2016 Kentucky Revised Statutes CHAPTER 224 - ENVIRONMENTAL PROTECTION Subchapter 80 - Environmental Covenants 224.80-120 Identification of holders under covenant -- Obligations of holders and of cabinet -- Priority of interests in real property existing at the time of creation of an environmental covenant -- Subordination agreements.
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224.80-120 Identification of holders under covenant -- Obligations of holders and
of cabinet -- Priority of interests in real property existing at the time of
creation of an environmental covenant -- Subordination agreements.
(1)
(2)
(3)
An environmental covenant may identify more than one (1) holder, and the interest
of a holder is an interest in real property.
A right of the cabinet pursuant to KRS 224.80-100 to 224.80-210 or under an
environmental covenant shall not be deemed an interest in real property. The
obligations imposed on a property and holders of a property subject to an
environmental covenant shall be considered as ongoing obligations in furtherance of
protection of public health and the environment and are not intended to be
obligations that are reducible to a monetary claim or dischargeable under
bankruptcy law.
The following rules apply to persons with interests in real property in existence at
the time an environmental covenant is created or modified:
(a) A person with an interest that has priority under other law shall not be affected
by an environmental covenant, except when the owner of the interest is a party
to the covenant or subordinates his or her interest to the environmental
covenant in a subordination agreement.
(b) Nothing contained in KRS 224.80-100 to 224.80-210 shall require a person
that owns a prior interest to subordinate that interest to an environmental
covenant or to agree to be bound by an environmental covenant.
(c) The cabinet shall have the authority to disapprove an environmental covenant
if all prior interests to the real property are not subordinated to the
environmental covenant.
(d) A subordination agreement may be contained in the environmental covenant
covering real property or in a separate record. If the environmental covenant
covers commonly owned property in a common interest community, the
record may be signed by any person authorized by the governing board of the
owners' association.
(e) A person's act of subordinating his or her prior interest in a real property to an
environmental covenant shall affect the priority of that person's interest. The
act of subordinating a prior interest in a real property subject to an
environmental covenant shall not be presumed to impose any affirmative
obligation on the person with respect to the environmental covenant.
Effective: June 20, 2005
History: Created 2005 Ky. Acts ch. 92, sec. 3, effective June 20, 2005.
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