10-116a.   Refunding of revenue bonds and interest thereon; limitations;investment of certain bond proceeds.Any municipal or quasi-municipal corporation which has issued or may hereafterissue revenue bonds under the laws of the state of Kansas, may issue, without anelection, revenue bonds pursuant to the provisions of this section to refundany revenue bond issue or issues, or part thereof, any interest on suchbonds or both such bonds and interest. The principal amount of any issue ofrefunding revenue bonds shall notexceed the aggregate amount of: (a) The principal amount of the revenuebonds or interest being refunded; (b) the amount of any interest whichhas accrued thereonor interestthat will accrue to the date of payment of the bonds being refunded; (c)the amount of any premiumrequired to be paid should the bonds be called for redemption andpayment; (d) expenses of the municipal or quasi-municipal corporation deemedby the governing body to be necessary for the issuance of the refundingbonds; and (e) expenses incident to the payment of the bonds being refunded.The refunding revenue bonds may be sold or exchanged for thebonds being refunded either as a whole or in installments at any time ortimes, either at, before, or after the maturity of the bonds beingrefunded. If the refundingrevenue bonds are sold more than six months prior to the maturity orearliest prior redemption date of the bonds being refunded, the proceedsderived from the sale, together with any other moneys on hand, shall beplaced in escrow under a trust agreement with a Kansas bank having fulltrust powers. Theproceeds and moneys shall be invested in direct obligationsof, or obligations the principal of and the interest on which areunconditionally guaranteed by, the United States of America or municipalobligations which are secured by direct obligations of the United States ofAmerica, and which shallmature or be subject to redemption by the holdersthereof not later than the respective dates when the proceeds ofthe obligations together with the interest accruing thereon and any othermoneys or investments held in escrow will be required for the purposesintended. The trust agreement shall pledge or assign the moneys andinvestments held in trust for the payment of the principal of the revenuebonds being refunded and may pledge or assign the moneys and investmentsheld in trust for the payment of the interest on the revenue bonds beingrefunded and any redemption premium thereon. The trust agreement may pledgeor assign any of the obligations or other moneys or investments, or interestaccruing thereon, held in trust, which are in excess of the amount of theobligations and other moneys and investments held which is equal to theamount of the principal of the bonds to be refunded which comes due on thedate for which the bonds may have been called for redemption or irrevocableinstructions to call bonds for redemption have been givenand any redemptionpremium thereon, for the payment of the principal of and interest on anyor all of the refunding revenue bonds and any redemption premium thereon,and shall contain provisions for protecting and enforcing the rights andremedies of the holders of the revenue bonds. Therefunding revenue bonds issued pursuant to this section shall not be generalobligations of the municipal or quasi-municipal corporation, except asherein provided, and insofar as the same may be made applicable theissuance of the refunding revenue bonds, the security thereof, and therights, duties and obligations of the municipal or quasi-municipal corporationin respect thereof, shall begoverned by the laws governing such matters with respect to the bonds beingrefunded and all other lawsgenerally applicable to revenue bonds issued in this state bythe municipal or quasi-municipal corporation.

      History:   L. 1965, ch. 136, § 1; L. 1976, ch. 60, § 1; L. 1977,ch. 58, § 1; L. 1978, ch. 47, § 1; L. 1983, ch. 48, § 3;L. 1987, ch. 60, § 1; May 28.