Kentucky Revised Statutes Title XVIII. Public Health § 224A.140.Refunding bonds

(1) The authority is hereby authorized to provide for the issuance of refunding revenue bonds or notes for the purpose of refunding any revenue bonds or notes then outstanding which shall have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such revenue bonds or notes. The issuance and sale of such refunding revenue bonds or notes, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the authority in respect of the same, shall be governed by the provisions of this chapter which relate to the issuance of revenue bonds or notes, insofar as such provisions may be applicable.

(2) Refunding revenue bonds or notes may be sold or exchanged directly for outstanding revenue bonds or notes of the authority, and if sold, the proceeds thereof shall be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of such outstanding revenue bonds or notes. Pending the application of the proceeds of any such refunding revenue bonds, with any other available funds, to the payment of the principal, accrued interest, and any redemption premium on the revenue bonds or notes being refunded (and if so provided or permitted in the authority resolution authorizing the issuance of such refunding revenue bonds or notes, or in the trust indenture securing the same, to the payment of any interest on such refunding revenue bonds or notes and any expenses in connection with such refunding), such proceeds may be invested in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America which shall mature or which shall be subject to redemption by the holders thereof at the option of such holders not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended.