10-123. Temporary notes for improvements; issuance; renewal, when. (a) (1) If a municipality has approved an improvement for which the municipality is authorized to finance, in whole or in part, by the issuance of bonds, the governing body of the municipality may issue temporary notes that:
(A) Bear interest at a rate not to exceed the maximum rate of interest prescribed by K.S.A. 10-1009, and amendments thereto;
(B) are payable in accordance with the terms of the notes;
(C) mature not later than four years from the date of the notes; and
(D) do not exceed, in the aggregate, the amount of bonds which may be issued and are then unissued, as shown by the approved estimates on file.
(2) If bonds may be issued for purposes for which state or federal aid is available, the amount of the notes shall not exceed the total amount of any unissued bonds and the state and federal aid granted to the project. Any municipality may issue renewal temporary notes to pay for the cost of taking up any previously issued temporary notes as the notes mature when:
(A) All aspects of the improvement will not be completed at the maturity date of the notes; or
(B) the municipality has completed the improvements and the issuance of bonds is prevented, hindered or delayed.
(b) (1) The temporary notes shall be in a form determined by ordinance or resolution that are acceptable for registration by the state treasurer. The notes shall be executed and registered in the same manner as the bonds and shall be redeemed and canceled before or at the time permanent bonds are issued in lieu thereof. Temporary notes may be retired, in whole or in part, from current revenues of the municipality authorized for such purpose.
(2) The temporary notes:
(A) May be issued from time to time, as required during the progress of the work;
(B) shall be negotiable in accordance with the terms of the notes; and
(C) shall constitute a general obligation of the municipality issuing the same.
(3) The temporary notes shall not be negotiable in accordance with the terms of the notes until the notes are signed, registered and then countersigned by the clerk of the issuing municipality and include a statement to that effect on the face of all such temporary notes.
(4) The temporary notes may be sold in the manner determined by the municipality.
(c) The amount of temporary notes and bonds issued and outstanding shall not, at any time, exceed the estimated cost and expense of the improvement.
History: R.S. 1923, § 10-123; L. 1939, ch. 91, § 1; L. 1951, ch. 126, § 1; L. 1953, ch. 55, § 1; L. 1970, ch. 64, § 3; L. 1977, ch. 47, § 1; L. 1978, ch. 49, § 1; L. 1982, ch. 55, § 1; L. 1989, ch. 52, § 1; L. 2015, ch. 34, § 2; July 1.
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.