12-3106.   Issuance of sewer system revenue bonds; requirements;election.(a) A municipality shall have power to issue revenue bonds from time totime in its discretion to finance the planning, altering, enlarging,extending, improving, developing, and redeveloping, construction andreconstruction of sewer systems under this act. Such bonds shall be madepayable, as to both principal and interest, solely from the income,proceeds, revenues, and funds of the municipality derived from or held inconnection with its sewer systems: Provided, however, That payment ofsuch bonds, both as to principal and interest, may be further secured by apledge of any loan, grant or contribution from the federal government.

      (b)   Bonds issued under this section shall not constitute an indebtednesswithin the meaning of any constitutional or statutory debt limitation orrestriction, and shall not be subject to the provisions of any other lawrelating to the authorization, issuance or sale of bonds. Bonds issuedunder the provisions of this act are declared to be issued for an essentialpublic and governmental purpose and, together with interest thereon andincome therefrom, shall be exempted from all taxes.

      (c)   Bonds issued under this section shall be authorized by ordinance orresolution of the local governing body and may be issued in one or moreseries and shall bear such date or dates, be payable upon demand or matureat such time or times, bear interest at such rate or rates, not exceedingthe maximum rate of interest prescribed by K.S.A. 10-1009, be in suchdenomination 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 othercharacteristics as may be provided by such ordinance or resolution issuedpursuant thereto: Provided, That no bonds shall be issued under thisact until the same have been authorized by a majority of the vote of theelectors of such municipality in the manner prescribed by K.S.A. 10-120 orany amendments thereto.

      History:   L. 1959, ch. 87, § 6; L. 1970, ch. 64, §23; March 21.