The corporation shall be authorized and empowered in connection with the issuance of its bonds and notes for housing purposes pursuant to this chapter to establish in respect of such bonds and notes such reserve funds or replacement funds as may be required in the sound discretion of the board of directors of the corporation to enable the corporation to effectuate its proper public purposes. In the event any such reserve fund or replacement fund created by the corporation in connection with any such bond issue or note issue should, in violation of any contract made by the corporation with any bondholder or note holder be monetarily deficient in any respect as of any date of accounting so stipulated by the corporation, the corporation shall immediately make formal request in writing to the secretary of the Finance and Administration Cabinet, and to the Governor of Kentucky that sums adequate to restore such reserve fund or replacement fund to its contractually required level and to pay any overdue principal and interest on any outstanding bonds and notes of the corporation be included in the next succeeding executive budget, and that such budget request with recommendation for approval by the General Assembly to the corporation for the use and benefit of such reserve fund or replacement fund. In the event the next scheduled even-numbered-year regular session of the General Assembly of Kentucky shall occur more than six (6) months after any such request by the corporation, the corporation shall request that sums adequate to restore such reserve fund or replacement fund to such contractually required level and to pay any overdue principal and interest on any outstanding bonds and notes of the corporation be made available from the Governor’s contingency fund, and if such funds are so made available the budget request hereinabove described in this section shall be correspondingly reduced.
Effective: June 21, 2001
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Terms Used In Kentucky Statutes 198A.165

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Corporation: means the Kentucky Housing Corporation created by this chapter. See Kentucky Statutes 198A.010
  • Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
  • notes: means the bonds or bond anticipation notes authorized to be issued by the corporation under this chapter but shall not include any fund notes. See Kentucky Statutes 198A.010

History: Amended 2001 Ky. Acts ch. 58, sec. 27, effective June 21, 2001. — Created
1974 Ky. Acts ch. 383, sec. 8.

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