12-1666.   Same; no-fund warrants; authorization for issuance; interest;conditions; form; issuance and sale; redemption; notice.The governing body of a public agency shall authorize each issue ofno-fund warrants by resolution which states the amount to becovered by the warrants, the denomination of each warrant and rate ofinterest. No-fund warrants shall bear interest at a rate not exceedingthe maximum rate of interest prescribed by K.S.A. 10-1009, and amendmentsthereto, mature when the federal aid is available, the totalamount not to exceed in the aggregate the amount of money to be receivedas federal aid as shown by the commitment of the federal agency, shall bepayable to the order of a payee, be payable at the office of the treasurerof the public agency, identify the commitment for federal aid and statethat the no-fund warrant is payable therefrom and that, if the federal aidfails, payment will be made from tax funds available for the local program,and if none, a refunding no-fund warrant will be issued payable by not morethan four annual tax levies for the purpose, or in the case of revenueproducing facilities, from revenue of the facility. Such no-fund warrantsshall be in substantially the followingform:

No. ______________
______________, 19__To the ______________ Treasurer,
_________________, Kansas

      Pay to the order of ______________, the sum of __________ dollars($       ) upon receipt of county, city or federal funds for __________,with interest thereon at the rate of __ percent (   %) per annum from thedate hereof until paid but for not longer than 30 days afternotice of call for redemption is published in ______________.

      This warrant is one of a series issued under authority ofK.S.A. 12-1662 et seq., and amendments thereto, and authorized byand issued under resolution, dated ______________, in anticipation offederalaid according to (identify documents committing the federal agency toaid for the program).

      If for any reason the anticipated federal aid or any part thereof fails,this warrant shall be paid from current tax funds available for the project,but if no tax funds are available, a refunding no-fund warrant will be issued,the principal and interest of which shall be paid by a tax levied forthe purpose.

      If the no-fund warrant is for a revenue producing facility, therecital shall read: If for any reason the anticipated federal aid or anypart thereof fails, this warrant and the interest thereon shall be paidfrom revenue of the facility.

Attest: ________________________

          (Clerk or Secretary)

(Seal if public agency has seal)

Countersigned and recorded:

___________________(Treasurer)      

      No-fund warrants issued hereunder may be issued to individualclaimants for services rendered or materials furnished or may be sold atnot less than par and accrued interest at private sale, be made payableto the order of the purchaser and the proceeds placed in the fund fromwhich the local program is being financed. Such no-fund warrants and anyrefunding no-fund warrants shall be registered by the clerk or secretaryand by the treasurer of the public agency. Interest shall be payablewhen due out of appropriate current funds or the general fund or bond orusual temporary note proceeds of the public agency and interest shall beincluded as a part of the public agency's share of the costof the local program. When money is available to pay such warrants, thetreasurer of the public agency shall publish in the official newspaperof the city, and of other public agencies in the official countynewspaper, a call for redemption describing the warrantscalled and stating that money is available and that interest will cease30 days after the publication of the call. The treasurer also shallnotify by mail the payee of each warrantor the later owner if thetreasurer has been notified of change of ownership and the name of thenew owner.

      History:   L. 1967, ch. 422, § 5; L. 1970, ch. 64, § 14; L.1978, ch. 64, § 4; L. 1980, ch. 67, § 4; L. 1983, ch. 49, § 49; May 12.