10-131. Investment of proceeds of bonds or temporary notes and certain funds authorized; disposition of interest received therefrom.
10-131
10-131. Investment of proceeds of bonds or temporary notes and certain
funds authorized; disposition of interest received therefrom.
(a) The governing body of any municipality, as defined in K.S.A. 10-101,
and
amendments thereto, which has issued or may issue bonds or temporary notes
for any purpose, is hereby authorized and empowered to invest any portion
of the proceeds of such bonds, notes or funds held pursuant to the
resolution or ordinance authorizing the issuance of such bonds or notes,
which is not currently needed, in: (1) Investments authorized by
K.S.A.
12-1675, and amendments thereto, in the manner prescribed therein;
(2) the
municipal investment pool established pursuant to K.S.A. 12-1677a,
and amendments thereto; (3)
direct obligations of the United States government or any agency thereof; (4)
the municipality's temporary notes issued pursuant to K.S.A. 10-123,
and amendments thereto; (5) interest-bearing time
deposits in commercial banks located in the county or
counties in which the municipality is located;
(6) subject to the limitations provided in
subsection (b), obligations of the federal national mortgage association,
federal home loan banks or the federal home loan mortgage corporation; (7)
repurchase
agreements for securities described in (3) or (6); (8)
investment
agreements with or other obligations of a financial institution the
obligations of which at the time of investment are rated in either of the
three highest rating categories by Moody's investors service or Standard
and Poor's corporation; (9) investments in shares or units of a
money
market fund or trust the portfolio of which is comprised entirely of
securities described in (3) or (6); (10) receipts evidencing
ownership interests in securities or portions thereof described in (3) or (6);
(11) municipal bonds or other obligations
issued by any
municipality of the state of Kansas as defined in K.S.A. 10-1101, and
amendments thereto, which are
general obligations of the municipality issuing the same; or (12)
bonds of
any municipality of the state of Kansas as defined in K.S.A. 10-1101, and
amendments thereto, which
have been refunded in advance of their maturity and are fully secured as to
payment of principal and interest thereon by deposit in trust, under escrow
agreement with a bank, of securities described in (3) or (6). The interest
received on
any such investment shall upon receipt thereof be set aside and used for
the purpose of paying interest on the bonds or notes issued or used for paying
the cost of the project for which the bonds or notes were issued.
(b) No moneys authorized to be invested pursuant to subsection (a) shall
be
invested in a derivative.
For the purposes of this section, "derivative" means any investment
instrument whose market price is derived from the fluctuating value of an
underlying asset, index, currency, futures contract, including futures, options
and collateralized mortgage obligations.
History: L. 1947, ch. 106, § 1; L. 1949, ch. 113, § 1; L.
1953, ch. 56, § 1; L. 1971, ch. 38, § 1; L. 1971, ch. 39, § 1; L.
1976, ch. 62, § 1; L. 1977, ch. 54, § 2; L. 1980, ch. 52, § 1;
L. 1987, ch. 60, § 2; L. 1988, ch. 66, § 1; L. 1989, ch. 48, § 64;
L. 1994, ch. 103, § 1;
L. 1996, ch. 84, § 1; July 1.