12-3710.   Sewage disposal facilities; secretary of health andenvironment authorized to issue revenue bonds; use of proceeds; payment,conditions, interest rate, maturity and regulation of issuance of bonds;interim receipts or temporary bonds.The secretary of health and environment is hereby authorized to issuenot to exceed $20,000,000 of revenue bonds payablesolely from revenues arising from contracts between the secretary of healthand environment and any city, county, township or other politicalsubdivision of the state as authorized by this act and moneys held to thecredit of any debt service reserve fund established by the resolution ofthe secretary of health and environment authorizing the bonds of any issueor the trust agreement securing such bonds. Revenue bonds issued under thisact shall not be deemed to constitute a debt of the state or of anypolitical subdivision thereof for which ad valorem taxes may be levied or apledge of the full faith and credit of the state or of any politicalsubdivision thereof. All such revenue bonds shall be approved in formand content by bond counsel for the secretary of health and environment.The secretary of health and environment may provide by resolution for theissuance of revenue bonds under this act for the purpose of providinggrants to any city, county, township or other political subdivision of thestate of not less than 25% and not to exceed 30% of construction and costsassociated therewith of any one ormore sewage disposal facilities. The bonds of each issue shall be dated,shall bear interest at a rate not to exceed themaximum rate prescribed by K.S.A. 10-1009, and amendments thereto, shallmature at such time or times not exceeding 20 years from theirdate or dates as may be determined by the secretary of health andenvironment, and may be made redeemable before maturity, at the option ofthe secretary of health and environment at such price or prices and undersuch terms and conditions as may be fixed by the secretary of health andenvironment prior to the issuance of the bonds. The secretary of health andenvironment shall determine the form of the bonds, including any interestcoupons to be attached thereto, and shall fix the denomination of the bondsand the place of payment of principaland interest, which may be at any bank or trust company within or withoutthe state. The bonds shall be signed by the secretary of health andenvironment, and the official seal of the secretary of health andenvironment shall be impressed thereon and any coupons attached theretoshall bear the facsimile signature of the secretary of health andenvironment. In case any officer whose signature or a facsimile of whosesignature appears on any bonds or couponsceases to be suchofficer before the delivery of such bonds, such signature or such facsimileshall nevertheless be valid and sufficient for all purposes the same asif such officer had remained in office until such delivery, and also any bond maybear the facsimile signature of or may be signed by such persons as at theactual time of the execution of such bond shall be the proper officers tosign such bond although at the date of such bond such persons may not havebeen such officers. All bonds issued under the provisions of this act shallhave and are hereby declared to have all the qualities and incidents ofnegotiable instruments under the uniform commercial code of the state. Thebonds may be issued in coupon or in registered form, or both, as thesecretary of health and environment determines, andprovision may bemade for the registration of any coupon bonds, for the reconversion into couponbonds of any bonds registered as to both principal and interest, and forthe interchange of registered and coupon bonds. The secretary of health andenvironment shall sell such bonds after public advertisement and bycompetitive bidding on sealed proposals. Any and all bids may berejected. If no bid acceptable to the secretary of health and environmentis received, the secretary of health and environment may sell the bondswithout such competitive bidding at private sale in such manner and uponsuch terms and conditions as the secretary of health and environment determinesis in the public interest.

      The proceeds of the bonds of each issue shall be used solely for thepurpose for which such bonds have been issued, and shall be disbursedin such manner and under such restrictions, if any, as the secretary ofhealth and environment may provide in the resolution authorizing theissuance of such bonds or in the trust agreement herein authorized securingthe same.

      Prior to the preparation of definitive bonds, the secretary of healthand environment may, under like restrictions, issue interim financingreceipts or temporary bonds, with or without coupons, exchangeable fordefinitive bonds when such bonds have been executed and are availablefor delivery. The secretary of health and environment may also provide forthe replacement of any bonds which are mutilated, destroyed or lost.Bonds may be issued under the provisions of this actwithout obtaining the consent of any officer, department, division,commission, board, bureau or agency of the state and without any otherproceedings or the happening of any other conditions or things, other thanthose proceedings or conditions which are specificallyrequired bythis act.

      History:   L. 1973, ch. 69, § 1; L. 1975, ch. 77, § 1; L. 1982,ch. 79, § 1; L. 1983, ch. 49, § 55; May 12.