{"data":{"id":"us-ky/krs-224.80-120","jurisdiction":"us-ky","citation":"KRS 224.80-120","heading":"Identification of holders under covenant -- Obligations of holders and","body":"of cabinet -- Priority of interests in real property existing at the time of\ncreation of an environmental covenant -- Subordination agreements.\n(1) An environmental covenant may identify more than one (1) holder, and the interest\nof a holder is an interest in real property.\n(2) A right of the cabinet pursuant to KRS 224.80 -100 to 224.80 -210 or under an\nenvironmental covenant shall not be deemed an interest in real property. The\nobligations imposed on a property and holders of a property subject to an\nenvironmental covenant shall be considered as ongoing obligations in furtherance of\nprotection of public health and the environment and are not intended to be\nobligations that are red ucible to a monetary claim or dischargeable under\nbankruptcy law.\n(3) The following rules apply to persons with interests in real property in existence at\nthe time an environmental covenant is created or modified:\n(a) A person with an interest that has priority under other law shall not be affected\nby an environmental covenant, except when the owner of the interest is a party\nto the covenant or subordinates his or her interest to the environmental\ncovenant in a subordination agreement.\n(b) Nothing contained  in KRS 224.80 -100 to 224.80 -210 shall require a person\nthat owns a prior interest to subordinate that interest to an environmental\ncovenant or to agree to be bound by an environmental covenant.\n(c) The cabinet shall have the authority to disapprove an env ironmental covenant\nif all prior interests to the real property are not subordinated to the\nenvironmental covenant.\n(d) A subordination agreement may be contained in the environmental covenant\ncovering real property or in a separate record. If the environm ental covenant\ncovers commonly owned property in a common interest community, the\nrecord may be signed by any person authorized by the governing board of the\nowners' association.\n(e) A person's act of subordinating his or her prior interest in a real prope rty to an\nenvironmental covenant shall affect the priority of that person's interest. The\nact of subordinating a prior interest in a real property subject to an\nenvironmental covenant shall not be presumed to impose any affirmative\nobligation on the person with respect to the environmental covenant.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=10537","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:42Z","sha256":"b14fc00abbe31ca8672e453fb2bb7c0631167e2f4b5b1343ec75372de61a55e5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-224.80-110","next":"us-ky/krs-224.80-130"},"notice":"GroundRules: Original legal text. Not legal advice."}