17-4751.   Issuance of bonds to finance urban renewal project;mortgages.(a) A municipality shall have power to issue bonds from time to time inits discretion to finance the undertaking of any urban renewal project underthis act, including, without limiting the generality thereof, the paymentof principal and interest upon any advances for surveys and plans for urbanrenewal projects, and shall also have power to issue refunding bonds forthe payment or retirement of such bonds previously issued by it. Such bondsshall be made payable, as to both principal and interest, solely from theincome, proceeds, revenues, and funds of the municipality derived from orheld in connection with its undertaking and carrying out of urban renewalprojects under this act, except that payment of such bonds, both as toprincipaland interest, may be further secured by a pledge of any loan, grant orcontributionfrom the federal government or other source, in aid of any urban renewalprojects of the municipality under this act, and by a mortgage of any ofsuch urban renewal projects, or any part thereof, title to which is in themunicipality. Except as otherwise herein provided, all refunding bonds shallbe issued in the manner prescribed by and subject to the provisions of K.S.A.10-116a.

      (b)   Bonds issued under this section shall not constitute an indebtednesswithin the meaning of any constitutional or statutory debt limitation orrestriction, and shall not be subject to the provisions of any other lawor charter relating to the authorization, issuance or sale of bonds. Bondsissued under the provisions of this act are declared to be issued for anessential public and governmental purpose and, together with interest thereonand income therefrom, shall be exempted from all taxes.

      (c)   Bonds issued under this section shall be authorized by resolutionor ordinance of the local governing body and may be issued in one or moreseries and shall bear such date or dates, be payable upon demand or matureat such time or times, bear interest at such rate or rates, not exceedingthe maximum rate of interest prescribed by K.S.A. 10-1009, and amendmentsthereto, be in such denomination or denominations, be in such form eithercoupon or registered, carry such conversion or registration privileges,have such rank or priority, be executed in suchmanner, be payable in such medium of payment, at such place or places, andbe subject to such terms of redemption (with or without premium), be securedin such manner, and have such other characteristics, as may be providedby such resolution or trust indenture or mortgage issued pursuant thereto.

      (d)   Such bonds may be sold at not less than par at public sales held afternotice published prior to such sale in a newspaper having a general circulationin the area of operation and in such other medium of publication as themunicipality may determine or may be exchanged for other bonds on the basisof par, except that such bonds may be sold to the federal government atprivate sale at not less than par, and, in the event less than all of theauthorized principal amount of such bonds is sold to the federal government,the balance may be sold at private sale at not less than par at an interestcost to the municipality of not to exceed the interest cost to the municipalityof the portion of the bonds sold to the federal government.

      (e)   In case any of the public officials of the municipality whose signaturesappear on any bonds or coupons issued under this act shall cease to be suchofficials before the delivery of such bonds, such signatures shall, nevertheless,be valid and sufficient for all purposes, the same as if such officialshad remained in office until such delivery. Any provision of any law tothe contrary notwithstanding, any bonds issued pursuant to this act shallbe fully negotiable.

      (f)   In any suit, action or proceeding involving the validity or enforceabilityof any bond issued under this act or the security thereof, any such bondreciting in substance that it has been issued by the municipality in connectionwith an urban renewal project, as herein defined, shall be conclusivelydeemed to have been issued for such purpose and such project shall be conclusivelydeemed to have been planned, located and carried out in accordance withthe provisions of this act.

      History:   L. 1955, ch. 86, § 10; L. 1970, ch. 64, § 47; L. 1977,ch. 58, § 13; May 18.