Kentucky Revised Statutes Title XVII. Economic Security and Public Welfare § 197.540.Irrevocable letter of credit as substitute for performance bond; protection of state's interest in continual level of prison beds

(1) When KRS 197.510 or any other statute relating to contracting for the private operation of prisons requires a performance bond, an irrevocable letter of credit or a performance bond in a form satisfactory to the Commonwealth may be substituted.

(2) The contract shall also protect the state's interest in providing a continual level of prison beds available without a sudden drop in the number of prison beds available or the need to release inmates or provide for their transfer to other facilities.