{"data":{"id":"us-ky/krs-103.215","jurisdiction":"us-ky","citation":"KRS 103.215","heading":"Alternative procedure for issuance of bonds.","body":"(1) As an alternative to the procedures set forth in KRS 103.200 to 103.285, inclusive,\nany city or county, for the purpose of financing the acquisition of an industrial\nbuilding, may issue negotiable bonds pursuant to KRS 103.200 to 103.285 under\none (1) of the following methods in lieu of fee simple ownership:\n(a) Loan the proceeds from the sale of such bonds to any person to finance the\nacquisition of such industrial building facilities;\n(b) Sell such industrial building facilities to any person pursuant to agreement; or\n(c) Lease such industrial building facilities from any person and sublease same to\nsuch person.\nIn the event of use of such alternative financing procedure, such bonds shall not\nconstitute an indebtedness of such city or county within the me aning of the\nConstitution of Kentucky, but shall be payable as to principal and interest solely\nfrom the revenues derived from payments, repayments, or sublease payments made\nby such person to such city or county in respect of such loan, sale, or sublease.\n(2) In the event that an alternate procedure authorized by this section is to be utilized in\nthe financing of an industrial building:\n(a) The provisions of KRS 103.200 to 103.285, inclusive, shall apply, except that\nthe proceedings and procedures therein described shall contemplate and\nauthorize a transaction in the form of:\n1. A loan of the proceeds from the sale of such bonds by such city or\ncounty to any person for the acquisition of such industrial building;\n2. A sale of such industrial building to any  person pursuant to agreement;\nor\n3. A lease of such industrial building from any person and sublease of\nsame to such person; and\n(b) The loan, sale, lease, and sublease and any agreement or contract with respect\nthereto may include such provisions as such  city or county shall deem\nappropriate to effect the securing of the financing undertaken in respect of\nsuch industrial building, including, but not by way of limitation:\n1. The pledge of the general credit of any such person;\n2. The making of guarantees to an indenture trustee or to such city or\ncounty in respect of amortization of such bonds by any such person;\n3. The creation of liens or security interests on any property or portion\nthereof of any such person, either senior or j unior to, or ranking equally\nwith, any other lien, security interest, or rights of others, including any\nparty or parties to any agreement in connection with such financing\nand/or its or their respective security holders and indenture trustees or\nmortgage trustees; and\n4. The pledge of other direct securities of such person in respect of such\nbonds.\n(3) In the event any city or county shall finance an industrial building pursuant to the\nexpress authority contained in this section, title to such industrial b uilding shall not\nbe acquired by such city or county in the case of a loan or lease transaction, and, in\nthe case of a sale transaction, title may pass at any time; and neither the statutory\nmortgage lien for which provision is made in KRS 103.250 nor the foreclosable\nmortgage lien for which provision is made in KRS 103.251 shall apply to any such\nindustrial building facilities.","path":["KRS Chapter 103"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=27003","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:07Z","sha256":"75c91d9adf2957c1532b1d0f562986c068c0c17595f92b37774d3ccf2d3d02e5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-103.2101","next":"us-ky/krs-103.220"},"notice":"GroundRules: Original legal text. Not legal advice."}