AGO 1989-016.
Case Date | February 13, 1989 |
Court | Kansas |
"Nothing in the provisions of K.S.A. 10-1101 et seq. shall prohibit a municipality from entering into (1) an agreement to pay for electric interconnection or transmission facilities or services, (2) a lease agreement, with or without an option to buy, or (3) an installment-purchase agreement, if any of such agreements specifically state that the municipality is obligated only to pay periodic payments or monthly installments under the agreement as may lawfully be made from (a) funds budgeted and appropriated for that purpose during such municipality's current budget year or (b) funds made available from any lawfully operated revenue producing source." (Emphasis added).Thus, provided the agreement specifically states the required language concerning the extent of obligation undertaken by a municipality, K.S.A. 10-1116b allows a municipality to enter into an installment-purchase agreement. The issue therefore becomes what types of agreements can be defined as installment-purchase agreements. K.S.A. 10-1101 et seq. does not define installment-purchase agreement. Installment is generally defined as "partial payment of a debt or collection of a receivable. Different portions of this same debt payable at different successive periods as agreed. Partial payments on account of a debt due." Blacks Law...
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