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Cancelled Bonds • • ;ya EXCEPT AS OTLIERWISE 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 HEIQEINT) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF AASUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBEJZ R-7 $335,000 UNITED STATES OF AMERICA • STATE OF KANSAS • • ,••••, COUNTY OF SALINE • CITY OF SALINA • VENERAL OBLIGATION INTERNAL IMPROVEMENT BOND ,,,, 2 SERIES 2005-A • • Inteitst Rate ; ;• • Maturity Date Dated Date CUSIP Number •3.25% October 1, 2012 July 15, 2005 794743 E5 9 • REGISTERET)OWNER: CEDE&CO. PRINCIPAL AMOUNT: THREE HUNDRED THIRTY FIVE 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, 2006 (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 tesa this eertiti:rite is p r s rated n t :. ,r cr.•r -;rn. rt'g'j:♦r 1.1b. . ... ; _ d.ii .. t=C:3tered - £vrSIEA tYLFIiC, OR CyI t1 d C[ < ,' rn — L .0 a i: : r 0.e 1-.0 ANI! ?gUON IS lit(LUIVGELTL, six4ce the registered 3wnsi t-tqlpoj 9 • + • electronic transfer instructionincluding the bank (which shall be in the continental United States), address,ABA routing number 9nd account number to which such Registered Owner wishes to have such 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 ofAmericalThe Bonds constitute general obligations of the City payable as to both principal and interest in pal from special assessments levied upon the property benefited by the construction of certain portiorif 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• amourtt•upQI3 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 en thi.Bond and the issue of which it is a part as the same respectively become due. • • ••TI•isr Bond:is one of an authorized series of Bonds of the City designated "General Obligation •internal.Jmproverrit•Ponds, Series 2005-A," in an aggregate principal amount of $4,210,000 (the • ••^Bonds:H ued for the purposes set forth in the Ordinance of the City authorizing the issuance of the • • ponds and the RgspJutjon of the City prescribing the form and details of the Bonds (jointly, the "Resoldftdd:). 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 limitatitfti .S.A. 10-101 et'seq., K.S.A. 12-6a01 et seg., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33 of the City and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended and supplemented. At the option of the City, Bonds maturing on October I, 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 • -2- FM 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 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 Siecurities 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. ..F�XOEPT AS OTHERWISE PROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY • BE TRANSFERR$if•II WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE • $ECUR1tWS DENOINITORY OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMIT E4F A SUCCESSOR SECURITIES DEPOSITORY. The Bonds are issued in fully registered • form in.the.denon-a Miib$ of$5,000 or any integral multiple thereof. This Bond may be exchanged at the • office crf•tht Bond Regjstrar for a like aggregate principal amount of Bonds of the same maturity of other • authorized denom$aiort 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 ereof 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 to the 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- . i; , k 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. ti lI /j y.... CITY OF SALINA,KANSAS for e ° l I I I I t ■ 7r,,, - , Mayor ATTEST; •„ .... • • ..GAY CleQt.... • • .... ••• .. • • • • • • . • .... • • • •• • CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina, Kansas, described in the within-mentioned Resolution. Registration Date: JUL 2 8 2005 Office of the State Treasurer, Topeka, Kansas as Bond Registrar and Paying Agent BY:c L X l�J • Registration Number: 0322-085-071505-777 00 uu vv ' r , -4 6 r j BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es)hereby sell,assign and transfer to B (Name and Address) .. • • • • • .• • • "" (Social Security or Taxpayer Identification No.)• • the B&WW:whiclt this assignment is affixed in the outstanding principal amount of$ • •• tandin •in•the nine orthe undersigned on the books of the Bond Registrar. The undersigned do(es) .. hereby ¶At0ocabl%copstitute and appoint as agent to • transfer said Bond'orithe 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: By [Name of Eligible Guarantor Institution as defined by SEC Rule 17ad-15 (12CFR 240.17 Ad-15)or any similar rule which the Note Registrar deems applicable] • • -5- hl ii • k CERTIFICATE OF CITY CLERK STATE OF KANSAS ;� ) ) SS. COUNTY OF SALINE 1' ) I.,the•undersigned, City Clerk of Salina, Kansas, hereby certify that the within Bond has been duly registert: in my office according to law as of July 15, 2005. • .... WII IIESS gf ? rad and official seal. • ...• tyoFS ht,, .... tiz m.uaco, °l • ,Ef ./••,• •••• � te�� ,yf City Clerk • • • � .,.� ry f y$ s_-'• J •••• h,• {r• d 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 Q 201 WITNESS my hand and official seal. 7" fl4t- e ��u (Facsimile Seal) - G' —Treasurer of the State of Kansas • • 6 LEGAL OPINION lei I, the undersigned';;City Clerk of the City of Salina,Kansas, hereby certify that the following is a true and correct copy of1the 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 subh opinion; that the opinion was manually executed and was dated and issued as of the date of delivery of and payment for the Bonds and is on file in my office. .. • • • • • .• • • •••• By IMO • City Clerk • • • • • • •••• • •••U'overniag$ody of'the • • City of Salina,Kara: 2 Salina,x2>1Sas • • Country;ChltjBank,n.a. Prairie Village,Kansas Re: $4,210,000 General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas, Dated July 15, 2005 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. 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 7 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, excluddd 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 cause 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 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 regardirmg v er federal tax consequences arising with respect to the Bonds. • The.irgerest on the Bonds is exempt from Kansas income taxation. • •• .„)&g:lave not been engaged or undertaken to review the accuracy, completeness or sufficiency of ••••She Official Staten mt•cyother offering material relating to the Bonds (except to the extent, if any, stated • • ••••in thecgtoel Statement) and we express no opinion relating thereto (excepting only the matters set forth ••'• as our opinion in the J Mfjcial Statement). • • •• ••R•is to be understood that the rights of the owners of the Bonds and the enforceability thereof may be subject•Io 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 Sr BELL,P.C. • • • • -8- ty i to i 4°. 14 % $•'�'n4i .1 �' J - 17XCEPT Af: +tTHkWISE'. PROVIDED IN THE RESOLUTION (DESCRIBED � Y�! t'•, r HEREIN), Ti IS GLtIAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT A `yr IN PART, On.y TO�NOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED IIERE> OR T OAS UCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE 0"A SliCESSOR SECURITIES DEPOSITORY. REGISTERED � ��� - t • = - . ," ' REGISTERliD , NUMBER R-8 :i' $330,000 ` I ',. UNrrED STATES,OF AMERICA t! s, STALE OE.KANSAS " COUNTY OF SALINE CITY OF SALIN 1 r T" GENEJ�AL t3LIGM10N INTERNAL'IMPROVEMENT BOND SFRit, 2005 ' Interest Rate'' rfahint DDate Date ate CUSIPNumber 3.35% tober 1 2013' .. July, 15, 2005 794743 E6 7 , IZEGISPERLDOWNI'It: --EDE.&CO. , Vic.. PRINCIPAL AMOUNT':: HREE HUNDREDTH RTY THOUSAND DOLLARS 0 Z BY THESE PRESENTS: That the'City,of Salina, infthe County of m i ' ty"); foi= value received, hereby acknowledges itself to be'indebted and- promi`fit to Vi ', d owner identified above, or registered assigns, as of the Record Dates as herein • . vided on 7 tKsrity,Date idenhficd.above, the Principal Amount identified above, and in like ni�;,.0 pay interesi much Principal'Amount from the Dated Date shown above or from (lie most recent interest payment date t6vhich interest has been paid or duly provided for at the rate of-interest per F I 0 annum set forth above (coinped on the basis of a.360-day year of twelve 30-day months), semiannually ZF W on April I and October 1''of tell year, commencing April 1, 2006 (the "Interest Payment Dates"), until.' Q Cl) the Principal Amount i- pailunless this Bond shall have been previously called.for redemption and CC payment as hereinafter act f'on; ,i j ; Q ff a Z The principal oi;.;riaium, if any; and interest on this Bond shall be payable by the'Treasurer of �_ Uj the state of Kansas,Topeka,,�ansas (the "Paying Agent" and "Bond Registrar') The principal of and any,, Y I' premium on this Bond shall le payable to the registered owner hereof'upon pre-sentatiQn of this Bond ap' O the maturity or iedempticry ate to the Paying Agent for payment and•cancellation 1 A interest:payable. O on this Bond on any interet payment date shall be Paid totthe person mpzwhose.nhine this Bond'is m 'registered on the Bond Regiter at the close of busines's'on the.fifteenth daysof,the;mc:nh }rece'ying•the interest payment date (the "record Date") for such mterest.(a) by_check or.draft wiai;d•bythe P�ying 0 S Agent to such Registered Omer at the address shown"on theM6nd!Register or;'at suchother,ddress as is Z m furnished to the Paying Agnt in writing by'such Registeied,Uwnec or;(b).in the case of an interest payment to any RegisteredOwticr of $500,000-or.-more in>aggrcgate pi-iiicipal:mount*ofit3ond,j,*t� m electronic transfer to such Iegisered Owner upon-`'written notice given CpRhe e3ytngAgoiCbS $uQh Registered Owner not less than 15 day 'Drior to the Record Datc for sucli interest,*containing the " Vnlesa this ^eital.•Cite!3 r,vst ' :.O the r .i C _ __— " ' .• ..5._:. ' _ .• Z, s P $BGIL aS NiNi:lVt,tJl..,. Y�u.c�tLc;'.cegistered „r utk ttj 'aw� G'x3dv L 'tv'e.C:. . y '<� 1/eleciro, me transfer instruct; including the bank (which shall be in the continental United States), address, ABA routing numland account number to which such Registered Owner wishes to have such J transfer directed. The pnncl, premium, if any, and interest on the Bonds shall be payable in any coin / or currency which, on the rechve dates of payment.thereof, is legal tender for the payment of debts due the United Stales of AmereThe Bonds constitute general obligations of the City payable as to both '• principal and interest in plfrom special assessments levied upon the property benefited by the construction of certain portr(of the improvements being financed and, if not so paid, from ad valorem taxes which may be levied!Wut limitation as to rate or amount upon all the taxable tangible property, real and personal, within the itorial limits of the City. The balance of the principal and interest on the Bonds shall be payable frorjl valorem taxes which may be levied without limitation as to rate or amount upon all the taxable iible property, real and personal, within the territorial limits of the City. The full faith, credit and resois of the City are irrevocably pledged for the payment of the principal of and interest on this Bond and issue of which it is a part as the same respectively become due. This Bond is one of authorized series of Bonds of the City designated "General Obligation Internal Improvement Bondsiries 2005-A," in an aggregate principal amount of $4,210,000 (the "Bonds") issued for the purpolset forth in the Ordinance of the City authorizing the issuance of the Bonds and the Resolution ole City prescribing the form and details of the Bonds (jointly, the "Resolution"). The Bonds arisued by the authority of and in full compliance with the provisions, restrictions and limitations ole Constitution and laws of the state of Kansas, including, without limitation, K.S.A. 10-101 et A.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33 the City and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended and sujmented. At the option of the OBonds maturing on October 1, 2014, and thereafter may be called for redemption and payment prioj I maturity on October 1, 2013 and thereafter, in whole or in part at any time, in such principal amourtor such maturities as shall be determined by the City at the redemption price of 100% (expressed asiereentage of the principal amount), plus accrued interest thereon to the date of redemption. Unless waived by anwner of the Bonds to be redeemed, if the City elects to call any Bonds for redemption and payment prio maturity, the City or the Bond Registrar and Paying Agent on behalf of the City shall give written nke of its intention to call and pay such Bonds on a specified date, the same being described by maturitych notice to be mailed by United States first class mail addressed to the Owners of the Bonds not le[ian 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment sh^ease to bear interest from the date for which such call is made, provided funds are available for the paent of such Bonds at the price specified above. The Bonds arc bei..[sued by means of a book-entry system with no physical distribution of bond certificates to be madfcept as provided in the Resolution. One Bond certificate with respect to each date on which the Bts are stated to mature, registered in the nominee name of the Securities Depository, is being issuedi required to be deposited with the Securities Depository and immobilized in its custody. The book. system will evidence positions held in the Bo>ids Jry t}a Securities Depository's participants, neficial ownership of the Bonds in authorized Henbmrµtions"tieing ` evidenced in the records ofch participants. Transfers of ownership shall be effected on the records of the Securities Depository d its participants pursuant to rules and procedures established by the Securities. Depository and participants. The City, the Bond Registrar:arid*Ve Pa`Ang.Olfent:will*:* recognize the Securities Dcsitory nominee, while the registered owner of this Vortd, 3s tbe. trj>f this'Bond for all purposes, :luding (i) payments of principal of, and redetrilitiod premrlrm, If any, sand -2- M I • sD • interest on, this Bond, (ii)notiiand (iii) voting. Transfers of principal, interest and any redemption �+ premium payments to participan iI f the Securities Depository, and transfers of principal, interest and any - 4}. } ­'' redemption premium payments beneficial owners of the Bonds by participants of the Securities ; .y �- Depository will be the responsily of such participants and other nominees of such beneficial owners. The City, the Bond Registrar ante Paying Agent will not be responsible or liable for such transfers of _ payments or for maintaining, iervising or reviewing the records maintained by the Securities Depository, the Securities Deitory -nominee, its participants or persons acting through such participants. While the Securidjepository nominee is the owner of this Bond, notwithstanding the provision hereinabove containedyments of principal of and interest on this Bond shall be made in accordance with existing arrangeits among the City,the Bond Registrar and the Securities Depository. • EXCEPT AS OTHERWIPROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOI BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY 6TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR °URITIES DEPOSITORY. The Bonds are issued in fully registered form in the denomination of$5,04 any integral multiple thereof. This Bond may be exchanged at the office of the Bond Registrar for a: aggregate principal amount of Bonds of the same maturity of other authorized denominations upon thrms provided in the Resolution. The City and the Bond R;trar may deem and treat the registered owner hereof as the absolute owner hereof for purposes of reang payment of or on account of principal hereof and interest due hereon and for all other purpose5id neither the City nor the Bond Registrar shall be affected by any notice to the contrary. I This Bond is transferablF the registered owner hereof in person or by the registered owner's agent duly authorized in writing;he office of the Bond Registrar,but only in the manner, subject to the limitations and upon payment the charges provided in the Resolution and upon surrender and cancellation of this Bond. The I shall pay all costs incurred in connection with the issuance, payment and initial registration of the Bo and the cost of a reasonable supply of bond blanks. The City and the Bondl istrar shall not be required to issue, register, transfer or exchange any Bonds during a period beginnAn the day following the Record Date preceding any Interest Payment Date and ending at the close easiness on the Interest Payment Date or Bonds which have been called for redemption in accordance t Article III of the Resolution. IT IS HEREBY DECKED AND CERTIFIED that all acts, conditions, and things required to be done and to exist preceden and in the issuance of this Bond have been property done and performed and do exist in due and regulorm and manner as required by the Constitution and laws of the state of Kansas, and that the total in ntedness of the City, including this series of bonds, does not exceed any constitutional or statutory lirrion. This Bond shall not valid or become obligatory for any purpose until the Certificate of Authentication and Registrathereon shall have been lawfully executed by the BondRegistrar. .". • • i • • ••� ' IN WITNESS WHEDF, the City has caused this Bond to be executed by the manual or facsimile signature of its Mayind attested by the manual or facsimile signature of its City Clerk, and its corporate seal to be affixed h(D or imprinted hereon, and this Bond to be dated the Dated Date shown above. �<I OFS ?� = CITY OF SALINA, KANSAS 'ti��na iiea.lY it 1070 Mayor ATTEST: //���/ ,, ,y By City Clerk CERTIFICAOF AUTHENTICATION AND REGISTRATION This Bond is one of a s I of General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina, Kansas, debed in the within-mentioned Resolution. fRegistration Date: JUL 2 8 Office of the State Treasurer, "Topeka,Kansas as Bond Registrar and Paying Agent By: Registration Number: 0322-0071505-777 u v : : : • o : — • is i' � BOND ASSIGNMENT l FOR VALUE RECEIVE.he undersigned do(es)hereby sell, assign and transfer to iI I (Name and Address) (So Security or Taxpayer Identification No.) the Bond to which this assignmas affixed in the outstanding principal amount of$ standing in the name of the undgned on the books of the Bond Registrar. The undersigned do(es) hereby irrevocably constitute anopoint as agent to transfer said Bond on the books oid Bond Registrar with full power of substitution in the premises. Dated I Name Sd Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: By ame of Eligible Guarantor Institution as defined ISEC Rule 17ad-15 (12CFR 240.17 Ad-15) or ,y similar rule which the Note Registrar deems Ijplicable] .. ..... ... I� CERTIFICATE OF CITY CLERK STATE OF KANSAS ) COUNTY OF SALINE ) I 1, the undersigned, City Q of Salina, Kansas, hereby certify that the within Bond has been duly registered in my office accord�o law as of July 15, 2005. WITNESS my hand and ofgl seal. _ /�fanO.NIZEO • °; �e�o �� City Clerk CEIFICATE OF STALE TREASURER OFFICE OF THE TREASURER, srE OF KANSAS I, LYNN JENKINS, Treasr of the State of Kansas, do hereby certify that a transcript of the proceedings leading up to the issr*e of this Bond has bee flled.in my office, and that this Bond was registered in my office according t1w on JUL 2 � LUU9 WITNESS my hand and lial seal. (Facsimile Seal) Treasurer of the State of Kansas I .. •• . . . . .. ;. :0: .. T LEGAL OPINION 1, the undersigned'; City (k of the City of Salina, Kansas, hereby certify that the following is a true and correct copy off-,the apying legal opinion of Gilmore & Bell, a Professional Corporation, i Attorneys at Law, Kansas' City, houri, on the within Bond and the series of which it is a part, except 't that it omits the date of such opm,that the opinion was manually executed and was dated and issued as ' of the date of delivery of and payrt for the Bonds and is on file in my office. By _ City Clerk fGoverning Body of the City of Salina,Kansas Salina,Kansas Country Club Bank,n.a. 1 Prairie Village,Kansas Re: $4,210,000 Generzibligation Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas,led July 15, 2005 We have acted as bond c f 1 in connection with the issuance by the City of Salina, Kansas (the "City") of the above-captioned bol(the "Bonds"). We have examined the and such certified proceedings and other documents as we deem necessary to render this opinion.; to questions of fact material to our opinion, we have relied upon the certified proceedings and other iifications of public officials furnished to us without undertaking to verify the same by independent istigation. Based upon the foregoini e are of the opinion, under existing law, as follows: 1. The Bonds are id and legally binding general obligations of the City, payable as to both principal and interest in pffrom special assessments levied upon the property benefited by the construction of certain portions [he improvements being financed and, if not so paid, from ad valorem taxes which may be levied with limitation as to rate or amount upon all the taxable tangible property, real and personal, within the ten rial limits of the City. The balance of the principal of and interest on the Bonds is payable from ad viem taxes which may be levied without limitation as toeate or.amou[Y upon all the taxable tangible proty,real and personal,within the territorial limits of tho C+. .. ..... ... 2. The interest on I Bonds (including any original issue discount properly allocable to an owner thereof) is excluded frorloss income for federal income tax purposes and is oot an hom of tax preference for purposes of the feral alternative minimum tax imposed on indivj5Mal;and corporations: ; It should be noted, however, thror the purpose of computing the alternative minimum tax iLp&& bn. L corporations (as defined for feral income tax purposes), such interest is taken into account in -7- determining adjusted currentmings. The opinions set forth in this paragraph are subject to the F condition that the City compljth all requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be sat d subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excludfrom gross income for federal income tax purposes. The City has covenanted to comply witl�eatl uch requirement. Failure to comply with certain of such requirements may cause the inclusion of iiest on the Bonds in gross income for federal income tax purposes retroactive to the date of issd of the Bonds. The Bonds are "qualified tax-exempt obligations" for purposes of Section 265(b)(3)the Code and, in the case of certain financial institutions (within the meaning of Section 265(b)(5) qe Code), a deduction is allowed for 80 percent of that portion of such financial institution's interest ense allocable to interest on the Bonds. We express no opinion regarding other federal tax consences arising with respect to the Bonds. 3. The interest on fonds is exempt from Kansas income taxation. We have not been enjor undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other clang material relating to the Bonds (except to the extent, if any, stated in the Official Statement) and wtpress no opinion relating thereto (excepting only the matters set forth as our opinion in the Official Stalent). It is to be understood thai rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insoncy, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hditer enacted to the extent applicable and their enforcement may be subject to the exercise of judicial!cretion in appropriate cases. Very truly yours, GILMORE& BELL, P.C. .. ..... ... . ... ... . . ... ... . . . . . . . . . 1' ✓t l n• EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED I, HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY'!-TO.ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY ~ (DESCRIBED HEREIN) OR-1'0 A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-9 $330,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2005-A i Interest Rate Maturity Date Dated Date CUSIP Number 3.45% 0;tober 1, 2014 July 15, 2005 794743 E7 5 REGISTERED OWNER: CEDE &CO. PRINCIPAL AMOUNT: "THREE HUNDRED THIRTY THOUSAND DOLLARS KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas (the "Cry"), for value received, hereby acknowledges itself to be indebted and Z promises to pay to the registered owner identified above, or registered assigns, as of the.Record Dates as m hereinafter provided on the Maiunty Date identified above, the Principal Amount identified above, and in like manner to pay interest on sich Principal Amount from the Dated Date shown above or from the most >- recent interest payment date to vhich interest has been paid or duly provided for at the rate of interest per annum set forth above (computd on the basis of a 360-day year of twelve 30-day months), semiannually on April 1 and October 1 of e:.h year, commencing April 1, 2006 (the "Interest Payment Dates"), until the Principal Amount is paid,Gnless this Bond shall have been previously called for redemption and Z W payment as hereinafter set forth Q Uj H The principal of, pre rr�m, if any, and interest on this Bond shall be payable by the Treasurer of the state of Kansas,Topeka,Knsas(the "Paying Agent" and "Bond Registrar"). The principal of and any a ♦- premium on this Bond shall b1payable to the registered owner hereof upon presentation of this Bond at Z the maturity or redemption da: to the Paying Agent for payment and cancellation. The interest payable — LU on this Bond on any interesbayment date shall be paid to the person in whose name this Bond is Y registered on the Bond Regist� at the close of business on the firf4 enth-day oaf the month preceding the O interest payment date (the "R:ord Date") for such interest (a);by•.;he* ortjlaft mailed by the Paying O Agent to such Registered Owu at the address shown on the Bond koAe-g of w'such other address as is m furnished to the Paying AgetI�in writing by such Registered Owner or (b) in the case of an interest payment to any Registered Gner of $500,000 or more in.aggre pp�cip�l,�mpppt of Bonds, by Z electronic transfer to such Rastered Owner upon wrRten rwtice gverl to tlre:Payi ig Agent by such O V' Registered Owner not less tin 15 days prior to the;Recold Date•for.iuch 1pterest containing the m a I 'jnless this certd e is p�HSP rust G`utr,u.a;V nfed •,y. y -- i,.y.::!ZU '.. h'QtH, :RngL rvn; I . ,. .. :c:••._•..•. • • �LFL�I GR rrfH •• _�'•�•' ••� ►' genl fc aL`TaGN IS U wxG>�f ti vrLlr� t`Yi �I� ^.Rrq-y herein. ` ;:a tre re `" t'': t> .- - 1 :.rr.J oer : .' r,J� �f electronic transfer instrucfons including the bank (which shall be in the continental United States), iaddress,ABA routing number and account number to which such Registered Owner wishes to have such 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 2005-A," in an aggregate principal amount of $4,210,000 (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., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33.of the City and Article 12, Section 5 of the Constitution of the State of Kansas,all as amended and supplemented. At the option of the City, Bonds maturing on October 1, 2014, and thereafter may be called for redemption and payment priorjo 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 no'ice 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 madeexcept as provided in the Resolution. One Bond certificate with respect to each date on which the Bords are stated to mature, registered in the nominee name of the Securities Depository, is being issued �id required to be deposited with the Securities Depository and immobilized in its custody. The book-,mtry system will evidence positions,held; in the .Bonds by the Securities Depository's participants, Feneficial ownership of the Bonds, in author,':�ed denominations being evidenced in the records of:uch participants. Transfers of ownershipsiidll'oe'effected on the records of the Securities Depository aid its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City„ibe T,6nd R,gistar an&the Faying Agent will recognize the Securities Depository nominee, while thLregio ered owner'917,6s fiord, as the owner of this Bond for all purposes, including (i) payments of FraIcipal of, aad redemption premium, if any, and "- 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 he 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 cause 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 I purposes of Section 265(b)(3) of the Code and, in the case of certain financial institutions (within the meaning of Section 2654(6)(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. .. ..... ... . . . . . . . . . . e' f 5 EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS'GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT y 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 $330,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2005-A Interest Rate Maturity Date Dated Date CUSIP Number 3.55% October I, 2015 July 15, 2005 794743 E8 3 REGISTERED OWNER: CEDE& CO. PRINCIPAL AMOUNT: THREE HUNDRED THIRTY THOUSAND DOLLARS O Z KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of I m I i 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 cc recent interest payment date to which interest has been paid or duly provided for at the rate of interest per I annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually I Z W on April 1 and October 1 of each year, commencing April 1, 2006 (the "Interest Payment Dates"), until Q N the Principal Amount is paid, unless this Bond shall have been previously called for redemption and F- payment as hereinafter set forth. O F. The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of I EL EL Z the state of Kansas,Topeka,Kansas (the "Paying Agent" and "Bond Registrar"). The principal of and any LLJ premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at Y the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable 0 on this Bond on any interest payment date shall be paid to the person in whose name this Bond is 0 registered on the BA ft Register at the close of business on the fifteenth day of the month preceding the m interest payment date Ithe '=Recoil}Jute") for such interest (a) by check or draft mailed by the Paying Agent to such Regist&edo&l! !!:r'dt'the address shown on the Bond Register or at such other address as is Z furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest Q N payment to any•Registeivi Vver of•$500,000 or more in aggregate principal amount of Bonds, by m electronic tfansfet to•su(Ji KelysterQdiOwner upon written notice given to the Paying Agent by such Registered owner'not lass than 154aySprior to the Record Date for such interest, containing the unless.; �:��it�ca'c.isPresented r:yan vu, ha -�..; .Y:�r,:.<�._.,.I,,4a .. _ ,•. .rust C.. )r'• PJ.::.•• •,� . °iei�JS54ci> • Tf ;s is agent C31>iCCi 1(•.^.Otl�(!;lJii� - _ in the I ='fi '�'TJiV IS 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 transfer directed. The principal, premium, if any, and interest on the Bonds shall be payable in any coin f 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. i This Bond is one of an authorized series of Bonds of the City designated "General Obligation Internal Improvement Bonds, Series 2005-A," in an aggregate principal amount of $4,210,000 (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., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33 of the City and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended and supplemented. 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 writien 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�liook-entry-system will evidence positions held in the Bonds by the Securities Depository's participants, jene5CN ownership of the Bonds in authorized denominations being evidenced in the records of'suc'h 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 DeVs*ly aM1iq'partici0anM:' The City, the Bond Registrar and the Paying Agent will recognize the-See orities I;epesi;oiy nomir ee, while the registered owner of this Bond, as the owner of this Bond fc; Ml purpose;, including ti) payments of principal of, and redemption premium, if any, and . . . . . I - 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 Zi 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. EXCEPTAS 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 to the 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. p 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 lidistrat;Dn hereon shall have been lawfully executed by the Bond Registrar. . .. ..... ... . . . . : . . . . . . .. .. . . . .. I . . 7 �+ , O 7 IN WITNESS WHEREOF, the City has caused this Bond to he executed by the manual or facsimile signature of its'Mayor and attested by the manual or facsimile signature of its City Clerk, and its j corporate seal to be affixed hereto or imprinted hereon, and this Bond to be dated the Dated Date shown above. I j Cl/TGGG\I1l1Y OI F D�SAL�I/NA,K A)I N SlA�LS �s � Mayor ATTEST: By City Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas, described in the within-mentioned Resolution. Registration Date: JUL 2 8 2M5 Office of the State Treasurer, Topeka, Kansas as Bond Registrar and Paying Agent By: \ l/� /7t eJQ/Nin 2 Registration Number: 0322-085-071505-777 .. ..... ... • -4- Q • I o r _1 BOND ASSIGNMENT i FOR VALUE RECEIVED,the undersigned do(es)hereby sell,assign and transfer to v t (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in the outstanding principal amount of S 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 i Name Social Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) _ Signature guarantee:f By [Name of Eligible Guarantor Institution as defined by SEC Rule l7ad-15 (12CFR 240.17 Ad-15) or any similar rule which the Note Registrar deems applicable] I e • r .e ..e o e e oyo 0 0 0 o e o 0 0 o a o c o0 o •o •o o • eeo 0 0 0 0 0 0 0 0 0 O • O o •.O O C O O O O O o c o o c a C -5- '• •c o o - f. s LEGAL OPINION �• I, the undersigned, City Clcrkjof 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 the date of delivery of and payment-for the Bonds and is on file in my office. By City Clerk Governing Body of the Cityof Salina, Kansas Salina, Kansas Country Club Bank, n.a. Prairie Village, Kansas Re: $4,210,000 General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas,Dated July 15, 2005 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. 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 ta.ngi�le p*topef•[y,teal and personal, within the territorial limits of the City. 2. The interest on the fonds (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•pyr[Ms of¢fe federal altcrnQfive minimum tax imposed on individuals and corporations. It should be nbNed, 6oweve;,•tllut:fort e-pui%ose of computing the alternative minimum tax imposed on corporations dXned 1br federal tncoi'he tax purposes), such interest is taken into account in . . . . ... .. . . . ... 0 0. do N,1 Y 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 cause 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 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 s4 the Official Statement) and we express no opinion relating thereto (excepting only the matters set forth 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. n. , :t ';1 s ," 'Ir��:.• y s"} ti r.' 4„f# XCFP NA S O"CIIER}}''E PROVIDED IN THE RESOLUTION (DESCRIBED - HEREIN)'TYiIS°GI;ORh!�OND•MAY BE TRANSFERRED, IN WHOLE BUT-NOT r tf INpPAR gONL TQ•ATHF,R}NOMINEE OF THE SECURITIES DEPOSITORY J (1�ESC ED H R} [ ' I TO A SUCCESSOR SECURITIES DEPOSITORY OWTcJ r% x-- r A NO ly 7t STJ&'iSOR SECURITIES DEPOSITORY. REGISTERED, $175,000 t`UNITED STATES OF AMERICA STATE OF KANSAS . s rs r�. rr POUNTY OF SALINE. CITY OFSALINA e. .• • p '+ �- ;±x GINPRAI UBLIC_TION;INTERNAL IMPROVEMENT BOND ti SERIES 2005-A s i •r `tt'+ + 'Interest Rate ,i T 2 Manrity Date 'Dated Date • CUSH'Number . �r• ` +L3 GS% ' ` C) July;]5;2005 794743 E9 1 cto!.er 1,2016 ;.REGISTERED OWNER: . CE.•DE&CO- r 1 TRINCIPACAMOUNT ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ¢ _ Z s KNOW. ALL PERSONS BY THEiE PRESENTS: That the City of Salinas in the County of Im Saline, State of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and } j promises to pay to the registered owner identified above, or registered assigns, as of the Record Dates as r= 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[o which interest has been paid or duly provided for at the rate of interest per � V �•tr annum set forth above (computed onfthe basis of a 360-day„year of twelve 30-day months),aemianttuallY Z W on April 1 and October.1 of each year, commencing April l 2006 (the "Interest Payment'Dates"), until Q fq the Principal Amount is paid, unless this Bond shall ]rave been previously called for.redemption and payment as hereinafter set forth. { a Z The principal of, premium, if any, and interest on this Bond shall be payable bythe Treasures:of W the state of Kansas,Topeka, Kansas(the'"Paying Agent"'and "Bond Registrar"). The principal of and any Y premium on this Bond shall be payable to ti �,reglsteced,ownerhereof upon presentattori of this Bond at O the maturity or redemption date to the Paying Agent for payment ..nd,cancellation. 1 fie interest payable 0 on this Bond on any interest paymedt date shall be� id to the`person in whose name this Bond is. 1io. y' .. . .. ca/. registered on the Bond Register at the closeU.VUsmess on the fifteenth day',of the month prececkngthe interest payment date (the "Record Date )for interest (a) by check or'draft n;ail4d b4 the Pay4ng 0 Agent to such Registered Owner at the address":hown.on the Bond Register or at such other~dress as is Z . furnished to the Paying Agent in wntmg by 'sich Registered Owner or (b) in the case of an interest' �- payment to any Registered Owner of $500',0( or more in aggregate.prncipal'lmourMf 3onds,.6 �I m electronic transfer to such Registered Owneruion written notice given to.t�ie-liprig gent y spc ,s Registered 9v(ner not less than 15 days pnor,,to the Record Date for st"t interest, •Containing the s li s rw re a prrs nt4ghr r p •��L IN �:.Q l 5 is✓ er. )eIF''P .t 1vt < ! _• �.�.v :+ , fL4,* 'ir: t O lri: , ,, rr i .�. 'i�♦ . � f.f n ILaL 3 t v A'vSFLL' /r t. r: bl t"tvI#y ti L vLVUi 3 'I)r ' r' T _ _ - '.u.Cf.A.){ Y.Ai..n. Yi :J>kl-, �.a �� .-..rs. �.,.,.0_.:s+j,. ....�.•--. h electronic transfer instructions �uding the bank (which shall be in the continental United States), address,/ABA routing number a�ccount number to which such Registered Owner wishes to have such ta transfer directed. The principalemium, if any, and interest on the Bonds shall be payable in any coin i or currency which, on the respek dates of payment thereof,is legal tender for the payment of debts due the United States of America. ie Bonds constitute general obligations of the City payable as to both principal and interest in parton special assessments levied upon the property benefited by- construction of certain portion e improvements being financed and, if not so paid, from ad valorem taxes which may be levied w:utlimitation as to rate or amount upon all the taxable tangible property, real, personal, within the tdtoial-limits of the City. The balance of the principal and interest on the E'• .' Bonds shall be payable fromd elo1m taxes which may be levied without limitation as to rate or amount upon all the taxable tigibl;pperty, real and personal, within the territorial limits of the City. The full faith, credit and resorcesof t1t City are irrevocably pledged for the payment of the principal of ' andfinterest on this Bond and tie issue which it is a part as the same respectively become due. This Bond is one of an autJ4 series of Bonds of the City designated "General Obligation to C. i g Internal Improvement Bonds, Series 5-A," in an aggregate principal amount of $4,210,000 (the• "Bonds") issued for the purposes set IIin the Ordinance of the City authorizing the issuance of the '} Bonds and the Resolution of the ,Cirescribing the form and details of the Bonds (jointly, the }l' "Resolution"). The Bonds are issuedhe authority of and in full compliance with the provisions, t r• restrictions and limitations of the Cation and laws of the state of Kansas, including, without limitation, K.S.A. 10-101 el seq.,K-0,6a01 et seq., K.S.A. 12-685 et seq., K.S.A. 12-1736 et seq., (� and Charter Ordinance No. 33 of the ('nd Article 12, Section 5 of the Constitution of the State of Kansas, all as amended and supplernenu r At the option of the City, Bond!lring on October 1, 2014, and thereafter may be called for ' redemption and payment prior to matur�October 1, 2013 and thereafter, in whole or in part at any time, in such principal amounts for suchrities as shall be determined by the City at the redemption' price of 100% (expressed as a percentatl e principal amount), plus accrued interest thereon to the date of redemption_ I Unless waived by any owner of Ads to be redeemed, if the City elects to call any Bonds for redemption and payment prior to maturitj,ity or the Bond Registrar and Paying Agent on behalf of the City shall give written notice of its ini to call and pay such Bonds on a specified date, the same being described by maturity, such notice mailed by United States first class mail addressed to the ' Owners of the Bonds not less than 30 days to the date fixed for redemption. All Bonds so called for redemption and payment shall cease to be;rest from the date for which such call is made, provided funds are available for the payment ofsuclis at the price specified above. The Bonds are being issued )y ml f a book-entry system with no physical distribution of bond certificates to be made except a'prohn the Resolution. One Bond certificate with respect to each date on which the Bonds are <ated ,tore, registered in the nominee name of the Securities r Depository, is being issued and requi d to Posited with the Securities Depository.and immobilized in its custody. The book-entry syPm w4dence positions held in the Bonus 1, the Securities Depository's participants, beneficta owne of the Bonds in authorized d4noinna6ons being evidenced in the records of such pa±ipantrnsfers of ownership shall be effected on[he records of the Securities Depository and its �rticip�ursuant to rules and procedures established by the Securities Depository and its partioants. (City, the Bond Registrar and t�•Payn� agent AN recognize the Securities Depositor+ominecyle the registered owner of this Bppd' as;thi;o"eroo); this Bond for all purposes, includgn payr, of principal of, and rederr�lrbn jiremium, if•any; and 2 .;,. 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 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 Is • participants. While the Securities Depository nominee is the owner of this Bond, notwithstanding the iI 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. .a EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION, THIS GLOBAL BOND MAY E BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE t SECURITIES DEPOSITORY .OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A t 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. I' 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 to the 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 QBonds 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 ocimprinted hereon, and this Bond to be dated the Dated Date shown above. r, I I CITY OF O iF V�✓S AU`L�UI^N^A--,-KANSAS . _ Mayor , i ATTEST: I IBy City Clerk r� CERTIFICATE f. HENTICATION AND REGISTRATION This Bond rsKansasadescrib>wliOb'ime honed Res luP nvement Bonds, Series 2005-A, of the City of Salina, Registration Date:_XL 2 8 2005 Office of the State Treasurer, Topeka,Kansas as Bond Registrar and Paying Agent { Q 4 I BY\ OUP �hJQ/NirrQ Registration Number: 0322 J I I I ,I I Sh (r Ir (r (r fr (r (r lr 1 I t I y � I I di J _t CEI:"f IFICAfG OF CITY CLERK . =i STATE OF KANSAS ) tt [ SS. COUNTY OF SALINE :fig 11 1, the undersigned, Ci0,Clerk of Salina, Kansas, hereby certify that the within Bond has been duly registered in my office acciiding to law as of July 15, 2005. WffNESS my hand and'officialseal. I e7o City Clerk CERITR--A,E OF SI•AI'E TREASURER �I OFFICE OF THE TREASURER, STATE OF KANSAS I, LYNN JENKINS, Treasurer I f the State of Kansas, do hereby certify that a transcript of the proceedings leading up to the issuanceof this Bond has been filed in my office, and that this Bond was registered in my office according to lauion JUL 2 8 2MR WITNESS my hand and officul seal. (Facsimile Seal) Treasurer of the State of Kansas" I . S : . . t LEGAL OPINION I, the undersigned, City jerk If the City of Salina, Kansas, hereby certify that the following is a I correct copy of the arp'ovir-• legal opinion of Gilmore & Bell, a Professional Corporation, re true and p, Attorneys at Law, Kansas Cify,gissoin, on the within Bond and the series of which it is a part, except that i[ omits the date of such opi on; tiat the opinion was manually executed and was dated and issued as of the date of delivery of and pa�m ent Olt Bonds and is on file in my office. >=,• By � City Clerk r Governing Body of the City of Salina,Kansas Salina—Kansas •I Country Club Bank,n.a. Prairie Village,Kansas f Re: $4,210,000 General Oion Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas, Datl 15, 2005 We have acted as bond counsepmection with the issuance by the City of Salina,Kansas (the "City")of the above-captioned bonds('Inds"). W t have examined opinion. As certified fact material'to our opiomon, we have relied upon ethe necessary to render this op certified Proceedings and other cerfiflof public.officials furnished to us without undertaking to verify the same by independent invest' Based upon the foregoing,well opinion;under existing law, as follows: 1 The Bonds are art f 31y binding sesssmens levied upon the oibeneft benefited both principal and interest m p P property Y construction of certain portrons of the,nents being financed and, if not so paid, from ad valorem taxes which may be levied without IM to rate or amount upon all the taxable tangible property, real and personal, within the temtoriat the City. The balance of the principal of and interest on the Bonds is Payable from ad valorerrich maybe levied without limitation as•to rate or amount upon all the taxable tangible property,i rsonal,within the territorial limits of thq City. .. 2 he interest from grosar federal original nome tax purposes and isenot an item an owner thereol) is excluded from b preference for purposes of the federallminimum tax imposed on ic3ivi8951s an�•ecY 7pratip5.. It should be noted, however, that for;l of computing the alterna[i�emir>2r�rum tax Rnpoaec* on f• corporations (as defined for federaax purposes), such interest*t Men into atcount•in •I +�;I. 1��/ : / 1 it • determinng :adjusted eurrenl'earnings' all require ents of the Internal Revenue rC de of 198subject s amended conditign'that the City comp bode'),that musfbe satsued subsequent to the issuance of the Bonds in order that interest thereon (the . ", be;3exdudtd fro m gross income for federal income tax purposes. The City has (th . ", .. tinue,.to el etch s ;h requirement. Failure to comply with certain of such requirements ' covenanted fo comply�` � Iinteret on the Bonds in gross income for federal income tax purposes 'cause.'tbe inclusion t, „ �.. smay' date of rsranca?f the Bonds. The Bonds are "qualified tax-exempt obligations" for • b o{�e Code and, in the case of certain financial institutions (within the retroactive to`e tion 265( X7 purpose S Code),'a deduction is allowed for 80 ercent of that onion of such Ineantng of Section 265nbeT�,eX T� allocable to interest on the Bonds. We express no opinion financial institution i seQ Lctes arising with respect to the Bonds. ° ! regard ing other federal tax In interel t'Ids is exempt from Kansas income taxation. We have not been enSaged ndertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offematerial relating to the Bonds (except to the extent, if any, stated t •in'the Official Statement) and w'e es no opinion relating [hereto (excepting only the matters set forth e th Official Stater_ out'opinion m I . I �.: It is to be understood i soleorgane ationrs moratorium sand the other enforceability imilar laws eaf£affecting be subject to bankrup c enacted to the extent applicable and their enforcement may be creditors rights heretofor judicial i in appropriate cases-pp subject to th_e xrcse of j Very truly yours, GILMORE&BELL,P.C. 'l 0 >� EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS GLOBAL BOND MAYBE 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 ANOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY a REGISTERED REGISTERED NUMBER R-12 $175,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2005-A Interest Rate Maturity Date Dated Date CUSIP Number 3.75% October 1, 2017 July 15, 2005 794743 F2 5 REGISTERED OWNER: CEDE&CO. PRINCIPAL AMOUNT: ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ' D KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Z Saline, State of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and m 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 r 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.I of each year, commencing April 1, 2006 (the "Interest Payment Dates"), until F (� the Principal Amount is paid, unless this Bond shall have been previously called for redemption and Z W payment as hereinafter setforth. N 0 The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of i 0 the state of Kansas,Topeka, Kansas (the"Paying Agent" and 'Bond Registrar"). The principal of and any IL Z premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at �_ LU the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable Y on this Bond on any interest payment date shall be paid to the person in whose name this Bond is O registered on the Bond Register-at the-close of business on the fifteenth day of the month preceding the O interest payment date (t}te "Rec{-rd Dyte") for such interest (a) by check or draft mailed by the Paying m Agent to such Registeren.Owr"a%W, thoraddress 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 13 payment to any $egistered "wner of $5P0,o00 or more in aggregate. principal amount of Bonds, by Z y electronic translci toJetlehvRe&islz�red�Ovperttpon written notice given to the Paying Agent by such m uO Registered Ownrl;.no.-le0-_tD5n,'13h&WIiii4f,itor,the,Record Date for such interest, containing the ° tee" Y .Jj h., e, • ='7, q l .i rql Ji tCi:rSb. t( fC ,nr'r:3-. Ult 4Z fhP 1.;tRr . -'�•.,!'' .;L. oa AIV," 40 L r electronic transfer ins"etions 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 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 ' ions 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 2005-A," in an aggregate principal amount of $4,210,000 (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., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33 of the City and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended and supplemented. 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•bbpk-entry 59 tam will evidence positions held in the Bonds by the Securities Depository's participants, boneficid ownership of the Bonds in authorized denominations being evidenced in the recrnV of Seeh 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 Dej%sittlry andgits participants-.--The City, the Bond Registrar and the Paying Agent will recognize the Secutitieis Dtpooitpry *ryinje, while the registered owner of this Bond, as the owner of this Bond foneA pwr oses:incla8ing•(i)•payments of principal of, and redemption premium, if any, and • -2- r - 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 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 i 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 to the 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 paym'e'nt '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 Rogistratioh hereb%shall have been lawfully executed by the Bond Registrar. . . . . . : . . . . -3- T� J C IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or facsimile signature of itsMayor 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 f1I O iF n/Yl/n p S �AL�AWI1 N A`,_K ANSAS Mayor ATTEST: By City Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas, described in the within-mentioned Resolution. Registration Date: JUL. 2 8 2D5 Office of the State Treasurer, Topeka, Kansas as Bond Registrar and Paying Agent By: >" Registration Number: 0322-085-071505-777 4_ ri BOND ASSIGNMENT FOR VALUE RECEIsVED, the undersigned do(es)hereby sell,assign and transfer to LI (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: . By [Name of Eligible Guarantor Institution as defined by SEC Rule 17ad-15 (12CFR 240.17 Ad-15) or any similar rule which the Note Registrar deems applicable] .. ..... ... . ... ... . ... . .. :. . . . . .. . . CL'Rl'IFICATE OF CITY CLERK J STATE OF KANSAS 2 ) SS. COUNTY OF SALINE 1, 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, 2005. WITNESS my hand and official seal. a7o ) City Clerk a 6. S 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 2:8 2005 WITNESS my hand and official seal. a (Facsimile Seal) `� t�J rat L:�i ►LO� Treasurer of the State of sas . .. .. . . . .. . . G LEGAL OPINION f} 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 the date of delivery of and payment for the Bonds and is on file in my office. By _ City Clerk Governing Body of the City of Salina, Kansas Salina,Kansas Country Club Bank, n.a. Prairie Village,Kansas Re: $4,210,000 General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas, Dated July 15, 2005 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. 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 tangiblg property re91 and personal,within the territorial limits of the City. • • . •• 2. The interest onitfie gonds (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 pnposos of the"feeleral al4crinaTwe minimum tax imposed on individuals and corporations. It should be noted, hq%eeer,:Dat fjr the pprp�,jc of computing the alternative minimum tax imposed on corporations (aV8efihed fox' 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,fiexcluded 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 cause 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 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 iiiierest 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. ce I 1 • • • c 0 EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED �� HEREIN), THISGLOBAL 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 OFD A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-13 $175,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2005-A Interest Rate Maturity Date Dated Date CUSIP Number 3.85% October 1, 2018 July 15,2005 794743 F3 3 REGISTERED OWNER: CEDE&CO. PRINCIPAL AMOUNT: ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS D KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of Z Saline State of Kansas the "City"), for value received hereby acknowledges itself to be indebted and O ( tY )> Y 6 m 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 M on April I and October I of each year, commencing April 1, 2006 (the "Interest Payment Dates"), until Z W the Principal Amount is paid, unless this Bond shall have been 'previously called for redemption and Q LU payment as hereinafter set forth. } fx � The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of 0 the state of Kansas,Topeka, Kansas (the "Paying Agent" and"Bond Registrar"). The principal of and any n Z premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at Uj the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable �d on this Bond on any interest payment date shall be paid to the person in whose name this Bond is 0 registered on the Bond•4gist;r atlhe,close of business on the fifteenth day of the month preceding the O interest payment date:(ta 'Wcorcr"ate") for such interest (a) by check or draft mailed by the Paying m Agent to such Registeiea�OM►v-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 Z payment to an)& Rajictere'�Owner of $509400 or more in aggregate principal amount of Bonds, by O N electronic trar;j( r t4 srlch `QeL sT-rgd;OyvnP upon written notice given to the Paying Agent by such I m Registered,' O' pD yperhi'•c !lF91»'ihaw-IS da-y§ prior to the Record Date for such interest, containing the A1 tt . .. • • - nt1•.1 iigiroltiOrj v.:a. •rsy�i ILEi:GF: I ''`-il8eat to- 3ON ♦ . .. GS! r -- registereL IS VS.',C NCr^jL since the ALiI: i :c z;t ysFar ars�ct �fliAl7l, .. �F 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 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 m-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 2005-A," in an aggregate principal amount of $4,210,000 (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., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33 of the City and Article 12, Section 5 of the Constitution of the State of Kansas,all as amended and supplemented. 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. TIZ book-entry-system will evidence positions held in the Bonds by the Securities Depository's particjpagts, penefieq ownership of the Bonds in authorized denominations being evidenced in the recMds bf snth'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 I;AppslVhy at1#'it5'particaQ3ntS;' The City, the Bond Registrar and the Paying Agent will recognize tINSecitrities b3eposawya4mike, while the registered owner of this Bond, as the owner of this Bond fvrall Pure osea%n Iudin g P;;ments of principal of, and redemption premium, if any, and . . r j 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 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 to the 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. o. 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 Registratam hereon shall have been lawfully executed by the Bond Registrar. . ... . . . . ... : . .. .. . . : .. . . 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. 0;� CITY OF SALINA,KANSAS Mayor ATT EST: By City Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina, Kansas, described in the within-mentioned Resolution. Registration Date: JUL 2 S 2605 Office of the State Treasurer, Topeka,Kansas as Bond Registrar and(Paying/Agent By.&0 / j�/Q/rl,r Registration Number: 0322-085-071505-777 oe . oc :c. o c -4 o. o i 3 CERTIFICATE OF CITY CLERK t_S STATE OF KANSAS ) 1 ) SS. COUNTY OF SALINE = ) t 1, 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, 2005. WITNESS my hand and official seal. uf��OfNI)(0'.r A 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 8 2005 WITNESS my hand and official seal. (Facsimile Seal) �� ^ Treasurer of the State of Kansas .. ..... ... : -6- LEGAL OPINION l 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 the date of delivery of and payment for the Bonds and is on file in my office. By ILL .� City Clerk Governing Body of the City of Salina,Kansas Salina, Kansas Country Club Bank, n.a. Prairie Village, Kansas Re: $4,210,000 General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina, Kansas, Dated July 15, 2005 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. 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 4anSib1eproprrty-real and personal,within the territorial limits of the City. .. 2. The interest on*ttie 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 fg?putl}dses e(th(;%deralNteltAtive minimum tax imposed on individuals and corporations. It should be fioted;howe,.:er, That for:the paTose of computing the alternative minimum tax imposed on corporations•(as 4efined4or tederal• income tax purposes), such interest is taken into account in .. C . . . . 7- determining adjusted curreni 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 cause 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 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. .. ..... ... . .. .. . . . . .. vt EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED HEREIN), THIS'GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLYITO ANOTHER NOMINEE OF TIIE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF)A SUCCESSOR SECURITIES DEPOSITORY. REGISTERED REGISTERED NUMBER R-14 $175,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE- CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2005-A Interest Rate Maturity Date Dated Date CUSIP Number 3.95% October 1, 2019 July 15, 2005 794743 F4 1 REGISTERED OWNER: CEDE&CO. PRINCIPAL AMOUNT: ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS Z KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of 0 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 cc recent interest payment date to which interest has been paid or duly provided for at the rate of interest per D annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually 0 on April I and October I of each year, commencing April 1, 2006 (the "Interest Payment Dates"), until I Z W the Principal Amount is paid, unless this Bond shall have been previously called for redemption and I H U) payment as hereinafter set forth. 0 � The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of I d Z the state of Kansas,Topeka,Kansas(the 'Paying Agent" and "Bond Registrar"). The principal of and any _� LU premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at Y the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable 0 on this Bond on any interest payment date shall be paid to the person in whose name this Bond is 0 registered on the Bond Repitfr at the close of business on the fifteenth day of the month preceding the m interest pay+nt;date;(the`Aecord Date") for such interest (a) by check or draft mailed by the Paying Agent to suclT JVgicte?J Owner at the address shown on the Bond Register or at such other address as is 0 furnished to the Paying Agent in writing by such Registered Owner or (b) in the case of an interest payment tq j,y FW4stered Owder•pf $500,000 or more in aggregate principal amount of Bonds, by electr*it ti-Insfer io sac , gegi$erdd Owner upon written notice given to the Paying Agent by such Registered (tmfe r ttlis Ss than 15•�ays prior to the Record Date for such interest, containing the ••• l�ntesy this ca;rzicc;e ;.. in t•a• , .; . — uc — t' ^gear Ic BLF';';E:OEr C�l'tl�tT USk: c rat � •; " o t unt f� acs < v nJrfdC N IS WRONGFUL E `''if !""revt buxe , , siur.- Egistered <,wnr> ! i• " - s tha r .:N I� electronic transfer instructions including the bank (which shall be in the continental United States), address, ABA routing numlier and account number to which such Registered Owner wishes to have such 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 2005-A," in an aggregate principal amount of $4,210,000 (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., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33 of the City and Article 12, Section 5 of the Constitution of the State of Kansas,all as amended and supplemented. 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 farteciparts, bFpeficial ownership of the Bonds in authorized denominations being evidenced in thgAcpt(%pf"wTi 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 De .p its participants. The City, the Bond Registrar and the Paying Agent will recogmy-e•th�Securi ies'DeposAoty r4minee, while the registered owner of this Bond, as the owner of this Bop$ for•all purjms%,•mcltlQtng 117 payments of principal of, and redemption premium, if any, and : : : t'► 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 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 mainiaming, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While theSecurities 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 'r0 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 to the 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 Authenticaj?0%and Regieiraiion hereon shall have been lawfully executed by the Bond Registrar. . . r V k , i 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. ��ty aFS� .`•j CITY OF SALINA,KANSAS 1870 �� /n �'C��n�n �\1'/l�l�✓v�-r/ Mayor ATTEST: n By n- City Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina,Kansas, described in the within-mentioned Resolution. 2 8 20 Registration Date: Office of the State Treasurer, Topeka,Kansas as Bond Registrar and Paying Agent 1,10 , 1 /!/Q/�4irt1Z Registration Number: 0322-085-071505-777 o c o ° o c _ occ 0 0 cc 0 0 0 0 0 o e e 0 0 0 0 0 0 o c i oo -c '9 I 1_ >i 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 witheach such requirement. Failure to comply with certain of such requirements may cause 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 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. .. ..... ... . ... ... . . ... t 4 } `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 $175,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES 2005-A Interest Rate Maturity Date Dated Date CUSIP Number 4.00% October 1, 2020 July 15, 2005 794743 F5 8 REGISTERED OWNER: CEDE&CO. PRINCIPAL AMOUNT: ONE HUNDRED SEVENTY FIVE THOUSAND DOLLARS KNOW ALL PERSONS BY THESE PRESENTS: That the City of Salina, in the County of 0 Saline, State of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and v 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 a) like manner to pay interest on such Principal Amount from the Dated Date shown above or from the most 0 recent interest payment date to which interest has been paid or duly provided for at the rate of interest per 0 annum set forth above (computed on the basis of a 360-day year of twelve 30-day months), semiannually X on April I and October 1 of each year, commencing April 1, 2006 (the "Interest Payment Dates"), until m the Principal Amount is paid, unless this Bond shall have been previously called for redemption and Z payment as hereinafter set forth. r-1 0 The principal of, premium, if any, and interest on this Bond shall be payable by the Treasurer of < � i the state of Kansas,Topeka, Kansas (the 'Paying Agent" and "Bond Registrar"). The principal of and any N premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at m Z Z the maturity or redemption date to the Paying Agent for payment and cancellation. The interest payable C 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 "Reco"Date") for such interest (a) by check or draft mailed by the Paying Agent to such Regi st"gd Owner'•rt tie address shown on the Bond Register or at such other address as is furnished to the Paging Agent in•vi iting by such Registered Owner or (b) in the case of an interest W payment to any Reg"eretrL er of $500,000 or more in aggregate principal amount of Bonds, by 0 electronic transfer t,%ssuch Registered Owner upon written notice given to the Paying Agent by such j Z Registered Ownerri}gj,Te a3'th?n-1.5caa`ys IQior to the Record Date for such interest, containing the 0 moo. i . •s .s 1 • •rey�i�t:•�tii�pm.roo5.1'ro;e; Sefe3p.i°Qpo :• •• • — — a.... (t iM1.t'E7'�y,_..,.. t� Cwli"'.1 is 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 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 m 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 desitmated "General Obligation Internal Improvement Bonds, Series 2005-A," in an aggregate principal amount of $4,210,000 (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., K.S.A. 12-1736 et seq., and Charter Ordinance No. 33 of the City and Article 12, Section 5 of the Constitution of the State of Kansas, all as amended and supplemented. 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! ben 4eial ownership of the Bonds in authorized denominations being evidenced in the fccoads 4 suOrparticipants. Transfers of ownership shall be effected on the records of the Securities Dapp�1toryeend•ifs 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.Ilepository.nomidee, while the registered owner of this Bond, as the owner of this Bond V alf*urposes, ir�cWool(fJ payments of principal of, and redemption premium, if any, and -2- PJ 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 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 theSecurities 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 to the 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. _ �/ , j,:i rf a 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 affixedLhereto or imprinted hereon, and this Bond to be dated the Dated Date shown above. " ��ZY.OFg CITY OF SALINA,KANSAS f-�no izE P �s` y Mayor ATTEST: By vcl Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina, Kansas, described in the within-mentioned Resolution. Registration Date: ,I IL_�2 8 2005 Office of the State Treasurer, Topeka,Kansas as Bond Registrar and Paying Agent By: Q%w /1� hJ(%inix_a Registration Number: 0322-085-071505-777 :01 I1 C, e R rA l] BOND ASSIGNMENT FOR VALUE RECEIVED,the undersigned do(es) hereby sell, assign and transfer to 1 r a (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) - k Signature guarantee: ` 1 ' By [Name of Eligible Guarantor Institution as defined by SEC Rule 17ad-15 (12CFR 240.17 Ad-15) or any similar rule which the Note Registrar deems applicable] .• -5- 1 0 CERTIFICATE OF CITY CLERK STATE OF KANSAS ) t ) SS. COUNTY OF SALINE - ) r 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, 2005. WITNESS my hand and official seal. �tvorsG YL, l ( try/nuuaco ta,o City Clerk i CERTIFICATE OF STATE TREASURER OFFICE OF THE TREASURER, STATE OF KANSAS 1, 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 AlL 2 8 2005 WITNESS my hand and official seal. (Facsimile Seal) Treasurer of the State of Kansas • -6- 1: S k jt i LEGAL OPIAIION t 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 the date of delivery of and payment for the Bonds and is on file in my office. By City Clerk Governing Body of the City of Salina,Kansas Salina, Kansas Country Club Bank, n.a. Prairie Village,Kansas Re: $4,210,000 General Obligation Internal Improvement Bonds, Series 2005-A, of the City of Salina, Kansas, Dated July 15, 2005 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 fumished to us without undertaking to verify the same by independent investigation. 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 prop e.qy, real and personal,within the territorial limits of the City. 2. Tha intt:reston the bonds (including any original issue discount properly allocable to an owner thereof) is eAju1c4ftdm gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alteryative minimum tax imposed on individuals and corporations. It should be noted, hgwe%",*t1Vft for tte:pui. ose of computing the alternative minimum tax imposed on corporations (id's. se ined kr LeAertl Ai orV tax purposes), such interest is taken into account in „ 4_ L I 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 cause 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 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 ofjudicial discretion in appropriate cases. Very truly yours, GILMORE&BELL, P.C. i i •