KRS § 106.260 Form of bonds -- Improvement or refunding bonds -- Negotiability -- Procedure for sale.
AI-assisted research summary: This section lets certain bond issuers set bond terms and requires the board to sell bonds through a public competitive bidding process.
106.260 Form of bonds -- Improvement or refunding bonds -- Negotiability -- Procedure for sale. (1) Bonds issued pursuant to this chapter by water district commissioners and by a legislative body of a municipality may be issued in one (1) or more series, may bear a date or dates, may mature at a time or times, not exceeding forty (40) years from their respective dates, may be in a denomination or denominations, may be in a form, either coupon or registered, may carry registration and conversion privileges, may be executed in a manner, may be payable in a medium of payment, at a place or places, may be sold or hypothecated in blocks, and may be subject to the terms of repurchase or redemption of all or any of the bonds before maturity in a manner, and at a price or prices as may be fixed by the board prior to the sale of the bonds. (2) The board at any time may issue and sell revenue bonds to finance improvement or issue and sell refunding bonds for the purpose of providing funds for the payment of any outstanding bonds issued in accordance with the provisions of this chapter. The new bonds shall be issued, sold, and secured in accordance with the provisions of this chapter for the issuance of the original revenue bonds. (3) All revenue bonds issued pursuant to the provisions of this chapter in the hands of bona fide holders, shall have all the qualities and incidents of negotiable instruments under the law merchant. All bonds shall be sold to the highest responsible bidder at a time and place as shall have been fixed by the board in the notice of the sale of the bonds, which notice shall have been advertised by publication pursuant to KRS Chapter 424. The board shall receive written, sealed competitive bids, which shall be publicly opened and read at the time and place specified in the notice of sale. The board may reject all bids and readvertise. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 274, sec. 31, effective July 15, 1996. -- Amended 1968 Ky. Acts ch. 110, sec. 17. -- Amended 1966 Ky. Acts ch. 239, sec. 119. -- Created 1954 Ky. Acts ch. 18, sec. 26, effective June 17, 1954.