12-874.   Same; revenue bonds;refunding bonds.The city or the authority shall have the continuing power to borrowmoney for the purpose of acquiring contract rights of the system and foracquiring necessary cash working funds. For the purpose of evidencingthe obligation of the city or the authority to repay such money,the city or the authority may from time to time issue itsinterest-bearing revenue bonds and may also from time to time issue itsinterest-bearing revenue bonds to refund any such bonds in the mannerprescribed by and subject to the provisions of this act and K.S.A.10-116a, and amendments thereto. All bonds other than refundingbonds shall be payable solely from the revenues or income to be derivedfrom the operation of the system.The ordinance authorizing the bonds may provide the date that the bondswill bear; the time, not exceeding 40 years from their respective dates,when the bonds will mature; the rateof interest, not exceeding the maximum rate prescribed by K.S.A. 10-1009,and amendments thereto, that the bonds will bear; the form of the bonds;the registration privileges that the bonds carry; the manner in which thebonds will be executed; the place where the bonds are payable; the mannerin which and the terms upon which the bonds are subject to redemption,with or without premium as stated on the face of the bonds; the manner inwhich the bonds will be authenticated; and other terms and covenants.

      Notwithstanding the form or tenor thereof and in the absence of anexpress recital on the face thereof that it is nonnegotiable, all suchbonds shall be negotiable instruments. Pending the preparation andexecution of any such bonds, temporary bonds may be issued with orwithout interest coupons, as provided by ordinance. To secure thepayment of any or all of such bonds and for the purpose of setting forththe covenants and undertakings of the city or the authority inconnection with the issuance thereof and the issuance of any additionalbonds payable from such revenue or income to be derived from the system,the city or the authority may execute and deliver a trust agreement. Underno circumstances shall any bonds issued by the city orthe authority or any other obligation of the authority be or become anindebtedness or obligation of the state of Kansas or of any otherpolitical subdivision of or municipality within the state,and nosuch bond or obligation shall be or become an indebtedness of the city or theauthority within the purview of any constitutional limitation orprovision. It shall be plainly stated on the face of each bond thatit does not constitute such an indebtedness or obligation but is payablesolely from the revenues or income as provided in this section.

      Before any such bonds, except refunding bonds, are sold, the entireauthorized issue, or any part thereof, shall be offered for sale as aunit and bids thereon shall be taken. All bids shall be sealed,filed and opened as provided by ordinance and the bonds shall be awardedto the highest and best bidder or bidders therefor. The city or theauthority shall have the right to reject all bids and take new bids. However,if no bids are received, such bonds may be sold at not less than parvalue within 60days after the bids are required to be filed.

      History:   L. 1974, ch. 260, § 5; L. 1977, ch. 58, § 4; L. 1981,ch. 173, § 18; L. 1983, ch. 49, § 46; May 12.