Printable Format12-1743. Same; obligations payable solely from rentals; bonds, requirements. Nothing in this act shall be so construed as to authorize or permit any city or county to make any contract or to incur any obligation of any kind or nature except such as shall be evidenced by the issuance of revenue bonds payable solely out of the rentals received from such facilities.
Revenue bonds issued under the provisions of this act are declared to be negotiable instruments, shall be executed by the mayor and clerk of the city or the chairperson of the board of county commissioners and the clerk of the county and the corporate seal of the city or county shall be affixed to or imprinted thereon. The principal of and interest on the revenue bonds shall be payable solely and only from the special fund herein authorized for such payments, and the revenue bonds shall not in any respect be a general obligation of such city or county, nor shall they be payable in any manner by taxation. All details pertaining to the issuance of the revenue bonds and the terms and conditions thereof shall be determined by ordinance of the city or resolution of the county.
History: L. 1961, ch. 81, § 4; L. 1981, ch. 74, § 7; July 1.
Law Review and Bar Journal References:
Constitutionality of ten year industrial revenue bond property taxation provision of K.S.A. 79-201a, 24 K.L.R. 723, 724 (1976).
"Survey of Kansas Law: Municipal Corporations," Richard H. Seaton, 27 K.L.R. 269, 276 (1979).
Attorney General's Opinions:
Cities and municipalities — buildings, structures and grounds — industrial revenue bonds. 81-4.
Investment of funds received from industrial revenue bonds. 81-117.
CASE ANNOTATIONS
1. Act does not contravene various provisions of Kansas constitution and bill of rights. State, ex rel., v. City of Pittsburg, 188 Kan. 612, 613, 614, 615, 619, 620, 621, 364 P.2d 71.
2. Applied; city ordinance to implement issuance of bonds administrative in character; not subject to initiative and referendum under K.S.A. 12-3013. Rauh v. City of Hutchinson, 223 Kan. 514, 517, 518, 520, 521, 575 P.2d 517.
3. Lease-purchase agreement under act not complete sale; filing requirements of UCC (article 9) inapplicable. In re Petition of City of Moran, 238 Kan. 513, 520, 522, 713 P.2d 451 (1986).
4. Leases under act true leases, not mortgages, and therefore subject to assumption/rejection requirements of bankruptcy code. In re Petroleum Products, Inc., 72 B.R. 739, 743 (1987).
5. "United States Rule" providing for payment of accrued interest on defaulted revenue bonds before payment of principal indebtedness applied. In re Cherokee County Revenue Bonds, 262 Kan. 941, 951, 946 P.2d 83 (1997).