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66.021 Bonds as negotiable instruments -- Presumption of validity.

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Page 1 of 1 66.021 Bonds as negotiable instruments -- Presumption of validity. (1) Bonds lawfully authorized and issued by an issuer, subject to applicable provisions for registration or of the proceedings of the issuance, are negotiable instruments. (2) Unless a judicial action or proceeding challenging the validity of bonds is commenced by personal service on the chief executive officer of the issuer, prior to <br>the initial delivery of the bonds, the bonds and the proceedings relating to them are <br>incontestable and the bonds shall be conclusively considered to be and to have been <br>issued, secured, entered into, payable, sold, executed, and delivered, and the <br>proceedings relating to them taken, in conformity with all legal requirements, if all <br>of the following apply: <br>(a) They state that they are issued or entered into under or pursuant to authorizing provisions of law and comply on their face with those provisions; (b) They are issued or entered into for a public purpose, as stated in the bonds or the legislation authorizing their issuance, and within any limitations <br>prescribed by law; (c) Their purchase price, if any, has been paid in full; and <br>(d) The transcript of the proceedings contains a statement by the officer having charge of the applicable records, or by the chief executive officer of the issuer, <br>that all the proceedings were held in compliance with law, which statement <br>creates a conclusive presumption that the proceedings were held in <br>compliance with all laws, including, as applicable, KRS 61.800 . Effective: July 15, 1996 <br>History: Created 1996 Ky. Acts ch. 280, sec. 2, effective July 15, 1996.