principal <br>and interest on any outstanding bonds and notes of the corporation be made available <br>from the Governor's contingency fund, and if such funds are so made available the budget <br>request hereinabove described in this section shall be correspondingly reduced. Effective: June 21, 2001 <br>History: Amended 2001 Ky. Acts ch. 58, sec. 27, effective June 21, 2001. -- Created 1974 Ky. Acts ch. 383, sec. 8.