Kentucky Statutes 56.515 – Leaseback agreement for fairgrounds improvements
Current as of: 2024 | Check for updates
|
Other versions
(1) When the cabinet finds that the purposes of the State Fair Board and the public purposes of the Commonwealth would be promoted by the construction of buildings and improvements on land in the custody of the State Fair Board as defined in KRS
247.140(1)(a), it may, in addition to any other method prescribed by law, authorize the construction of such buildings and improvements by private capital under a conveyance and leaseback agreement authorized by subsection (2) of this section, or under a mortgage agreement authorized by subsection (3) of this section.
(2) The cabinet may convey the fee interest in any of the land described in subsection (1) of this section to a private individual, corporation, or partnership to which such land has been or will be leased, subject to a written agreement by such individual, corporation, or partnership to construct such buildings and improvements and to reconvey the fee interest to the Commonwealth subject to a mortgage placed on the fee interest by such individual, corporation, or partnership for the purpose of securing private financing for the construction of such buildings and improvements; provided, however, that such mortgage shall not constitute a general obligation or debt of the Commonwealth and that the Commonwealth may, in the event of default, redeem the mortgage if it so elects.
(3) The cabinet may agree that a private individual, corporation, or partnership to which any of the land described in subsection (1) of this section has been leased may, in order to secure private financing for the construction of such buildings and improvements, have the right to grant against its leasehold interest a first mortgage lien in an amount sufficient to pay fully the costs of the construction of such buildings and improvements, to which all rights of the Commonwealth shall be subordinate and inferior; provided, however, that such first mortgage lien shall not constitute a general debt or obligation of the Commonwealth.
(4) Any agreement made under this section shall be made only with the written consent of the State Fair Board and the State Property and Buildings Commission and shall be signed in the name of the Commonwealth by the secretary of the Finance and Administration Cabinet and the Governor and shall be lodged for record in the Office of the Secretary of State.
Effective: March 29, 1976
History: Amended 1976 Ky. Acts ch. 76, sec. 1, effective March 29, 1976. — Amended
1974 Ky. Acts ch. 74, Art. II, sec. 9(2). — Created 1958 Ky. Acts ch. 140, sec. 3, effective June 19, 1958.
247.140(1)(a), it may, in addition to any other method prescribed by law, authorize the construction of such buildings and improvements by private capital under a conveyance and leaseback agreement authorized by subsection (2) of this section, or under a mortgage agreement authorized by subsection (3) of this section.
Terms Used In Kentucky Statutes 56.515
- Cabinet: means the Finance and Administration Cabinet. See Kentucky Statutes 56.440
- Commission: means the State Property and Buildings Commission. See Kentucky Statutes 56.440
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: includes both general and limited partnerships. See Kentucky Statutes 446.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- written: shall mean letters, words, or numbers, or their equivalent, set down by handwriting, typewriting, printing, photostating, photographing, magnetic impulse, mechanical or electronic recording, or other form of data compilation. See Kentucky Statutes 56.440
(2) The cabinet may convey the fee interest in any of the land described in subsection (1) of this section to a private individual, corporation, or partnership to which such land has been or will be leased, subject to a written agreement by such individual, corporation, or partnership to construct such buildings and improvements and to reconvey the fee interest to the Commonwealth subject to a mortgage placed on the fee interest by such individual, corporation, or partnership for the purpose of securing private financing for the construction of such buildings and improvements; provided, however, that such mortgage shall not constitute a general obligation or debt of the Commonwealth and that the Commonwealth may, in the event of default, redeem the mortgage if it so elects.
(3) The cabinet may agree that a private individual, corporation, or partnership to which any of the land described in subsection (1) of this section has been leased may, in order to secure private financing for the construction of such buildings and improvements, have the right to grant against its leasehold interest a first mortgage lien in an amount sufficient to pay fully the costs of the construction of such buildings and improvements, to which all rights of the Commonwealth shall be subordinate and inferior; provided, however, that such first mortgage lien shall not constitute a general debt or obligation of the Commonwealth.
(4) Any agreement made under this section shall be made only with the written consent of the State Fair Board and the State Property and Buildings Commission and shall be signed in the name of the Commonwealth by the secretary of the Finance and Administration Cabinet and the Governor and shall be lodged for record in the Office of the Secretary of State.
Effective: March 29, 1976
History: Amended 1976 Ky. Acts ch. 76, sec. 1, effective March 29, 1976. — Amended
1974 Ky. Acts ch. 74, Art. II, sec. 9(2). — Created 1958 Ky. Acts ch. 140, sec. 3, effective June 19, 1958.