12-899.   Revenue bonds; issuance; terms and conditions; form; interimreceipts, temporary bonds; security; payment; issuance of additional bonds.(a) A municipal energy agency, without an election, may from time to timeissue and sell its revenue bonds or notes in such principal amounts as themunicipal energy agency shall deem necessary to provide sufficient fundsfor the acquisition or construction of any project to be ownedor leased, as lessor or lessee, by the municipal energy agency, or the acquisitionof any interest therein or any right to capacity thereof, the funding orrefunding of the principal of, or interest or redemption premiums on, anybonds or notes issued by such agency whether or not such bonds or notes or interestto be funded or refunded have or have not become due, the establishmentor increase of reserves to secure or to pay such bonds or notes or interestthereon, and the payment of all other costs or expenses of the municipalenergy agency incident to and necessary for the issuance of such bonds or notes.

      (b)   Revenue bonds may be issued hereunder from time to time and shallbe authorized by resolution, and secured by a trust indenture or other securityagreement approved by the board of directors, unless otherwise providedin the agreement creating the agency or the bylaws of the agency. Suchbonds may be term or serial bonds maturing not later than forty (40) yearsafter date of issuance, may be subject to redemption prior to maturity withor without premium, at such times and upon such conditions as may be providedby the resolution, shall bear a rate of interest not to exceed the maximumrate of interest prescribed by K.S.A. 10-1009 and amendments thereto andshall be in such form and payable as determined by the board of directors. The board may sell such bonds in such manner and for such price as it shalldetermine best. Such bonds may be payable at any bank having trust powersor at any trust company, within or without the state, and may be securedby a trust agreement or other appropriate documents which provide for thedeposit and disbursement of funds through any such bank or trust company.

      (c)   Revenue bonds issued hereunder may be issued in coupon or registeredform, or both, as prescribed by the resolution, trust indenture or othersecurity agreement, and provisions may be made for the registration of couponbonds as to principal only or as to both principal and interest and forthe reconversion of registered bonds into coupon bonds. Such bonds maybe issued in any denomination or denominations. Such bonds and the couponsattached to coupon bonds shall be signed either manually or by facsimilesignature, as shall be determined by the agency,and sealed with the seal of the agency or a facsimile thereof. In caseof any officer whose signature or facsimile thereof appears on any bondsor coupons shall cease to be such officer before the delivery of such bonds,such signature or such facsimile signature shall nevertheless be valid andsufficient for all purposes as if such officer had remained in office untilthe delivery thereof. The agency may provide for the replacement of anymutilated, lost or destroyed bonds.

      (d)   Prior to the preparation of definitive bonds, the agency, under likerestrictions, may issue interim receipts or temporary bonds, with or withoutcoupons, exchangeable for definitive bonds when such bonds shallhave been executed and are available for delivery.

      (e)   The resolution, trust indenture or other security agreement may pledgeor assign, in whole or in part, the revenues and other moneys derived orto be derived by the agency from its system and any contract or other rightsto receive the same, whether then existing or thereafter coming into existence,and whether then held or thereafter acquired by the agency, and the proceedsthereof, and may mortgage, pledge and grant a security interest in any orall of its real and personal property to secure the payment of the bonds.

      (f)   The board by appropriate resolution, trust indenture or other securityagreement shall make provisions for the payment of said bonds by fixingrates, fees and charges for electric power and other energy and all otherservices, sufficient to pay the costs of operation, improvement and maintenanceof the electric power and other energy facilities, to provide adequate depreciationfunds, to provide an adequatesinking fund to retire said bonds, to pay the interest and principal thereonwhen due and to create reasonable reserves. The resolution, trust indentureor other security agreement may establish limitations upon the issuanceof additional revenue bonds and may provide that additionalrevenue bonds shall stand on a parity or otherwise as to the revenues ofthe agency and in all other respects with revenue bonds previously issuedon such conditions as may be specified in such resolutions, trust indenturesor other security agreements. Such resolution, trust indenture or othersecurity agreement may include other agreements, covenants or restrictionsdeemed necessary or advisable by the board of directors to effect the efficientoperation of the system, to safeguard the interestof the holders of the revenue bonds and to secure the payment of such bondsand the interest thereon.

      History:   L. 1977, ch. 48, § 15; July 1.