65-163m. Same; bond resolutions, contents; authorities of secretary relating to issuance of bonds.
65-163m
65-163m. Same; bond resolutions, contents; authorities of secretaryrelating to issuance of bonds.(a) Prior to the issuance of the revenue bonds under this act,a resolution or resolutions shall be adoptedwhich, unless otherwise provided therein,shall take effect immediately and:
(1) Determine an interest rate or rates to be paid on the principal of therevenuebonds not in excess of the maximum rate of interest prescribed by K.S.A.10-1009 and amendments thereto;
(2) determine that the revenue bonds will be term or serial bonds or anycombination thereof maturingnot later than 40 years from the date of issuance;
(3) make provision forprompt payment of the principal ofand interest on the revenue bonds as they become due, to maintain anyrequired reserves and to provide for any deficits resulting from failure toreceive sums payable for the principle of or interest on loans made underthis act or resulting from any other cause;
(4) sell the revenuebonds in the manner provided by K.S.A. 10-106 and amendments thereto, ata price ofnot less than 90% of thepar value thereof; and
(5) register the revenue bonds with the state treasurer.
(b) Prior to the issuance of the revenue bonds, the secretary may:
(1) Pledge tothe payment of the principal of and interest on therevenue bondsamounts received for payment of the principal of and interest on loans madeunder this act and any other amounts received for the purpose ofpayment of theprincipal of and interest on the revenue bonds;
(2) create and maintain (A) revenue bond funds adequate to promptly payboth the principal of and interest on the revenue bonds when they becomedue and (B) a reasonable reserve fund; and
(3) covenant or contractwith respect to any and all matters consistent with the authority grantedherein necessary and convenient in the determination of the secretary tosell the revenue bonds and obtain the most favorable interest rate thereon,including, but not limited to, maturities, priority of liens, number ofissuances,special funds for security, redemption privileges, investments of theproceeds of the revenue bonds and any other funds pledged to the paymentthereof or held as security therefor, security agreements,trust indentures, paying agencies, registration provisions and conversionprivileges.
History: L. 1994, ch. 349, § 10; July 1.