12-3106. Issuance of sewer system revenue bonds; requirements; election.
12-3106
12-3106. Issuance of sewer system revenue bonds; requirements;
election.
(a) A municipality shall have power to issue revenue bonds from time to
time in its discretion to finance the planning, altering, enlarging,
extending, improving, developing, and redeveloping, construction and
reconstruction of sewer systems under this act. Such bonds shall be made
payable, as to both principal and interest, solely from the income,
proceeds, revenues, and funds of the municipality derived from or held in
connection with its sewer systems: Provided, however, That payment of
such bonds, both as to principal and interest, may be further secured by a
pledge of any loan, grant or contribution from the federal government.
(b) Bonds issued under this section shall not constitute an indebtedness
within the meaning of any constitutional or statutory debt limitation or
restriction, and shall not be subject to the provisions of any other law
relating to the authorization, issuance or sale of bonds. Bonds issued
under the provisions of this act are declared to be issued for an essential
public and governmental purpose and, together with interest thereon and
income therefrom, shall be exempted from all taxes.
(c) Bonds issued under this section shall be authorized by ordinance or
resolution of the local governing body and may be issued in one or more
series and shall bear such date or dates, be payable upon demand or mature
at such time or times, bear interest at such rate or rates, not exceeding
the maximum rate of interest prescribed by K.S.A. 10-1009, be in such
denomination or denominations, be in such form, have such rank or priority,
be executed in such manner, and be subject to such terms of redemption
(with or without premium), be secured in such manner, and have such other
characteristics as may be provided by such ordinance or resolution issued
pursuant thereto: Provided, That no bonds shall be issued under this
act until the same have been authorized by a majority of the vote of the
electors of such municipality in the manner prescribed by K.S.A. 10-120 or
any amendments thereto.
History: L. 1959, ch. 87, § 6; L. 1970, ch. 64, §
23; March 21.