In Re Cherokee County, Kansas Health Care Facility Revenue Bonds

The opinion of the court was delivered by

Davis, J.:

Cherokee County, Kansas, issued revenue bonds for construction of an adult care facility. All bonds were issued on parity secured by the facility. The tenant of the facility defaulted on rent owed, which constituted the sole source of bond repayment. The defendant Glenn Mumma’s $50,000 bond matured after default. The trustee appointed by the county sought a declaratory judgment, asking among other things that moneys accumulated in the principal and interest account be paid pro rata on past due interest payments to all bondholders before…