68-2073. Contracts between secretary of transportation and authority; payments from state highway fund on account of highway revenue bonds; reimbursement of state highway fund from toll revenues, paym
68-2073
68-2073. Contracts between secretary of transportation andauthority; payments from state highway fund on account of highwayrevenue bonds; reimbursement of state highway fund from toll revenues,payment to enjoy first lien on state highway fund subject to certainprior payments; enforcement of contracts or agreements.The secretary of transportation and the authority are hereby authorizedand empowered to make and enter into any and all contracts andagreements, including (but without limitation) any contract or agreementfor the removal or construction of any bridge or other highway facilitywhich they may deem necessary, desirable or incidental to the financing,construction, maintenance, repair or operation of any highway projectfinanced under the provisions of this act.
With respect to any highway project financed under the provisions ofthis act, the secretary of transportation is authorized and empowered tocontract or agree with the authority to pay to the authority from thestate highway fund, upon order or voucher of the secretary in the mannerprovided by law to the director of accounts and reports, in each year,such amount or amounts as shall be required in such year to make up anydeficiency in the revenues received from the operation and ownership ofany highway project in such year, over and above the cost ofmaintenance, repair and operation of such highway project and thecreation of reserves for such purposes in such year, (i) for paying theinterest on all highway revenue bonds or highway revenue refunding bondsissued by the authority in connection with any such highway project,(ii) for retiring such bonds by their maturity or maturities, and (iii)for paying the premium, if any, on a specified aggregate principalamount of such bonds which would be payable in such year if suchprincipal amount of bonds were to be redeemed prior to their maturity ormaturities. The amount which is required in each such year to providefor paying the interest on such bonds and for retiring such bonds on orprior to their maturity or maturities shall be determined as provided insuch contract or agreement. Any such payments required to be madepursuant to such contract or agreement may be pledged or assigned by theauthority in the same manner as tolls and other revenues of such highwayproject. Any such contract or agreement shall provide for reimbursementby the authority, from tolls or other revenues of such highway projectto the secretary of transportation for the credit of the state highwayfund, at any time or times and under such terms and conditions as may beset forth therein, if any amounts previously paid to the authority bythe secretary pursuant to the provisions of this paragraph, except thatif the revenues received from theoperation andownership of such highway project in any year, over and above the costof maintenance, repair and operation of such highway project incurred insuch year, shall exceed 150% ofclauses (i),(ii) and (iii) above for such year, such excess must be reimbursed tothe secretary of transportation, for the credit of the state highwayfund, until all amounts previously paid to the authority by thesecretary of transportation have been reimbursed to the secretary.
Any payments provided to be made in any year pursuant to theprovisions of this section to the authority from the state highway fundshall be a lien and claim on the portion of the highway fundwhich ismade available to the secretary of transportation by the provisions ofK.S.A. 68-416, and amendments thereto, but any suchpayments provided to be made shall not be a lien or claim on any of thesums now provided by K.S.A. 68-416,and amendments thereto, andsuch payments shall be subject to any prior lienthereon, if any, created by similar contract made and enteredinto by and between the secretary of transportation and the Kansasturnpike authority, except thatthe secretary and theauthority may determine any priority as to lien and claim onthe fundas between any such payments to the authority from the fundon accountof any highway projects financed under the provisions of this act. Thelaws of Kansas shall not be repealed or amended so as to cause themoneys available in the state highway fund for making any payments tothe authority provided to be made pursuant to the provisions of thissection to be insufficient to make any such payments.
The provisions of any contract or agreement entered into pursuant tothe provisions of this section may be enforced by the authority or bythe trustee under any trust agreement authorized by the provisions ofK.S.A. 68-2078, and amendments thereto.
History: L. 1972, ch. 249, § 4;L. 1975, ch. 427, § 194;L. 1999, ch. 137, § 12; July 1.