12-6a36.   Same; full faith and credit bonds;issuance; applicability of bonded debt limitation; protest petition.(a) Any municipality may issue full faith and creditbonds in one or more series to finance any project in accordance withthe provisions of this act and to refinance or refund any notes or bondsissued pursuant to this act. Bonds issued pursuant to this section shallbe general obligations of the municipality and give rise to a chargeagainst its general credit and taxing powers, and such bonds shall sostate on their face. Such bonds shall be made payable, both as toprincipal and interest solely from a pledge of the sources of fundsdescribed in K.S.A. 2009 Supp. 12-6a33, and amendments thereto, including apledgeof a municipality's full faith and credit to use its ad valorem taxingauthority for the repayment thereof in the event all other authorizedsources of revenue are not sufficient. The municipality may pledgesuch revenue to the repayment of such bonds prior to, simultaneouslywith or subsequent to the issuance of such bonds.

      (b)   Bonds issued pursuant to this section shall be generalobligations of the municipality and are declared to be negotiableinstruments. Such bonds shall be executed by the authorizedrepresentatives of the municipality and sealed with the corporate sealof the municipality. All details pertaining to the issuance of the bondsand terms and conditions thereof shall be determined by ordinance orresolution of the municipality. The provisions of K.S.A. 10-106, andamendments thereto, requiring a public sale of bonds shall not apply tobonds issued under this section. All bonds issued pursuant to thissection and all income or interest therefrom shall be exempt from allstate taxes except inheritance taxes. Such bonds shall contain therecitals set forth in K.S.A. 10-112, and amendments thereto. Suchbonds shall mature in no more than 22 years. Any municipality issuingbonds under the provisions of this section may refund all or part ofsuch bonds pursuant to the provisions of K.S.A. 10-427, andamendments thereto.

      (c)   The amount of the full faith and credit bonds issued andoutstanding under this act which exceeds 3% of the assessedvaluation of the municipality shall be within the bonded debt limitapplicable to such municipality.

      (d)   If, within 60 days following the date of the public hearingdescribed in K.S.A. 2009 Supp. 12-6a29, and amendments thereto, a protestpetitionsigned by 5% of the qualified voters of the municipality is filed with themunicipality's clerk in accordance with the provisions of K.S.A.25-3601 et seq., and amendments thereto, no full faith and credit bondsshall be issued until the issuance of the full faith and credit bonds isapproved by a majority of the voters voting at an election thereon. Thefailure of the voters to approve the issuance of full faith and creditbonds shall not prevent a municipality from issuing special obligationbonds.

      History:   L. 2009, ch. 122, § 12; July 1.