KRS 66.021: Bonds as negotiable instruments -- Presumption of validity.

(1) Bonds lawfully authorized and issued by an issuer, subject to applicable provisions

for registration or of the proceedings of the issuance, are negotiable instruments.

(2) Unless a judicial action or proceeding challenging the validity of bonds is

commenced by personal service on the chief executive officer of the issuer, prior to

the initial delivery of the bonds, the bonds and the proceedings relating to them are

incontestable and the bonds shall be conclusively considered to be and to have been

issued, s ecured, entered into, payable, sold, executed, and delivered, and the

proceedings relating to them taken, in conformity with all legal requirements, if all

of the following apply:

(a) They state that they are issued or entered into under or pursuant to aut horizing

provisions of law and comply on their face with those provisions;

(b) They are issued or entered into for a public purpose, as stated in the bonds or

the legislation authorizing their issuance, and within any limitations

prescribed by law;

(c) Their purchase price, if any, has been paid in full; and

(d) The transcript of the proceedings contains a statement by the officer having

charge of the applicable records, or by the chief executive officer of the issuer,

that all the proceedings were held in compliance with law, which statement

creates a conclusive presumption that the proceedings were held in

compliance with all laws, including, as applicable, KRS 61.800.