{"data":{"id":"us-ky/krs-103.246","jurisdiction":"us-ky","citation":"KRS 103.246","heading":"Financing pollution control facilities for industrial concerns and utility","body":"companies by cities and counties.\n(1) (a) The term \"pollution control facilities\" means any land, building, structure,\nmachinery, equipment, device, system or facility  functionally related thereto\ndesigned for the control, containment, reduction, prevention or abatement of\natmospheric pollutants or contaminants, solid waste, noise, radiation, or water\npollution produced by industrial concerns and utility companies, incl uding,\nbut not by way of limitation, any such facilities used in whole or in part to\ncontrol, contain, reduce, prevent or abate atmospheric, solid waste, noise,\nradiation, or water pollution by removing, altering, containing, disposing or\nstoring pollutant s, contaminants, wastes, whether gaseous, solid or liquid,\nthermal or radioactive. Said term includes all pollution control facilities\nwhenever constructed, reconstructed, purchased, leased or otherwise acquired\nand placed in use, which may legally be fina nced by issuance of bonds\ndetermined to be tax -exempt pursuant to the provisions of Section 103(b) of\nthe Internal Revenue Code of 1954, as amended, and regulations promulgated\nthereunder. Pollution control facilities may be constructed as part of, and may\ninclude, facilities also designed for the recovery of chemicals or other by -\nproducts or to serve other purposes which also contribute to the control of or\nabatement of atmospheric, solid waste and water pollution.\n(b) The term \"industrial concern\" means a ny domestic or foreign corporation,\ncompany, partnership, association, rural electric cooperative corporation, or\nany other legal entity.\n(2) It is hereby determined and declared that the acquisition and financing of pollution\ncontrol facilities for utiliz ation by industrial concerns and utility companies by the\nissuance of bonds of cities and counties amortized by payments made by such\nindustrial concerns and utility companies inures to the public interest, and\nconstitutes the performance of a proper governmental purpose. It is the intent of this\nsection to afford to cities and counties alternative methods of financing pollution\ncontrol facilities to the end that atmospheric, solid waste and water pollution in the\nCommonwealth may be abated and controlled to the maximum possible extent.\n(3) As an alternative to the procedure set forth in KRS 103.200 to 103.285, inclusive,\nany city or county, for the purpose of financing the acquisition of pollution control\nfacilities for any industrial concern or utility com pany, may issue negotiable bonds\npursuant to KRS 103.200 to 103.285, inclusive, and either (a) loan the proceeds\nfrom the sale of such bonds to an industrial concern or utility company to finance\nthe acquisition of such pollution control facilities, (b) se ll such pollution control\nfacilities to an industrial concern or utility company pursuant to agreement, or (c)\nlease such pollution control facilities from an industrial concern or utility company\nand sublease same to such industrial concern or utility com pany. In the event of use\nof such alternative financing procedure, such bonds shall not constitute an\nindebtedness of such city or county within the meaning of the Constitution of\nKentucky, but shall be payable as to principal and interest solely from the revenues\nderived from payments, repayments, or sublease payments made by such industrial\nconcern or utility company to such city or county in respect of such loan, sale or\nsublease.\n(4) In the event that an alternate procedure authorized by this section is  to be utilized in\nthe financing of pollution control facilities, (i) the provisions of KRS 103.200 to\n103.285, inclusive, shall apply, except that the proceedings and procedures therein\ndescribed shall contemplate and authorize a transaction in the form o f (a) a loan of\nthe proceeds from the sale of such bonds by such city or county to an industrial\nconcern or utility company for the acquisition of such pollution control facilities, (b)\na sale of such pollution control facilities to an industrial concern o r utility company\npursuant to agreement, or (c) a lease of such pollution control facilities from an\nindustrial concern or utility company and sublease of same to such industrial\nconcern or utility company; and (ii) the loan, sale, lease and sublease and a ny\nagreement or contract with respect thereto may include such provisions as such city\nor county shall deem appropriate to effect the securing of the financing undertaken\nin respect of such pollution control facilities, including, but not by way of\nlimitation, (a) the pledge of the general credit of any such industrial concern or\nutility company, (b) the making of guarantees to an indenture trustee or to such city\nor county in respect of amortization of such bonds by any such industrial concern or\nutility c ompany, (c) the creation of liens of security interests on any property or\nportion thereof of any such industrial concern or utility company, either senior or\njunior to, or ranking equally with, any other lien, security interest or rights of others,\nincluding any party or parties to any agreement in connection with such financing\nand/or its or their respective security holders and indenture trustees or mortgage\ntrustees, and (d) the pledge of other direct securities of such industrial concern or\nutility company in respect of such bonds.\n(5) In the event any city or county shall finance pollution control facilities pursuant to\nthe express authority contained in this section, title to such pollution control\nfacilities shall not be acquired by such city or coun ty in the case of a loan or lease\ntransaction, and, in the case of a sale transaction, title may pass at any time, and the\nstatutory mortgage lien for which provision is made in KRS 103.250 shall not apply\nto any such pollution control facilities.\n(6) Bonds issued by cities and counties pursuant to the authority contained in this\nsection may be caused to mature as to principal in term or serial maturities not to\nexceed forty (40) years from date of issue.","path":["KRS Chapter 103"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50297","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:07Z","sha256":"da99ef48c212593cfa00f405d0ddd7b6d54e7db2569afd83040ec4481861def9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-103.2451","next":"us-ky/krs-103.250"},"notice":"GroundRules: Original legal text. Not legal advice."}