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Cancelled Bonds 4.gel EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-9 $320,000 UNITED STATES OF AMERICA .. . STATE OF KANSAS • • • • •• COUNTY OF SALINE • CITY OF SALINA • GF�NERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2003-A• • • • Inte[e/PA (4 Maturity Dated CUSP: Rate!'T.250% . •. Date: October 1, 2012 Date: July 15, 2003 794743 ZR8 • • • • • • • RE(}j$TFRED OWNER: CEDE &CO. • PRINCIPAL AMOUNT: THREE HUNDRED TWENTY THOUSAND DOLLARS KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and promises to pay to the registered owner identified above, or registered assigns, as of the Record Dates as hereinafter provided on the Maturity Date identified above, the Principal Amount identified above, and in like manner to pay interest on such Principal Amount from the Dated Date shown above or from the most recent interest payment date to which interest has been paid or duly provided for at the rate of interest per annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually on April 1 and October 1 of each year, commencing April 1, 2004 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of the state of Kansas,Topeka,Kansas (the "Paying Agent" and "Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable on this Bond on any interest payment date shall be paid to the person in whose name this Bond is registered on the Bond Register at the close of business on the fifteenth day of the month preceding the interest payment date (the "Record Date") for such interest (a) by check or draft mailed by the Paying Agent to such Registered Owner at the address shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), address, ABA routing number and account number to which such Registered Owner wishes to have such ()uieau this cexti»iecths is presented by an authorized representative of The ;seposrtwy Trust Compe av (55 Water Street New 'fork, — ;,.;,t t ■; Zegi atr2:ii:''--'--- --- ---•-- .. i;i ?>'fii5f6; in the 1 r t `ik C* TO ANY• PERK:. _ , _-_ _ ._ :uir,.:.c fJ i'✓:LI i he.tecit Cede X Co. hag at .. ^Teta x eieia. transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of debts due the United States of America. The Bonds constitute general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the payment of the principal of and jWtereSt on this Bond and the issue of which it is a part as the same respectively become due. • •• •;•'Pais Bonji is, one of an authorized series of Bonds of the City designated "General Obligation 4,••••• Internal Improvement:Bonds, Series 2003-A," in an aggregate principal amount of $4,350,000 (the "Boudgjl sued•for the purposes set forth in the Ordinance of the City authorizing the issuance of the Bonds and thettezalution of the City prescribing the form and details of the Bonds (jointly, the • • "Resolution"). the Bonds are issued by the authority of and in full compliance with the provisions, •• restrictjons and:lig stations of the Constitution and laws of the state of Kansas, including, without • limitation, K.S.A.10•101 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seg.:Charter Ordinance No. 29 of the City and Article 12, Section 5 of the Constitution of the State of • Kanajjas amended. At the option of the City, Bonds maturing on October 1, 2014, and thereafter may be called for redemption and payment prior to maturity on October 1, 2013 and thereafter, in whole or in part at any time, in such principal amounts for such maturities as shall be determined by the City at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest thereon to the date of redemption. Unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for redemption and payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, such notice to be mailed by United States first class mail addressed to the Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to bear interest from the date for which such call is made, provided funds are available for the payment of such Bonds at the price specified above. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii)notices and (iii)voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any 2 redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The City, the Bond Registrar and the Paying Agent will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of and interest on this Bond shall be made in accordance with existing arrangements among the City, the Bond Registrar and the Securities Depository. EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY BE,'FRflSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECORITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOM1444. OF A SJ 4CCESSOR SECURITIES DEPOSITORY. The Bonds are issued in fully registered •••• form ip the dendmination of$5,000 or any integral multiple thereof. This Bond may be exchanged at the • office of titte Bo Boi2ritegistrar for a like aggregate principal amount of Bonds of the same maturity of other authorized'denonlioytions upon the terms provided in the Resolution. • • .•a • • •• •:`hhe City apd•the Bond Registrar may deem and treat the registered owner hereof as the absolute • • owneg llereof fo4•13unposes of receiving payment of or on account of principal hereof and interest due hereon.rxa for all other purposes and neither the City nor the Bond Registrar shall be affected by any notice`jQ jte contrary. • This Bond is transferable by the registered owner hereof in person or by the registered owner's agent duly authorized in writing, at the office of the Bond Registrar, but only in the manner, subject to the limitations and upon payment of the charges provided in the Resolution and upon surrender and cancellation of this Bond. The City shall pay all costs incurred in connection with the issuance, payment and initial registration of the Bonds and the cost of a reasonable supply of bond blanks. The City and the Bond Registrar shall not be required to issue, register, transfer or exchange any Bonds during a period beginning on the day following the Record Date preceding any Interest Payment Date and ending at the close of business on the Interest Payment Date or Bonds which have been called for redemption in accordance with Article III of the Resolution. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the state of Kansas, and that the total indebtedness of the City, including this series of bonds, does not exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. 3 IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its corporate seal to be affixed hereto or imprinted hereon, and this Bond to be dated the Dated Date shown above. CITY OF SALINA, KANSAS `I'1 010441ZFO 5 f 0l• ••.12370 i� Ma or f f� i Y Al t: • • • .• • I • BY ' City Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION • This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2003-A, of the City of Salina,Kansas, described in the within-mentioned Resolution. Registration Date: JUL 2 9 2003 Office of the State Treasurer, Topeka,Kansas as Bond Registrar and Paying Agent By: %Cr Registration Number: 0322-085-071503-965 4 • BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es)hereby sell, assign and transfer to (Name and Address) .. • • • • • (Social Security or Taxpayer Identification No.) ▪••••. the Bond to which this assignment is affixed in the outstanding principal amount of$ standinAn the •name of the undersigned on the books of the Bond Registrar. The undersigned do(es)CO Olo hereby irrevocalty.caistitute and appoint as agent to transfer said Bond on ▪ • the £&32s of Laid Bond Registrar with full power of substitution in the premises. Dated • •• •••• • • • •• •••• • • Name • Social Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: By [Name of Eligible Guarantor Institution as defined by SEC Rule 17ad-15 (12CFR 240.17 Ad-15)or any similar rule which the Bond Registrar deems applicable] 5 CERTIFICATE OF CITY CLERK STATE OF KANSAS ) ) SS. COUNTY OF SALINE ) I, the undersigned, City Clerk of Salina, Kansas, hereby certify that the within Bond has been duly registered in my office according to law as of July 15, 2003. •• • • • • • WITNESS my hand and official seal. .•• . ', P • ••. ; yoF.•.•..* X11•• ••• ••; v •, tuf•; If ���� A ,,,�,, o��� 11 4 lr1LeaCGv '/1• ° 1 I� •J • •• City Clerk •• •••..' af •• 11\ re& ••••5;1...,,,,,r CERTIFICATE OF STATE TREASURER • OFFICE OF THE TREASURER, STATE OF KANSAS I, LYNN JENKINS, Treasurer of the State of Kansas, do hereby certify that a transcript of the proceedings leading up to the issuance of this Bond has been filed in my office, and that this Bond was registered in my office according to law on JUL 2 9 2003. WITNESS my hand and official seal. • (Facsimile Seal) • t . , Treasurer of the State of Kansas • 6 • STATEMENT OF INSURANCE Financial Security Assurance Inc. ("Financial Security"), New York, New York, has delivered its municipal bond insurance policy with respect to the scheduled payments due of principal of and interest on this Bond to the Treasurer of the State of Kansas, Topeka, Kansas, or its successor, as paying agent for the Bonds (the "Paying Agent"). Said Policy is on file and available for inspection at the principal office of the Paying Agent and a copy thereof may be obtained from Financial Security or the Paying Agent. .. • • • • • ••• • • • •... • • • • •••• • • • • •••e •• •• • • • • • • • • 7 • LEGAL OPINION I, the undersigned, City Clerk of the City of Salina, Kansas, hereby certify that the following is a true and correct copy of the approving legal opinion of Gilmore & Bell, a Professional Corporation, Attorneys at Law, Kansas City, Missouri, on the within Bond and the series of which it is a part, except that it omits the date of such opinion; that the opinion was manually executed and was dated and issued as of thedateof delivery of and payment for the Bonds and is on file in my office. • .. • • • • By VU,S1--.73-1 •••• •••••• City Clerk .• .• • • • • • ••••• Gilmore&Bell,P.C. 2405 Grand Boulevard, Suite 1100 • Kansas City,Missouri 64108 July 29, 2003 Governing Body of the City of Salina,Kansas Salina,Kansas Stone&Youngberg San Francisco, California Financial Security Assurance Inc. New York,New York Re: $4,350,000 General Obligation Internal Improvement Bonds, Series 2003-A, of the City of Salina,Kansas,Dated July 15, 2003 We have acted as bond counsel in connection with the issuance by the City of Salina,Kansas(the "City")of the above-captioned bonds (the "Bonds"). We have examined the law and such certified proceedings and other documents as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. 8 • Based upon the foregoing,we are of the opinion,under existing law, as follows: 1. The Bonds are valid and legally binding general obligations of the City,payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal of and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property,real and personal,within the territorial limits of the City. 2. The interest on the Bonds (including any original issue discount properly allocable to an • owner tlteeof) is excluded from gross income for federal income tax purposes and is not an item of tax prefeiei c4 for purposes of the federal alternative minimum tax imposed on individuals and corporations. •... It should noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as*defined for federal income tax purposes), such interest is taken into account in detetdfint adjusted current earnings. The opinions set forth in this paragraph are subject to the condition.that tide City comply with all requirements of the Internal Revenue Code of 1986, as amended (the "€ode"), that ny}st be satisfied subsequent to the issuance of the Bonds in order that interest thereon • • be, or•continue:to:be; excluded from gross income for federal income tax purposes. The City has covanarited to comply with each such requirement. Failure to comply with certain of such requirements may causaus e the inclusion of interest on the Bonds in gross income for federal income tax purposes retreautn;to the date of issuance of the Bonds. The Bonds are "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80 percent of that portion of such financial institution's interest expense allocable to interest on the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. 3. The interest on the Bonds is exempt from Kansas income taxation. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the Official Statement) and we express no opinion relating thereto (excepting only the matters set forth as our opinion in the Official Statement). It is to be understood that the rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency,reorganization, moratorium and other similar laws affecting creditors'rights heretofore or hereafter enacted to the extent applicable and their enforcement may be subject to the exercise of judicial discretion in appropriate cases. Very truly yours, GILMORE& BELL, P.C. 9 EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-10 $320,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE _ CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2003-A Interest Maturity Dated CUSIP: Rate: 3.375% Date: October I, 2013 Date: July 15, 2003 794743 ZS6 REQLS'fCRED OWNER: CEDE & CO. , PRINCIPJLAMOUNT: THREE FIUNDRED TWENTYTHOUSAND DOLLARS • KNOW *A*4--PERSONS BY THESE PRESENTS: That the City of Salina, in the County of •••••• SaluN,•St;e of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and J �•.••. •••• promiFec:o pay.o me registered owner identified above, or registered assigns, as of the Record Dates as. herelix-4 Wprovi�ed qn the Maturity Date identified above, the Principal Amount identified above, and in like manner to ptly lntelest on such Principal Amount from the Dated Date shown above or from the most receiXAnlesest payment date to which interest has been paid or duly provided for at the rate of interest per annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually on APlVLlnd October 1 of each year, commencing April 1, 2004 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of the state of Kansas, Topeka, Kansas (the "Paying Agent" and 'Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable on this Bond on any interest payment date shall be paid to the person in whose name this Bond is registered on the Bond Register at the close of business on the fifteenth day of the month preceding the interest payment date (the "Record Date") for such interest (a) by check or draft mailed by the Paying Agent to such Registered Owner at the address shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), address-,r.9BAarouting.number_and taccount number to which such Registered Owner wishes to have such y an : uraor.ect f£Ui@SBn!Q1iV£' :!''h. TtUCt Cornp;l*.�=_= — ------ e x:a�twy rfig4atratiol; of — --- --- ;!•N N}d in the, ramp o.' q i ur3CiG CP. (I PERSON IS i�Huaq(--'C±L since tixe rz(,i:i i - - ------ f" i-Wevow hgr9.`4 fel.. qw:�!u .....w^• ..Aq} .; r:,. ,• ....: ...... u•• • .:u: • f b` transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin or currency which,on the respective dates of payment thereof, is legal tender for the payment of debts due the United States of America. The Bonds constitute general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the payment of the principal of and interest on this Bond and the issue of which it is a part as the same respectively become due. This Bond is one of an authorized series of Bonds of the City designated "General Obligation Internal Improvement Bonds, Series 2003-A," in an aggregate principal amount of $4,350,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the City authorizing the issuance of the Bonds and the Resolution of the City prescribing the form and details of the Bonds (jointly, the "Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the state of Kansas, including, without limitation, K.S.A. 10-101 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seq.,-Q a er Ordinance No. 29 of the City and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended. •••• •,At the option 8£the City, Bonds maturing on October 1, 2014, and thereafter may be called for •••••• redemption and payment prior to maturity on October 1, 2013 and thereafter, in whole or in part at any time, on such pripiM amounts for such maturities as shall be determined by the City at the redemption •��;,,price.ef"40% (t-Npressed as a percentage of the principal amount), plus accrued interest thereon to the date of'rMemption. •,,iJnless waived by any owner of the Bonds to-be redeemed, if the City elects to call any Bonds for redemptionpand payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, such notice to be mailed by United States first class mail addressed to the Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to bear interest from the date for which such call is made, provided funds are available for the payment of such Bonds at the price specified above. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii)notices and (iii)voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any 2 ..... ... . . .... .....: • I a redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The City, the Bond Registrar and the Paying Agent will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of and interest on this Bond shall be made in accordance with existing arrangements among the City, the Bond Registrar and the Securities Depository. EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. The Bonds are issued in fully registered form in the denomination of$5,000 or any integral multiple thereof. This Bond may be exchanged at the office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations upon the terms provided in the Resolution. The City and the Bond Registrar may deem and treat the registered owner hereof as the absolute owner hereof for purposes of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes and neither the City nor the Bond Registrar shall be affected by any notice iotte contrary. ••• T6is Bond*is transferable by the registered owner hereof in person or by the registered owner's :....: agent auly,author?2&in writing, at the office of the Bond Registrar, but only in the manner, subject to the •••••• limit=V`4 and :upon payment of the charges provided in the Resolution and upon surrender and .*:*b • ..... cance3leYo� of tris bond. The City shall pay all costs incurred in connection with the issuance, payment •• and irtiti9t regis4tignof the Bonds and the cost of a reasonable supply of bond blanks. •.... City and the Bond Registrar shall not be required to issue, register, transfer or exchange any Bonds during a period beginning on the day following the Record Date preceding any Interest Payment Date•ar d ending at the close of business on the Interest Payment Date or Bonds which have been called for redemption in accordance with Article III of the Resolution. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the state of Kansas, and that the total indebtedness of the City, including this series of bonds, does not exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. 3 g .... .....: i e o a ' IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its corporate seal to be affixed hereto or imprinted hereon, and this Bond to be dated the Dated Date shown above. OF CITY OF SALINA, KANSAS U_ j 1 1870 f=� Mayor ATTEST: By.—� City Clark 0 �0000. < 0000« :.C., o<e CERTIFICATE OF AiJ"['IIENTICATION AND REGISTRATION CC•C C O COCG C O G O<:C `This Bored as oae of a series of General Obligation Internal Improvement Bonds, Series 2003-A, of the Ciiy < -af Salina, Kansas, described in the within-mentioned Resolution. « Registration Date: JUL 2 9 2�D3 Office of the State Treasurer, Topeka, Kansas as Bond Registrar and Paying Agent By: Registration Number: 0322-085-071503-965 4 _ _ _ _ _ _ • .. • • 4� :` .... I - '. "< ,� i .._. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds are valid and legally binding general obligations of the City,payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal of and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal,within the territorial limits of the City. 2. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. It should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. The opinions set forth in this paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The City has covgpapjed to comply with each such requirement. Failure to comply with certain of such requirements mal Cat4sb the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Bonds are "qualified tax-exempt obligations" for . .. •�•• purp.oses.. of Seg0n•z65(b)(3) of the Code and, in the case of certain financial institutions (within the ;,•�„ meaning of Sect"265(b)(5) of the Code), a deduction is allowed for 80 percent of that portion of such ...... fin"al"institution's interest expense allocable to interest on the Bonds. We express no opinion ..... regarding other JedeM tax consequences arising with respect to the Bonds. •' 3. Me Interest on the Bonds is exempt from Kansas income taxation. ••••VVe have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the pff":l Statement or other offering material relating to the Bonds(except to the extent, if any, stated in the Official Statement) and we express no opinion relating thereto(excepting only the matters set forth as our opinion in the Official Statement). It is to be understood that the rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors'rights heretofore or hereafter enacted to the extent applicable and their enforcement may be subject to the exercise of judicial discretion in appropriate cases. Very truly yours, I' GiLMORE & BELL, P.C. 9 t.. a., .. .. . . . . .... ...... .... .... ...... . ...... ...... .... ..... .... .. .. . . . . . ...... .... . , .... ...... �I � t.,• Y .._ � .t- .. �. ' �• � � ��� EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-11 $225,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2003-A Interpa -- Maturity Dated CUSIP: Rate: 3.400% Date: October 1, 2014 Date: July 15, 2003 794743 ZT4 ,••••, REGISTERED Q�VNPJ2: CEDE & CO. ...... .... ••���� PREIVY&AMt�i,JjYr: TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS ....� •S .• �*TINOW ALE•PERSONS BY THESE PRESENTS: That the City of Salina, in the County of �••'•• Saline State of K,a7Lsg; (the "City"), for value received, hereby acknowledges itself to be indebted and pron%,Qe to pay to the registered owner identified above, or registered assigns, as of the Record Dates as hereivi AMprovided on the Maturity Date identified above, the Principal Amount identified above, and in like rri2nnet to pay interest on such Principal Amount from the Dated Date shown above or from the most recent interest payment date to which interest has been paid or duly provided for at the rate of interest per annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually on April 1 and October 1 of each year, commencing April'l, 2004 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of the state of Kansas,Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable on this Bond on any interest payment date shall be paid to the person in whose name this Bond is registered on the Bond Register at the close of business on the fifteenth day of the month preceding the interest payment date (the "Record Date") for such interest (a) by check or draft mailed by the Paying Agent to such Registered Owner at the address shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), address, ABA routing number and account number to which such Registered ©wnerjwish'es to have such ,. a uuitzacisuu trigLV:°•. ur:,tt 1L.y.' G=''a`tCU: pr-,-ac.L`" 61:y v i:' tL thg igg:1�1 Jt itY (3LxiP,33 thi3 L6 `1S yE:Lr,. F _•!A'r Cr.-1 :>yiSlrcLiiaat4i. - ,(-1 ,j``Y: .ii? G^I IS ,',�3:J:Jlist,:., a:1-• • JJ �l d transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin or currency which,on the respective dates of payment thereof, is legal tender for the payment of debts due the United States of America. The Bonds constitute general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the payment of the principal of and interest on this Bond and the issue of which it is a part as the same respectively become due. This Bond is one of an authorized series of Bonds of the City designated "General Obligation Internal Improvement Bonds, Series 2003-A," in an aggregate principal amount of $4,350,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the City authorizing the issuance of the Bonds and the Resolution of the City prescribing the form and details of the Bonds (jointly, the "Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions. and limitations of the Constitution and laws of the state of Kansas, including, without limit9ybh;.K.S.A..10.101 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seq., Charter OrIna nee No. 29 of the City and Article 12, Section 5 of the Constitution of the State of ......Kansj,•y;[as amended. 4S ..... ...... ••• •• •At-the option of the City, Bonds maturing on October 1, 2014, and thereafter may be called for redemption and ja);Atart prior to maturity on October 1, 2013 and thereafter, in whole or in part at any time,.incuch prihipai amounts for such maturities as shall be determined by the City at the redemption price of-1-60% (expressed as a percentage of the principal amount), plus accrued interest thereon to the date ofsMmption. • Unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for redemption and payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, such notice to be mailed by United States first class mail addressed to the Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to bear interest from the date for which such call is made, provided funds are available for the payment of such Bonds at the price specified above. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. 'Be book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii)notices and (iii) voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any 2 .. .. . . . . .... ...... .... .... ...... ...... ..... � c,.. ..:..' .... .. .. .... .....: '....' ...... • t redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The City, the Bond Registrar and the Paying Agent will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of and interest on this Bond shall be made in accordance with existing arrangements among the City, the Bond Registrar and the Securities Depository. EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. The Bonds are issued in fully registered form in the denomination of$5,000 or any integral multiple thereof. This Bond may be exchanged at the office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations upon the terms provided in the Resolution. The City and the Bond Registrar may deem and treat the registered owner hereof as the absolute owneyfizP�of for�Iuc_noses of receiving payment of or on account of principal hereof and interest due hereon-and for a?l other purposes and neither the City nor the Bond Registrar shall be affected by any notice,to,tNa contrary. ih=s BoL is transferable by the registered owner hereof in person or by the registered owner's agent duly authofiz�(7'in writing, at the office of the Bond Registrar, but only in the manner, subject to the limitatigns and upon-payment of the charges provided in the Resolution and upon surrender and cane}lotion of this Bond. The City shall pay all costs incurred in connection with the issuance, payment and initiril.fegistration of the Bonds and the cost of a reasonable supply of bond blanks. The City and the Bond Registrar shall not be required to issue, register, transfer or exchange any Bonds during a period beginning on the day following the Record Date preceding any Interest Payment Date and ending at the close of business on the Interest Payment Date or Bonds which have been called for redemption in accordance with Article III of the Resolution. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the state of Kansas, and that the total indebtedness of the City, including this series of bonds, does not exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. I 3 r> eeoe .re so sees e e eras - eeree• a . •♦ eresee a r• /00/O• Oee00 e r0 OOe00r OOee00 i ee J O O 00 e gserse ♦rra roses 0 aaae ee• Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds are valid and legally binding general obligations of the City, payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal of and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property,real and personal, within the territorial limits of the City. 2. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. It should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. The opinions set forth in this paragraph are subject to the conikimr that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the•"Code"), that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, "ei9itinue to be, excluded from gross income for federal income tax purposes. The City has �••••• covenante*d to cemplyvwith each such requirement. Failure to comply with certain of such requirements •••••• may causg the ihehtsion of interest on the Bonds in gross income for federal income tax purposes retr63c' M to t* date of issuance of the Bonds. The Bonds are "qualified tax-exempt obligations" for •�':" pur�osos•of Sect on`165(b)(3) of the Code and, in the case of certain financial institutions (within the „�•• mearnrigbf Secti on`2„65(b)(5) of the Code), a deduction is allowed for 80 percent of that portion of such :..:.. financial instit4idli's:interest expense allocable to interest on the Bonds. We express no opinion regar$in$other federal tax consequences arising with respect to the Bonds. •;••3y The interest on the Bonds is exempt from Kansas income taxation. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the Official Statement) and we express no opinion relating thereto (excepting only the matters set forth as our opinion in the Official Statement). It is to be understood that the rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization,moratorium and other similar laws affecting creditors'rights heretofore or hereafter enacted to the extent applicable and their enforcement may be subject to the exercise of judicial discretion in appropriate cases. Very truly yours, GILMORE & BELL, P.C. 9 .. ., . . .... ...... - � .... . ...... ...... .... ..... .... .. .. . . . . ...... .... .... ...... �- � .i; -- „• � . ., ,_�,.. - i EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-12 $225,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE `' CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIFS 2003-A Interest Maturity Dated CUSIP: Rate: 3.550% Date: October 1, 2015 Date: July 15, 2003 794743 7.111 REGISTERED OWNER: CEDE & CO. • PRIN%.IPAL ANfIYMiF: TWO HUNDRED TWENTY-FIVE THOUSAND DOLLARS "k'SlOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of j..... :*:*:*:*:4* �.:.�.•4� Salida;!s?lte of Cansas (the "City"), for value received, hereby acknowledges itself to be indebted and ,• proml"at`Sto pay Yo the registered owner identified above, or registered assigns, as of the Record Dates as :..:.. herein`f er proviZIA on the Maturity Date identified above, the Principal Amount identified above, and in like nlyyLcY to pay interest on such Principal Amount from the Dated Date shown above or from the most recent interest payment date to which interest has been paid or duly provided for at the rate of interest per .eT4 annun+ setiorth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually on April 1 and October 1 of each year, commencing April 1, 2004 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of, premium, if any, and interest on this Bond shall he payable by the Treasurer of the state of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable on this Bond on any interest payment date shall be paid to the person in whose name this Bond is registered on the Bond Register at the close of business on the fifteenth day of the month preceding the interest payment date (the "Record Date") for such interest (a) by check or draft mailed by the Paying Agent to such Registered Owner at the address shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest i payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by Ielectronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), address, ABA routing number and account number to which such Registered Owner wishes to have such _nits-.p )£.;3 C, Y;I:y;+ts• . . .' ('17N#I .fiFro a is 1... . •' J�t•ro .e,o re;natorrvt o rnr31 •ha ` A!-ry, INC�t r transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin or currency which,on the respective dates of payment thereof, is legal tender for the payment of debts due the United States of America. The Bonds constitute general obligations of the City payable as to both principal and interest in part.from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the payment of the principal of and interest on this Bond and the issue of which it is a part as the same respectively become due. This Bond is one of an authorized series of Bonds of the City designated "General Obligation Internal Improvement Bonds, Series 2003-A," in an aggregate principal amount of $4,350,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the City authorizing the issuance of the Bonds and the Resolution of the City prescribing the form and details of the Bonds (jointly, the "Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the state of Kansas, including, without limit zJd6,_K.S.A. 10-101 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seq.;Cha`iter Ordinance No. 29 of the City and Article 12, Section 5 of the Constitution of the State of Kan-as,-a{ as amended. .o A* the option of the City, Bonds maturing on October 1, 2014, and thereafter may be called for redemption and 5aymept prior to maturity on October 1, 2013 and thereafter, in whole or in part at any time,iii s&^,h pri`icipal amounts for such maturities as shall be determined by the City at the redemption price ofT00% (sxprea§ed as a percentage of the principal amount), plus accrued interest thereon to the date ofycdempti6p,.` 1 Unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for redematiorf and payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, such notice to be mailed by United States first class mail addressed to the Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to bear interest from the date for which such call is made, provided funds are available for the payment of such Bonds at the price specified above. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii)notices and (iii) voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any 2 �Y dam. n.. OVA WAY I e p EPC E os ep. E n, P9F eeeeea oQepR; a +wee nEn e - e n peE ooa�p ppmnp ep �n eo pppvap " pp � .9t '"•y r.'L' i:.: `' ' ' .. ta:i-L Ks._. t:;:. � "1A+ yr of r�@j ti 'S' tttie j EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT ; NOT. IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURI-fiES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-13 $225,000 UivITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA .. .. GENERAL OBLIGATION INTERNAL.IMPROVEMENT BOND • SERIES 2003-A ...... .... .... Interest Maturity Dated CUSIP: Rate: 3.700'%, ••'• Date: October 1, 2016 Date: July 15, 2003 794743 ZV9 REC>4S--4 REDt)WNER: CEDE &CO. �; ;••:.. PRINCIPALAMQ`J�'I`. 1'WOI-IIJNDREDI'WENTY-FIVE'rHOUSANDDOLLARS .... •• KAlOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Safi;", taie of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and promises to pay to the.registered owner identified above, or registered assigns, as of the Record Dates as hereinafter provided on the Maturity Date identifi,%l above, the Principal Amount identified above, and in like manner to pay interest on such Principal Amount froi.t the Dated Date shown above or from the most recent interest payment date to which interest has been paid or duly provided for at the rate of interest per annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually on April 1 and October I of each year, commencing April 1, 2004 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of the state of Kansas,Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cance'.lation. The interest payable on this Bond on any interest payment date shall be paid to the person in whose name this Bond is registered on the Bond Register at the close of business on the Fifteenth day of the month preceding the interest payment date (the "Record Date") for such interest (a) by check or draft mailed by the Paying Agent to such Registered Owner at the address shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), address, ABA routing number and account number t Q W.w g hich,such;Re istered`Owner wishes to have such It., i•�.;yk�.^Mr mid tLw.t i � b i transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin or currency which,on the respective dates of payment thereof, is legal tender for the payment of debts due the United States of America. The Bonds constitute general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the payment of the principal of and interest on this Bond and the issue of which it is a part as the same respectively become due. This Bond is one of an authorized series of Bonds of the City designated "General Obligation Int*Nl*Improvement Bonds, Series 2003-A," in an aggregate principal amount of $4,350,000 (the 'B(;nds"}jssued for the purposes set forth in the Ordinance of the City authorizing the issuance of the BorW V* the Rosolution of the City prescribing the form and details of the Bonds (jointly, the "Resolution"). %Tjj.Honds are issued by the authority of and in full compliance with the provisions, restriippa and,limitations of the Constitution and laws of the state of Kansas, including, without limitttion,•K.S.4.•14401 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et •,,;,, seq.vtharter Ordinance No. 29 of the City and Article 12, Section 5 of the Constitution of the State of Kansag all as aleuded. '••t! the option of the City, Bonds maturing on October 1, 2014, and thereafter may be called for redepypipd and payment prior to maturity on October 1, 2013 and thereafter, in whole or in part at any time, in such principal amounts for such maturities as shall be determined by the City at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest thereon to the date of redemption. Unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for redemption and payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, such notice to be mailed by United States first class mail addressed to the Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to bear interest from the date for which such call is made, provided funds are available for the payment of such Bonds at the price specified above. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii) notices and (iii) voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any 2 t � .. .�. . .... • .... .....: • .�.... ...... ... • .....' .. ....' .. . . .... ..:... .... ..... + redemption premium payments to beneficial owners of the ,Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The City, the Bond Registrar and the Paying Agent will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of and interest on this Bond shall be made in accordance with existing arrangements among the City, the Bond Registrar and the Securities Depository. EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. The Bonds are issued in fully registered fore?in The denomination of$5,000 or any integral multiple thereof. This Bond may be exchanged at the offtce of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity of other autllerieeo denorviA3tions upon the terms provided in the Resolution. •••••• The City and the Bond Registrar may deem and treat the registered owner hereof as the absolute owner teTeof f�y{x�tposes of receiving payment of or on account of principal hereof and interest due •• •, heredY� for"mlI other purposes and neither the City nor the Bond Registrar shall be affected by any notice.•to•.the cotjtrW., ... fiis Bond is transferable by the registered owner hereof in person or by the registered owner's agent,duleauthorized in writing, at the office of the Bond Registrar, but only in the manner, subject to the limitations• and upon payment of the charges provided in the Resolution and upon surrender and cancellation of this Bond. The City shall pay all costs incurred in connection with the issuance, payment and initial registration of the Bonds and the cost of a reasonable supply of bond blanks. The City and the Bond Registrar shall not be required to issue, register, transfer or exchange any Bonds during a period beginning on the day following the Record Date preceding any Interest Payment Date and ending at the close of business on the Interest Payment Date or Bonds which have been called for redemption in accordance with Article III of the Resolution. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the state of Kansas, and that the total indebtedness of the City, including this series of bonds, does not exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. 3 t i : .... . • . : . ... ...... a IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its corporate seal to be affixed hereto or imprinted hereon, and this Bond to be dated the Dated Date shown above. CITY OF SALINA, KANSAS ���,,y"" �••••••••• `f DµO 1z � ° ' 1870 Mayor ATTk,5T:L A-- By City'Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2003-A, of the City of Salina, Kansas, described in the within-mentioned Resolution. Registration Date: JUL 2 9 2003' Office of the State Treasurer, Topeka, Kansas as Bond Registrar and Paying Agent By: Al h Registration Number: 0322-085-071503-965 4 4v .,, p > v • ••• �/ J,. / / �� �;i Based upon the foregoing, we are of the opinion;under existing law, as follows: I. The Bonds are valid and legally binding general obligations of the City,payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal of and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property,real and personal, within the territorial limits of the City. 2. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. It should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in det"cuyn:ng adjusted current earnings. The opinions set forth in this paragraph are subject to the condition that lie Ciy comply with all requirements of the Internal Revenue Code of 1986, as amended :....: (the "Code'), thMust be satisfied subsequent to the issuance of the Bonds in order that interest thereon •••••• be,•af•dgntinua to be, excluded from gross income for federal income tax purposes. The City has ..... :omply covenenled to comply with each such requirement. Failure to comply with certain of such requirements ••••• may•C.hfse the•inclusion of interest on the Bonds in gross income for federal income tax purposes ���;•• retroactive to A elate of issuance of the Bonds. The Bonds are "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is allowed for 80 percent of that portion of such finatirtal'Snstitution's interest expense allocable to interest on the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. 3. The interest on the Bonds is exempt from Kansas income taxation. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds(except to the extent, if any, stated in the Official Statement) and we express no opinion relating thereto(excepting only the matters set forth as our opinion in the Official Statement). It is to be understood that the rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency,reorganization, moratorium and other similar laws affecting creditors'rights heretofore or hereafter enacted to the extent applicable and their enforcement may be subject to the exercise of judicial discretion in appropriate cases. Very truly yours, GILMORE & BELL, P.C. 9 �j v F6 •.b .• .. � ....' •..• � •�.�.. .. •..��. • •.�• � • • .���• �� � •.�• • .• •• • • n � •. • � •��• •�u�• .a . . .. - . . � M, `. EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED 9 .d HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-14 $225,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL.OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2003-A Interest Maturity Dated CUSIP: Rate: 3.750°4o Date: October 1, 2017 Date: July 15, 2003 794743 ZW7 REGI.STfE ED OWNER: CEDE K CO. •,,,,; PRINC•IPALAII'ICL;JT: TWO HUNDRED TWENTY-FIVETHOUSAND DOLLARS •••••� •.• �NOWCV?!.•IERSONS BY THESE PRESENTS: That the City of Salina, in the Count of ••A !t w. : y Y ••••• Salirtt;I• tote of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and promists to pay in#,heTegistered owner identified above,,or registered assigns, as of the Record Dates as •••••• here yta1R1-•providtd do the Maturity Date identified above, the Principal Amount identified above, and in like mariner to pay interest on such Principal Amount from the Dated Date shown above or from the most recerrt•iffiekst payment date to which interest has been paid or duly provided for at the rate of interest per annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually on April I and October 1 of each year, commencing April 1, 2004 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of the state of Kansas,Topeka, Kansas (the 'Paying Agent" and 'Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable on this Bond on any interest payment date shall be paid to the person in whose name this Bond is registered on the Bond Register at the close of business on the fifteenth day of the month preceding the interest payment date (the "Record Date") for such interest (a) by check or draft mailed by the Paying Agent to such Registered Owner at the address shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), address, ABA routing number and account number to which such Registered Owner wishes to have such 4 i1 th.i :IaG b` ' sit Wa, rdo !9 fii1 @Y•'C gtCpP! cp• C.: St:3: ai G51�!�. :Rip •_. -�: � `. ; .tea Vr ,� •• •• •• •••• •��.• • • •��• • • � • Y � ♦:�• • • •�.�• •�.. •• • •� � � u.�.. • . .�.• ����.� u��.. i r transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of debts due the United States of America. The Bonds constitute general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the payment of the principal of and interest on this Bond and the issue of which it is a part as the same respectively become due. This Bond is one of an authorized series of Bonds of the City designated "General Obligation Internal Improvement Bonds, Series 2003-A," in an aggregate principal amount of $4,350,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the City authorizing the issuance of the Bonds and the Resolution of the City prescribing the form and details of the Bonds (jointly, the "Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restractipus and limitations of the Constitution and laws of the state of Kansas, including, without limi)atiop,'K.S.A. 10-101 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et seq.,C aVr Ordinance No. 29 of the City and Article 12, Section 5 of the Constitution of the State of Kansds,alP as amended. 'V:7Z the obtion of the City, Bonds maturing on October 1, 2014, and thereafter may be called for " redemption and §rayiient prior to maturity on October 1, 2013 and thereafter, in whole or in part at any time,dr.-such principal amounts for such maturities as shall be determined by the City at the redemption price of 100% (c,xpresfied as a percentage of the principal amount), plus accrued interest thereon to the date 4E`reaemption. unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for redemption and payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, such notice to be mailed by United States first class mail addressed to the Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to bear interest from the date for which such call is made, provided funds are available for the payment of such Bonds at the price specified above. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of i the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii)notices and (iii)voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any ? I I I � r _ - i hd . . y �_ �♦ y '- z `-.�. p� t oocn ' cc���: ., _ ...�. � ... „> > ,moo I I I �•�., � .. ...t c �. .. e y d Iy.A . . A � , EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-15 $225,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2003-A Interest Maturity Dated CUSIP.: Rate: 3.850% Date: October 1, 2018 Date: July 15, 2003 794743 ZX5 REGISTERED OWNER: CEDE & CO. PP LN44AL ANJ"VNT: TWO HUNDRED TWENTY-FIVETHOUSAND DOLLARS • KNOW-V; PERSONS BY THESE PRESENTS: That the City of Salina, in the County of •••••• SafifieY ate o;&i-isas (the "City"), for value received, hereby acknowledges itself to be indebted and ":•� proj,AN;;%to pa; to the registered owner identified above, or registered assigns, as of the Record Dates as heretttafter proN deti•pn the Maturity Date identified above, the Principal Amount identified above, and in like maXer to Oa,3 interest on such Principal Amount from the Dated Date shown above or from the most recerlt,ipt2rest payment date to which interest has been paid or duly provided for at the rate of interest per annum set-forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually on April 1•and October 1 of each year, commencing April I, 2004 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of the state of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable on this Bond on any interest payment date shall be paid to the person in whose name this Bond is registered on the Bond Register at the close of business on the fifteenth day of the month preceding the interest payment date (the "Record Date") for such interest (a) by check or draft mailed by the Paying Agent to such Registered Owner at the address shown on the Bond Register or at such other address as is furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner not less than 15 &ys prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), address, ABA routing number and account number to which such tlnl auu J8�9Ft z l3 a TL 6u� d i �! Registered Owner wishes thavc h rft F nn f me G,,x — ; rA,�iutICL4'1 ... F} ♦::i 1 .... ...... i I D f � 6 � transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin or currency which, on the respective dates of payment thereof, is legal tender for the payment of debts due the United States of America. The Bonds constitute general obligations of the City payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Bonds shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the payment of the principal of and interest on this Bond and the issue of which it is a part as the same respectively become due. This Bond is one of an authorized series of Bonds of the City designated "General Obligation Internal Improvement Bonds, Series 2003-A," in an aggregate principal amount of $4,350,000 (the "Bonds") issued for the purposes set forth in the Ordinance of the City authorizing the issuance of the Bonds and the Resolution of the City prescribing the form and details of the Bonds (jointly, the "Resolution"). The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the state of Kansas, including, without limitation, K.S.A. 10-101 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-1736 et sT,-Cili,arter Ordinance No. 29 of the City and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended. ...... .... • •• At the:optiow of the City, Bonds maturing on October 1, 2014, and thereafter may be called for redemption and payment prior to maturity on October 1, 2013 and thereafter, in whole or in part at any tinl4•ui Such pj"c pal amounts for such maturities as shall be determined by the City at the redemption prije•o�-100%',expressed as a percentage of the principal amount), plus accrued interest thereon to the date'dPredempt?op..., •,,,L•hless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for redem tion and payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of the City•shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, such notice to be mailed by United States first class mail addressed to the Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to bear interest from the date for which such call is made, provided funds are available for the payment of such Bonds at the price specified above. The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be deposited with the Securities Depository and immobilized in its custody. The book-entry system will evidence positions held in the Bonds by the Securities Depository's participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii)notices and (iii) voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any 2 i � , t � •. •. �. • � •��• .�.�� • � . • .��..• • .�...• � • •����� •• � •u� � � � • • •� ����• u���• I b t redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The City, the Bond Registrar and the Paying Agent will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the provision hereinabove contained, payments of principal of and interest on this Bond shall be made in accordance with existing arrangements among the City, the Bond Registrar and the Securities Depository. EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. The Bonds are issued in fully registered form in the denomination of$5,000 or any integral multiple thereof. This Bond may be exchanged at the office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations upon the terms provided in the Resolution. The City and the Bond Registrar may deem and treat the registered owner hereof as the absolute owner hereof for purposes of receiving payment of or on account of principal hereof and interest due hweon•and for all other purposes and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. ...... .... •• This Mond is transferable by the registered owner hereof in person or by the registered owner's agent duly authorized in writing, at the office of the Bond Registrar, but only in the manner, subject to the hnTiSa{ors aml•ypan payment of the charges provided in the Resolution and upon surrender and ••;" canMa .-tjon ofRhis Bond. The City shall pay all costs incurred in connection with the issuance, payment •••••• and Milfal regislrajk%of the Bonds and the cost of a reasonable supply of bond blanks. ...T'he City and the Bond Registrar shall not be required to issue, register, transfer or exchange any Bonds during a period beginning on the day following the Record Date preceding any Interest Payment Date end .;;V trading at the close of business on the Interest Payment Date or Bonds which have been called for redemption in accordance with Article III of the Resolution. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the state of Kansas, and that the total indebtedness of the City, including this series of bonds, does not exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. 3 s ... '• .... :..... ...... • ...... ...... ...... . . ... .... (:::1� . .' : . . _ �� '.• . . .. ' - ���� a ' IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its corporate seal to be affixed hereto or imprinted hereon, and this Bond to be dated the Dated Date shown above. CITY OF SALINA,KANSAS OF S�AC� 6ANIZEp•`;T Mayor ATTEST: By :Clty.Clerk •':'• •• CERTIFICATE OF AUTHENTICATION AND REGISTRATION :„ ...This Bothd'is•one of a series of General Obligation Internal Improvement Bonds, Series 2003-A, of the, jt,ti�of Salina,Kansas, described in the within-mentioned Resolution. • 2 Regislrahoh Date: 9 2003 Office of the State Treasurer, Topeka, Kansas as Bond Registrar and Paying Agent By: Registration Number: 0322-085-071503-965 4 a ,; .. .. • : .... ...... .... .... :...:. ...... ...... ...... : • .. . , .... ;...:. e BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in the outstanding principal amount of $ standing in the name of the undersigned on the books of the Bond Registrar. The undersigned do(es) hereby irrevocably constitute and appoint as agent to transfer said Bond on the books of said Bond Registrar with full power of substitution in the premises. Dated Name Social Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: i By [Name of Eligible Guarantor Institution as defined by SEC Rule 17ad-15 (12CFR 240.17 Ad-15) or any similar rule which the Bond Registrar deems applicable] 5 1 O .y s x I (I I .. .e - o 0 -"e . e °eo�e: _ a.e. �� eseeee o ao e.a.ec 000see a "• ... eeeee a ve vosoe eeosee ° • •. e e • o e i e ee eese ooe000 e � avar_ e 000O0e O e a Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The Bonds are valid and legally binding general obligations of the City, payable as to both principal and interest in part from special assessments levied upon the property benefited by the construction of certain portions of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal of and interest on the Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. 2. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations. It should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. The opinions set forth in this paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The City has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may`eltse the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactwe to the date of issuance of the Bonds. The Bonds are "qualified tax-exempt obligations" for purpose,v of Sect h.265(b)(3) of the Code and, in the case of certain financial institutions (within the "'. meaning of S(Niarn165(b)(5) of the Code), a deduction is allowed for 80-percent of that portion of such ...... firy�ial: inshtu lion's interest expense allocable to interest on the Bonds. We express no opinion regarding otheifc' ral tax consequences arising with respect to the Bonds. .. 3. 1 te interest on the Bonds is exempt from Kansas income taxation. ...... .... ...4Ve have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the"ff"tl Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the Official Statement) and we express no opinion relating thereto(excepting only the matters set forth as our opinion in the Official Statement). It is to be understood that the rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent applicable and their enforcement may be subject to the exercise of judicial discretion in appropriate cases. Very truly yours, GILMORE &BELL, P.C. I 9 des :� ,. 0 '. �;.. _.d .. .. . . . . • � .... .... ...... • ...... •����• •• � ' •��• � • • •• • � � • � � •i�• •t•��•