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 orinvestment business; all insurance companies, insurance associations,and other persons carrying on an insurance business; and all executors,administrators, curators, trustees, and other fiduciaries, may legallyinvest any sinking funds, moneys or other funds belonging to them orwithin their control in any bonds or other obligations issued by amunicipality pursuant to this act or by any urban renewal agency vestedwith urban renewal project powers under K.S.A. 17-4756: Provided, Thatsuch bonds and other obligations shall besecured by an agreement between the issuer and the federal government inwhich the issuer agrees to borrow from the federal government and thefederal government agrees to lend to the issuer, prior to the maturityof such bonds or other obligations, moneys in an amount which (togetherwith any other moneys irrevocably committed to the payment of intereston such bonds or other obligations) will suffice to pay the principal ofsuch bonds or other obligations with interest to maturity thereon, whichmoneys under the terms of said agreement are required to be used for thepurpose of paying the principal of and the interest on such bonds orother obligations at their maturity. Such bonds and other obligationsshall be authorized security for all public deposits. It is the purposeof this section to authorize any persons, political subdivisions andofficers, public or private to use any funds owned or controlled by themfor the purchase of any such bonds or other obligations. Nothingcontained in this section with regard to legal investments shall beconstrued as relieving any person of any duty of exercising reasonablecare in selecting securities.

      History:   L. 1955, ch. 86, § 11; June 30.