10-116a. Refunding of revenue bonds and interest thereon; limitations; investment of certain bond proceeds. Any municipal or quasi-municipal corporation which has issued or may hereafter issue revenue bonds under the laws of the state of Kansas, may issue, without an election, revenue bonds pursuant to the provisions of this section to refund any revenue bond issue or issues, or part thereof, any interest on such bonds or both such bonds and interest. The principal amount of any issue of refunding revenue bonds shall not exceed the aggregate amount of: (a) The principal amount of the revenue bonds or interest being refunded; (b) the amount of any interest which has accrued thereon or interest that will accrue to the date of payment of the bonds being refunded; (c) the amount of any premium required to be paid should the bonds be called for redemption and payment; (d) expenses of the municipal or quasi-municipal corporation deemed by the governing body to be necessary for the issuance of the refunding bonds; and (e) expenses incident to the payment of the bonds being refunded. The refunding revenue bonds may be sold or exchanged for the bonds being refunded either as a whole or in installments at any time or times, either at, before, or after the maturity of the bonds being refunded. If the refunding revenue bonds are sold more than six months prior to the maturity or earliest prior redemption date of the bonds being refunded, the proceeds derived from the sale, together with any other moneys on hand, shall be placed in escrow under a trust agreement with a Kansas bank having full trust powers. The proceeds and moneys shall be invested in direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America or municipal obligations which are secured by direct obligations of the United States of America, and which shall mature or be subject to redemption by the holders thereof not later than the respective dates when the proceeds of the obligations together with the interest accruing thereon and any other moneys or investments held in escrow will be required for the purposes intended. The trust agreement shall pledge or assign the moneys and investments held in trust for the payment of the principal of the revenue bonds being refunded and may pledge or assign the moneys and investments held in trust for the payment of the interest on the revenue bonds being refunded and any redemption premium thereon. The trust agreement may pledge or assign any of the obligations or other moneys or investments, or interest accruing thereon, held in trust, which are in excess of the amount of the obligations and other moneys and investments held which is equal to the amount of the principal of the bonds to be refunded which comes due on the date for which the bonds may have been called for redemption or irrevocable instructions to call bonds for redemption have been given and any redemption premium thereon, for the payment of the principal of and interest on any or all of the refunding revenue bonds and any redemption premium thereon, and shall contain provisions for protecting and enforcing the rights and remedies of the holders of the revenue bonds. The refunding revenue bonds issued pursuant to this section shall not be general obligations of the municipal or quasi-municipal corporation, except as herein provided, and insofar as the same may be made applicable the issuance of the refunding revenue bonds, the security thereof, and the rights, duties and obligations of the municipal or quasi-municipal corporation in respect thereof, shall be governed by the laws governing such matters with respect to the bonds being refunded and all other laws generally applicable to revenue bonds issued in this state by the municipal or quasi-municipal corporation.
History: L. 1965, ch. 136, § 1; L. 1976, ch. 60, § 1; L. 1977, ch. 58, § 1; L. 1978, ch. 47, § 1; L. 1983, ch. 48, § 3; L. 1987, ch. 60, § 1; May 28.
Structure Kansas Statutes
Chapter 10 - Bonds And Warrants
10-101 "Municipality" defined.
10-102 "Municipal bonds" defined.
10-103 Terms and denominations of municipal bonds.
10-104 Limitations on improvement bonds; partial issuance, when.
10-106 Sale of bonds; public sale, requirements; when; notice; bids.
10-108a Nonlitigation certificate; incorporation in transcript; form.
10-108b Same; notice of pending or threatened lawsuit, effect.
10-108c Same; municipality prevailing in lawsuit authorized to issue bonds unless stay granted.
10-108d Nonlitigation certificate, exception; payment of bonds if city not legally organized.
10-109 Filing statement of issuance with state treasurer.
10-112 Bonds required to be printed; recitals.
10-113 Levies for sinking fund; penalty for failure to make.
10-114 Special assessments for city improvements; apportionment; ordinance.
10-115 Payment of special assessments.
10-117 Unlawful issue, diversion or misuse of bond proceeds or tax funds; penalties.
10-117a Transfer of unexpended balance in bond and interest fund.
10-118 Sinking fund levy to pay bonds maturing at same time.
10-118a Diversion of interest and sinking funds for refunding bonds; penalties.
10-118b Diversion not basis of tax protest.
10-119 Changing territory or disorganization of municipality; liability; tax levies.
10-120 Bond election; publication of notice.
10-120a Bond election; notice requirements.
10-121 Elections for acquisition of land.
10-122 Investment of sinking fund.
10-123 Temporary notes for improvements; issuance; renewal, when.
10-124 Interest coupons receivable for taxes.
10-125 Bonds covered by 10-101 to 10-125.
10-126 Printing of coupons; size and form.
10-127 Same; refusal by state treasurer to register.
10-128 "Municipality" defined.
10-130a Failure of state treasurer to pay certain funds or moneys as provided by law; penalty.
10-132 Used surplus proceeds of certain bond issues to purchase bonds.