12-3804.Same; findings required by governing bodies before issuance.
No local unit of general government may issue industrial development
bonds under the provisions of this act without a finding by the government
body:
(a) That the local unit of general government has a contract with an
individual, partnership or corporation to lease the property to be acquired
with the proceeds of the industrial development bonds for occupancy and use
in connection with the conduct of an industrial enterprise for a period of
years, and for the lessee to pay an annual rental adequate to meet interest
and principal payments falling due during the term of the lease:
(b) That the lessee of the property is a responsible party;
(c) That the contract for lease of the property provides for:
(1) The reasonable maintenance, less normal wear and tear, of the
property by the lessee;
(2) insurance to be carried on the property and the use and disposition
of insurance moneys;
(3) the rights of the local unit of general government and the lessee
respecting the disposition of the property financed by the proposed
industrial development bonds upon retirement of the bonds or termination of
the contract by expiration or by failure to comply with any of the
provisions thereof; and
(4) The lessee to provide lease guarantee insurance with a company
authorized to do business in the state of Kansas sufficient to cover any
outstanding indebtedness under the lease agreement, such insurance to be
furnished by the lessee upon issuance of such bonds;
(d) That the contract provides for the rights of the bondholders, the
care and disposition of rental receipts, and such other safeguards as are
deemed to be necessary;
(e) That financing by banks, other financial institutions, or other
parties, of the property required by the lessee is not readily available to
the lessee on ordinary commercial terms in adequate amounts either on the
local market or on the national market;
(f) That the facility offered the lessee is intended to accommodate
expansion of an enterprise located elsewhere or a new enterprise and not
primarily the relocation of an existing facility;
(g) That adequate provision is being made to meet any increased demand
upon community public facilities that might result from the proposed
project; and
(h) That the issuance of the proposed bonds and the operation of the
enterprise of the lessee will not disrupt the fiscal stability of the
issuing local unit of general government in the event it should become
necessary for it to assume responsibility for payment of the interest and
principal of the proposed industrial development bonds.
12-3804.Same; findings required by governing bodies before issuance.
No local unit of general government may issue industrial development
bonds under the provisions of this act without a finding by the government
body:
(a) That the local unit of general government has a contract with an
individual, partnership or corporation to lease the property to be acquired
with the proceeds of the industrial development bonds for occupancy and use
in connection with the conduct of an industrial enterprise for a period of
years, and for the lessee to pay an annual rental adequate to meet interest
and principal payments falling due during the term of the lease:
(b) That the lessee of the property is a responsible party;
(c) That the contract for lease of the property provides for:
(1) The reasonable maintenance, less normal wear and tear, of the
property by the lessee;
(2) insurance to be carried on the property and the use and disposition
of insurance moneys;
(3) the rights of the local unit of general government and the lessee
respecting the disposition of the property financed by the proposed
industrial development bonds upon retirement of the bonds or termination of
the contract by expiration or by failure to comply with any of the
provisions thereof; and
(4) The lessee to provide lease guarantee insurance with a company
authorized to do business in the state of Kansas sufficient to cover any
outstanding indebtedness under the lease agreement, such insurance to be
furnished by the lessee upon issuance of such bonds;
(d) That the contract provides for the rights of the bondholders, the
care and disposition of rental receipts, and such other safeguards as are
deemed to be necessary;
(e) That financing by banks, other financial institutions, or other
parties, of the property required by the lessee is not readily available to
the lessee on ordinary commercial terms in adequate amounts either on the
local market or on the national market;
(f) That the facility offered the lessee is intended to accommodate
expansion of an enterprise located elsewhere or a new enterprise and not
primarily the relocation of an existing facility;
(g) That adequate provision is being made to meet any increased demand
upon community public facilities that might result from the proposed
project; and
(h) That the issuance of the proposed bonds and the operation of the
enterprise of the lessee will not disrupt the fiscal stability of the
issuing local unit of general government in the event it should become
necessary for it to assume responsibility for payment of the interest and
principal of the proposed industrial development bonds.
12-3804.Same; findings required by governing bodies before issuance.
No local unit of general government may issue industrial development
bonds under the provisions of this act without a finding by the government
body:
(a) That the local unit of general government has a contract with an
individual, partnership or corporation to lease the property to be acquired
with the proceeds of the industrial development bonds for occupancy and use
in connection with the conduct of an industrial enterprise for a period of
years, and for the lessee to pay an annual rental adequate to meet interest
and principal payments falling due during the term of the lease:
(b) That the lessee of the property is a responsible party;
(c) That the contract for lease of the property provides for:
(1) The reasonable maintenance, less normal wear and tear, of the
property by the lessee;
(2) insurance to be carried on the property and the use and disposition
of insurance moneys;
(3) the rights of the local unit of general government and the lessee
respecting the disposition of the property financed by the proposed
industrial development bonds upon retirement of the bonds or termination of
the contract by expiration or by failure to comply with any of the
provisions thereof; and
(4) The lessee to provide lease guarantee insurance with a company
authorized to do business in the state of Kansas sufficient to cover any
outstanding indebtedness under the lease agreement, such insurance to be
furnished by the lessee upon issuance of such bonds;
(d) That the contract provides for the rights of the bondholders, the
care and disposition of rental receipts, and such other safeguards as are
deemed to be necessary;
(e) That financing by banks, other financial institutions, or other
parties, of the property required by the lessee is not readily available to
the lessee on ordinary commercial terms in adequate amounts either on the
local market or on the national market;
(f) That the facility offered the lessee is intended to accommodate
expansion of an enterprise located elsewhere or a new enterprise and not
primarily the relocation of an existing facility;
(g) That adequate provision is being made to meet any increased demand
upon community public facilities that might result from the proposed
project; and
(h) That the issuance of the proposed bonds and the operation of the
enterprise of the lessee will not disrupt the fiscal stability of the
issuing local unit of general government in the event it should become
necessary for it to assume responsibility for payment of the interest and
principal of the proposed industrial development bonds.