17-4752. Investments in bonds issued pursuant to act; conditions.
17-4752
17-4752. Investments in bonds issued pursuant to act; conditions.
All banks, trust companies, bankers, savings banks and institutions,
building and loan associations, savings and loan associations,
investment companies and other persons carrying on a banking or
investment business; all insurance companies, insurance associations,
and other persons carrying on an insurance business; and all executors,
administrators, curators, trustees, and other fiduciaries, may legally
invest any sinking funds, moneys or other funds belonging to them or
within their control in any bonds or other obligations issued by a
municipality pursuant to this act or by any urban renewal agency vested
with urban renewal project powers under K.S.A. 17-4756: Provided, That
such bonds and other obligations shall be
secured by an agreement between the issuer and the federal government in
which the issuer agrees to borrow from the federal government and the
federal government agrees to lend to the issuer, prior to the maturity
of such bonds or other obligations, moneys in an amount which (together
with any other moneys irrevocably committed to the payment of interest
on such bonds or other obligations) will suffice to pay the principal of
such bonds or other obligations with interest to maturity thereon, which
moneys under the terms of said agreement are required to be used for the
purpose of paying the principal of and the interest on such bonds or
other obligations at their maturity. Such bonds and other obligations
shall be authorized security for all public deposits. It is the purpose
of this section to authorize any persons, political subdivisions and
officers, public or private to use any funds owned or controlled by them
for the purchase of any such bonds or other obligations. Nothing
contained in this section with regard to legal investments shall be
construed as relieving any person of any duty of exercising reasonable
care in selecting securities.
History: L. 1955, ch. 86, § 11; June 30.