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65.942 Terms and conditions of leases -- Leasing for financing property purchases -- Sinking fund.

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Page 1 of 1 65.942 Terms and conditions of leases -- Leasing for financing property purchases -- Sinking fund. (1) The governing body of a governmental agency may approve by ordinance, order, or resolution and may execute, perform, and make payments under a lease with any <br>person, to acquire or construct personal property or real property for any public <br>purpose. The lease may be on the terms and conditions that are deemed appropriate <br>by the governing body. Leases may be payable in whole or in part from taxes and <br>may be obligations of the governmental agency for the entire term of the lease or for <br>a period that does not exceed one (1) year. Leases may contain an option or options <br>to renew or extend the term and may be made payable from a pledge of all or any <br>part of any revenues, funds, or taxes or any combination of any revenues, funds, or <br>taxes, which are available to the governmental agency for its public purposes. (2) A governmental agency may pledge any revenues or taxes as security for payment under leases, and the leases may provide that the governmental agency may <br>terminate its obligations under the lease at the expiration of each year during the <br>term of the lease. A governmental agency may pledge any revenue or taxes as <br>security for payment under a lease regardless of any right to terminate. The lease <br>may provide for the payment of interest on the unpaid amount of the lease price at a <br>rate, rates, or method of determining rates and may contain prepayment provisions, <br>termination penalties, and other provisions determined by the governing body of the <br>governmental agency. (3) Prior to entering into a lease for the financing of the purchase of any personal property or real property, a governmental agency shall comply with other provisions <br>of law regarding the purchase of property for public purposes. The lease shall be <br>deemed an instrument for financing and provisions of law regarding purchases of <br>property for public use shall not apply to the lease itself. Leases may be entered into <br>on a publicly advertised competitive basis or on a private negotiated basis without <br>advertisement. (4) A sinking fund prescribed by KRS 66.081 shall be established for the payment of leases which are not annually renewable and which are payable in whole or in part <br>from taxes and lease payments under those leases shall be made from the sinking <br>fund. Effective: July 15, 1996 <br>History: Amended 1996 Ky. Acts ch. 280, sec. 29, effective July 15, 1996. -- Created 1990 Ky. Acts ch. 81, sec. 2, effective July 13, 1990.