12-2808.   Borrowing money; revenue bonds or certificates; sources ofpayment; conditions; trust agreements; nonliability of state or politicalsubdivision; sale of bonds or certificates.The authority shall have the continuing power to borrow money for thepurpose of acquiring any transportation system, including any cash funds ofsuch system reserved to replace worn out or obsolete equipment andfacilities, and for acquiring necessary cash working funds, or foracquiring, constructing, reconstructing, extending or improving itstransportation system or any part thereof, and for acquiring any propertyand equipment useful for the construction, reconstruction, extension,improvement or operation of its transportation system or any part thereof.

      For the purpose of evidencing the obligation of the authority to repayany money borrowed as aforesaid, the authority, pursuant to a duly adoptedresolution by the board may issue and dispose of at one time or from timeto time its interest-bearing revenue bonds or certificates and also fromtime to time may issue and dispose of its interest-bearing revenue bonds orcertificates to refund any bonds or certificates at maturity, or pursuantto redemption provisions, or at any time before maturity with the consentof the holders thereof.

      All such bonds and certificates shall be payable from the revenues orincome to be derived from the transportation system, from the moneysderived from the tax levy authorized by K.S.A. 12-2814, and amendmentsthereto, and from all otherfunds and moneys available to the authority, from whatever source derived,which revenues, income, funds and moneys, or such portion thereof as may berequired, are hereby pledged for the payment of such bonds andcertificates. Such bonds and certificates may bear such date,mature at such time not exceeding 40 years from theirrespective dates, bear interest at such rate, not exceedingthe maximum rate of interest prescribed by K.S.A. 10-1009, and amendmentsthereto, be in such form,carry such registration privileges, be executed in such manner, be payableat such place,be made subject to redemption in such manner and upon such terms, with orwithout premium as is stated on the face thereof, be authenticated insuch manner and may contain such terms and covenants, all as may beprovided in such resolution.

      Notwithstanding the form or tenor thereof and in the absence of anexpress recital on the face thereof that it is nonnegotiable all suchbonds and certificates shall be negotiable instruments. Pending thepreparation and execution of any such bonds or certificates, temporarybonds or certificates may be issued with or without interest coupons as maybe provided by a duly adopted resolution of the board. To secure the paymentof any or all of such bonds or certificates and for the purpose of settingforth the covenants and undertakings of the authority in connection withthe issuance thereof and the issuance of any additional bonds orcertificates payable from such revenues, income, funds and moneys asprovided herein, the authority may execute and deliver a trust agreementbut no lien upon any physical property of theauthority shall be created thereby. A remedy for any breach or default ofthe terms of any such trust agreement by the authority may be by mandamusproceedings in any court of competent jurisdiction to compel performanceand compliance therewith, but the trust agreement may prescribe by whom oron whose behalf such action may be instituted. Under no circumstances shallany bonds or certificates issued by the authority or any other obligationof the authority be or become an indebtedness or obligation of the state ofKansas or of any other political subdivision of or municipality within thestate, nor shall any such bond, certificate, or obligation be or become anindebtedness of the authority within the purview of any constitutionallimitation or provision, and it shall be plainly stated on the face of eachbond and certificate that it does not constitute such an indebtedness orobligation but is payable solely from the revenues, income, funds andmoneys as provided herein.

      The sale of any bonds or certificates pursuant to this section shall bemade in the manner designated by the board in the resolution authorizingthe issuance thereof.

      History:   L. 1955, ch. 118, § 8; L. 1970, ch. 64, §22; L. 1974, ch. 65, § 1; L. 1983, ch. 49, § 53; May 12.