Kentucky Statutes 42.200 – Water project interest rate buy down fund — Funding sources, purposes, uses, and administration
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(1) The water project interest rate buy down fund is hereby created as a special fund in the State Treasury. The fund may receive state appropriations, gifts, grants, and federal funds and shall include earnings from investments of moneys in the fund. Any fund balance at the close of the fiscal year shall not lapse but shall be carried forward to the next fiscal year, and moneys in this fund shall be continuously appropriated only for the purposes specified in this section.
(2) The fund shall be used to provide financial assistance to government agencies for the construction of publicly owned water supply projects located in rural areas of the Commonwealth. In order to qualify for the financial assistance, the governmental agency shall obtain a loan from a bank or combined bank and trust company organized under the laws of this Commonwealth and at an interest rate no greater than two (2) percentage points higher than the current prime rate. The financial assistance provided shall consist of an annual grant to the governmental agency to be made over the life of the loan obtained by the governmental agency for the construction of the publicly owned water supply project. The amount of the annual grant shall be calculated over the life of the loan to provide to the governmental agency each year the portion of the interest on the loan calculated at a four percent (4%) interest rate. The governmental agency shall be responsible for the payment of the interest on the loan in excess of the four percent (4%) interest rate and for the payment of the principal on the loan.
(3) The Finance and Administration Cabinet shall administer the fund and may promulgate administrative regulations as necessary to implement the provisions of this section. The Department for Local Government shall advise government agencies of the fund and how to apply for moneys from the fund.
(4) The provisions of this section shall be known and may be cited as the Kentucky
Rural Water Act.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 117, sec. 20, effective July 15, 2010. — Amended
2007 Ky. Acts ch. 47, sec. 14, effective June 26, 2007. — Amended 1998 Ky. Acts ch. 69, sec. 6, effective July 15, 1998. — Created 1996 Ky. Acts ch. 322, sec. 1, effective July 15, 1996.
(2) The fund shall be used to provide financial assistance to government agencies for the construction of publicly owned water supply projects located in rural areas of the Commonwealth. In order to qualify for the financial assistance, the governmental agency shall obtain a loan from a bank or combined bank and trust company organized under the laws of this Commonwealth and at an interest rate no greater than two (2) percentage points higher than the current prime rate. The financial assistance provided shall consist of an annual grant to the governmental agency to be made over the life of the loan obtained by the governmental agency for the construction of the publicly owned water supply project. The amount of the annual grant shall be calculated over the life of the loan to provide to the governmental agency each year the portion of the interest on the loan calculated at a four percent (4%) interest rate. The governmental agency shall be responsible for the payment of the interest on the loan in excess of the four percent (4%) interest rate and for the payment of the principal on the loan.
Terms Used In Kentucky Statutes 42.200
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
(3) The Finance and Administration Cabinet shall administer the fund and may promulgate administrative regulations as necessary to implement the provisions of this section. The Department for Local Government shall advise government agencies of the fund and how to apply for moneys from the fund.
(4) The provisions of this section shall be known and may be cited as the Kentucky
Rural Water Act.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 117, sec. 20, effective July 15, 2010. — Amended
2007 Ky. Acts ch. 47, sec. 14, effective June 26, 2007. — Amended 1998 Ky. Acts ch. 69, sec. 6, effective July 15, 1998. — Created 1996 Ky. Acts ch. 322, sec. 1, effective July 15, 1996.