{"data":{"id":"us-ky/krs-65.942","jurisdiction":"us-ky","citation":"KRS 65.942","heading":"Terms and conditions of leases -- Leasing for financing property purchases -","body":"- Sinking fund -- Time period for challenging validity of ordinance or\nresolution.\n(1) (a) The governing body of a governmental agency may approve by ordinance,\norder, o r resolution and may execute, perform, and make payments under a\nlease with any person, to acquire or construct personal property or real\nproperty for any public purpose.\n(b) The lease may be on the terms and conditions that are deemed appropriate by\nthe governing body.\n(c) Leases may be payable in whole or in part from taxes and may be obligations\nof the governmental agency for the entire term of the lease or for a period that\ndoes not exceed one (1) year.\n(d) Leases may contain an option or options to ren ew or extend the term and may\nbe made payable from a pledge of all or any part of any revenues, funds, or\ntaxes or any combination of any revenues, funds, or taxes, which are available\nto the governmental agency for its public purposes.\n(2) (a) A governmen tal agency may pledge any revenues or taxes as security for\npayment under leases, and the leases may provide that the governmental\nagency may terminate its obligations under the lease at the expiration of each\nyear during the term of the lease.\n(b) A gover nmental agency may pledge any revenue or taxes as security for\npayment under a lease regardless of any right to terminate.\n(c) The lease may provide for the payment of interest on the unpaid amount of the\nlease price at a rate, rates, or method of determin ing rates and may contain\nprepayment provisions, termination penalties, and other provisions determined\nby the governing body of the governmental agency.\n(3) (a) Prior to entering into a lease for the financing of the purchase of any personal\nproperty or r eal property, a governmental agency shall comply with other\nprovisions of law regarding the purchase of property for public purposes.\n(b) The lease shall be deemed an instrument for financing and provisions of law\nregarding purchases of property for public  use shall not apply to the lease\nitself.\n(c) Leases may be entered into on a publicly advertised competitive basis or on a\nprivate negotiated basis without advertisement.\n(4) A sinking fund prescribed by KRS 66.081 shall be established for the payment of\nleases which are not annually renewable and which are payable in whole or in part\nfrom taxes and lease payments under those leases shall be made from the sinking\nfund.\n(5) (a) Any action challenging the validity or enforceability of any ordinance or\nresolution adopted by a governmental agency approving a lease shall be\nbrought within thirty (30) days from the date on which notice of the adoption\nof the ordinance or resolution is published in accordance with KRS Chapter\n424.\n(b) If the action challenging the validity or enforceability of the ordinance or\nresolution is not brought within the time provided by paragraph (a) of this\nsubsection, the action shall be forever barred.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48652","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:23Z","sha256":"c9ad61a92ba55cee530d811c77440126ab2ebd76b57107239b33ee3bc5139fa4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.940","next":"us-ky/krs-65.944"},"notice":"GroundRules: Original legal text. Not legal advice."}