Cancelled Bonds R-12 EXCEPT AS OTHERWISE PROVIDED IN THE RESOLUTION (DESCRIBED
HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT
NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES
DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES
DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES
DEPOSITORY.
REGISTERED REGISTERED
NUMBER R-12 $50,000.00
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND
SERIES 2004-B
•• •
• •Interest Maturity Dated CUSIP:
R.te, 3.875% Date: October 1, 2016 Date: July 15, 2004 794743 D27
••••
•••• • •
• •REGISTERED OITOTE• : CEDE & CO.
• • PRINQEAL AIC'C3eThIT: FIFTY THOUSAND DOLLARS
•• • •KNOW f\1rL tERSONS BY THESE PRESENTS: That the City of Salina, in the County of
Saline,•Sfate of K•anss (the "City"), for value received, hereby acknowledges itself to be indebted and
.e•.
promises tq pay to the registered owner identified above, or registered assigns, as of the Record Dates as
herefbTra;,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, 2005 (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 cas of an interest
payment to any Registered Owner of $500,000 or more in aggregate principal amou t of Bonds, by '
electronic transfer to such Registered Owner upon written notice given to the Payin Agent by such • , •
Registered Owner not less than 15 days prior to the Record Date for such intere t, containing the
electronic transfer instructions including the bank (which shall be in the continen al United States), ' _ .
address, ABAlputinghnuilkeir ndaccogbt numbeirilo
i whichruh Rioted Ownerl ashes to have such
transfer directed. C prpium f anyeand nterest on,th$Frondshll,
be ayablern any coin
eg,atro.tion.of tram _ r,OEC'I: .ale CT IS,W:t.tVi.t.
in the name of Ce&3 &.Cci G ri crate r, . . h', i, 3 o tillx('14J
PERSON U:
:IIiI �t iE.-'t+.'.1in.
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 2004-B," in an aggregate principal amount of $4,053,000 (the
"Bonds") issued for the purposes set forth in the Ordinance of the City authorizing the issuance of the
Bonds and the Resolution of the City prescribing the form and details of the Bonds (jointly, the
"Resoititiop"). The Bonds are issued by the authority of and in full compliance with the provisions,
restrictioltis:and limitations of the Constitution and laws of the state of Kansas, including, without
limitation:K.S.A. 10-101 et seq., K.S.A. 12-6a01 et seq., K.S.A. 12-685 et seq. and K.S.A. 12-2101 et
.... seq., all as 2menc4Cd.••,
• • • •
•
•;•M the ortion of the City, Bonds maturing on October I, 2013, and thereafter may be called for
. . redemptit ri and tit prior to maturity on October 1, 2012 and thereafter, in whole or in part at any
•• timer irestich principal amounts for such maturities as shall be determined by the City at the redemption•• • price of 100% (Cxwes$ed as a percentage of the principal amount), plus accrued interest thereon to the
date e rrenemption. •
•
•;• illess waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for
redemption and payment prior to maturity, the City or the Bond Registrar and Paying Agent on behalf of
the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same
being described by maturity, such notice to be mailed by United States first class mail addressed to the
Owners of the Bonds not less than 30 days prior to the date fixed for redemption. All Bonds so called for
redemption and payment shall cease to bear interest from the date for which such call is made, provided
funds are available for the payment of such Bonds at the price specified above.
The Bonds are being issued by means of a book-entry system with no physical distribution of
bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to
each date on which the Bonds are stated to mature, registered in the nominee name of the Securities
Depository, is being issued and required to be deposited with the Securities Depository and immobilized
in its custody. The book-entry system will evidence positions held in the Bonds by the Securities
Depository's participants, beneficial ownership of the Bonds in authorized denominations being
evidenced in the records of such participants. Transfers of ownership shall be effected on the records of
the Securities Depository and its participants pursuant to rules and procedures established by the
Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will
recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of
this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and
interest on, this Bond, (ii)notices and (iii) voting. Transfers of principal, interest and any redemption
premium payments to participants of the Securities Depository, and transfers of principal, interest and any
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.
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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 except one Bond maturing in 2005
will be in the denomination of $8,000 or any integral multiple of $5,000 in excess 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
owncrigglof for purposes of receiving payment of or on account of principal hereof and interest due
.... hereof! and for air btfiw- purposes and neither the City nor the Bond Registrar shall be affected by any
• notice to the contrny.•'
•
• • ..T1iis Bot3d freansferable by the registered owner hereof in person or by the registered owner's
agent dtrly authorized n writing, at the office of the Bond Registrar, but only in the manner, subject to the
limitations and Lpbn 2)ayment of the charges provided in the Resolution and upon surrender and
cancetlation of this Bind. The City shall pay all costs incurred in connection with the issuance, payment
and initial registration of the Bonds and the cost of a reasonable supply of bond blanks.
The City and the Bond Registrar shall not be required to issue, register, transfer or exchange any
Bonds during a period beginning on the day following the Record Date preceding any Interest Payment
Date and ending at the close of business on the Interest Payment Date or Bonds which have been called
for redemption in accordance with Article III of the Resolution.
IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions, and things required to
be done and to exist precedent to and in the issuance of this Bond have been properly done and performed
and do exist in due and regular form and manner as required by the Constitution and laws of the state of
Kansas, and that the total indebtedness of the City, including this series of bonds, does not exceed any
constitutional or statutory limitation.
This Bond shall not be valid or become obligatory for any purpose until the Certificate of
Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar.
-3-
•
IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or
facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its
corporate seal to be affixed hereto or imprinted hereon, and this Bond to be dated the Dated Date shown
above.
cfZV oFs' 11 CITY OF SALINA,KANSAS
•°I 1870
,N N
ayor
ATTEST:
By
City Cleric
•• •
• • •
• •••
• •
_. _ •..•• ••••
•
• ••C€hTIFICATE OF AUTHENTICATION AND REGISTRATION
•
•
• • •• . •• o..
•his Boi�c� �s ne of a series of General Obligation Internal Improvement Bonds, Series 2004-B,
•• of the•eltty of Sarina,Kansas, described in the within-mentioned Resolution.
•••• •J't 28 20114
Regis,rcap.or Date:
Office of the State Treasurer,
Topeka, Kansas
as Bond Registrar and Paying Agent
BY: l/1 ti/�/Ytir�
Registration Number: 0322-085-071504-383
-4-
•
•
BOND ASSIGNMENT
FOR VALUE RECEIVED, the undersigned do(es)hereby sell, assign and transfer to
(Name and Address)
(Social Security or Taxpayer Identification No.)
the Bond to which this assignment is affixed in the outstanding principal amount of $
standing in the name of the undersigned on the books of the Bond Registrar. The undersigned do(es)
herebyrrev ocahly constitute and appoint as agent to transfer said Bond on
the tlodlj 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 (I2CFR 240.17 Ad-15) or
any similar rule which the Note Registrar deems
applicable]
•
-5-
CERTIFICATE OF CITY CLERK
STATE OF KANSAS )
) SS.
•
COUNTY OF SALINE )
I, the undersigned, City Clerk of Salina, Kansas, hereby certify that the within Bond has been
duly registered in my office according to law as of July 15, 2004.
WITNESS my hand and official seal.
1'/\jy OFS4, L C
'ti 1pPOANIIEp'�� COs
City Clerk
• -+ "oa
4.. *
• • • • •
•••• CERTIFICATE OF STATE TREASURER
•
••
• • •••• •
•• OFFICE•OF THF�T1WASURER, STATE OF KANSAS
. • • • • •
• • •
••:G EYNN IEN•KINS, 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
regisfore$•in my office according to law on 'JR 2 8 2004
WITNESS my hand and official seal.
(Facsimile Seal)
Treasurer of the State of Kansas
-6-
LEGAL OPINION
I, the undersigned, City Clerk of the City of Salina, Kansas, hereby certify that the following is a •
true and correct copy of the approving legal opinion of Gilmore & Bell, a Professional Corporation,
Attorneys at Law, Kansas City, Missouri, on the within Bond and the series of which it is a part, except
that it omits the date of such opinion; that the opinion was manually executed and was dated and issued as
of the date of delivery of and payment for the Bonds and is on file in my office.
By
City Clerk
•• •
• • •
• •••
•
•
•
•
•
•
•
•••• •
•Governing•Body Vf•ife
Citflf SSjina, IQansas
• • Salina,•Krnsas •
•.•.
•• • ••
• • WachoVia Securttit';
•
Dallrs,•'texas
0••••
•
•
• Re: $4,053,000 General Obligation Internal Improvement Bonds, Series 2004-B, of
the City of Salina,Kansas, Dated July 15, 2004
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
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.
•
• • 0410
•••••• • We havg notbeen engaged or undertaken to review the accuracy, completeness or sufficiency of
the Official StateAklft or other offering material relating to the Bonds (except to the extent, if any, stated
in tliaett1'icial Statement) and we express no opinion relating thereto (excepting only the matters set forth
4141.. .
• • as out option irtthe official Statement).
....
•• • •••
• ....It is tot:: dnddrstood that the rights of the owners of the Bonds and the enforceability thereof may
be melt 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
subfecttoThe exercise of judicial discretion in appropriate cases.
Very truly yours,
GILMORE& BELL, P.C.
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