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65.7065 Service payment agreement -- Power of city, county, or issuer to enter into agreement -- Liens, priority, validity, enforceability, and termination.

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Page 1 of 1 65.7065 Service payment agreement -- Power of city, county, or issuer to enter into agreement -- Liens, priority, validity, enforceability, and termination. (1) A city, county, or issuer may enter into a service payment agreement. <br>(2) The service payment agreement may provide that the city, county, or issuer shall have a lien on property described in the service payment agreement equal to the <br>amount of periodic payments due under the service payment agreement. The service <br>payment agreement may further provide that any lien created pursuant to this <br>section shall be governed by the provisions set forth in KRS 91A.280, provided that <br>a lien created pursuant to this section shall not have the priority established in KRS <br>91A.280 in relation to an existing lien on the property covered by the agreement <br>unless, prior to recording the service payment agreement, the lien holder under the <br>service payment agreement provides notice of the lien created by the service <br>payment agreement to the holder of the existing lien, and the holder of the existing <br>lien consents to the priority in writing. If written consent is not obtained, the priority <br>of the lien created under this subsection in relation to the prior lien shall be <br>determined in the same manner as a mortgage lien under KRS 382.280. (3) A lien authorized by this section shall not be valid and enforceable until evidence of the lien has been recorded in the office of the county clerk. The lien shall commence <br>upon the issuance of increment bonds or other obligations and shall continue until <br>other funding sources pledged to and derived from the project that is the subject of <br>the service payment agreement are sufficient to make, when due, all payments on <br>the increment bonds or other obligations identified in the service payment <br>agreement. Upon termination of a lien authorized by this section, a release shall be <br>filed by the city, county, or issuer with the county clerk. Effective: March 23, 2007 <br>History: Created 2007 Ky. Acts ch. 95, sec. 13, effective March 23, 2007.