Find Legal Information

76.279 Lease of system constructed by metropolitan sewer district -- Renewals -- Revenue bonds of metropolitan district.

Download pdf

76.279 Lease of system constructed by metropolitan sewer district -- Renewals -- Revenue bonds of metropolitan district. (1) In order to provide for the construction of a comprehensive sewage and sewage treatment system, or storm water and surface drainage system, or both, the <br>sanitation tax district and a metropolitan sewer district may agree in writing that the <br>latter shall construct the system and operate it in consideration that the sanitation <br>tax district lease the system for a term of one (1) year, which term may be renewed. <br>No such system shall include lateral sewers. It may include any other appliance or <br>structure reasonably incident to such a system. (2) The sanitation tax district shall have an exclusive option to renew for each year succeeding the original term, but the option shall not grant exclusive renewal <br>options for more than forty (40) years. The method of exercising the exclusive <br>option to renew the lease shall be any method permissible under law which does not <br>have the effect of authorizing or permitting the sanitation tax district to become <br>indebted to an amount exceeding, in any year, the income and revenue provided for <br>such year within the meaning of Section 157 of the Constitution of Kentucky. (3) A metropolitan sewer district is authorized to issue bonds secured solely by rentals payable under such a lease to finance construction of the system. Except as provided <br>in the preceding sentence, all matters pertaining to such bonds shall be governed by <br>KRS 76.254 and 76.261. History: Created 1964 Ky. Acts ch. 33, sec. 43.