2013 Kentucky Revised Statutes CHAPTER 65 - GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.942 Terms and conditions of leases -- Leasing for financing property purchases -- Sinking fund.
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65.942 Terms and conditions of leases -- Leasing for financing property
purchases -- Sinking fund.
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The governing body of a governmental agency may approve by ordinance,
order, or resolution and may execute, perform, and make payments under a
lease with any person, to acquire or construct personal property or real
property for any public purpose. The lease may be on the terms and conditions
that are deemed appropriate by the governing body. Leases may be payable in
whole or in part from taxes and may be obligations of the governmental agency
for the entire term of the lease or for a period that does not exceed one (1)
year. Leases may contain an option or options to renew or extend the term and
may be made payable from a pledge of all or any part of any revenues, funds,
or taxes or any combination of any revenues, funds, or taxes, which are
available to the governmental agency for its public purposes.
A governmental agency may pledge any revenues or taxes as security for
payment under leases, and the leases may provide that the governmental
agency may terminate its obligations under the lease at the expiration of each
year during the term of the lease. A governmental agency may pledge any
revenue or taxes as security for payment under a lease regardless of any right
to terminate. The lease may provide for the payment of interest on the unpaid
amount of the lease price at a rate, rates, or method of determining rates and
may contain prepayment provisions, termination penalties, and other provisions
determined by the governing body of the governmental agency.
Prior to entering into a lease for the financing of the purchase of any personal
property or real property, a governmental agency shall comply with other
provisions of law regarding the purchase of property for public purposes. The
lease shall be deemed an instrument for financing and provisions of law
regarding purchases of property for public use shall not apply to the lease
itself. Leases may be entered into on a publicly advertised competitive basis or
on a private negotiated basis without advertisement.
A sinking fund prescribed by KRS 66.081 shall be established for the payment
of leases which are not annually renewable and which are payable in whole or
in part from taxes and lease payments under those leases shall be made from
the sinking fund.
Effective:July 15, 1996
History: Amended 1996 Ky. Acts ch. 280, sec. 29, effective July 15, 1996. -Created 1990 Ky. Acts ch. 81, sec. 2, effective July 13, 1990.
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