17-4751. Issuance of bonds to finance urban renewal project; mortgages.
17-4751
17-4751. Issuance of bonds to finance urban renewal project;
mortgages.
(a) A municipality shall have power to issue bonds from time to time in
its discretion to finance the undertaking of any urban renewal project under
this act, including, without limiting the generality thereof, the payment
of principal and interest upon any advances for surveys and plans for urban
renewal projects, and shall also have power to issue refunding bonds for
the payment or retirement of such bonds previously issued by it. Such bonds
shall be made payable, as to both principal and interest, solely from the
income, proceeds, revenues, and funds of the municipality derived from or
held in connection with its undertaking and carrying out of urban renewal
projects under this act, except that payment of such bonds, both as to
principal
and interest, may be further secured by a pledge of any loan, grant or
contribution
from the federal government or other source, in aid of any urban renewal
projects of the municipality under this act, and by a mortgage of any of
such urban renewal projects, or any part thereof, title to which is in the
municipality. Except as otherwise herein provided, all refunding bonds shall
be 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 indebtedness
within the meaning of any constitutional or statutory debt limitation or
restriction, and shall not be subject to the provisions of any other law
or charter relating to the authorization, issuance or sale of bonds. Bonds
issued under the provisions of this act are declared to be issued for an
essential public and governmental purpose and, together with interest thereon
and income therefrom, shall be exempted from all taxes.
(c) Bonds issued under this section shall be authorized by resolution
or ordinance of the local governing body and may be issued in one or more
series and shall bear such date or dates, be payable upon demand or mature
at such time or times, bear interest at such rate or rates, not exceeding
the maximum rate of interest prescribed by K.S.A. 10-1009, and amendments
thereto, be in such denomination or denominations, be in such form either
coupon or registered, carry such conversion or registration privileges,
have such rank or priority, be executed in such
manner, be payable in such medium of payment, at such place or places, and
be subject to such terms of redemption (with or without premium), be secured
in such manner, and have such other characteristics, as may be provided
by 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 after
notice published prior to such sale in a newspaper having a general circulation
in the area of operation and in such other medium of publication as the
municipality may determine or may be exchanged for other bonds on the basis
of par, except that such bonds may be sold to the federal government at
private sale at not less than par, and, in the event less than all of the
authorized 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 interest
cost to the municipality of not to exceed the interest cost to the municipality
of the portion of the bonds sold to the federal government.
(e) In case any of the public officials of the municipality whose signatures
appear on any bonds or coupons issued under this act shall cease to be such
officials before the delivery of such bonds, such signatures shall, nevertheless,
be valid and sufficient for all purposes, the same as if such officials
had remained in office until such delivery. Any provision of any law to
the contrary notwithstanding, any bonds issued pursuant to this act shall
be fully negotiable.
(f) In any suit, action or proceeding involving the validity or enforceability
of any bond issued under this act or the security thereof, any such bond
reciting in substance that it has been issued by the municipality in connection
with an urban renewal project, as herein defined, shall be conclusively
deemed to have been issued for such purpose and such project shall be conclusively
deemed to have been planned, located and carried out in accordance with
the provisions of this act.
History: L. 1955, ch. 86, § 10; L. 1970, ch. 64, § 47; L. 1977,
ch. 58, § 13; May 18.