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88-9291 GO BondsKuhn -Cl. P -ting — Sallna, K-111 1 1 1 ORDINANCE NO. 88-9291 OF THE CITY OF SALINA, KANSAS $1,115,000 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES FLP -234 INDEX PAGE 1 1 Section 1. Definitions ------------------------------- 3 Section 2. Authorization of and Security for the Bonds 4 Section 3. Description of the Bonds, Designation of Paying Agent and Bond Registrar ------ 5 Section 4. Redemption of Bonds Prior to Maturity ----- 5 Section 5. Method and Place of Payment of Principal of and Interest on the Bonds ------------ 5 Section 6. Execution, Authentication and Delivery of the Bonds ---------------------------- 6 Section 7. Registration, Transfer and Exchange of Bonds 7 Section 8. Persons Deemed Owners of Bonds ------------ 8 Section 9. Mutilated, Lost, Stolen or Destroyed Bonds 8 Section 10. Cancellation and Destruction of Bonds Upon Payment ------------------------- 9 Section 11. Form of Bonds ----------------------------- 9 Section 12. Disposition of Bond Proceeds -------------- 14 Section 13. Levy and Collection of Annual Taxes ------- 14 Section 14. Transfer of Funds to Paying Agent and the Bond Registrar ----------------------- 14 Section 15. Authorization of Agreement Between the City and the Bond Registrar ---------- 15 Section 16. Federal Tax Matters ----------------------- 15 Section 17. Defeasance -------------------------------- 16 Section 18. Severability ------------------------------ 16 Section 19. Effective Date ---------------------------- 16 1 1 K�M1n-Cox P,.,ing — Salina, Kansas (Published in the Salina Journal Al"ver.ler 30, 1988) ORDINANCE NO. 88-9291 WHEREAS, pursuant to K.S.A. 12-110c, and other provisions of the laws of the State of Kansas applicable thereto, the governing body of the City of Salina, Kansas (the "City"), published notice of its intent to issue its general obligation bonds in an amount not to exceed $350,000 for the purpose of purchasing fire -fighting equipment; and WHEREAS, the aforesaid notice was published for two consecutive weeks in the official City newspaper and no petition was filed by any qualified electors of the City with respect to the proposed bonds within 60 days following the date of last publication of the notice or at anytime thereafter; and WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds of the City to pay the cost of the fire -fighting equipment; and WHEREAS, the City has entered into a contract for the purchase of the fire -fighting equipment and it is necessary for the City to issue at this time $347,000 principal amount of its general obligation bonds to pay the cost of the purchase of the fire -fighting equipment; and WHEREAS, pursuant to K.S.A. 12-1736 through 12-1739, inclusive, the City is authorized to agree to repair a public building jointly or in cooperation with any other governmental unit so empowered and to issue the general obligation bonds of the City for such purpose; and WHEREAS, pursuant to K.S.A. 12-1215 et seg., the Board of Directors of the Salina Public Library (the "Library Board") is authorized to maintain the Salina Public Library building, including the making of repairs to the roof, and such building needs substantial roof repair; and WHEREAS, pursuant to K.S.A. 12-2901 et she . and proceedings adopted by the governing body of the City and the Library Board, the City and the Library Board have entered into an Interlocal Agreement (which has been approved by the Attorney General of Kansas) wherein the City and the Libarary Board have agreed, among other things, that the City will issue its general obligation bonds pursuant to K.S.A. 12-1736 through 12-1739, inclusive, to finance the cost of the repairs to the roof of the Salina Public Library; and WHEREAS, it is necessary for the City to issue at this time $140,000 principal amount of its general obligation bonds to pay the cost of the repairs to the roof of the Salina Public Library; and WHEREAS, pursuant to K.S.A. 12-6a01 et sec., and other provisions 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 construction of storm sewers, water mains, sanitary sewers, street AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF $1,115,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES FLP -234, OF THE CITY OF SALINA, KANSAS, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF CERTAIN FIRE -FIGHTING EQUIPMENT, REPAIRING THE LIBRARY ROOF AND THE CONSTRUCTION OF STORM SEWERS, WATER MAINS, SANITARY SEWERS AND STREET IMPROVEMENTS IN THE CITY OF SALINA, KANSAS; 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 BETWEEN THE CITY AND THE BOND REGISTRAR. WHEREAS, pursuant to K.S.A. 12-110c, and other provisions of the laws of the State of Kansas applicable thereto, the governing body of the City of Salina, Kansas (the "City"), published notice of its intent to issue its general obligation bonds in an amount not to exceed $350,000 for the purpose of purchasing fire -fighting equipment; and WHEREAS, the aforesaid notice was published for two consecutive weeks in the official City newspaper and no petition was filed by any qualified electors of the City with respect to the proposed bonds within 60 days following the date of last publication of the notice or at anytime thereafter; and WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds of the City to pay the cost of the fire -fighting equipment; and WHEREAS, the City has entered into a contract for the purchase of the fire -fighting equipment and it is necessary for the City to issue at this time $347,000 principal amount of its general obligation bonds to pay the cost of the purchase of the fire -fighting equipment; and WHEREAS, pursuant to K.S.A. 12-1736 through 12-1739, inclusive, the City is authorized to agree to repair a public building jointly or in cooperation with any other governmental unit so empowered and to issue the general obligation bonds of the City for such purpose; and WHEREAS, pursuant to K.S.A. 12-1215 et seg., the Board of Directors of the Salina Public Library (the "Library Board") is authorized to maintain the Salina Public Library building, including the making of repairs to the roof, and such building needs substantial roof repair; and WHEREAS, pursuant to K.S.A. 12-2901 et she . and proceedings adopted by the governing body of the City and the Library Board, the City and the Library Board have entered into an Interlocal Agreement (which has been approved by the Attorney General of Kansas) wherein the City and the Libarary Board have agreed, among other things, that the City will issue its general obligation bonds pursuant to K.S.A. 12-1736 through 12-1739, inclusive, to finance the cost of the repairs to the roof of the Salina Public Library; and WHEREAS, it is necessary for the City to issue at this time $140,000 principal amount of its general obligation bonds to pay the cost of the repairs to the roof of the Salina Public Library; and WHEREAS, pursuant to K.S.A. 12-6a01 et sec., and other provisions 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 construction of storm sewers, water mains, sanitary sewers, street Kl— Coa P11-19 — Salina. Kansas improvements and sidewalk improvements, said improvements being more fully identified as Project 87-752 (water and sanitary sewer extensions), Project 87-753 (street improvements) and Project 87-755 (sidewalks,; and WHEREAS, all legal requirements pertaining to said improvements have been complied with, and the governing body of the City now finds and determines that the total cost of the aforesaid improvements and related expenses are $680,710.30, 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 period specified, have paid $52,710.30 in cash on account of said special assessments in the total amount of $680,710.30, leaving the balance of $628,000.00 of said special assessments still owing, and the City has previously paid $-0- in cash on account of the City's share of $-0-, leaving the balance of $-0- of the City's share still owing, all of which results in the sum of $628,000.00 as being the total amount of the cost of said improvements to be paid by the issuance 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 advertised the sale of the general obligation bonds referred to above 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 delivery to the purchaser; NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: 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 respective 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 FLP -234 Bonds" mean the General Obligation Internal Improvement Bonds, Series FLP -234, of the City herein authorized. "City" means Salina, Kansas. "Interest Payment Date" means the Stated Maturity of an installment of interest on the Bonds. -2- K un n -C.. Panting — Sa Dina, Kansas 1 1 1 "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 authorizing the Bonds, as originally executed or as it may be supplemented or amended from time to time. "Outstanding" when used with respect to Bonds means, as of the date of determination, all Bonds theretofore executed, authenticated and delivered under this Ordinance, except: (i) Bonds theretofore cancelled by the Bond Registrar or delivered to the Bond Registrar for cancellation; and (ii) Bonds that have been defeased by the deposit 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 pursuant 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 political subdivision thereof. "Project" means the purchase of the fire -fighting equipment, the repairs to the roof of the Salina Public Library and the construction of storm sewers, water mains, sanitary sewers, street improvements and sidewalk improvements in the City. "Registration Date" means the effective date of registration of a Bond as evidenced by the Bond Registrar in the Certificate of Authentication appearing on the Bond. "Regular Record Date" for the interest payable on any Interest Payment Date means the 15th day (whether or not a business day) of the calendar month next preceding such Interest Payment Date. "Special Record Date" for the payment of any Defaulted Interest, 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 Section 3 of this Ordinance as the fixed date on which the principal of such Bond or such installment of interest is due and payable. Section 2. Authorization of and Security for the Bonds. For the purpose of providing funds for the Project, there shall be issued and are hereby authorized and directed to be issued the General Obligation Internal Improvement Bonds, Series FLP - 234, of the City in the principal amount of $1,115,000. The Bonds shall be general obligations of the City, payable as to both 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 -3- KuM1 n -Cox Printing — Sabina. Kansas limitation as to rate or amount upon all the taxable tangible property 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 Accent and Bond Registrar. The Bonds shall consist of fully registered Bonds, without coupons, transferable to subsequent owners 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 Registrar. The Bonds shall be dated as of December 1, 1988, shall mature without option of prior payment, and shall bear interest at the rates per annum, as follows: MATURITY PRINCIPAL INTEREST DECEMBER 1 AMOUNT RATE 1989 $125,000 8.150% 1990 125,000 8.150% 1991 125,000 6.250% 1992 125,000 6.150% 1993 125,000 6.250% 1994 100,000 6.300% 1995 100,000 6.350% 1996 100,000 6.375% 1997 100,000 6.375% 1998 90,000 6.375% 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, 1988. Interest on the Bonds at the rates aforesaid shall be payable semiannually on June 1 and December 1 in each year, beginning June 1, 1989. 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 respective dates of maturity set forth in Section 3. Section 5. Method and Place of Payment of Principal of and -4- 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 interest on each Bond shall be made by the Paying Agent on each Interest Payment Date to the Person appearing as the Holder thereof 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 appears 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 payable, 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 notify 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 -4- Kinn -Cox P1,11,Ig—Sall e, Kansas 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 shalt make arrangements 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 payment 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 Defaulted 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 Defaulted 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 exchange for or in lieu of any other Bond shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 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 remained 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 Authentication 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 authenticated and delivered under this Ordinance and that such registered 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 directed to prepare and execute the Bonds in the manner hereinbefore 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 registered in the office of the State Treasurer of Kansas as provided by law, and when the Bonds have been duly registered -5- n -Cox ting -- S11. 11, Kansas 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 delivery, 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 exchanges 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 transfer or accompanied by a written instrument of transfer duly executed by the Holder thereof or his attorney or legal representative 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. The City and the Bond Registrar shall not be required to transfer or exchange any Bond beginning on the day following the Regular Record Date and ending at the close of business on each Interest Payment Date. Bonds, upon surrender thereof at the principal office of the Bond Registrar, together with a written instrument of transfer 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 exchanged 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 transferred 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 forthwith 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 reimburse it or them for any tax or other governmental charge required 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 the Regular Record Date and ending at the close of business on each Interest Payment Date. 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 W -C Section 8. Persons Deemed Owners of Bonds. The Person in whose name any Bond shall be registered shall be deemed and regarded 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 account 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 W -C ,C- Printing — Sabina. Kansas Registrar shall authenticate and shall deliver a new Bond of like date and tenor as the Bond mutilated, lost, stolen or destroyed; 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 affidavit 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, instead of issuing a substitute Bond the City may pay or authorize the payment of the same without surrender thereof. Upon the issuance 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 respect to the replacement or payment of mutilated, lost, stolen or destroyed Bonds. Section 10. Cancellation and Destruction of Bonds Upon Payment. All Bonds surrendered for payment, transfer or exchange shall be delivered to the Bond Registrar and, if not already 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 Bonds. The Bonds and the Bond Registrar's Certificate of Authentication to be endorsed thereon shall be in substantially the form set forth in this Section. The 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 custom, usage or requirement of law with respect thereto. REGISTERED REGISTERED NUMBER $ UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES FLP -234 Interest Maturity Bond Rate Date Date CUSIP % Per Annum December 1, 1988 REGISTERED HOLDER: PRINCIPAL AMOUNT: 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, 1988, semiannually on June 1 and December 1 in each year, beginning June 1, 1989. INTEREST on this Bond will be paid by check or draft mailed to the person in whose name this Bond (or one or more predecessor Bonds) is registered in the Bond Register maintained -7- nr.Coa Pnniing — Salina. -- I 1 by the Bond Registrar at the close of business on the fifteenth day of the month next 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 "Ordinance"). The Principal Amount of this Bond shall be payable by check or draft 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 for any purpose or be entitled to any security or benefit under the Ordinance until the Certificate of Authentication hereon shall have been dated and executed by the Bond Registrar. IT IS HEREBY DECLARED AND CERTIFIED that conditions and things to and in the issuance and do exist in due an the constitution and 1 total indebtedness of series of which it is statutory limitation. all acts, required to be done and to exist precedent of this Bond have been done and performed d regular form and manner as required by aws of the State of Kansas, and that the the City, including this Bond and the one, does not exceed any constitutional or IN WITNESS WHEREOF, the governing body of the City of Salina, Kansas, has caused this Bond to be signed by facsimile signature of its Mayor and attested by facsimile signature of its City Clerk, the City's corporate seal to be printed hereon and this Bond to be dated December 1, 1988. ATTEST: (facsimile) City Clerk CITY OF SALINA, KANSAS By (facsimile) Mayor Registration No. 0322-085-120188-273 CERTIFICATE OF AUTHENTICATION REGISTRATION DATE: This Bond is one of the Bonds described in the within mentioned Ordinance. OFFICE OF THE STATE TREASURER OF KANSAS Bond Registrar By Bond Registrar and Paying Agent: STATE TREASURER OF KANSAS -8- Kuhn -Co Pr t- —Salina, K..... [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 Registrar duly executed by the Registered Holder hereof or his attorney 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 issuable only in the form of fully registered Bonds without coupons 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 conditions as provided in the Ordinance. No service charge shall be made for any such transfer or exchange, but, prior to any transfer 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 person 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. If the date for making any payment of interest or principal occurs on a Saturday or Sunday or a holiday in the City of Topeka, Kansas, then such payment may be made on the next succeeding business day with the same force and effect. ---------------------------------------------------------------- (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 undersigned does (do) hereby revocably constitute and appoint THIS BOND is one of an authorized series of fully registered bonds of the City designated "General Obligation Internal Improvement Bonds, Series FLP -234", aggregating the principal amount of $1,115,000 (the "Bonds"), issued by the City for the purpose of providing funds to pay the cost of the purchase of fire -fighting equipment, the repairs to the roof of the Salina Public Library and the construction of storm sewers, water mains, sanitary sewers, street improvements and sidewalk improvements 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, K.S.A. 12-110c, K.S.A. 12-1736 through 12-1739, inclusive, and K.S.A. 12-6a01 to 12-6a17, inclusive, and all laws amendatory thereof and supplemental thereto, and pursuant 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 Registrar duly executed by the Registered Holder hereof or his attorney 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 issuable only in the form of fully registered Bonds without coupons 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 conditions as provided in the Ordinance. No service charge shall be made for any such transfer or exchange, but, prior to any transfer 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 person 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. If the date for making any payment of interest or principal occurs on a Saturday or Sunday or a holiday in the City of Topeka, Kansas, then such payment may be made on the next succeeding business day with the same force and effect. ---------------------------------------------------------------- (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 undersigned does (do) hereby revocably constitute and appoint K— C1. P111(11Q — Saline. Kansas 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 registered in my office according to law. WITNESS my hand and official seal this , 1988. [SEAL] City Clerk ---------------------------------------------------------------- (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 this WITNESS my hand and official seal. (facsimile) State Treasurer of Kansas [SEAL] Section 12. Disposition of Bond Proceeds. There is hereby created and ordered to be established by the City in the general obligation bond fund of the City held by the City Treasurer a subaccount to be known as the "Series FLP -234 Principal and Interest Subaccount" to be maintained so long as any of the Bonds remains Outstanding and unpaid. All accrued interest and premium, if any, received from the sale of the Bonds shall be deposited in the Series FLP -234 Principal and Interest Subaccount 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 Treasurer and shall be used solely for the purpose of paying the costs of the Project as hereinbefore provided, including the retirement of any temporary notes issued with respect to the Project. -10- KUM1 n -Cox Pintinq — Salina, Kansas Section 15. 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. Section 16. 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 regulations 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 interest 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 dispatch for the purpose for which the Bonds are issued as hereinbefore set forth, and that no part of the proceeds of the Bonds shall be invested in any securities, obligations or other investments 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 Department 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 governmental 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 activities 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 calendar year 1988 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 yea: 1988 without first obtaining an opinion of nationally recognized counsel in the area of municipal finance that the excludability of the interest on the Bonds from gross income for federal tax purposes will not be adversely affected. -11- Section 13. Levy and Collection of Annual Taxes. The governing 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 14. 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 debt service fund of the City and forward to the Paying Agent sums sufficient to pay the principal 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 addition, the City Treasurer is hereby authorized and directed to withdraw from the debt service 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 interest on the Bonds. Section 15. 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. Section 16. 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 regulations 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 interest 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 dispatch for the purpose for which the Bonds are issued as hereinbefore set forth, and that no part of the proceeds of the Bonds shall be invested in any securities, obligations or other investments 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 Department 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 governmental 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 activities 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 calendar year 1988 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 yea: 1988 without first obtaining an opinion of nationally recognized counsel in the area of municipal finance that the excludability of the interest on the Bonds from gross income for federal tax purposes will not be adversely affected. -11- Ku G1. Pr tinq — Sarna, Kansas Ll Section 18. Severability. If any one or more of the covenants or agreements provided in this Ordinance on the part of the City should be contrary to law, then such covenant or covenants or agreement or agreements shall be deemed severable from the remaining covenants and agreements, and shall in no way affect the validity of the other provisions of this Ordinance. Section 19. Effective Date. This Ordinance shall take effect 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 21st day of November , 1988. (SEAL) ATTEST: City er -12- yor 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 obligations (excluding private activity bonds other than qualified 501(c)(3) bonds) issued or to be issued by the City (and all subordinate entitities thereof) during the calendar year 1988 is not reasonably expected to exceed $10,000,000. The City hereby covenants that the City and all its subordinate entities will not issue in excess of $10,000,000 of qualified tax-exempt obligations (including the Bonds but excluding private activity bonds other than qualified 501(c)(3) bonds) during the calendar year 1988 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 adversely affected. Section 17. 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 terminate. 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 appropriated thereto, moneys and/or direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America, or in evidences of ownership of 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 purpose 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 shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All moneys deposited with said Paying Agent or bank shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Ordinance. Ll Section 18. Severability. If any one or more of the covenants or agreements provided in this Ordinance on the part of the City should be contrary to law, then such covenant or covenants or agreement or agreements shall be deemed severable from the remaining covenants and agreements, and shall in no way affect the validity of the other provisions of this Ordinance. Section 19. Effective Date. This Ordinance shall take effect 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 21st day of November , 1988. (SEAL) ATTEST: City er -12- yor