10-123.   Temporary notes for improvements; issuance; renewal, when.If a municipalityhas approved an improvement for which it isauthorized to finance in whole or in part by theissuance of bonds, the governing body of the municipality may issue temporarynotes, bearing interest at a rate not to exceed themaximum rate of interest prescribed by K.S.A. 10-1009, and amendmentsthereto, payable in accordancewith the terms of the notes, maturing not later thanfour years from the date of the notes and not exceeding in the aggregatethe amount of bondswhich may be issued and are then unissued, as shown by the approvedestimates on file. If bonds may be issued, for purposes for which state or federal aidis available, the amount of the notes shall not exceed the total amountof any unissued bonds andthe state and federal aid granted to the project. Any municipalitymay issue renewal temporary notes to pay for the cost of taking up anypreviously issued temporary notes as they mature when all aspects of the improvementwill not be completed at the maturity date of the notes or when themunicipality has completed the improvements and the issuance of bonds isprevented, hindered or delayed.

      The temporary notes shall be in a form determined by ordinance or resolution,acceptable for registration by the state treasurer. The entire temporarynote shall be contained on one sheet of paper. The notes shallbe executed and registered in the same manner as thebonds, and shall be redeemed andcanceled before or at the time permanent bonds are issued in lieuthereof. The amount of temporary notes and bonds issued andoutstanding shall not at any time exceed the estimated cost and expenseof the improvement. Temporary notes may be retired in whole or in partfrom current revenues of the municipality authorized for such purpose.The temporary notes may be issued from time totime, as required during the progress of the work, shall be negotiable inaccordance with their terms and shall constitute a general obligation ofthe municipality issuingthe same. The temporary notes shall not be negotiable in accordance withtheir terms until countersigned, following registration,by the clerk of the issuingmunicipality, and a statement to that effect shall appear on the face ofall such temporary notes. The temporary notes may be sold in themanner determined by the municipality.

      History:   R.S. 1923, § 10-123; L. 1939, ch. 91, § 1; L. 1951,ch. 126, § 1; L. 1953, ch. 55, § 1; L. 1970, ch. 64, § 3; L. 1977,ch. 47, § 1; L. 1978, ch. 49, § 1; L. 1982, ch. 55, § 1;L. 1989, ch. 52, § 1; July 1.