Kentucky Statutes 56.8605 – Definitions for KRS 56.860 to 56.869
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As used in KRS § 56.860 to KRS § 56.869: (1) “Authorized project” means:
(a) Any project approved by the General Assembly and included in an enacted budget; or
(b) Any project approved by the General Assembly that is certified by the secretary of the Finance and Administration Cabinet in accordance with the provisions of KRS § 56.870, to be of a type that will independently produce revenues or will be payable from receipts of federal transportation funds that are projected by the commission to be sufficient to fully meet debt service, issuance costs, reserve fund requirements, insurance premiums, or any other expenditures necessary for financing so that no appropriation of state funds is required;
(2) “Cabinet” means the Finance and Administration Cabinet;
(3) “Commercial paper” means obligations that by their terms mature not more than three hundred sixty-six (366) days from the date of their issuance and that may be refunded;
(4) “Commission” means the Kentucky Asset/Liability Commission;
(5) “Estimated revenues” means the official revenue estimates established pursuant to KRS § 48.120 on or before the dates on which tax and revenue anticipation notes are awarded to the purchaser;
(6) “Financial agreements” means interest rate swaps, options, or other agreements between two (2) parties to exchange or have the conditional right to exchange interest rate exposure from fixed rate to variable rate or from variable rate to fixed rate, or to provide other economic benefit to an issuance of notes or a portfolio of notes, or to hedge the net interest margin of the Commonwealth;
(7) “Financing agreement” means an agreement between the commission and the cabinet, or between the cabinet and a state agency, relating to the funding of projects or items associated with projects as described in KRS § 56.867(3), a judgment against a state agency or the Commonwealth, or the finance or refinance of obligations owed under KRS § 161.550(2) or 161.553(2). The provisions of a financing agreement shall require either the cabinet to make payments to the commission relating to the commission’s issuance of notes, or the state agency to make payments to the cabinet reimbursing the cabinet for its payments to the commission on the agency’s behalf. The obligations of the cabinet or the state agency under a financing agreement shall be contingent upon appropriations by the General Assembly to the cabinet or to the agency for the payment of those obligations;
(8) “Fixed-rate obligations” means obligations on which the interest rate remains constant to maturity;
(9) “Funding notes” means notes issued under the provisions of KRS § 56.860 to KRS § 56.869 by the commission for the purpose of funding:
(a) Judgments, with a final maturity of not more than ten (10) years; and
(b) The finance or refinance of obligations owed under KRS § 161.550(2) or
161.553(2);
(10) “Interest-sensitive assets” means tangible and intangible property held by the
Commonwealth whose market value is dependent upon the level of interest rates; (11) “Interest-sensitive liabilities” means interest-bearing debts or other obligations of
the Commonwealth or a state agency;
(12) “Multimodal obligations” means obligations for which the time period for establishing the rate of interest may be selectively determined and altered;
(13) “Net interest margin” means the net income or expense associated with the difference between the Commonwealth’s interest-sensitive assets and interest- sensitive liabilities;
(14) “Project notes” means notes issued under the provisions of KRS § 56.860 to KRS § 56.869 by the commission with a final maturity of not more than twenty (20) years for the purpose of funding authorized projects, which may include bond anticipation notes;
(15) “State agency” means any state administrative body, agency, department, or division as defined in KRS § 42.005, and set out in KRS Chapter 12, or any board, commission, institution, state university, or division exercising any function of the Commonwealth;
(16) “Tax and revenue anticipation notes” means notes that are issued under the provisions of KRS § 56.860 to KRS § 56.869 by the commission with a final maturity that is no later than the last day of the fiscal year during which the tax and revenue anticipation notes are issued and that are issued in anticipation of estimated revenues to be received in that fiscal year; and
(17) “Variable-rate demand obligations” means obligations on which the rate of interest is set by reference to a predetermined index or formula, by auction, by an agent that, in the sole judgment of the commission, has the financial expertise to establish market interest rates, or by similar means.
Effective: April 26, 2010
History: Amended 2010 Ky. Acts ch. 172, sec. 1, effective April 26, 2010. — Amended
2009 Ky. Acts ch. 78, sec. 36, effective June 25, 2009. — Amended 2004 Ky. Acts ch. 99, sec. 1, effective July 13, 2004. — Created 1997 (1st Extra. Sess.) Ky. Acts ch.
4, sec. 2, effective May 30, 1997.
(a) Any project approved by the General Assembly and included in an enacted budget; or
Terms Used In Kentucky Statutes 56.8605
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Cabinet: means the Finance and Administration Cabinet. See Kentucky Statutes 56.440
- Commission: means the State Property and Buildings Commission. See Kentucky Statutes 56.440
- Dependent: A person dependent for support upon another.
- 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.
- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
- 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
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- 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
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
- Year: means calendar year. See Kentucky Statutes 446.010
(b) Any project approved by the General Assembly that is certified by the secretary of the Finance and Administration Cabinet in accordance with the provisions of KRS § 56.870, to be of a type that will independently produce revenues or will be payable from receipts of federal transportation funds that are projected by the commission to be sufficient to fully meet debt service, issuance costs, reserve fund requirements, insurance premiums, or any other expenditures necessary for financing so that no appropriation of state funds is required;
(2) “Cabinet” means the Finance and Administration Cabinet;
(3) “Commercial paper” means obligations that by their terms mature not more than three hundred sixty-six (366) days from the date of their issuance and that may be refunded;
(4) “Commission” means the Kentucky Asset/Liability Commission;
(5) “Estimated revenues” means the official revenue estimates established pursuant to KRS § 48.120 on or before the dates on which tax and revenue anticipation notes are awarded to the purchaser;
(6) “Financial agreements” means interest rate swaps, options, or other agreements between two (2) parties to exchange or have the conditional right to exchange interest rate exposure from fixed rate to variable rate or from variable rate to fixed rate, or to provide other economic benefit to an issuance of notes or a portfolio of notes, or to hedge the net interest margin of the Commonwealth;
(7) “Financing agreement” means an agreement between the commission and the cabinet, or between the cabinet and a state agency, relating to the funding of projects or items associated with projects as described in KRS § 56.867(3), a judgment against a state agency or the Commonwealth, or the finance or refinance of obligations owed under KRS § 161.550(2) or 161.553(2). The provisions of a financing agreement shall require either the cabinet to make payments to the commission relating to the commission’s issuance of notes, or the state agency to make payments to the cabinet reimbursing the cabinet for its payments to the commission on the agency’s behalf. The obligations of the cabinet or the state agency under a financing agreement shall be contingent upon appropriations by the General Assembly to the cabinet or to the agency for the payment of those obligations;
(8) “Fixed-rate obligations” means obligations on which the interest rate remains constant to maturity;
(9) “Funding notes” means notes issued under the provisions of KRS § 56.860 to KRS § 56.869 by the commission for the purpose of funding:
(a) Judgments, with a final maturity of not more than ten (10) years; and
(b) The finance or refinance of obligations owed under KRS § 161.550(2) or
161.553(2);
(10) “Interest-sensitive assets” means tangible and intangible property held by the
Commonwealth whose market value is dependent upon the level of interest rates; (11) “Interest-sensitive liabilities” means interest-bearing debts or other obligations of
the Commonwealth or a state agency;
(12) “Multimodal obligations” means obligations for which the time period for establishing the rate of interest may be selectively determined and altered;
(13) “Net interest margin” means the net income or expense associated with the difference between the Commonwealth’s interest-sensitive assets and interest- sensitive liabilities;
(14) “Project notes” means notes issued under the provisions of KRS § 56.860 to KRS § 56.869 by the commission with a final maturity of not more than twenty (20) years for the purpose of funding authorized projects, which may include bond anticipation notes;
(15) “State agency” means any state administrative body, agency, department, or division as defined in KRS § 42.005, and set out in KRS Chapter 12, or any board, commission, institution, state university, or division exercising any function of the Commonwealth;
(16) “Tax and revenue anticipation notes” means notes that are issued under the provisions of KRS § 56.860 to KRS § 56.869 by the commission with a final maturity that is no later than the last day of the fiscal year during which the tax and revenue anticipation notes are issued and that are issued in anticipation of estimated revenues to be received in that fiscal year; and
(17) “Variable-rate demand obligations” means obligations on which the rate of interest is set by reference to a predetermined index or formula, by auction, by an agent that, in the sole judgment of the commission, has the financial expertise to establish market interest rates, or by similar means.
Effective: April 26, 2010
History: Amended 2010 Ky. Acts ch. 172, sec. 1, effective April 26, 2010. — Amended
2009 Ky. Acts ch. 78, sec. 36, effective June 25, 2009. — Amended 2004 Ky. Acts ch. 99, sec. 1, effective July 13, 2004. — Created 1997 (1st Extra. Sess.) Ky. Acts ch.
4, sec. 2, effective May 30, 1997.