Kentucky Statutes 224A.100 – Assistance agreements — Contents — Review by legislative committee
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The authority may enter into assistance agreements with governmental agencies, and governmental agencies may enter into assistance agreements with the authority in connection with infrastructure projects. Each assistance agreement shall be subject to review by the Capital Projects and Bond Oversight Committee of the Legislative Research Commission and may contain and include such provisions as may be agreed upon by the parties thereto, and shall include and prescribe the following provisions:
(1) An estimate of the reasonable cost of the infrastructure project, as determined by the authority;
(2) The amount of the total rentals under any lease of an infrastructure project, loans or grants to be made to the governmental agency, financing payments, or obligations of the governmental agency to be purchased by the authority;
(3) The time or times at which the rentals, loans or grants, financing payments, or the purchase price of a governmental agency shall become payable by or to the governmental agency;
(4) The specific purpose or purposes for which the leased infrastructure project will be used or the proceeds of the purchase of obligations of the governmental agency or loan or grant made pursuant to the assistance agreement shall be expended;
(5) The conditions under which the leased infrastructure project will be used or the proceeds of the purchase of obligations of the governmental agency or loan or grant may be expended on account of the infrastructure project by the governmental agency;
(6) An agreement by the governmental agency:
(a) To proceed expeditiously with and promptly complete the infrastructure project or cause same to be completed in accordance with plans and specifications approved by federal and state regulatory agencies;
(b) To commence or cause to be commenced operation of the infrastructure project on completion of construction, and not to discontinue operations or dispose of such infrastructure project without the approval of the authority;
(c) To operate and maintain or cause to be operated and maintained the infrastructure project in accordance with the applicable provisions of federal and state law;
(d) To disclose fully to the authority all applications for or award of grants or loans for financial assistance, if any;
(e) To provide for the payment of the governmental agency’s share of the cost of the infrastructure project, if the entire infrastructure project is not financed by assistance from the authority and describe with specificity the manner in which the governmental agency proposes to finance its share of such cost, if any;
(7) A provision that, if assistance which was not included in the calculation of the loan or grant payable pursuant to subsection (2) of this section becomes available to the governmental agency, the amount of the assistance from the authority shall be
recalculated with the inclusion of the additional assistance, and the governmental agency shall pay to the authority the amount, if any, by which the loan or grant actually made, exceeds the loan or grant as determined by the recalculation;
(8) The extent to which the assistance from the authority shall be repaid to the authority, which shall not be less than the sum of the following, except as provided under KRS § 224A.111, 224A.112, and 224A.1115:
(a) The aggregate principal amount of the loan; and
(b) Interest on the aggregate balance of the principal amount of the loan from time to time remaining unpaid, computed at the applicable interest rate, plus not to exceed one-quarter of one percent (0.25%), except as provided for in KRS
224A.111, 224A.112, and 224A.1115;
(9) The time or times and amounts when the repayments required by subsection (8) of this section shall be made by the governmental agency to the authority;
(10) The extent to which a service charge shall be imposed by the governmental agency.
Any service charge shall be calculated to produce amounts sufficient to meet the repayment schedule prescribed by subsection (8) of this section; and
(11) An agreement between the governmental agency and the authority that upon any failure of the governmental agency to make payment to the authority in accordance with the time schedule and repayment schedule fixed by the assistance agreement of the amounts prescribed by said schedules, that in such event the authority may, without further action, require the State Treasurer to pay to the authority such amount of other state revenues, tax sharing, or other state aid, with the exception of funds in aid to education and funds derived from motor fuel taxes or vehicle license taxes pursuant to Section 230 of the Constitution of Kentucky, as the governmental agency may thereafter become entitled to receive from the state, until all delinquent payments pursuant to the repayment schedule, plus interest thereon, from the date of each delinquency at the applicable interest rate per annum, shall have been paid.
Effective: July 15, 2002
History: Amended 2002 Ky. Acts ch. 342, sec. 16, effective July 15, 2002. — Amended
2000 Ky. Acts ch. 529, sec. 18, effective July 14, 2000. — Amended 1994 Ky. Acts ch. 373, sec. 6, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 105, sec. 56, effective July 14, 1992. — Amended 1988 Ky. Acts ch. 124, sec. 9, effective March
31, 1988. — Amended 1974 Ky. Acts ch. 336, sec. 5. — Created 1972 Ky. Acts ch.
329, sec. 10.
(1) An estimate of the reasonable cost of the infrastructure project, as determined by the authority;
Terms Used In Kentucky Statutes 224A.100
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Applicable interest rate: means the rate of interest which shall be used as part of the repayment criteria for an assistance agreement between a governmental agency and the authority, and shall be determined by the authority pertinent to the source of funds from which the assistance agreement is funded. See Kentucky Statutes 224A.011
- Assistance agreement: means the agreement to be made and entered into by and between a governmental agency or a private entity and the authority, as authorized by this chapter, providing for a lease, loan, services, or grant to a governmental agency or a private entity or for the purchase of obligations issued by the governmental agency, and for the repayment thereof to the authority by the governmental agency or a private entity. See Kentucky Statutes 224A.011
- Authority: means the Kentucky Infrastructure Authority, which is created by this chapter. See Kentucky Statutes 224A.011
- Construction: means and includes but is not limited to:
(a) Preliminary planning to determine the economic and engineering feasibility of infrastructure projects, the engineering, architectural, legal, fiscal, and economic investigations, and studies necessary thereto, and surveys, designs, plans, working drawings, specifications, procedures, and other actions necessary to the construction of infrastructure or solid waste projects. See Kentucky Statutes 224A.011 - Federal: refers to the United States. See Kentucky Statutes 446.010
- Governmental agency: means any incorporated city or municipal corporation, or other agency, or unit of government within or a department or a cabinet of the Commonwealth of Kentucky, now having or hereafter granted, the authority and power to finance, acquire, construct, or operate infrastructure or solid waste projects. See Kentucky Statutes 224A.011
- Infrastructure project: means any construction or acquisition of treatment works, facilities related to the collection, transportation, and treatment of wastewater as defined in KRS §. See Kentucky Statutes 224A.011
- 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
- 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
- Loan or grant: means moneys to be made available to governmental agencies by the authority for the purpose of defraying all or any part of the total costs incidental to construction or acquisition of any infrastructure project. See Kentucky Statutes 224A.011
- Oversight: Committee review of the activities of a Federal agency or program.
- Service charge: means any monthly, quarterly, semiannual, or annual charge to be imposed by a governmental agency, or by the authority, for any infrastructure project financed by the authority, which service charge arises by reason of the existence of, and requirements of, any assistance agreement. See Kentucky Statutes 224A.011
- State: means the Commonwealth of Kentucky. See Kentucky Statutes 224A.011
(2) The amount of the total rentals under any lease of an infrastructure project, loans or grants to be made to the governmental agency, financing payments, or obligations of the governmental agency to be purchased by the authority;
(3) The time or times at which the rentals, loans or grants, financing payments, or the purchase price of a governmental agency shall become payable by or to the governmental agency;
(4) The specific purpose or purposes for which the leased infrastructure project will be used or the proceeds of the purchase of obligations of the governmental agency or loan or grant made pursuant to the assistance agreement shall be expended;
(5) The conditions under which the leased infrastructure project will be used or the proceeds of the purchase of obligations of the governmental agency or loan or grant may be expended on account of the infrastructure project by the governmental agency;
(6) An agreement by the governmental agency:
(a) To proceed expeditiously with and promptly complete the infrastructure project or cause same to be completed in accordance with plans and specifications approved by federal and state regulatory agencies;
(b) To commence or cause to be commenced operation of the infrastructure project on completion of construction, and not to discontinue operations or dispose of such infrastructure project without the approval of the authority;
(c) To operate and maintain or cause to be operated and maintained the infrastructure project in accordance with the applicable provisions of federal and state law;
(d) To disclose fully to the authority all applications for or award of grants or loans for financial assistance, if any;
(e) To provide for the payment of the governmental agency’s share of the cost of the infrastructure project, if the entire infrastructure project is not financed by assistance from the authority and describe with specificity the manner in which the governmental agency proposes to finance its share of such cost, if any;
(7) A provision that, if assistance which was not included in the calculation of the loan or grant payable pursuant to subsection (2) of this section becomes available to the governmental agency, the amount of the assistance from the authority shall be
recalculated with the inclusion of the additional assistance, and the governmental agency shall pay to the authority the amount, if any, by which the loan or grant actually made, exceeds the loan or grant as determined by the recalculation;
(8) The extent to which the assistance from the authority shall be repaid to the authority, which shall not be less than the sum of the following, except as provided under KRS § 224A.111, 224A.112, and 224A.1115:
(a) The aggregate principal amount of the loan; and
(b) Interest on the aggregate balance of the principal amount of the loan from time to time remaining unpaid, computed at the applicable interest rate, plus not to exceed one-quarter of one percent (0.25%), except as provided for in KRS
224A.111, 224A.112, and 224A.1115;
(9) The time or times and amounts when the repayments required by subsection (8) of this section shall be made by the governmental agency to the authority;
(10) The extent to which a service charge shall be imposed by the governmental agency.
Any service charge shall be calculated to produce amounts sufficient to meet the repayment schedule prescribed by subsection (8) of this section; and
(11) An agreement between the governmental agency and the authority that upon any failure of the governmental agency to make payment to the authority in accordance with the time schedule and repayment schedule fixed by the assistance agreement of the amounts prescribed by said schedules, that in such event the authority may, without further action, require the State Treasurer to pay to the authority such amount of other state revenues, tax sharing, or other state aid, with the exception of funds in aid to education and funds derived from motor fuel taxes or vehicle license taxes pursuant to Section 230 of the Constitution of Kentucky, as the governmental agency may thereafter become entitled to receive from the state, until all delinquent payments pursuant to the repayment schedule, plus interest thereon, from the date of each delinquency at the applicable interest rate per annum, shall have been paid.
Effective: July 15, 2002
History: Amended 2002 Ky. Acts ch. 342, sec. 16, effective July 15, 2002. — Amended
2000 Ky. Acts ch. 529, sec. 18, effective July 14, 2000. — Amended 1994 Ky. Acts ch. 373, sec. 6, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 105, sec. 56, effective July 14, 1992. — Amended 1988 Ky. Acts ch. 124, sec. 9, effective March
31, 1988. — Amended 1974 Ky. Acts ch. 336, sec. 5. — Created 1972 Ky. Acts ch.
329, sec. 10.