KRS § 65.942 — KY Code / Title IX / Chapter 65 / Section 65.942
65.942 Terms and conditions of leases -- Leasing for financing property purchases -- Sinking fund -- Time period for challenging validity of ordinance or resolution
Status: in_force

65.942 Terms and conditions of leases -- Leasing for financing property purchases -

- Sinking fund -- Time period for challenging validity of ordinance or

resolution.

(1) (a) 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.

(b) The lease may be on the terms and conditions that are deemed appropriate by

the governing body.

(c) 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.

(d) 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.

(2) (a) 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.

(b) A governmental agency may pledge any revenue or taxes as security for

payment under a lease regardless of any right to terminate.

(c) 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.

(3) (a) 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.

(b) 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.

(c) Leases may be entered into on a publicly advertised competitive basis or on a

private negotiated basis without advertisement.

(4) 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.

(5) (a) Any action challenging the validity or enforceability of any ordinance or

resolution adopted by a governmental agency approving a lease shall be

brought within thirty (30) days from the date on which notice of the adoption

of the ordinance or resolution is published in accordance with KRS Chapter

424.

(b) If the action challenging the validity or enforceability of the ordinance or

resolution is not brought within the time provided by paragraph (a) of this

subsection, the action shall be forever barred.