{"data":{"id":"us-ky/krs-441.635","jurisdiction":"us-ky","citation":"KRS 441.635","heading":"Leases between authority and local governments authorized -- Contents.","body":"The authority and any local government are authorized and empowered to enter into a\nlease with respect to any project according to any agreement or agreements made\npursuant to  KRS 441.630.  Any lease may contain, in substance, any of the following\nprovisions and such other provisions not inconsistent herewith as the authority and local\ngovernment may deem appropriate and desirable:\n(1) That the lease is for the remainder of th e fiscal period in which it is dated and\nexecuted, and is automatically renewable for the succeeding fiscal period, one (1) at\na time, until the final maturity date of the bond issue to which the lease is related, or\nuntil the local government notifies the  authority in writing within sixty (60) days\nbefore the expiration of the lease that the local government will not renew said\nlease;\n(2) That with respect to the fiscal period in which the lease is dated and executed, the\nlocal government shall otherwise be firmly bound only (a) to contribute to the\nauthority such portions, if any, of the cost of the project as the agreement prescribes\nshall be paid by the local government; and (b) to pay the authority the rental\nprescribed for such fiscal period;\n(3) That if the local government shall fully perform all such obligations during such\ninitial term of the lease, it shall have an exclusive option to automatically renew the\nlease at the time and in the manner prescribed for the ensuing fiscal period,\neffective on the first day thereof; no local government shall be or become in any\nway obligated to pay the rental stipulated for such fiscal year unless the lease be so\nautomatically renewed; and that the local government shall, upon any such renewal,\nbe firmly bound to pay to the authority the rental stipulated for such fiscal period as\na general obligation of the local government to be paid from any funds available to\nthe local government required by law or by previous binding contract to be devoted\nto some other purpose;\n(4) In like manner and subject to the same conditions and provisions as are set forth in\nsubsection (3) of this section, if the local government shall in the first ensuing fiscal\nyear fully perform its obligations and pay to the authority the renta l stipulated for\nsuch fiscal period, the local government shall have another exclusive option to\nautomatically renew such lease for another fiscal year, and so on for successive\nfiscal periods until the final fiscal period for which the lease may be renewed;\n(5) That so long as the lease is renewed from time to time and the local government\nfully performs all its obligations as lessee, including payment of the rental\nstipulated in the lease,\n(a) The revenues of the project shall be collected, segregated, distributed,\ndeposited, secured, disbursed and accounted for in strict conformity with the\nproceedings and trust indenture of the authority, and the aggregate of such\nrevenues properly accounted for and deposited pursuant to said proceedings\nand trust indenture shall, to the extent provided in the lease, be a credit against\nthe local government's rental or other obligations for the current fiscal period\nunder the term of the lease, and\n(b) Any revenues collected pursuant to KRS 441.685, or other funds as m ay be\nprovided and made available to the authority by the Commonwealth or other\nsources, and set aside pursuant to an agreement, shall be applied as provided\nin said proceedings and trust indenture and shall, to the extent provided in the\nlease, be a credit against the local government's rental or other obligations for\nthe then current fiscal period under the lease.","path":["KRS Chapter 441"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=19368","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:56Z","sha256":"0dae006414cbb5965bfbd29120a277cd37265914d2cf770fd120b8bf38c355a1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-441.630","next":"us-ky/krs-441.640"},"notice":"GroundRules: Original legal text. Not legal advice."}