2014 Kentucky Revised Statutes
CHAPTER 65 - GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS
65.7065 Service payment agreement -- Power of city, county, or issuer to enter into agreement -- Liens, priority, validity, enforceability, and termination.
Download as PDF
<![CDATA[65.7065 Service payment agreement -- Power of city, county, or issuer to
enter into agreement -- Liens, priority, validity, enforceability, and
termination.
(1)
(2)
(3)
A city, county, or issuer may enter into a service payment agreement.
The service payment agreement may provide that the city, county, or issuer
shall have a lien on property described in the service payment agreement
equal to the amount of periodic payments due under the service payment
agreement. The service payment agreement may further provide that any lien
created pursuant to this section shall be governed by the provisions set forth in
KRS 91A.280, provided that a lien created pursuant to this section shall not
have the priority established in KRS 91A.280 in relation to an existing lien on
the property covered by the agreement unless, prior to recording the service
payment agreement, the lien holder under the service payment agreement
provides notice of the lien created by the service payment agreement to the
holder of the existing lien, and the holder of the existing lien consents to the
priority in writing. If written consent is not obtained, the priority of the lien
created under this subsection in relation to the prior lien shall be determined in
the same manner as a mortgage lien under KRS 382.280.
A lien authorized by this section shall not be valid and enforceable until
evidence of the lien has been recorded in the office of the county clerk. The
lien shall commence upon the issuance of increment bonds or other obligations
and shall continue until other funding sources pledged to and derived from the
project that is the subject of the service payment agreement are sufficient to
make, when due, all payments on the increment bonds or other obligations
identified in the service payment agreement. Upon termination of a lien
authorized by this section, a release shall be filed by the city, county, or issuer
with the county clerk.
Effective:March 23, 2007
History: Created 2007 Ky. Acts ch. 95, sec. 13, effective March 23, 2007.
]]>
Disclaimer: These codes may not be the most recent version.
Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
