Loading...
87-9223 GO BondsIN ORDINANCE NO. 87-9223 OF THE CITY OF SALINA, KANSAS $5,000,000 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES P-233 C INDEX PAGE J -1- Section Section 1. 2. Definitions-------------------------- Authorization of and Security for 2 the Bonds-------------------------- 3 Section 3. Description of the Bonds, Designation of Paying Agent and Bond Registrar-------------------------- 3 Section 4. Redemption of Bonds Prior to Maturity--------------------------- 4 Section 5. Method and Place of Payment of Principal of and Interest on the Bonds------------------------------ 4 Section 6. Execution, Authentication and Delivery of the Bonds----------------------- 5 Section 7. Registration, Transfer and Exchange of Bonds------------------------------ 5 Section 8. Persons Deemed Owners of Bonds------- 6 Section 9. Mutilated, Lost, Stolen or Destroyed Bonds------------------------------ 6 Section 10. Cancellation and Destruction of Bonds Upon Payment----------------------- 7 Section 11. Form of Certificated Bonds----------- 7 Section 12. Uncertificated Bonds, Evidence of Ownership-------------------------- 11 Section 13. Disposition of Bond Proceeds--------- 15 Section 14. Levy and Collection of Annual Taxes------------------------------ 11 Section 15. Transfer of Funds to Paying Agent and the Bond Registrar------------- 11 Section 16. Authorization of Agreement Between the City and the Bond Registrar-------- 11 Section 17. Federal Tax Matters------------------ 12 Section 18. Defeasance--------------------------- 12 Section 19. Severability------------------------- 13 Section 20. Effective Date----------------------- 13 J -1- WHEREAS, pursuant to K.S.A. 12-6a01 et seq., and other pro- visions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City of Salina, Kansas (the "City"), has proceeded with the acquisition and improvement of property for 290 off-street parking spaces, the acquisition of property and construction of arcades and crosswalks, the improvement of streets and other facilities by landscaping and weather shelters and the relocation and burial of utilities in the central business district in the City, said improvements being more fully identified as Project P-233 (Down- town Redevelopment Improvements); and WHEREAS, all legal requirements pertaining to said improve- ments have been complied with, and the governing body of the City now finds and determines that the total cost of the Project and related expenses, after deducting the $400,000 paid from a Federal Grant, is $6,791,249.00, part of said costs to be paid by the City -at -large and part to be paid by special assessments against the property benefitted, which have been duly levied and assessed against the lots, pieces and parcels of land liable for the special assessments for said improvements; and WHEREAS, the owners of said lots, pieces and parcels of land liable for special assessments as aforesaid, within the pe- riod specified, have paid $207,623.58 in cash on account of said special assessments in the total amount of $1,500,000.00, leaving the balance of $1,292,376.42 of said special assessments still owing, and the City has previously paid $1,583,625.42 in cash on account of the City's share of $5,291,249.00, leaving the balance of $3,707,623.58 of the City's share still owing, all of which results in the sum of $5,000,000.00 being the total amount of the cost of said improvements to be paid by the issu- ance of bonds of the City; and WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds of the City to pay the unpaid costs of said improvements; and WHEREAS, the governing body of the City has heretofore ad- vertised the sale of said bonds in accordance with law and awarded the sale of said bonds to the lowest bidder; and WHEREAS, the governing body of the City now deems and finds it necessary to authorize the issuance of said bonds for deliv- ery to the purchaser; NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: (Published in the Salina Journal lyvel,�ee 1987) ORDINANCE NO. 87-9223 AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF $5,000,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES P-233, OF THE CITY OF SALINA, KANSAS, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF THE ACQUISITION AND IMPROVEMENT OF PROPERTY FOR 290 OFF-STREET PARKING SPACES, THE ACQUISITION OF PROPERTY AND CONSTRUCTION OF ARCADES AND CROSSWALKS, THE IMPROVEMENT OF STREETS AND OTHER FA- CILITIES BY LANDSCAPING AND WEATHER SHELTERS AND THE RELOCATION AND BURIAL OF UTILITIES IN THE CENTRAL BUSINESS DISTRICT IN SAID CITY; PRESCRIBING THE FORM AND DETAILS OF SAID BONDS; PROVIDING FOR THE LEVY AND COLLECTION OF THE NECESSARY ASSESSMENTS AND TAXES FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AND AUTHORIZING AN AGREEMENT BE- TWEEN THE CITY AND THE BOND REGISTRAR. WHEREAS, pursuant to K.S.A. 12-6a01 et seq., and other pro- visions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City of Salina, Kansas (the "City"), has proceeded with the acquisition and improvement of property for 290 off-street parking spaces, the acquisition of property and construction of arcades and crosswalks, the improvement of streets and other facilities by landscaping and weather shelters and the relocation and burial of utilities in the central business district in the City, said improvements being more fully identified as Project P-233 (Down- town Redevelopment Improvements); and WHEREAS, all legal requirements pertaining to said improve- ments have been complied with, and the governing body of the City now finds and determines that the total cost of the Project and related expenses, after deducting the $400,000 paid from a Federal Grant, is $6,791,249.00, part of said costs to be paid by the City -at -large and part to be paid by special assessments against the property benefitted, which have been duly levied and assessed against the lots, pieces and parcels of land liable for the special assessments for said improvements; and WHEREAS, the owners of said lots, pieces and parcels of land liable for special assessments as aforesaid, within the pe- riod specified, have paid $207,623.58 in cash on account of said special assessments in the total amount of $1,500,000.00, leaving the balance of $1,292,376.42 of said special assessments still owing, and the City has previously paid $1,583,625.42 in cash on account of the City's share of $5,291,249.00, leaving the balance of $3,707,623.58 of the City's share still owing, all of which results in the sum of $5,000,000.00 being the total amount of the cost of said improvements to be paid by the issu- ance of bonds of the City; and WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds of the City to pay the unpaid costs of said improvements; and WHEREAS, the governing body of the City has heretofore ad- vertised the sale of said bonds in accordance with law and awarded the sale of said bonds to the lowest bidder; and WHEREAS, the governing body of the City now deems and finds it necessary to authorize the issuance of said bonds for deliv- ery to the purchaser; NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: 1 Section 1. Definitions. In addition to the words and terms otherwise defined herein, unless the context shall clearly indicate some other meaning, the words and terms defined in this Section shall for all purposes of this Ordinance have the re- spective meanings specified in this Section, to wit: "Bondholder" and "Holder" mean a Person in whose name a Bond is registered in the Bond Register. "Bond Register" means the register and all accompanying records kept by the Bond Registrar evidencing the registration, transfer and exchange of Bonds. "Bond Registrar" means the State Treasurer of Kansas when acting in the capacity as registrar and transfer agent for the registration, transfer and exchange of Bonds, and any successors thereto. "Bonds" and "Series P-233 Bonds" mean the General Obliga- tion Internal Improvement Bonds, Series P-233, of the City here- in authorized. "City" means Salina, Kansas. "Interest Payment Date" means the Stated Maturity of an in- stallment of interest on the Bonds. "Maturity" with respect to any Bond means the date on which the principal of such Bond becomes due and payable as therein or herein provided. "Ordinance", "this Ordinance", "hereof", "herein", "hereto" and similar terms shall refer to this Ordinance of the City au- thorizing the Bonds, as originally executed or as it may be sup- plemented or amended from time to time. "Outstanding" when used with respect to Bonds means, as of the date of determination, all Bonds theretofore executed, au- thenticated and delivered under this Ordinance, except: (i) Bonds theretofore cancelled by the Bond Reg- istrar or delivered to the Bond Registrar for cancel- lation; (ii) Bonds that have been defeased by the depos- it of funds or qualified securities with the Paying Agent or other qualified party in compliance with this Ordinance; and (iii) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered pur- suant to this Ordinance. "Paying Agent" means the State Treasurer of Kansas when acting in the capacity as paying agent for the payment of the principal of, premium, if any, and interest on the Bonds and any successors thereto. "Person" means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or po- litical subdivision thereof. "Project" means Project P-233 (Downtown Redevelopment Im- provements) as described in the preamble to this Ordinance. "Registration Date" means the effective date of registra- tion of a Bond as evidenced by the Bond Registrar in the Certificate of Authentication appearing on the Bond. -2- 1 D 1 "Regular Record Date" for the interest payable on any In- terest Payment Date means the 15th day (whether or not a busi- ness day) of the calendar month next preceding such Interest Payment Date. "Special Record Date" for the payment of any Defaulted In- terest, as defined in Section 5, means a date fixed by the Bond Registrar pursuant to Section 5. "Stated Maturity" when used with respect to any Bond or any installment of interest thereon means the date specified in Sec- tion 3 of this Ordinance as the fixed date on which the princi- pal of such Bond or such installment of interest is due and pay- able. Section 2. Authorization of and Security for the Bonds. For the purpose of providing funds to pay the cost of the Proj- ect, there shall be issued and are hereby authorized and di- rected to be issued the General Obligation Internal Improvement Bonds, Series P-233, of the City in the principal amount of $5,000,000. The Bonds shall be general obligations of the City, payable as to both principal and interest in part from special assess- ments on property benefitted, but any specially assessed part not so paid and the remainder of the principal and interest will be paid from ad valorem taxes which may be levied without limi- tation as to rate or amount upon all the taxable tangible prop- erty within the territorial limits of the City. The full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the Bonds and the interest thereon as the same become due. Section 3. Description of the Bonds, Designation of Paying Agent and Bond Registrar. The Bonds shall consist of fully reg- istered Bonds, without coupons, transferable to subsequent own- ers only in the Bond Register maintained by the Bond Registrar as hereinafter provided. Each Bond shall be in the denomination of $5,000 or any integral multiple thereof not exceeding the principal amount of Bonds maturing in the year in which such Bond becomes due, as specified by the Holder of such Bond. The Bonds shall be numbered in a manner determined by the Bond Reg- istrar. The Bonds shall be dated as of December 1, 1987, shall mature without option of prior payment, and shall bear interest at the rates per annum, as follows: STATED MATURITY PRINCIPAL INTEREST DECEMBER 1 AMOUNT RATE 1988 $500,000 6.25 1989 500,000 6.25 1990 500,000 6.25 1991 500,000 6.10 1992 500,000 6.10 1993 500,000 6.25 1994 500,000 6.35% 1995 500,000 6.45 1996 500,000 6.55 1997 500,000 6.65 -3- The Bonds shall bear interest from the most recent Interest Payment Date to which interest has been paid in full or, if no interest has been paid, from December 1, 1987. Interest on the Bonds at the rates aforesaid shall be payable semiannually on June 1 and December 1 in each year, beginning June 1, 1988. The State Treasurer of Kansas, Topeka, Kansas, is hereby designated as the Paying Agent and as the Bond Registrar for the Bonds. Section 4. Redemption of Bonds Prior to Maturity. The Bonds shall not be subject to redemption prior to their Maturities as set forth in Section 3. Section 5. Method and Place of Payment of Principal of and Interest on the Bonds. The principal of and interest (computed on the basis of a 360 -day year of twelve 30 -day months) on the Bonds shall be payable in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts. Payment of the inter- est on each Bond shall be made by the Paying Agent on each In- terest Payment Date to the Person appearing as the Holder there- of in the Bond Register at the close of business on the Regular Record Date next preceding said Interest Payment Date, by check or draft mailed to such Holder at the Holder's address as it ap- pears in the Bond Register. The principal of each Bond shall be payable to the Holder thereof upon the presentation of such Bond for payment and cancellation at its Maturity at the principal office of the Paying Agent. Notwithstanding any of the foregoing provisions of this Section to the contrary, any interest on the Bonds which is pay- able, but is not punctually paid on any Interest Payment Date (herein called "Defaulted Interest"), shall be payable to the persons in whose names the Bonds are registered at the close of business on a Special Record Date. The Special Record Date shall be fixed in the following manner: (1) The City shall no- tify the Bond Registrar in writing of the amount of Defaulted Interest proposed to be paid on the Bonds and the date of the proposed payment, which proposed payment date shall be at least 30 days after receipt by the Bond Registrar of such notice from the City; (2) at the same time the City shall deposit with the Paying Agent an amount of money equal to the aggregate amount to be paid in respect of such Defaulted Interest or shall make ar- rangements satisfactory to the Paying Agent for such deposit prior to the date of the proposed payment; and (3) thereupon, the Bond Registrar shall fix a special Record Date for the pay- ment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment. The Bond Registrar shall promptly notify the City of such Special Record Date and, in the name and at the expense of the City, shall cause notice of the proposed payment of such De- faulted Interest and the Special Record Date therefor to be mailed, first class postage prepaid, to the Holder of each Bond at the Holder's address as it appears in the Bond Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such De- faulted Interest shall be paid to the Persons in whose names the Bonds are registered at the close of business on such Special Record Date. Subject to the foregoing provisions of this Section, each Bond delivered under this Ordinance upon transfer of or in ex- change for or in lieu of any other Bond shall carry the rights to interest accrued and unpaid, and to accrue, which were car- ried by such other Bond. -4- Section 6. Execution, Authentication and Delivery of the Bonds. The Bonds shall be executed on behalf of the City by the facsimile signature of its Mayor and attested by the facsimile signature of its City Clerk, and shall have the seal of the City affixed thereto or imprinted thereon. In the event any officer whose signature or facsimile thereof appears on any Bond shall cease to be such officer before the delivery of such Bond, such signature or facsimile thereof shall nevertheless be valid and sufficient for all purposes, the same as if such person had re- mained in office until delivery. Any Bond may be executed by such persons as at the actual time of the execution of such Bond shall be the proper officers to sign such Bond although at the original date of such Bond such persons may not have been such officers. The Bonds shall have endorsed thereon a Certificate of Au- thentication substantially in the form hereinafter set forth and which shall have the date of registration inserted and shall be manually executed by the Bond Registrar. No Bond shall be entitled to any security or benefit under this Ordinance or shall be valid or obligatory for any purpose unless and until such Certificate of Authentication shall have been duly executed by the Bond Registrar by manual signature. Such executed Certificate of Authentication upon any Bond shall be conclusive evidence that such Bond has been duly authenti- cated and delivered under this Ordinance and that such regis- tered owner has been entered on record in the Bond Register kept by the Bond Registrar. The Certificate of Authentication shall be deemed to have been duly executed if the Registration Date has been inserted and if it has been signed by any authorized officer or employee of the Bond Registrar, but it shall not be necessary that the same officer or employee sign the Certificate of Authentication on all of the Bonds that may be issued hereunder at any one time. The Mayor and the City Clerk are hereby authorized and di- rected to prepare and execute the Bonds in the manner hereinbe- fore specified, the City Clerk is hereby authorized and directed to register the Bonds, and the Mayor and the City Clerk are hereby authorized and directed to cause the Bonds to be regis- tered in the office of the State Treasurer of Kansas as provided by law, and when the Bonds have been duly registered with the Bond Registrar, to deliver the Bonds to the original purchaser thereof, upon the payment of the aggregate principal amount of the Bonds plus accrued interest to the date of payment and de- livery, together with any premium. Section 7. Registration, Transfer and Exchange of Bonds. So long as any of the Bonds remain outstanding, the City shall cause the Bond Register to be kept at the principal office of the Bond Registrar and all of the Bonds and transfers and or ex- changes thereof shall be fully registered as to both principal and interest in the names of the Holders in the Bond Register and shall not be registered to bearer. Bonds may be transferred in the Bond Register only upon surrender thereof to the Bond Registrar duly endorsed for trans- fer or accompanied by a written instrument of transfer duly exe- cuted by the Holder thereof or his attorney or legal representa- tive in such form as shall be satisfactory to the Bond Registrar. Upon any such transfer, the City shall execute and the Bond Registrar shall authenticate and deliver in exchange for such Bond a new Bond or Bonds, registered in the name of the transferee, of any denomination or denominations authorized by this Ordinance in an aggregate principal amount equal to the principal amount of such Bond, of the same Maturity and bearing interest at the same rate. -5- The City and the Bond Registrar shall not be required to transfer or exchange any Bond beginning on the day following each Regular Record Date and ending at the close of business on each Interest Payment Date. Section 8. Persons Deemed Owners of Bonds. The Person in whose name any Bond shall be registered shall be deemed and re- garded by the City, the Bond Registrar and the Paying Agent as the absolute owner thereof, whether such Bond shall be overdue or not, for the purpose of receiving payment therefor or on ac- count thereof and for all purposes, and neither the City, the Bond Registrar nor the Paying Agent shall be affected by notice to the contrary. Payment of or on account of the principal of and interest on any Bond shall be made only to or upon the order of the Holder thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. Section 9. Mutilated, Lost, Stolen or Destroyed Bonds. In the event any Bond shall become mutilated, or be lost, stolen or destroyed, the City shall, if necessary, execute and the Bond Registrar shall authenticate and shall deliver a new Bond of like date and tenor as the Bond mutilated, lost, stolen or de- stroyed; provided that, in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the Bond Registrar, and in the case of any lost, stolen or destroyed Bond, if the requirements of K.S.A. 84-8-405 are met and if an indemnity bond and affidavit of loss are provided to the Bond Registrar and the City at the expense of the Holder. Such indemnity bond and af- fidavit of loss must be sufficient, in the judgment of the Bond Registrar and the City, to protect the Bond Registrar and the City from any loss which either of them might suffer if the Bond is replaced. In the event any such Bond shall have matured, in- stead of issuing a substitute Bond the City may pay or authorize the payment of the same without surrender thereof. Upon the is- suance of any substitute Bond, the City and the Bond Registrar may require the payment of an amount sufficient to reimburse the City and the Bond Registrar for any tax or other governmental charge that may be imposed in relation thereto and any other reasonable fees and expenses incurred in connection therewith. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with re- spect to the replacement or payment of mutilated, lost, stolen or destroyed Bonds. Bonds, upon surrender thereof at the principal office of the Bond Registrar, together with a written instrument of trans- fer duly executed by the Holder thereof or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar, may, at the option of the Holder thereof, be ex- changed for an equal aggregate principal amount of Bonds of the same Maturity, of any denomination or denominations authorized by this Ordinance, and bearing interest at the same rate. In all cases in which Bonds shall be exchanged or trans- ferred hereunder, the City shall execute and the Bond Registrar shall authenticate and deliver at the earliest practicable time Bonds in accordance with the provisions of this Ordinance. All Bonds surrendered in any such exchange or transfer shall forth- with be cancelled by the Bond Registrar. No service charge shall be made to any Bondholder for registration, transfer or exchange of Bonds, but the City or the Bond Registrar may make a charge for every transfer or exchange of Bonds sufficient to re- imburse it or them for any tax or other governmental charge re- quired to be paid with respect to such transfer or exchange, and such charges shall be paid before any such transfer or exchange shall be completed. The City and the Bond Registrar shall not be required to transfer or exchange any Bond beginning on the day following each Regular Record Date and ending at the close of business on each Interest Payment Date. Section 8. Persons Deemed Owners of Bonds. The Person in whose name any Bond shall be registered shall be deemed and re- garded by the City, the Bond Registrar and the Paying Agent as the absolute owner thereof, whether such Bond shall be overdue or not, for the purpose of receiving payment therefor or on ac- count thereof and for all purposes, and neither the City, the Bond Registrar nor the Paying Agent shall be affected by notice to the contrary. Payment of or on account of the principal of and interest on any Bond shall be made only to or upon the order of the Holder thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. Section 9. Mutilated, Lost, Stolen or Destroyed Bonds. In the event any Bond shall become mutilated, or be lost, stolen or destroyed, the City shall, if necessary, execute and the Bond Registrar shall authenticate and shall deliver a new Bond of like date and tenor as the Bond mutilated, lost, stolen or de- stroyed; provided that, in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the Bond Registrar, and in the case of any lost, stolen or destroyed Bond, if the requirements of K.S.A. 84-8-405 are met and if an indemnity bond and affidavit of loss are provided to the Bond Registrar and the City at the expense of the Holder. Such indemnity bond and af- fidavit of loss must be sufficient, in the judgment of the Bond Registrar and the City, to protect the Bond Registrar and the City from any loss which either of them might suffer if the Bond is replaced. In the event any such Bond shall have matured, in- stead of issuing a substitute Bond the City may pay or authorize the payment of the same without surrender thereof. Upon the is- suance of any substitute Bond, the City and the Bond Registrar may require the payment of an amount sufficient to reimburse the City and the Bond Registrar for any tax or other governmental charge that may be imposed in relation thereto and any other reasonable fees and expenses incurred in connection therewith. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with re- spect to the replacement or payment of mutilated, lost, stolen or destroyed Bonds. 77 u 1 1 Section 10. Cancellation and Destruction of Bonds Upon Payment. All Bonds surrendered for payment, transfer or ex- change shall be delivered to the Bond Registrar and, if not al- ready cancelled, the Bond Registrar shall cancel such Bonds and record such cancellation in the Bond Register. Thereafter, such cancelled Bonds shall be delivered to the City. Section 11. Form of Certificated Bonds. The Bonds issued in certificated form shall be in substantially the form set forth in this Section subject to such changes and variations as may be required to comply with the Kansas Bond Registration Law, K.S.A. 1986 Supp. 10-620 to 10-632, inclusive, and the rules and regulations appertaining thereto published in the Kansas Regis- ter by the Attorney General of the State of Kansas. The certif- icated Bonds may have endorsed thereon such legends or text as may be necessary or appropriate to conform to any applicable rules and regulations of any governmental authority or any cus- tom, usage or requirement of law with respect thereto. REGISTERED NUMBER UNITED STATES STATE OF COUNTY OF CITY OF OF AMERICA KANSAS SALINE SALINA REGISTERED GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES P-233 Interest Rate REGISTERED HOLDER: PRINCIPAL AMOUNT: Maturity Bond Date Date December 1, 1987 CUSIP DOLLARS The CITY OF SALINA, in the County of Saline, State of Kansas (herein called the "City"), for value received, hereby promises to pay to the Registered Holder identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount identified above and to pay interest thereon at the Interest Rate specified above from the most recent Interest Payment Date to which interest has been paid in full or, if no interest has been paid, from December 1, 1987, said interest being payable semiannually on June 1 and December 1 in each year, beginning June 1, 1988. INTEREST on this Bond will be paid to the person in whose name this Bond (or one or more predecessor Bonds) is registered in the Bond Register maintained by the Bond Registrar at the close of business on the fifteenth day of the month next -7- n u J 1 preceding each interest payment date (the "Regular Record Date"). Interest not punctually paid will be paid as otherwise provided in the ordinance authorizing this Bond (the "Ordi- nance"). The Principal Amount of this Bond shall be payable to the Registered Holder upon presentation and surrender hereof at the principal office of the State Treasurer of Kansas, in the City of Topeka, Kansas. The full faith, credit and resources of the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on this Bond as the same become due. The principal of and interest (computed on the basis of a 360 -day year of twelve 30 -day months) on this Bond are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF. SUCH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. THIS BOND shall not be valid or become obligatory purpose or be entitled to an dinance until the Certificate have been dated and executed y security or benefit under of Authentication hereon by the Bond Registrar. for any the Or - shall IT IS HEREBY DECLARED AND CERTIFIED that all acts, condi- tions and things required to be done and to exist precedent to and in the issuance of this Bond have been 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 Bond and the se- ries of which it is one, does not exceed any constitutional or statutory limitation. IN WITNESS Salina, Kansas, signature of its its City Clerk, and this Bond to [SEAL] ATTEST: WHEREOF, the governing body of the City of has caused this Bond to be signed by facsimile Mayor and attested by facsimile signature of the City's corporate seal to be printed hereon be dated December 1, 1988. CITY OF SALINA, KANSAS By facsimile) City Clerk facsimile Mayor CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within men- tioned Ordinance. Registration Date: OFFICE OF THE STATE TREASURER OF KANSAS Bond Registrar By State Treasurer's Registration Number: 0322-085-120187-035 -------------------------------------------------------------- -8- [ON REVERSE SIDE] THE BONDS are general obligations of the City, payable as to principal and interest in part from special assessments on property benefitted, but any specially assessed part not so paid and the remainder of the principal and interest will be paid from ad valorem taxes which may be levied without limitation as to rate or amount upon all taxable tangible property within the territorial limits of the City. THIS BOND is transferable only in the Bond Register at the office of the Bond Registrar upon surrender of this Bond to the Bond Registrar duly endorsed for transfer or accompanied by a written instrument of transfer satisfactory to the Bond Regis- trar duly executed by the Registered Holder hereof or his attor- ney or legal representative, and thereupon a new Bond or Bonds in the same aggregate principal amount shall be issued to the transferee in exchange therefor, subject to the conditions as provided in the Ordinance. The Bonds for each maturity are is- suable only in the form of fully registered Bonds certificated or uncertificated at the option of the registered holder, in the denomination of $5,000 or any integral multiple thereof. The Registered Holder of any Bond or Bonds may surrender the same in exchange for an equal aggregate principal amount of Bonds of any authorized denomination in the manner and subject to the condi- tions as provided in the Ordinance. No service charge shall be made for any such transfer or exchange, but, prior to any trans- fer or exchange, the Registered Holder hereof shall pay to the City or the Bond Registrar an amount sufficient to reimburse it or them for any tax or other governmental charge required to be paid with respect to such transfer or exchange. The City, the Bond Registrar and the Paying Agent may deem and treat the per- son in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal hereof and interest due hereon and for all other purposes. am THIS BOND is one of an authorized series of fully regis- tered bonds of the City designated "General Obligation Internal Improvement Bonds, Series P-233", aggregating the principal amount of $5,000,000 (the "Bonds"), issued by the City for the purpose of providing funds to pay the cost of the acquisition and improvement of property for 290 off-street parking spaces, the acquisition of property and construction of arcades and crosswalks, the improvement of streets and other facilities by landscaping and weather shelters and the relocation and burial of utilities in the central business district in the City, under the authority of and in full compliance with the constitution and laws of the State of Kansas, including K.S.A. 10-101 to 10-132, inclusive, and K.S.A. 12-6a01 to 12-6al7, inclusive, and all laws amendatory thereof and supplemental thereto, and pursu- ant to ordinances duly passed and proceedings duly and legally had by the governing body of the City. THE BONDS are general obligations of the City, payable as to principal and interest in part from special assessments on property benefitted, but any specially assessed part not so paid and the remainder of the principal and interest will be paid from ad valorem taxes which may be levied without limitation as to rate or amount upon all taxable tangible property within the territorial limits of the City. THIS BOND is transferable only in the Bond Register at the office of the Bond Registrar upon surrender of this Bond to the Bond Registrar duly endorsed for transfer or accompanied by a written instrument of transfer satisfactory to the Bond Regis- trar duly executed by the Registered Holder hereof or his attor- ney or legal representative, and thereupon a new Bond or Bonds in the same aggregate principal amount shall be issued to the transferee in exchange therefor, subject to the conditions as provided in the Ordinance. The Bonds for each maturity are is- suable only in the form of fully registered Bonds certificated or uncertificated at the option of the registered holder, in the denomination of $5,000 or any integral multiple thereof. The Registered Holder of any Bond or Bonds may surrender the same in exchange for an equal aggregate principal amount of Bonds of any authorized denomination in the manner and subject to the condi- tions as provided in the Ordinance. No service charge shall be made for any such transfer or exchange, but, prior to any trans- fer or exchange, the Registered Holder hereof shall pay to the City or the Bond Registrar an amount sufficient to reimburse it or them for any tax or other governmental charge required to be paid with respect to such transfer or exchange. The City, the Bond Registrar and the Paying Agent may deem and treat the per- son in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal hereof and interest due hereon and for all other purposes. am (FORM OF ASSIGNMENT) FOR VALUE RECEIVED the undersigned does (do) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identifying 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 State Treasurer. The under- signed does (do) hereby revocably constitute and appoint attorney to transfer the said bond, on the books of said State Treasurer, with full power of substitution in the premises. Dated Name Account No. Signature (Sign Here Exactly as Name or Names Appear on the Face of the Certificate) (Signature Guarantee) (FORM OF CLERK'S CERTIFICATE) STATE OF KANSAS ) SS. COUNTY OF SALINE ) I, Robert K. Biles, City Clerk of the City of Salina, Kansas, do hereby certify that this Bond has been duly regis- tered in my office on , 1987. [SEAL] (facsimile City Cler -10- (FORM OF STATE TREASURER'S CERTIFICATE) OFFICE OF THE STATE TREASURER OF KANSAS I, JOAN FINNEY, 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 WITNESS my hand and official seal. (facsimile) State Treasurer of Kansas [SEAL] ------------------------------------------------------------------ Section 12. Uncertificated Bonds, Evidence of Ownership. Each holder of an uncertificated Bond shall receive a written statement evidencing ownership of such Bond in the form and pur- suant to the procedure provided by the Kansas Bond Registration Law, K.S.A. 1986 Supp. 10-620 to 10-632, inclusive, and the rules and regulations appertaining thereto published in the Kansas Register by the Attorney General of the State of Kansas. Section 13. Disposition of Bond Proceeds. All accrued in- terest and premium, if any, received from the sale of the Bonds shall be deposited in the general obligation bond fund held by the City Treasurer for the retirement of the Bonds. The remaining balance of the proceeds derived from the sale of the Bonds shall be deposited in a fund held by the City Trea- surer and shall be used solely for the purpose of paying the costs of the Project as hereinbefore provided. Section 14. Levy and Collection of Annual Taxes. The gov- erning body of the City shall annually make provision for the payment of the principal of and interest on the Bonds as the same become due by levying and collecting the necessary taxes and assessments therefor in the manner provided by law. Section 15. Transfer of Funds to Paying Agent and the Bond Registrar. The City Treasurer is hereby authorized and directed to withdraw from the funds received in payment of the taxes and special assessments and from the general obligation bond fund and forward to the Paying Agent sums sufficient to pay the prin- cipal of and interest on the Bonds as and when the same become due and to pay the charges of the Paying Agent for acting as paying agent in the payment of principal and interest. In addi- tion, the City Treasurer is hereby authorized and directed to withdraw from the general obligation bond fund and forward to the Bond Registrar sums sufficient to pay the charges of the Bond Registrar for acting as bond registrar. Sums sufficient to pay said charges shall be forwarded to the Paying Agent and Bond Registrar over and above the amount of the principal of and in- terest on the Bonds. Section 16. Authorization of Agreement Between the City and the Bond Registrar. The Agreement between the City and the State Treasurer of Kansas, in substantially the form attached hereto, with respect to the duties of the State Treasurer as Bond Registrar is in all respects hereby approved, authorized and confirmed and the Mayor and City Clerk are hereby authorized and directed to execute said Agreement for and on behalf of the City. The City hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3)(B) of the Code. The aggregate face amount of all tax-exempt obliga- tions (excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to be issued by the City (and all subordinate entities thereof) during calendar year 1987 is not reasonably expected to exceed $10,000,000. The City hereby cov- enants that the City and all its subordinate entities will not issue in excess of $10,000,000 of qualified tax-exempt obliga- tions (including the Bonds but excluding private activity bonds other than qualified 501(c)(3) bonds) during the calendar year 1987 without first obtaining an opinion of nationally recognized counsel in the area of municipal finance that the designation of the Bonds as "qualified tax-exempt obligations" will not be ad- versely affected. Section 18. Defeasance. When all of the Bonds shall have been paid and discharged, then the requirements contained in this Ordinance and all other rights granted hereby shall termi- nate. Bonds shall be deemed to have been paid and discharged within the meaning of this Ordinance if there shall have been deposited with the Paying Agent or with a bank located in the State of Kansas and having full trust powers, at or prior to the Stated Maturity of said Bonds, in trust for and irrevocably ap- propriated thereto, moneys and/or direct obligations of, or ob- ligations the principal of and interest on which are guaranteed by, the United States of America, or evidences of ownership of -12- Section 17. Federal Tax Matters. The City will comply with all applicable provisions of the Internal Revenue Code of 1986 (the "Code"), including Section 103 thereof, and the regu- lations of the Treasury Department thereunder, from time to time proposed or in effect, in order to maintain the exclusion from gross income for purposes of federal income taxation of the in- terest on the Bonds. The City covenants and agrees that it will use the proceeds of the Bonds as soon as practicable and with all reasonable dis- patch for the purpose for which the Bonds are issued as herein- before set forth, and that no part of the proceeds of the Bonds shall be invested in any securities, obligations or other in- vestments except for the temporary period pending such use nor used, at any time, directly or indirectly, in a manner which, if such use had been reasonably anticipated on the date of issuance of the Bonds, would have caused any of the Bonds to be or become "arbitrage bonds" within the meaning of Section 103(b)(2) or Section 148 of the Code and the regulations of the Treasury De- partment thereunder proposed or in effect at the time of such use and applicable to obligations issued on the date of issuance of the Bonds. The City represents and warrants that (i) it is a govern- mental unit under Kansas law with general taxing powers, (ii) none of the Bonds is or will become a private activity bond as defined in Section 141 of the Code, (iii) 95% or more of the net proceeds of the Bonds will be used for local governmental activ- ities of the City and (iv) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof) during the cal- endar year 1987 is not reasonably expected to exceed $5,000,000. The City hereby covenants that the City and all its subordinate entities will not issue in excess of $5,000,000 of tax-exempt bonds (including the Bonds but excluding private activity bonds) during the calendar year 1987 without first obtaining an opinion of nationally recognized counsel in the area of municipal fi- nance that the excludability of the interest on the Bonds from gross income for federal tax purposes will not be adversely af- fected. The City hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section 265(b)(3)(B) of the Code. The aggregate face amount of all tax-exempt obliga- tions (excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to be issued by the City (and all subordinate entities thereof) during calendar year 1987 is not reasonably expected to exceed $10,000,000. The City hereby cov- enants that the City and all its subordinate entities will not issue in excess of $10,000,000 of qualified tax-exempt obliga- tions (including the Bonds but excluding private activity bonds other than qualified 501(c)(3) bonds) during the calendar year 1987 without first obtaining an opinion of nationally recognized counsel in the area of municipal finance that the designation of the Bonds as "qualified tax-exempt obligations" will not be ad- versely affected. Section 18. Defeasance. When all of the Bonds shall have been paid and discharged, then the requirements contained in this Ordinance and all other rights granted hereby shall termi- nate. Bonds shall be deemed to have been paid and discharged within the meaning of this Ordinance if there shall have been deposited with the Paying Agent or with a bank located in the State of Kansas and having full trust powers, at or prior to the Stated Maturity of said Bonds, in trust for and irrevocably ap- propriated thereto, moneys and/or direct obligations of, or ob- ligations the principal of and interest on which are guaranteed by, the United States of America, or evidences of ownership of -12- 1 Section 19. Severability. If any one or more of the cove- nants or agreements provided in this Ordinance on the part of the City should be contrary to law, then such covenant or cove- nants or agreement or agreements shall be deemed severable from the remaining covenants and agreements, and shall in no way af- fect the validity of the other provisions of this Ordinance. Section 20. Effective Date. This Ordinance shall take ef- fect and be in full force from and after its publication in the official City newspaper. PASSED by the governing body of the City of Salina this 16th day of November 1987• (SEAL) � i��_ Mayor ATTEST: City Clerk -13- such obligations, which, together with the interest to be earned on any such obligations, will be sufficient for the payment of the principal of said Bonds and interest accrued to the Stated Maturity, or if default in such payment shall have occurred on such date, then to the date of the tender of such payments. Any moneys and obligations which at any time shall be deposited with said Paying Agent or bank or on behalf of the City, for the pur- pose of paying and discharging any of the Bonds, shall be and are hereby assigned, transferred and set over to such Paying Agent or bank in trust for the respective Holders of the Bonds, and such moneys and obligations shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All moneys and obligations deposited with said Paying Agent or bank shall be deemed to be deposited in accordance with and sub- ject to all of the provisions contained in this Ordinance. 1 Section 19. Severability. If any one or more of the cove- nants or agreements provided in this Ordinance on the part of the City should be contrary to law, then such covenant or cove- nants or agreement or agreements shall be deemed severable from the remaining covenants and agreements, and shall in no way af- fect the validity of the other provisions of this Ordinance. Section 20. Effective Date. This Ordinance shall take ef- fect and be in full force from and after its publication in the official City newspaper. PASSED by the governing body of the City of Salina this 16th day of November 1987• (SEAL) � i��_ Mayor ATTEST: City Clerk -13-