Kentucky Statutes 66.031 – Calculation of net indebtedness of issuer
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(1) For purposes of this chapter, the principal amount of outstanding bonds includes:
(a) The payment or reimbursement requirements of the issuer under credit enhancement facilities relating to the principal amount of outstanding bonds;
(b) The unpaid principal portion of all lease rental payments of tax-supported leases;
(c) The principal amount of obligations of any instrumentality of an issuer created for the purpose of financing projects which obligations are outstanding within the meaning of the mortgage, trust indenture, or legislation approving those obligations and which were issued prior to July 15, 1996, unless the obligations would constitute self-supporting obligations; and
(d) Leases under KRS § 65.940 to KRS § 65.956 entered into prior to July 15, 1996, unless the lease would constitute self-supporting obligations.
(2) In calculating the net indebtedness of an issuer, none of the following obligations or bonds shall be considered:
(a) Obligations issued in anticipation of the levy or collection of special assessments which are payable solely from those assessments or are otherwise self-supporting obligations;
(b) Obligations issued in anticipation of the collection of current taxes or revenues for the fiscal year which are payable within that fiscal year;
(c) Obligations, which are not self-supporting obligations, issued after July 15,
1996, by any instrumentality of the issuer created for the purpose of financing public projects for which there has been no pledge to the payment of debt charges of any tax of the issuer or for which there is covenant by the issuer to collect or levy a tax to pay debt charges;
(d) Self-supporting obligations and other obligations for which there has been no pledge to the payment of debt charges of any tax of the issuer or for which there is no covenant by the issuer to collect or levy a tax to pay debt charges;
(e) Obligations issued to pay costs of public projects to the extent they are issued in anticipation of the receipt of, and are payable as to principal from, federal or state grants within that fiscal year;
(f) Leases entered into under KRS § 65.940 to KRS § 65.956 which are not tax-supported leases;
(g) Bonds issued in the case of an emergency, when the public health or safety should so require; or
(h) Bonds issued to fund a floating indebtedness.
Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 3, effective July 15, 1996.
(a) The payment or reimbursement requirements of the issuer under credit enhancement facilities relating to the principal amount of outstanding bonds;
Terms Used In Kentucky Statutes 66.031
- Bonds: means bonds, notes, commercial paper, and other instruments in writing, authorized by or issued pursuant to or in accordance with this chapter, to evidence an obligation to repay or guarantee the repayment of money borrowed, or to pay interest by, or to pay at any future time other money obligations. See Kentucky Statutes 66.011
- Credit enhancement facilities: means letters of credit. See Kentucky Statutes 66.011
- Debt charges: means the principal, including any mandatory sinking fund deposits, interest, and any redemption premium, payable on bonds as the payments come due and are payable and any charges related to credit enhancement facilities. See Kentucky Statutes 66.011
- 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.
- Floating indebtedness: means the amount by which the total of all expenditures by an issuer in any fiscal year exceeds the total of all funds and receipts of the issuer for that fiscal year which are available to the issuer for the purpose of funding those expenditures, but only to the extent that the governing body of the issuer made good-faith estimates of expenditures and funds and receipts available to fund those expenditures and the short-fall in available funds and receipts was due to unforeseeable circumstances or events. See Kentucky Statutes 66.011
- Issuer: means a county, city, urban-county, charter county, or other taxing district, and for purposes of making any determinations required under this chapter, may include an authorized representative of the issuer. See Kentucky Statutes 66.011
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Legislation: means an ordinance or resolution passed by a governing body. See Kentucky Statutes 66.011
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Net indebtedness: means the principal amount of outstanding bonds of an issuer as determined in accordance with KRS §. See Kentucky Statutes 66.011
- Self-supporting obligations: means obligations issued for the purpose of paying costs of public projects to the extent that receipts of the issuer, other than the proceeds of taxes levied by that issuer, derived from or with respect to that public project or the operation of the public project being financed, or the enterprise, system, or category of public project of which the public project being financed is part, are estimated by the governing body or a representative of the governing body to be sufficient to pay the current expenses of that operation or of that public project, enterprise, or system and the debt charges payable from those receipts on obligations issued for that public project. See Kentucky Statutes 66.011
- 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
(b) The unpaid principal portion of all lease rental payments of tax-supported leases;
(c) The principal amount of obligations of any instrumentality of an issuer created for the purpose of financing projects which obligations are outstanding within the meaning of the mortgage, trust indenture, or legislation approving those obligations and which were issued prior to July 15, 1996, unless the obligations would constitute self-supporting obligations; and
(d) Leases under KRS § 65.940 to KRS § 65.956 entered into prior to July 15, 1996, unless the lease would constitute self-supporting obligations.
(2) In calculating the net indebtedness of an issuer, none of the following obligations or bonds shall be considered:
(a) Obligations issued in anticipation of the levy or collection of special assessments which are payable solely from those assessments or are otherwise self-supporting obligations;
(b) Obligations issued in anticipation of the collection of current taxes or revenues for the fiscal year which are payable within that fiscal year;
(c) Obligations, which are not self-supporting obligations, issued after July 15,
1996, by any instrumentality of the issuer created for the purpose of financing public projects for which there has been no pledge to the payment of debt charges of any tax of the issuer or for which there is covenant by the issuer to collect or levy a tax to pay debt charges;
(d) Self-supporting obligations and other obligations for which there has been no pledge to the payment of debt charges of any tax of the issuer or for which there is no covenant by the issuer to collect or levy a tax to pay debt charges;
(e) Obligations issued to pay costs of public projects to the extent they are issued in anticipation of the receipt of, and are payable as to principal from, federal or state grants within that fiscal year;
(f) Leases entered into under KRS § 65.940 to KRS § 65.956 which are not tax-supported leases;
(g) Bonds issued in the case of an emergency, when the public health or safety should so require; or
(h) Bonds issued to fund a floating indebtedness.
Effective: July 15, 1996
History: Created 1996 Ky. Acts ch. 280, sec. 3, effective July 15, 1996.