10-622.   Purpose of registration; federal requirement.(a) The code provides that interest on certain bonds may not be exempt fromfederal income tax if they are not in registered form. It is therefor amatter of concern to Kansas that public entities be authorized to providefor the issuance of bonds in such form. It is a purpose of this act, subjectto the approval of the attorney general, to authorize all public entitiesto establish and maintain a system by which bonds may be issuedin registered form within the meaning of this act.

      (b)   Bonds have traditionally been issued in bearer rather than in registeredform, and a change from bearer to registered form will significantly affectthe relationships, rights and duties and costs of issuers of and personswho deal with bonds. Such effects will impact the various issuers and varietiesof bonds differently depending on their legal and financial characteristics,their markets and their adaptability to recent and prospective technologicaland organizational developments. It is therefor a matter of concern to Kansasthat public entities be provided flexibility in the development of suchsystems and control over system incidents, so as to accommodate such differingimpacts. It is the purpose of this actto authorize the establishment and maintenance and amendment, from timeto time, of differing systems of registration of bonds, including systemincidents, so as to accommodate the differing impacts upon issuers and varietiesof bonds.

      History:   L. 1983, ch. 49, § 3; May 12.