10-108d. Nonlitigation certificate, exception; payment of bonds if city not legally organized.
10-108d
10-108d. Nonlitigation certificate, exception; payment of bonds if
city not legally organized.
(a) Notwithstanding any controversy, litigation or other proceeding disputing
the legal organization of any city incorporated
pursuant to K.S.A. 15-115, et seq., and amendments thereto, the
governing body of the city may issue general obligation bonds
of the city pursuant to the authority of any appropriate statute without
executing a nonlitigation certificate required by K.S.A. 10-108a, and
amendments thereto. Any bonds authorized to be issued hereunder shall
be a general obligation of the property
located within the city as it existed on the date the bonds
are delivered to the purchaser, and except as provided by this subsection
shall be authorized, issued, registered and sold in the manner provided
by the general bond law and shall bear interest at a rate not to exceed
the maximum prescribed by K.S.A. 10-1009, and amendments thereto.
(b) If it is finally determined by a court of competent jurisdiction that
the city was not legally organized, the property
located within the city on the date any general obligation
bonds were delivered to the purchaser shall remain liable for the payment
of the interest on and the principal amount of the bonds issued by the
city in accordance with their terms and shall continue to
be subject to the levy of special assessments, if any, and be taxed, if
necessary, for the payment of the bonds and the interest thereon. Any special
assessments levied by the city shall continue to constitute
a lien on the property assessed. The county clerk shall annually levy a
tax or collect the necessary amount to pay any special assessment levied
against the property as required by the statute
under which the general obligation bonds were authorized.
History: L. 1982, ch. 53, § 1; L. 1984, ch. 52, § 1; Feb. 16.