12-2809.   Purchase of equipment; trust certificates; payment; leases. The authority shall have power to purchase equipment such as cars,trolley buses and motor buses, and may execute agreements, leases andequipment trust certificates in the form customarily used in such casesappropriate to effect such purchase and may dispose of such equipment trustcertificates. All money required to be paid by the authority under theprovisions of such agreements, leases and equipment trust certificatesshall be payable solely from the revenue or income to be derived from thetransportation system and from grants and loans as provided in K.S.A.12-2811. Payment for such equipment, or rentals therefor, may be made ininstallments, and the deferred installments may be evidenced by equipmenttrust certificates payable solely from such revenue or income, and title tosuch equipment shall not vest in the authority until the equipment trustcertificates are paid.

      The agreement to purchase may direct the vendor to sell and assign theequipment to a bank or trust company, duly authorized to transact businessin the state of Kansas, as trustee, for the benefit and security of theequipment trust certificates and may direct the trustee to deliver theequipment to one or more designated officers of the authority and mayauthorize the trustee simultaneously therewith to execute and deliver alease of the equipment to the authority.

      The agreements and leases shall be duly acknowledged before some personauthorized by law to take acknowledgments of deeds and in the form requiredfor acknowledgment of deeds and such agreements, leases and equipment trustcertificates shall be authorized by vote of the board and shall containsuch covenants, conditions and provisions as may be deemed necessary orappropriate to insure the payment of the equipment trust certificates fromthe revenue or income to be derived from the transportation system.

      The covenants, conditions and provisions of the agreements, leases andequipment trust certificates shall not conflict with any of the provisionsof any trust agreement securing the payment of bonds or certificates of theauthority.

      An executed copy of each such agreement and lease shall be filed in theoffice of the city clerk of the city in which said authority is operating atransportation system and such filing shall constitute notice to anysubsequent judgment creditor or any subsequent purchaser.

      History:   L. 1955, ch. 118, § 9; April 13.