68-2321.Issuance of bonds; term; highway bond proceeds fund, created;investment of proceeds; execution of trust indenture.(a) Bonds issued shall be authorized by resolution of thesecretary.The secretary shall determine the form and manner of the execution of the bondsand the bonds may be made exchangeable forbonds of another denomination or in another form.The bonds shall be dated. Bonds issued under subsections (a) and(b) of K.S.A. 68-2320, and amendments thereto shall mature not more than 20years from theirdate.The bonds may be in suchform and denominations,may bear interest payable at such times andat such rate or rates, may be payable at such places within or without thestate, may be subject to such terms of redemption in advance of maturity atsuch prices, and may contain such terms and conditions, all as thesecretary shall determine. The bonds shall have all the qualities of andshall be deemed to be negotiable instruments under the laws of the state ofKansas.The authorizing resolution may contain any other terms, covenants andconditions that the secretary deems reasonable and desirable.
(b) The proceeds from the sale of the bonds authorized to be issuedunder this section are deemed to be trust funds which shall be deposited inthe custody of the state treasurer inthe highway bond proceeds fund which is hereby created.The secretary shallhave responsibility for the management and control of the highway bondproceeds fund and shall provide, by resolution, for both amounts and theduration ofinvestments of moneys in such fund. Such resolution may recommend investmentand reporting policies, including acceptable levels of return, risk andsecurity. After consultation with the secretary and subject to the terms,covenants and conditions provided in the resolutions providing for the issuanceof such bonds, the director of investments shall have the authority toinvest andreinvest moneys insuch fund and toacquire, retain, manage, including the exercise of anyvoting rights, and dispose of investments of such fund. In investing orreinvesting moneys in such fund, there shall be exercised the judgment andcare under the circumstances then prevailing which persons of prudence,discretion and intelligence exercise in the management of their ownaffairs, not in regard to speculation but in regard to the permanentdisposition of their funds, considering the probable income as well as theprobable safety of their capital, except that moneys of the fund may not beinvested in common stocks.Notwithstanding anything to the contrary, all interest or other income ofthe investments, after payment of any management fees, of the highway bondproceeds fund shall be credited to the highway bond debt service fund,until payments on bonds authorized by this act and interest thereon hasbeen fully funded. Thereafter, earnings and other income shall becredited to the state highway fund.
(c) The authorizing resolution may provide for the execution of a trustindenture. The trust indenture may contain any terms, covenants andconditions that are deemed desirable by the secretary, including, withoutlimitation, those pertaining to the maintenance of various funds andreserves, the nature and extent of any security for payment of the bonds,the custody and application of the proceeds of the bonds, the collectionand disposition of bond proceeds and earnings thereon, the investing forauthorized purposes, and therights, duties and obligations of the secretary and the holders andregistered owners of the bonds.
(d) Any authorizing resolution and trust indenture relating to theissuance and security of the bonds may set forth covenants, agreements andobligations therein, which may be enforced by mandamus or other appropriateproceeding at law or in equity.
(e) The bonds may be issued under the provisions of this act withoutobtaining the consent of any department, division, commission, board,bureau or agency of the state and without any other proceedings or thehappening of any other conditions or things than those proceedings,conditions or things which are specifically required by this act.
History: L. 1989, ch. 209, § 8;L. 1996, ch. 254, § 12;L. 1999, ch. 137, § 17; July 1.
68-2321.Issuance of bonds; term; highway bond proceeds fund, created;investment of proceeds; execution of trust indenture.(a) Bonds issued shall be authorized by resolution of thesecretary.The secretary shall determine the form and manner of the execution of the bondsand the bonds may be made exchangeable forbonds of another denomination or in another form.The bonds shall be dated. Bonds issued under subsections (a) and(b) of K.S.A. 68-2320, and amendments thereto shall mature not more than 20years from theirdate.The bonds may be in suchform and denominations,may bear interest payable at such times andat such rate or rates, may be payable at such places within or without thestate, may be subject to such terms of redemption in advance of maturity atsuch prices, and may contain such terms and conditions, all as thesecretary shall determine. The bonds shall have all the qualities of andshall be deemed to be negotiable instruments under the laws of the state ofKansas.The authorizing resolution may contain any other terms, covenants andconditions that the secretary deems reasonable and desirable.
(b) The proceeds from the sale of the bonds authorized to be issuedunder this section are deemed to be trust funds which shall be deposited inthe custody of the state treasurer inthe highway bond proceeds fund which is hereby created.The secretary shallhave responsibility for the management and control of the highway bondproceeds fund and shall provide, by resolution, for both amounts and theduration ofinvestments of moneys in such fund. Such resolution may recommend investmentand reporting policies, including acceptable levels of return, risk andsecurity. After consultation with the secretary and subject to the terms,covenants and conditions provided in the resolutions providing for the issuanceof such bonds, the director of investments shall have the authority toinvest andreinvest moneys insuch fund and toacquire, retain, manage, including the exercise of anyvoting rights, and dispose of investments of such fund. In investing orreinvesting moneys in such fund, there shall be exercised the judgment andcare under the circumstances then prevailing which persons of prudence,discretion and intelligence exercise in the management of their ownaffairs, not in regard to speculation but in regard to the permanentdisposition of their funds, considering the probable income as well as theprobable safety of their capital, except that moneys of the fund may not beinvested in common stocks.Notwithstanding anything to the contrary, all interest or other income ofthe investments, after payment of any management fees, of the highway bondproceeds fund shall be credited to the highway bond debt service fund,until payments on bonds authorized by this act and interest thereon hasbeen fully funded. Thereafter, earnings and other income shall becredited to the state highway fund.
(c) The authorizing resolution may provide for the execution of a trustindenture. The trust indenture may contain any terms, covenants andconditions that are deemed desirable by the secretary, including, withoutlimitation, those pertaining to the maintenance of various funds andreserves, the nature and extent of any security for payment of the bonds,the custody and application of the proceeds of the bonds, the collectionand disposition of bond proceeds and earnings thereon, the investing forauthorized purposes, and therights, duties and obligations of the secretary and the holders andregistered owners of the bonds.
(d) Any authorizing resolution and trust indenture relating to theissuance and security of the bonds may set forth covenants, agreements andobligations therein, which may be enforced by mandamus or other appropriateproceeding at law or in equity.
(e) The bonds may be issued under the provisions of this act withoutobtaining the consent of any department, division, commission, board,bureau or agency of the state and without any other proceedings or thehappening of any other conditions or things than those proceedings,conditions or things which are specifically required by this act.
History: L. 1989, ch. 209, § 8;L. 1996, ch. 254, § 12;L. 1999, ch. 137, § 17; July 1.
68-2321.Issuance of bonds; term; highway bond proceeds fund, created;investment of proceeds; execution of trust indenture.(a) Bonds issued shall be authorized by resolution of thesecretary.The secretary shall determine the form and manner of the execution of the bondsand the bonds may be made exchangeable forbonds of another denomination or in another form.The bonds shall be dated. Bonds issued under subsections (a) and(b) of K.S.A. 68-2320, and amendments thereto shall mature not more than 20years from theirdate.The bonds may be in suchform and denominations,may bear interest payable at such times andat such rate or rates, may be payable at such places within or without thestate, may be subject to such terms of redemption in advance of maturity atsuch prices, and may contain such terms and conditions, all as thesecretary shall determine. The bonds shall have all the qualities of andshall be deemed to be negotiable instruments under the laws of the state ofKansas.The authorizing resolution may contain any other terms, covenants andconditions that the secretary deems reasonable and desirable.
(b) The proceeds from the sale of the bonds authorized to be issuedunder this section are deemed to be trust funds which shall be deposited inthe custody of the state treasurer inthe highway bond proceeds fund which is hereby created.The secretary shallhave responsibility for the management and control of the highway bondproceeds fund and shall provide, by resolution, for both amounts and theduration ofinvestments of moneys in such fund. Such resolution may recommend investmentand reporting policies, including acceptable levels of return, risk andsecurity. After consultation with the secretary and subject to the terms,covenants and conditions provided in the resolutions providing for the issuanceof such bonds, the director of investments shall have the authority toinvest andreinvest moneys insuch fund and toacquire, retain, manage, including the exercise of anyvoting rights, and dispose of investments of such fund. In investing orreinvesting moneys in such fund, there shall be exercised the judgment andcare under the circumstances then prevailing which persons of prudence,discretion and intelligence exercise in the management of their ownaffairs, not in regard to speculation but in regard to the permanentdisposition of their funds, considering the probable income as well as theprobable safety of their capital, except that moneys of the fund may not beinvested in common stocks.Notwithstanding anything to the contrary, all interest or other income ofthe investments, after payment of any management fees, of the highway bondproceeds fund shall be credited to the highway bond debt service fund,until payments on bonds authorized by this act and interest thereon hasbeen fully funded. Thereafter, earnings and other income shall becredited to the state highway fund.
(c) The authorizing resolution may provide for the execution of a trustindenture. The trust indenture may contain any terms, covenants andconditions that are deemed desirable by the secretary, including, withoutlimitation, those pertaining to the maintenance of various funds andreserves, the nature and extent of any security for payment of the bonds,the custody and application of the proceeds of the bonds, the collectionand disposition of bond proceeds and earnings thereon, the investing forauthorized purposes, and therights, duties and obligations of the secretary and the holders andregistered owners of the bonds.
(d) Any authorizing resolution and trust indenture relating to theissuance and security of the bonds may set forth covenants, agreements andobligations therein, which may be enforced by mandamus or other appropriateproceeding at law or in equity.
(e) The bonds may be issued under the provisions of this act withoutobtaining the consent of any department, division, commission, board,bureau or agency of the state and without any other proceedings or thehappening of any other conditions or things than those proceedings,conditions or things which are specifically required by this act.
History: L. 1989, ch. 209, § 8;L. 1996, ch. 254, § 12;L. 1999, ch. 137, § 17; July 1.
