17-2351. Issuance of revenue bonds; types; exempt from taxation.
17-2351
17-2351. Issuance of revenue bonds; types; exempt
from taxation.
A municipality shall have power to issue bonds from time to time in its
discretion, for any of the purposes of this act. A municipality shall
also have power to issue refunding bonds for the purpose of paying or
retiring bonds previously issued by it in the manner prescribed by and subject
to the provisions of K.S.A. 10-116a. A municipality may issue such
types of bonds as it may determine, including (without limiting the
generality of the foregoing) bonds on which the principal and interest
are payable (a) exclusively from the income and revenues of the project
financed with the proceeds of such bonds, or (b) exclusively from the
income and revenues of certain designated housing projects whether or
not they are financed in whole or in part with the proceeds of such
bonds. Any such bonds may be additionally secured by a pledge of any
loan, grant or contribution or parts thereof from the federal government
or other source, or a pledge of any income or revenues connected with a
housing project or a mortgage of any housing project or projects.
Neither the governing body of a municipality nor any person executing
the bonds shall be liable personally on the bonds by reason of the
issuance thereof hereunder. The bonds and other obligations issued under
the provisions of this act (and such bonds and obligations shall so
state on their face) shall be payable solely from the sources provided
in this section and shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or
restriction and shall not under any circumstances become general
obligations of the municipality. Bonds issued pursuant to this act are
declared to be issued for an essential public and governmental purpose
and to be public instrumentalities and, together with interest thereon
and income therefrom, shall be exempt from taxes. The tax exemption
provisions of this act shall be considered part of the security for the
repayment of bonds and shall constitute, by virtue of this act and
without the necessity of the same being restated in said bonds, a
contract between the bondholders and each and every one thereof,
including all transferees of said bonds from time to time on the one
hand and the respective municipalities issuing said bonds and the state
on the other.
History: L. 1957, ch. 132, § 15; L. 1973, ch. 96, § 11; L. 1977,
ch. 58, § 12; May 18.