10-621. Definitions.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

10-621. Definitions. As used in this act:

(a)"Bond" means a certificated or an uncertificated bond, no-fund warrant, temporary note or other agreement to repay borrowed money and any interest thereon whether in the form of a contract, lease, installment purchase agreement or otherwise, including a share, participation or other interest in any such agreement.

(b)"Certificated bond" means a registered bond which is represented by an instrument.

(c)"Code" means the internal revenue code of 1954, as amended.

(d)"Financial intermediary" means a bank, broker or clearing corporation or the nominee of any of them or other person or nominee which in the ordinary course of its business maintains bond accounts for its customers, when so acting.

(e)"Issuer" means a public entity which issues a bond.

(f)"Obligation" means an agreement of an issuer to pay the principal and any interest on a bond.

(g)"Original issuance" means the first transfer of a bond by an issuer to a purchaser.

(h)"Public entity" means the state of Kansas, political subdivisions, cities, counties, state universities or colleges, school districts, all special districts, joint agreement entities, public authorities, public trusts, nonprofit corporations and other organizations which are authorized under the constitution or laws of the state of Kansas to issue bonds, the interest thereon which may be exempt from federal income tax.

(i)"Registered bond" means a bond issued by a public entity pursuant to a system of registration.

(j)"System of registration" means a plan which:

(1)Provides that

(A)a certificated bond specify a person entitled to the bond and the rights it represents and

(B)the transfer of a certificated bond may be registered upon books maintained for that purpose by or on behalf of the issuer; and

(2)provides that

(A)the transfer of an uncertificated bond be registered upon books maintained for that purpose by or on behalf of the issuer and

(B)such books specify the person entitled to the bond and the rights it represents.

(k)"Uncertificated bond" means a bond which is issued pursuant to a system of registration and is not represented by an instrument.