12-1665.   Same; temporary notes; refundingnotes; sale or exchange.Temporary notes shall be authorized by ordinance if by a city or byresolution if by other public agency, but if all are not issued at thesame time, each issue consuming a part of the total amount authorized bythe ordinance or resolution shall be authorized by subsidiaryresolution. The ordinance or original resolution shall state the totalamount that may be issued, which shall not exceed the amount of the federalaid to be received accordingto the percentage or as fixed or estimated by the commitment of thefederal agency. Subsidiary resolutions shall state the date, the amountof each note, and the interest rate. All notes shall state that theyshall mature when the federal aid isreceived and the rate of interest which shall not exceed the maximumrate of interest prescribed by K.S.A. 10-1009,and amendments thereto.Such temporary notes shall be in the form usual for bonds except thatany coupons evidencing the interest need not be attached, shall be executedand registered as bonds are registered both with the clerk or secretaryof the public agency and the state treasurer, shall be payable at theoffice of the treasurer of the public agency or at such place as thefederal aid is paid, and shall be redeemed and canceled as soon asthe federal aid is available, except that theinterest shall be payable when due out of appropriate current funds orthe general fund or bond or usual temporary note proceeds of the publicagency, and the interest shall be included as a part of thepublic agency's share of the cost of the local program. The temporarynotes may be issued from time to time as funds are needed during theprogress of the local program. Such notes shall be negotiable and shall constitute ageneral obligation of the public agency, and if for any reason thefederal aid or any part thereof is not received so that the notes orsome of them cannot be paid, such notes may be refunded by new notes anda tax levied to pay such refunding notes. Such refunding notes shall bepayable by not more than four annual tax levies, except that if thefunds used by the public agency are of a revenue producing facility orthe bonds issued for the public agency's share are revenue bonds of arevenue producing facility, such temporary notes shall not be generalobligations of the public agency and if for any reason the federal aidor any part thereof is not received and the notes or part of them cannotbe paid from the aid, they shall be payable from revenue of the revenueproducing facility and refunding notes may be issued to pay the notesand such refunding notes shall mature in not more than five years.Such refunding notes, either tax payable or revenue payable, shall beissued and registered as the original notes. Such temporary or refundingnotes may be sold in the manner determined by the public agency issuing the same.Refunding notes may be exchanged for the temporary notes or the proceedsof the sale shall be used to redeem the temporary notes.

      History:   L. 1967, ch. 422, § 4; L. 1970, ch. 64, § 13; L.1978, ch. 64, § 3; L. 1980, ch. 67, § 3; L. 1983, ch. 49, § 48; May 12.