Regulatory Alerts1995-01-01
Investment in Temporary Notes
Staff Attorney Sonya Allen confirms that Kansas banks possess the authority under K.S.A. 9-1101(3) to invest in temporary notes issued by municipalities. This determination relies on legal precedents establishing that temporary notes are encompassed within the statutory definition of general obligation bonds. The memo specifies that investments in Kansas municipal notes are unlimited, while out-of-state investments are restricted if the issuer's indebtedness exceeds 10% of valuation or if there has been a recent payment default.
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