10-622. Purpose of registration; federal requirement.
10-622
10-622. Purpose of registration; federal requirement.
(a) The code provides that interest on certain bonds may not be exempt from
federal income tax if they are not in registered form. It is therefor a
matter of concern to Kansas that public entities be authorized to provide
for the issuance of bonds in such form. It is a purpose of this act, subject
to the approval of the attorney general, to authorize all public entities
to establish and maintain a system by which bonds may be issued
in registered form within the meaning of this act.
(b) Bonds have traditionally been issued in bearer rather than in registered
form, and a change from bearer to registered form will significantly affect
the relationships, rights and duties and costs of issuers of and persons
who deal with bonds. Such effects will impact the various issuers and varieties
of bonds differently depending on their legal and financial characteristics,
their markets and their adaptability to recent and prospective technological
and organizational developments. It is therefor a matter of concern to Kansas
that public entities be provided flexibility in the development of such
systems and control over system incidents, so as to accommodate such differing
impacts. It is the purpose of this act
to authorize the establishment and maintenance and amendment, from time
to time, of differing systems of registration of bonds, including system
incidents, so as to accommodate the differing impacts upon issuers and varieties
of bonds.
History: L. 1983, ch. 49, § 3; May 12.