42-714. Issuance, sale and delivery of bonds. - Kansas Statutes

42-714

Chapter 42.--IRRIGATION Article 7.--DISTRICTS

      42-714.   Issuance, sale and delivery of bonds.If a majority of the ballots cast at such election are in favor of theproposal to issue bonds as stated in such resolution, the board ofdirectors shall proceed to issue, sell and deliver such bonds as providedherein.

      (a)   Every bond shall be payable to "bearer" orto the " registered owner" and shall bear interest at the rate specifiedin the accepted bid for thepurchase of the bonds. Each bond shall specify the time and place ofpayment of the principal and interest and shall be numbered consecutivelywith the other bonds of the same issue, which shall begin with the numberone and continue upward, or if directed by the board shall begin with anynumber and continue upward.

      (b)   Such bonds shall be executed in the name of and for the district bythe chairperson and secretary of the board. Anyinterest coupons may beexecuted by the lithographed or engraved facsimile signature ofsuch officers. The validity of the bonds which are executed shall remain unimpaired byreasons of the fact that one or more of the subscribing or attestingofficers have ceased to be such officer or officers, before delivery to thepurchaser. Such bonds shall recite that they are, and shall be, payable inlawful money of the United States.

      (c)   The secretary of the board of directors of the irrigation districtshall register in a book provided for that purpose an accurate descriptionof every bond issued, specifying its number, date, purpose, amount, rate ofinterest, when and where payable and description of any coupons attached. Allbonds authorized under this act which have not been delivered to thepurchaser within three years after their date shall be canceled. It shallbe the duty of the secretary to destroy all canceled bonds, by burning themin the presence of other members of the board of directors and that minutesrelating such action be entered in the journal.

      (d)   Such bonds may be self-liquidating out of the revenue to be derivedout of rentals and charges for water uses or other services, facilities orincome of the district, or may be paid by means of assessments or by acombination of two or more of such methods.

      (e)   The revenue derived from the rates charged by the district for theservices performed and facilities furnished by it shall be pledged tosecure the payment of such bonds and interest thereon, less a proper amountto be set aside by the board of directors, to pay the expenses of operationand maintenance of the district and its works, and to provide for anadequate depreciation fund. Rates shall be fixed in a reasonable amount sufficient toprovide for such purposes.

      (f)   All money received from sale of any bond issue shall be placed in afund and applied solely to the payment of the costs of the works proposedor for the purpose or purposes for which the same were issued.

      History:   L. 1941, ch. 262, § 14; L. 1983, ch. 49, § 82; May 12.