88-9291 GO BondsKuhn -Cl. P -ting — Sallna, K-111
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ORDINANCE NO. 88-9291
OF THE
CITY OF SALINA, KANSAS
$1,115,000
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES FLP -234
INDEX
PAGE
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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
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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.
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K un n -C.. Panting — Sa Dina, Kansas
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"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
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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
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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
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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
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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
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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
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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
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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
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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.
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(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.
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(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)
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(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
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(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.
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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.
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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.
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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
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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
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yor