65.7065 Service payment agreement -- Power of city, county, or issuer to enter into agreement -- Liens, priority, validity, enforceability, and termination. - Kentucky Statutes

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Page 1 of 1 65.7065 Service payment agreement -- Power of city, county, or issuer to enter into 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. Effective: March 23, 2007
History: Created 2007 Ky. Acts ch. 95, sec. 13, effective March 23, 2007.