12-3805. Same; application of bond law; payments of principal and interest; no-fund warrants, when; tax levies; property acquired subject to tax.
12-3805
12-3805. Same; application of bond law; payments of
principal and
interest; no-fund warrants, when; tax levies; property acquired subject to
tax.
(a) Except to the extent that they are in conflict with this act, the
provisions of chapter 10 of Kansas Statutes Annotated shall apply to the
authorization, and issuance and sale of industrial development bonds by the
local units of general government.
(b) The principal and interest of all bonds issued under the provisions
of this act shall be payable from revenue derived from the leasing or
rental of buildings and facilities acquired or constructed with the
proceeds received from the sale of such bonds. Whenever by reason of the
failure of any lessee to make payment under any contract for the leasing or
rental of any such building or facility, it becomes necessary for the local
unit of general government to assume the responsibility for the payment of
principal and interest upon bonds issued under the provisions of this act,
such local unit of general government may issue no-fund warrants in an
amount necessary to make such payment. Such warrants shall be issued,
registered, redeemed and bear interest in the manner and be in the form
prescribed by K.S.A. 79-2940, and amendments thereto, except
they shall not bear the notation required by such section
and may be issued without approval of the state court of
tax appeals. The governing body of such unit of government shall make a tax
levy at the time fixed for the certification of tax levies to the county
clerk next following the issuance of such warrants sufficient to pay such
warrants and the interest thereon. All such tax levies shall be in addition to
all other levies
authorized or limited by law.
(c) Property acquired or improved under the provisions of this act shall
be subject to ad valorem taxation as other property.
History: L. 1974, ch. 49, § 5;
L. 2008, ch. 109, § 36; July 1.