10-1009.   Municipal bonds or obligations; interestrates; limitation.(a) The maximum stated rate of interest which may be fixed onfixed-rate bonds issued bya municipality or taxing subdivision of the state of Kansas shall be determinedon the day the bonds are sold and shall not exceed the dailyyield for the ten-year treasury bonds published byThe BondBuyer, in New York, New York, on theMonday next preceding the day on which the bonds are sold, plus(1) three percent, if the interest on the bonds is excluded from grossincome forfederal income tax purposes or (2) four percent, if the interest on the bondsis includedin gross income for federal income tax purposes.

      (b)   The maximum stated rate of interest which may be fixed onvariable-rate bonds issued by a municipality or taxing subdivision of the stateof Kansas shall be determined on the date on which the rate is determined inaccordance with the resolution orordinance of the issuer and shall not exceed the daily yield forthe ten-year treasury bonds published by The BondBuyer, in New York, NewYork, on the Monday next preceding such date, plus(1) three percent, if the interest on the bonds is excluded from grossincome forfederal income tax purposes or (2) four percent, if the interest on the bondsis includedin gross income for federal income tax purposes.

      (c)   Except as provided for variable rate bonds,the maximum rate of interest specified in this section shall beapplicable to bonds issued after the effective date of this act.The maximum rate of interest on variable rate bonds issued prior to theeffective date of this act shall be the higher of (1) the maximum rate ofinterest specified by subsection (a) or (b) of this section, as in effectprior to the effective date of this act, (2) the maximum rate of interestspecified in this section or (3) the rate for such variable rate bondsspecified in the documents authorizing the issuance thereof.

      (d)   Notwithstanding the foregoing, for the period from the effective dateof this act until and including June 30,2010, the maximum stated rate of interest which may befixed on fixed-rate or variable-rate bonds issued by amunicipality or taxing subdivision of the state of Kansasshall be determined on the day the bonds are sold andshall not exceed the daily yield for the ten-year treasurybonds published by The Bond Buyer, in New York, NewYork, on the Monday next preceding the day on which thebonds are sold, plus (1) 5%, if the interest on the bondsis excluded from gross income for federal income taxpurposes or (2) 6%, if the interest on the bonds isincluded in gross income for federal income tax purposes.

      History:   L. 1970, ch. 64, § 104;L. 1975, ch. 48, § 1;L. 1980, ch. 55, § 1;L. 1982, ch. 54, § 1;L. 1987, ch. 60, § 6;L. 1988, ch. 65, § 2;L. 1990, ch. 63, § 1;L. 1993, ch. 67, § 2;L. 1994, ch. 103, § 2;L. 2002, ch. 75, § 1;L. 2009, ch. 95, § 1; Apr. 30.