65.7065 Service payment agreement -- Power of city, county, or issuer to enter into

307 words·~1 min read·/ky/65-7065

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

agreement -- Liens, priority, validity, enforceability, and termination.

(1)A city, county, or issuer may enter into a service payment agreement.

(2)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.

(3)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.