KRS 65.209: Issuance of bonds or notes to finance energy projects -- Security -- Lien.

(1) A local government may issue bonds or notes to finance energy projects through

assessments imposed pursuant to KRS 65.205 to 65.209.

(2) Bonds or notes issued under this section shall not be general obligations of the local

government. The bonds or no tes shall be secured solely by one (1) or more of the

following, as provided by the governing body of the local government in the

resolution or ordinance approving the issuance of the bonds or notes:

(a) Payments of assessments on relevant real properties in one (1) or more

specified energy project assessment districts;

(b) Reserves established by the local government from grants, bonds, or other

available funds;

(c) Municipal bond insurance, lines of credit, public or private guaranties, standby

bond purch ase agreements, collateral assignments, mortgages, or other

available means of providing credit support or liquidity; and

(d) Any other funds available for the purposes of KRS 65.205 to 65.209.

(3) A local government pledge of assessments, funds, or contra ctual rights in

connection with the issuance of bonds or notes by the local government under this

section constitutes a first lien on the assessments, funds, or contractual rights

pledged in favor of the person to whom the pledge is given, without further action

by the local government. The lien is valid and binding against any other person,

with or without notice.