12-3805.   Same; application of bond law; payments ofprincipal andinterest; no-fund warrants, when; tax levies; property acquired subject totax.(a) Except to the extent that they are in conflict with this act, theprovisions of chapter 10 of Kansas Statutes Annotated shall apply to theauthorization, and issuance and sale of industrial development bonds by thelocal units of general government.

      (b)   The principal and interest of all bonds issued under the provisionsof this act shall be payable from revenue derived from the leasing orrental of buildings and facilities acquired or constructed with theproceeds received from the sale of such bonds. Whenever by reason of thefailure of any lessee to make payment under any contract for the leasing orrental of any such building or facility, it becomes necessary for the localunit of general government to assume the responsibility for the payment ofprincipal and interest upon bonds issued under the provisions of this act,such local unit of general government may issue no-fund warrants in anamount necessary to make such payment. Such warrants shall be issued,registered, redeemed and bear interest in the manner and be in the formprescribed by K.S.A. 79-2940, and amendments thereto, exceptthey shall not bear the notation required by such sectionand may be issued without approval of the state court oftax appeals. The governing body of such unit of government shall make a taxlevy at the time fixed for the certification of tax levies to the countyclerk next following the issuance of such warrants sufficient to pay suchwarrants and the interest thereon. All such tax levies shall be in addition toall other leviesauthorized or limited by law.

      (c)   Property acquired or improved under the provisions of this act shallbe subject to ad valorem taxation as other property.

      History:   L. 1974, ch. 49, § 5;L. 2008, ch. 109, § 36; July 1.