278.694 Application -- Liability restriction -- No obligation of taxation.

189 words·~1 min read·/ky/chapter-278/278-694

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

(1)The laws of the Commonwealth shall govern the validity, enforceability,

attachment, perfection, priority, and exercise of remedies with respect to the

transfer of an interest or right or the pledge or creation of a security interest in any

securitized property.

(2)Neither the Commonwealth nor its political subdivisions shall be liable on any

securitized bonds. The bonds shall not be a:

(a)Debt or a general obligation of the Commonwealth or any of its political

subdivisions, agencies, or instrumentalities; or

(b)Special obligations or indebtedness of the Commonwealth or any of its

political subdivisions, agencies, or instrumentalities.

(3)An issue of securitized bonds shall not directly, indirectly, or contingently, obligate

the Commonwealth or any agency, political subdivision, or instrumentality of the

Commonwealth to levy any tax or make any appropriation for payment of the

securitized bonds, other than in their capacity as consumers of electricity. All

securitized bonds shall contain on their face a statement to the following effect:

"Neither the full faith and credit nor the taxing power of the Commonwealth of

Kentucky is pledged to the payment of the principal of, or interest on, this bond."