Kentucky Statutes 56.063 – Deposit and use of savings generated as result of refunding transaction
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(1) As used in this section:
(a) “Asset/liability commission” means the Kentucky Asset/Liability Commission established by KRS § 56.861;
(b) “Commission” means the State Property and Buildings Commission established by KRS § 56.450;
(c) “General fund” has the same meaning as in KRS § 48.010(15)(a);
(d) “Present value savings” means the difference expressed in terms of current dollars between debt service on refunded bonds and debt service on refunding bonds;
(e) “Refunded bonds” means outstanding bonds, notes, or other obligations that were issued at any time, and that are refinanced through a refunding transaction;
(f) “Refunding bonds” means new bonds, notes, or other obligations issued to refund outstanding bonds, notes, or other obligations, including redemption premiums and any interest accrued or to accrue to the date of redemption as part of a refunding transaction;
(g) “Refunding transaction” means a transaction:
1. Whereby outstanding bonds, notes, or other obligations are refunded by the issuance of new refunding bonds, notes, or other obligations; and
2. That is directly supported in whole or in part by appropriations from the general fund or road fund;
(h) “Revenue shortfall” has the same meaning as in KRS § 48.010(18); (i) “Road fund” has the same meaning as in KRS § 48.010(15)(g); and (j) “State agency”:
1. Includes:
a. Any state administrative body, agency, department, or division as defined in KRS § 42.005; and
b. Any board, commission, institution, or division exercising any function of the state;
with the authority to issue bonds, notes, or other obligations, and to enter into refunding transactions with respect to those bonds, notes, or other obligations; but
2. Does not include universities that are part of the postsecondary education system, as defined in KRS § 164.001.
(2) Notwithstanding any other provision of the Kentucky Revised Statutes, the savings generated from reduced debt service payments during a fiscal biennium as a result of any refunding transaction undertaken by the commission, the asset/liability commission, or any state agency that:
(a) Results in a reduction in required debt service during the fiscal biennium; and
(b) Does not result in positive net present value savings;
shall be deposited in the budget reserve trust fund account established by KRS
48.705, and shall not be used as part of any budget-balancing measures adopted or taken by the executive branch either in response to a revenue shortfall, or to address expenditure reductions required by an enacted biennial budget for the executive branch.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 42, sec. 1, effective July 12, 2012.
Legislative Research Commission Note (7/12/2012). Under the authority of KRS
7.136(1), the Reviser of Statutes has corrected a manifest clerical or typographical error in subsection (1)(g)2. of this statute during codification. The meaning of the text was not changed.
(a) “Asset/liability commission” means the Kentucky Asset/Liability Commission established by KRS § 56.861;
Terms Used In Kentucky Statutes 56.063
- Biennium: means the two (2) year period commencing on July 1 in each even- numbered year and ending on June 30 in the ensuing even-numbered year. See Kentucky Statutes 446.010
- Commission: means the State Property and Buildings Commission. See Kentucky Statutes 56.440
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- State agency: means any state administrative body, agency, department, or division as defined in KRS §. See Kentucky Statutes 56.440
- Statute: A law passed by a legislature.
(b) “Commission” means the State Property and Buildings Commission established by KRS § 56.450;
(c) “General fund” has the same meaning as in KRS § 48.010(15)(a);
(d) “Present value savings” means the difference expressed in terms of current dollars between debt service on refunded bonds and debt service on refunding bonds;
(e) “Refunded bonds” means outstanding bonds, notes, or other obligations that were issued at any time, and that are refinanced through a refunding transaction;
(f) “Refunding bonds” means new bonds, notes, or other obligations issued to refund outstanding bonds, notes, or other obligations, including redemption premiums and any interest accrued or to accrue to the date of redemption as part of a refunding transaction;
(g) “Refunding transaction” means a transaction:
1. Whereby outstanding bonds, notes, or other obligations are refunded by the issuance of new refunding bonds, notes, or other obligations; and
2. That is directly supported in whole or in part by appropriations from the general fund or road fund;
(h) “Revenue shortfall” has the same meaning as in KRS § 48.010(18); (i) “Road fund” has the same meaning as in KRS § 48.010(15)(g); and (j) “State agency”:
1. Includes:
a. Any state administrative body, agency, department, or division as defined in KRS § 42.005; and
b. Any board, commission, institution, or division exercising any function of the state;
with the authority to issue bonds, notes, or other obligations, and to enter into refunding transactions with respect to those bonds, notes, or other obligations; but
2. Does not include universities that are part of the postsecondary education system, as defined in KRS § 164.001.
(2) Notwithstanding any other provision of the Kentucky Revised Statutes, the savings generated from reduced debt service payments during a fiscal biennium as a result of any refunding transaction undertaken by the commission, the asset/liability commission, or any state agency that:
(a) Results in a reduction in required debt service during the fiscal biennium; and
(b) Does not result in positive net present value savings;
shall be deposited in the budget reserve trust fund account established by KRS
48.705, and shall not be used as part of any budget-balancing measures adopted or taken by the executive branch either in response to a revenue shortfall, or to address expenditure reductions required by an enacted biennial budget for the executive branch.
Effective: July 12, 2012
History: Created 2012 Ky. Acts ch. 42, sec. 1, effective July 12, 2012.
Legislative Research Commission Note (7/12/2012). Under the authority of KRS
7.136(1), the Reviser of Statutes has corrected a manifest clerical or typographical error in subsection (1)(g)2. of this statute during codification. The meaning of the text was not changed.