12-2808. Borrowing money; revenue bonds or certificates; sources of payment; conditions; trust agreements; nonliability of state or political subdivision; sale of bonds or certificates.
12-2808
12-2808. Borrowing money; revenue bonds or certificates; sources of
payment; conditions; trust agreements; nonliability of state or political
subdivision; sale of bonds or certificates.
The authority shall have the continuing power to borrow money for the
purpose of acquiring any transportation system, including any cash funds of
such system reserved to replace worn out or obsolete equipment and
facilities, and for acquiring necessary cash working funds, or for
acquiring, constructing, reconstructing, extending or improving its
transportation system or any part thereof, and for acquiring any property
and 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 repay
any money borrowed as aforesaid, the authority, pursuant to a duly adopted
resolution by the board may issue and dispose of at one time or from time
to time its interest-bearing revenue bonds or certificates and also from
time to time may issue and dispose of its interest-bearing revenue bonds or
certificates to refund any bonds or certificates at maturity, or pursuant
to redemption provisions, or at any time before maturity with the consent
of the holders thereof.
All such bonds and certificates shall be payable from the revenues or
income to be derived from the transportation system, from the moneys
derived from the tax levy authorized by K.S.A. 12-2814, and amendments
thereto, and from all other
funds and moneys available to the authority, from whatever source derived,
which revenues, income, funds and moneys, or such portion thereof as may be
required, are hereby pledged for the payment of such bonds and
certificates. Such bonds and certificates may bear such date,
mature at such time not exceeding 40 years from their
respective dates, bear interest at such rate, not exceeding
the maximum rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto, be in such form,
carry such registration privileges, be executed in such manner, be payable
at such place,
be made subject to redemption in such manner and upon such terms, with or
without premium as is stated on the face thereof, be authenticated in
such manner and may contain such terms and covenants, all as may be
provided in such resolution.
Notwithstanding the form or tenor thereof and in the absence of an
express recital on the face thereof that it is nonnegotiable all such
bonds and certificates shall be negotiable instruments. Pending the
preparation and execution of any such bonds or certificates, temporary
bonds or certificates may be issued with or without interest coupons as may
be provided by a duly adopted resolution of the board. To secure the payment
of any or all of such bonds or certificates and for the purpose of setting
forth the covenants and undertakings of the authority in connection with
the issuance thereof and the issuance of any additional bonds or
certificates payable from such revenues, income, funds and moneys as
provided herein, the authority may execute and deliver a trust agreement
but no lien upon any physical property of the
authority shall be created thereby. A remedy for any breach or default of
the terms of any such trust agreement by the authority may be by mandamus
proceedings in any court of competent jurisdiction to compel performance
and compliance therewith, but the trust agreement may prescribe by whom or
on whose behalf such action may be instituted. Under no circumstances shall
any bonds or certificates issued by the authority or any other obligation
of the authority be or become an indebtedness or obligation of the state of
Kansas or of any other political subdivision of or municipality within the
state, nor shall any such bond, certificate, or obligation be or become an
indebtedness of the authority within the purview of any constitutional
limitation or provision, and it shall be plainly stated on the face of each
bond and certificate that it does not constitute such an indebtedness or
obligation but is payable solely from the revenues, income, funds and
moneys as provided herein.
The sale of any bonds or certificates pursuant to this section shall be
made in the manner designated by the board in the resolution authorizing
the 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.