12-5248.   Same; issuance of special obligation bonds;payment; procedure for issuance; tax exempt status; limitations.(a) (1) Any city or county which has established a housingincentive district as provided in this act may issue special obligation bondsto finance the implementation of the plan adopted for the district by thegoverning body. Such special obligation bonds shall be made payable, both as toprincipal and interest:

      (A)   From property tax increments allocated to, and paid into a special fundof the city or county under the provisions of subsection (b) of K.S.A.12-5250, and amendments thereto;

      (B)   from revenues of the city or county derived from or held in connectionwith the implementation of the project or projects in the district;

      (C)   from any private sources, contributions or other financial assistancefrom the state or federal government;

      (D)   from any financial sureties or other guarantees provided by thedeveloper;

      (E)   from a pledge of any other lawfully available city or county revenuesources, including, but not limited to: (1) a portion of all increasedfranchise fees collected from utilities and other businesses using publicrights-of-way within the district; or (2) a portion of the salesand use tax revenues received by the city or county and collected pursuant toK.S.A. 12-187, andamendments thereto; or

      (F)   by any combination of these methods.

      The city or county may pledge such revenue to the repayment of such specialobligations bonds prior to, simultaneously with, or subsequent to the issuanceof such special obligation bonds.

      (2)   Bonds issued under this subsection shall not be general obligations ofthe city orcounty, not [nor] in any event shall they give rise to a charge againstthe generalcredit or taxing powers of the city or county, or be payable out of any fundsor properties other than any of those set forth in this subsection. Such bondsshall so state on their face.

      (3)   The bonds issued under the provisions of this subsection shall bespecial obligations of the city or county and are declared to be negotiableinstruments. The bonds shall be executed by the mayor and clerk of the city or,in the case of counties, by the chairman of the board of county commissionersand clerk of the county, and shall be sealed with the corporate seal of thecity or the seal of the county. All details pertaining to the issuance of suchspecial obligation bonds shall be determined by ordinance of the city orresolution of the county. All special obligation bonds issued pursuant to thisact shall be exempt from all state taxes except inheritance taxes. The specialobligation bonds shall contain none of the recitals set forth inK.S.A. 10-112, and amendments thereto. The special obligation bonds shallcontain the following recitals, viz., the authority under which such specialobligation bonds are issued, they are in conformity with the provisions,restrictions and limitations thereof, and that such special obligation bondsand the interest thereon are to be paid from the money and revenue received asprovided in paragraph (1) of this subsection.

      (4)   The maximum maturity on bonds issued to finance projects pursuant tothis act shall not exceed 15 years.

      (5)   Any city or county issuing special obligation bonds under the provisionsof this act may refund all or part of such issue pursuant to the provisions ofK.S.A. 10-116a, andamendments thereto.

      (b)   In the event the city or county shall default in the payment of anyspecial obligation bonds as authorized pursuant to paragraph (1) of subsection(a) of this section, and amendments thereto, no public funds shall be used topay the holders thereof except as otherwise specifically authorized in thisact.

      (c)   Any and all terms, conditions, exclusions and limitations which areotherwise applicable to bonds issued by authority of K.S.A. 12-1774, shallalso be applicable to bonds issued pursuant to this section.

      History:   L. 1998, ch. 66, § 8; July 1.