12-2709.   Common water supply; general obligation and revenue bonds,conditions and restrictions.(a) All general obligation bonds issued pursuant to this act shall be issued,registered, sold, delivered and retired in accordance with the provisionsof the general bond law except as in this act otherwise provided. Revenuebonds issued under this act are hereby made a lien on all reimbursementsreceived by the issuing municipality from the revenues derived from theoperation of the common water supply and waterworks system. The governingbody of a municipality may pledge all or part of the revenues derived orto be derived from any other waterworks system or water line owned by itto retirement of revenue bonds issued by such municipality hereunder andmay also use such revenues for the payment of debt service on general obligationbonds issued by such municipality hereunder. Revenue bonds issued underthe provisions of this act shall mature not later than 40 years after thedate of issuance. The bonds shall bear interest at a rate not to exceedthe maximum rate of interest prescribed by K.S.A. 10-1009,and amendments thereto. No other statute limiting the amount of bonded indebtednessof any municipality shall apply to bonds issued under the authority conferredby this act, and bonds issued under the authority of this act shall notbe considered in determining the total bonded indebtedness of a municipalityfor the purpose of applying any statute limiting the amount of bonded indebtednessof such municipality.

      (b)   Any township which issues or which has issued revenue bonds pursuantto the provisions of this act for the purpose ofproviding a common supplyof water or for extending or improving an existing common supply of water,may also issue general obligation bonds or revenue bonds for the purposeof constructing extensions and improvements to the water distribution systemof the township in the manner provided in this act.

      In the event the township has issued revenue bonds pursuant to article16, chapter 80 of the Kansas Statutes Annotated, or any otherlaw of this state, which are then outstanding and for the payment of whichthe revenues of the water system of the township or any part thereof havebeen pledged, it may, if the governing body deems it necessary, refund theoutstanding bonds in the manner provided by and subject to the provisionsof K.S.A. 10-116a, and amendments thereto. Any bonds authorized to be issuedfor any purpose under this act may be combined into one issue of bonds.The township may pledge all or any part of the revenues derived from itswaterworks system, including its common water supply and its distributionsystem, to pay theinterest on and principal of bonds issued as herein provided.The resolution authorizing the issuance of such revenue bonds may containsuch other covenants, agreements and restrictions as may be deemed necessaryor advisable by the governing body of such township in order to insure thepayment of the same.

      History:   L. 1955, ch. 87, § 9; L. 1970, ch. 64, § 20; L. 1977,ch. 58, § 7; L. 1978, ch. 99, § 14; L. 1983, ch. 49, § 52; May 12.