10-108d.   Nonlitigation certificate, exception; payment of bonds ifcity not legally organized.(a) Notwithstanding any controversy, litigation or other proceeding disputingthe legal organization of any city incorporatedpursuant to K.S.A. 15-115, et seq., and amendments thereto, thegoverning body of the city may issue general obligation bondsof the city pursuant to the authority of any appropriate statute withoutexecuting a nonlitigation certificate required by K.S.A. 10-108a, andamendments thereto. Any bonds authorized to be issued hereunder shallbe a general obligation of the propertylocated within the city as it existed on the date the bondsare delivered to the purchaser, and except as provided by this subsectionshall be authorized, issued, registered and sold in the manner providedby the general bond law and shall bear interest at a rate not to exceedthe maximum prescribed by K.S.A. 10-1009, and amendments thereto.

      (b)   If it is finally determined by a court of competent jurisdiction thatthe city was not legally organized, the propertylocated within the city on the date any general obligationbonds were delivered to the purchaser shall remain liable for the paymentof the interest on and the principal amount of the bonds issued by thecity in accordance with their terms and shall continue tobe subject to the levy of special assessments, if any, and be taxed, ifnecessary, for the payment of the bonds and the interest thereon. Any specialassessments levied by the city shall continue to constitutea lien on the property assessed. The county clerk shall annually levy atax or collect the necessary amount to pay any special assessment leviedagainst the property as required by the statuteunder which the general obligation bonds were authorized.

      History:   L. 1982, ch. 53, § 1; L. 1984, ch. 52, § 1; Feb. 16.