12-874.Same; revenue bonds;
refunding bonds.
The city or the authority shall have the continuing power to borrow
money for the purpose of acquiring contract rights of the system and for
acquiring necessary cash working funds. For the purpose of evidencing
the obligation of the city or the authority to repay such money,
the city or the authority may from time to time issue its
interest-bearing revenue bonds and may also from time to time issue its
interest-bearing revenue bonds to refund any such bonds in the manner
prescribed by and subject to the provisions of this act and K.S.A.
10-116a, and amendments thereto. All bonds other than refunding
bonds shall be payable solely from the revenues or income to be derived
from the operation of the system.
The ordinance authorizing the bonds may provide the date that the bonds
will bear; the time, not exceeding 40 years from their respective dates,
when the bonds will mature; the rate
of interest, not exceeding the maximum rate prescribed by K.S.A. 10-1009,
and amendments thereto, that the bonds will bear; the form of the bonds;
the registration privileges that the bonds carry; the manner in which the
bonds will be executed; the place where the bonds are payable; the manner
in which and the terms upon which the bonds are subject to redemption,
with or without premium as stated on the face of the bonds; the manner in
which the bonds will be authenticated; and other terms and covenants.
Notwithstanding the form or tenor thereof and in the absence of an
express recital on the face thereof that it is nonnegotiable, all such
bonds shall be negotiable instruments. Pending the preparation and
execution of any such bonds, temporary bonds may be issued with or
without interest coupons, as provided by ordinance. To secure the
payment of any or all of such bonds and for the purpose of setting forth
the covenants and undertakings of the city or the authority in
connection with the issuance thereof and the issuance of any additional
bonds payable from such revenue or income to be derived from the system,
the city or the authority may execute and deliver a trust agreement. Under
no circumstances shall any bonds issued by the city or
the authority or any other obligation of the authority be or become an
indebtedness or obligation of the state of Kansas or of any other
political subdivision of or municipality within the state,
and no
such bond or obligation shall be or become an indebtedness of the city or the
authority within the purview of any constitutional limitation or
provision. It shall be plainly stated on the face of each bond that
it does not constitute such an indebtedness or obligation but is payable
solely from the revenues or income as provided in this section.
Before any such bonds, except refunding bonds, are sold, the entire
authorized issue, or any part thereof, shall be offered for sale as a
unit and bids thereon shall be taken. All bids shall be sealed,
filed and opened as provided by ordinance and the bonds shall be awarded
to the highest and best bidder or bidders therefor. The city or the
authority shall have the right to reject all bids and take new bids. However,
if no bids are received, such bonds may be sold at not less than par
value within 60
days after the bids are required to be filed.
History: L. 1974, ch. 260, § 5; L. 1977, ch. 58, § 4; L. 1981,
ch. 173, § 18; L. 1983, ch. 49, § 46; May 12.
12-874.Same; revenue bonds;
refunding bonds.
The city or the authority shall have the continuing power to borrow
money for the purpose of acquiring contract rights of the system and for
acquiring necessary cash working funds. For the purpose of evidencing
the obligation of the city or the authority to repay such money,
the city or the authority may from time to time issue its
interest-bearing revenue bonds and may also from time to time issue its
interest-bearing revenue bonds to refund any such bonds in the manner
prescribed by and subject to the provisions of this act and K.S.A.
10-116a, and amendments thereto. All bonds other than refunding
bonds shall be payable solely from the revenues or income to be derived
from the operation of the system.
The ordinance authorizing the bonds may provide the date that the bonds
will bear; the time, not exceeding 40 years from their respective dates,
when the bonds will mature; the rate
of interest, not exceeding the maximum rate prescribed by K.S.A. 10-1009,
and amendments thereto, that the bonds will bear; the form of the bonds;
the registration privileges that the bonds carry; the manner in which the
bonds will be executed; the place where the bonds are payable; the manner
in which and the terms upon which the bonds are subject to redemption,
with or without premium as stated on the face of the bonds; the manner in
which the bonds will be authenticated; and other terms and covenants.
Notwithstanding the form or tenor thereof and in the absence of an
express recital on the face thereof that it is nonnegotiable, all such
bonds shall be negotiable instruments. Pending the preparation and
execution of any such bonds, temporary bonds may be issued with or
without interest coupons, as provided by ordinance. To secure the
payment of any or all of such bonds and for the purpose of setting forth
the covenants and undertakings of the city or the authority in
connection with the issuance thereof and the issuance of any additional
bonds payable from such revenue or income to be derived from the system,
the city or the authority may execute and deliver a trust agreement. Under
no circumstances shall any bonds issued by the city or
the authority or any other obligation of the authority be or become an
indebtedness or obligation of the state of Kansas or of any other
political subdivision of or municipality within the state,
and no
such bond or obligation shall be or become an indebtedness of the city or the
authority within the purview of any constitutional limitation or
provision. It shall be plainly stated on the face of each bond that
it does not constitute such an indebtedness or obligation but is payable
solely from the revenues or income as provided in this section.
Before any such bonds, except refunding bonds, are sold, the entire
authorized issue, or any part thereof, shall be offered for sale as a
unit and bids thereon shall be taken. All bids shall be sealed,
filed and opened as provided by ordinance and the bonds shall be awarded
to the highest and best bidder or bidders therefor. The city or the
authority shall have the right to reject all bids and take new bids. However,
if no bids are received, such bonds may be sold at not less than par
value within 60
days after the bids are required to be filed.
History: L. 1974, ch. 260, § 5; L. 1977, ch. 58, § 4; L. 1981,
ch. 173, § 18; L. 1983, ch. 49, § 46; May 12.
12-874.Same; revenue bonds;
refunding bonds.
The city or the authority shall have the continuing power to borrow
money for the purpose of acquiring contract rights of the system and for
acquiring necessary cash working funds. For the purpose of evidencing
the obligation of the city or the authority to repay such money,
the city or the authority may from time to time issue its
interest-bearing revenue bonds and may also from time to time issue its
interest-bearing revenue bonds to refund any such bonds in the manner
prescribed by and subject to the provisions of this act and K.S.A.
10-116a, and amendments thereto. All bonds other than refunding
bonds shall be payable solely from the revenues or income to be derived
from the operation of the system.
The ordinance authorizing the bonds may provide the date that the bonds
will bear; the time, not exceeding 40 years from their respective dates,
when the bonds will mature; the rate
of interest, not exceeding the maximum rate prescribed by K.S.A. 10-1009,
and amendments thereto, that the bonds will bear; the form of the bonds;
the registration privileges that the bonds carry; the manner in which the
bonds will be executed; the place where the bonds are payable; the manner
in which and the terms upon which the bonds are subject to redemption,
with or without premium as stated on the face of the bonds; the manner in
which the bonds will be authenticated; and other terms and covenants.
Notwithstanding the form or tenor thereof and in the absence of an
express recital on the face thereof that it is nonnegotiable, all such
bonds shall be negotiable instruments. Pending the preparation and
execution of any such bonds, temporary bonds may be issued with or
without interest coupons, as provided by ordinance. To secure the
payment of any or all of such bonds and for the purpose of setting forth
the covenants and undertakings of the city or the authority in
connection with the issuance thereof and the issuance of any additional
bonds payable from such revenue or income to be derived from the system,
the city or the authority may execute and deliver a trust agreement. Under
no circumstances shall any bonds issued by the city or
the authority or any other obligation of the authority be or become an
indebtedness or obligation of the state of Kansas or of any other
political subdivision of or municipality within the state,
and no
such bond or obligation shall be or become an indebtedness of the city or the
authority within the purview of any constitutional limitation or
provision. It shall be plainly stated on the face of each bond that
it does not constitute such an indebtedness or obligation but is payable
solely from the revenues or income as provided in this section.
Before any such bonds, except refunding bonds, are sold, the entire
authorized issue, or any part thereof, shall be offered for sale as a
unit and bids thereon shall be taken. All bids shall be sealed,
filed and opened as provided by ordinance and the bonds shall be awarded
to the highest and best bidder or bidders therefor. The city or the
authority shall have the right to reject all bids and take new bids. However,
if no bids are received, such bonds may be sold at not less than par
value within 60
days after the bids are required to be filed.
History: L. 1974, ch. 260, § 5; L. 1977, ch. 58, § 4; L. 1981,
ch. 173, § 18; L. 1983, ch. 49, § 46; May 12.