Session Law

Identifying Information:L. 2002 ch. 075
Other Identifying Information:2002 House Bill 2947
Tax Type:Other
Brief Description:An Act concerning municipal bonds; relating to interest thereon; amendingK.S.A. 10-1009 and repealing the existing section.
Keywords:


Body:

CHAPTER 75

HOUSE BILL No. 2947

An Act concerning municipal bonds; relating to interest thereon; amending

K.S.A. 10-1009 and repealing the existing section.


Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 10-1009 is hereby amended to read as follows: 10-

1009. (a) The maximum stated rate of interest which may be fixed on

fixed-rate bonds issued by a municipality or taxing subdivision of the state

of Kansas shall be determined on the day the bonds are sold and shall

not exceed the daily yield for the thirty-year ten-year treasury bonds pub-

lished by The Bond Buyer, in New York, New York, on the Monday next

preceding the day on which the bonds are sold, plus 2% (1) three percent,

if the interest on the bonds is excluded from gross income for federal

income tax purposes or (2) four percent, if the interest on the bonds is

included in gross income for federal income tax purposes.

(b) The maximum stated rate of interest which may be fixed on var-

iable-rate bonds issued by a municipality or taxing subdivision of the state

of Kansas shall be determined on the date on which the rate is determined

in accordance with the resolution or ordinance of the issuer and shall not

exceed the daily yield for the thirty-year ten-year treasury bonds pub-

lished by The Bond Buyer, in New York, New York, on the Monday next

preceding such date, plus 2% (1) three percent, if the interest on the bonds

is excluded from gross income for federal income tax purposes or (2) four

percent, if the interest on the bonds is included in gross income for federal

income tax purposes.

(c) Except as provided for variable rate bonds, the maximum rate of

interest specified in this section shall be applicable to bonds issued after

the effective date of this act pursuant to proceedings initiated either be-

fore or after the effective date of this act. The maximum rate of interest

on variable rate bonds issued prior to the effective date of this act shall

be the higher of (1) the maximum rate of interest specified by subsection

(a) or (b) of this section, as in effect prior to the effective date of this act,

(2) the maximum rate of interest specified in this section or (3) the rate

for such variable rate bonds specified in the documents authorizing the

issuance thereof.

Sec. 2. K.S.A. 10-1009 is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved April 17, 2002.

Published in the Kansas Register April 25, 2002.


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Date Composed: 10/10/2002 Date Modified: 10/10/2002