85-9101 GO Refunding Bonds1
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ORDINANCE NO. 85-9101
OF
THE CITY OF SALINA, KANSAS
PASSED
OCTOBER 21, 1985
----------------------------------
$8,115,000
GENERAL OBLIGATION REFUNDING BONDS
SERIES 1985
(Published in the Salina Journal on October 22, 1985)
ORDINANCE NO. 85-9101
AN ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE, SALE
AND DELIVERY OF $8,115,000 PRINCIPAL AMOUNT OF GENERAL
OBLIGATION REFUNDING BONDS, SERIES 1985, OF THE CITY OF
SALINA, KANSAS, TO BE USED FOR THE PURPOSE OF PROVIDING
FUNDS, TOGETHER WITH OTHER FUNDS WHICH ARE OR WILL BECOME
AVAILABLE, TO REFUND $9,430,000 PRINCIPAL AMOUNT OF OUT-
STANDING GENERAL OBLIGATION BONDS OF THE CITY; PRE-
SCRIBING 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; AUTHORIZING AN ESCROW TRUST
AGREEMENT BETWEEN THE CITY AND FIRST NATIONAL BANK AND
TRUST COMPANY OF SALINA, SALINA, KANSAS; AND AUTHORIZING
AN AGREEMENT BETWEEN THE CITY AND THE BOND REGISTRAR.
WHEREAS, the City of Salina, Kansas (the "City"), has hereto-
fore duly authorized and issued from time to time as separate se-
ries, in order to provide funds to pay the cost of public improve-
ments, twenty-three (23) series of general obligation bonds of the
City (the "Refunded Bonds"), which Refunded Bonds, as of the date
hereof, remain outstanding and unpaid in the principal amounts as
follows:
Series Date Amount
Designation of Issue Outstandin
WHEREAS, it is hereby found and determined that it is neces-
sary and desirable at this time that the issue, sell and deliver
its refunding bonds in the principal amount of $8,115,000 in order
to provide an amount sufficient, together with other funds which
are or will become available, to refund the Refunded Bonds, and
that the City enter into an Escrow Trust Agreement, dated as of
October 15, 1985 (the "Escrow Trust Agreement"), authorized by Sec-
tion 18 of this Ordinance, between the City and First National Bank
and Trust Company of Salina, Salina, Kansas, as Escrow Trustee (the
"Escrow Trustee"), providing for the application of the proceeds
P-198
November 1, 1965
$ 10,000
LB -200
November 1, 1965
45,000
CB -201
November 1, 1966
165,000
P-204
November 1, 1967
20,000
G-206
December 1, 1967
12,000
G-209
October 1, 1968
6,000
P-207
November 1, 1968
10,000
P-212
April 1, 1970
24,000
P-217
September 1, 1975
45,000
BC -218
April 1, 1977
3,900,000
P-219
December 1, 1977
285,000
PK -220
December 15, 1977
75,000
P-221
June 1, 1978
300,000
P-222
June 1, 1979
650,000
PK -223
June 1, 1979
125,000
P-224
June 1, 1980
870,000
PB -225
June 1, 1980
150,000
S-226
March 1, 1981
220,000
F-227
March 1, 1981
180,000
P-228
March 1, 1981
510,000
P-229
May 1, 1983
660,000
F-230
April 1, 1984
400,000
P-231
December 1, 1984
768,000
Total:
$9,430,000
and
WHEREAS, under
the provisions of K.S.A.
10-427 to 10-429, in-
clusive, as amended,
the City is empowered to issue refunding bonds
to refund the Refunded Bonds in at least
the total outstanding
principal amount of
the Refunded Bonds; and
WHEREAS, it is hereby found and determined that it is neces-
sary and desirable at this time that the issue, sell and deliver
its refunding bonds in the principal amount of $8,115,000 in order
to provide an amount sufficient, together with other funds which
are or will become available, to refund the Refunded Bonds, and
that the City enter into an Escrow Trust Agreement, dated as of
October 15, 1985 (the "Escrow Trust Agreement"), authorized by Sec-
tion 18 of this Ordinance, between the City and First National Bank
and Trust Company of Salina, Salina, Kansas, as Escrow Trustee (the
"Escrow Trustee"), providing for the application of the proceeds
derived from the sale of such refunding bonds, together with other
funds which are or will become available, to the payment of said
Refunded Bonds;
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 mean-
ings 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 First National Bank and Trust Company
of Salina, Salina, 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 "1985 Bonds" mean the General Obligation Refunding
Bonds, Series 1985, dated October 15, 1985, of the City herein au-
thorized.
"City" means Salina, Kansas.
"Escrow Trust Agreement" means the Escrow Trust Agreement
dated October 15, 1985, between the City and the Escrow Trustee.
"Escrow Trustee" means First National Bank and Trust Company
of Salina, Salina, Kansas, or any successor thereto pursuant to the
Escrow Trust Agreement.
"Interest Payment Date" means the Stated Maturity of an in-
stallment of interest on the Bonds.
"Maturity" with respect to any Bond means the date on which
the principal of such Bond becomes due and payable as therein or
herein provided.
"Ordinance", "this Ordinance", "hereof", "herein", "hereto"
and similar terms shall refer to this Ordinance of the City autho-
rizing the Bonds, as originally executed or as it may be supple-
mented or amended from time to time.
"Outstanding" when used with respect to Bonds means, as of the
date of determination, all Bonds theretofore executed, authenti-
cated and delivered under this Ordinance, except:
(i) Bonds theretofore cancelled by the Bond Regis-
trar or delivered to the Bond Registrar for cancellation;
and
(ii) Bonds in exchange for or in lieu of which
other Bonds have been authenticated and delivered pursu-
ant to this Ordinance.
"Paying Agent" means First National Bank and Trust Company of
Salina, Salina, Kansas, when acting in the capacity as paying agent
for the payment of the principal of and interest on the Bonds and
any successors thereto.
"Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated
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organization or government or any agency or political subdivision
thereof.
"Record Date" for the interest and principal payable on any
Interest Payment Date or Maturity, respectively, means the 15th day
(whether or not a business day) of the calendar month next preced-
ing such Interest Payment Date or Maturity.
"Redemption Date"
deemed means the date
Ordinance.
when used with respect to any Bond to be re-
fixed for redemption by or pursuant to this
"Redemption Price" when used with respect to any Bond means
the price at which it is to be redeemed pursuant to this Ordinance.
"Refunded Bonds" means all outstanding bonds of the
twenty-three (23) series of Refunded Bonds described in the pream-
ble to this Ordinance.
"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. The
Governing Body of the City of Salina, Kansas, hereby authorizes and
directs the issuance of the General Obligation Refunding Bonds, Se-
ries 1985, of the City in the principal amount of $8,115,000, for
the purpose of providing funds, together with other funds which are
or will become available, to refund the Refunded Bonds.
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 is payable from ad va-
lorem taxes which may be levied without limitation as to rate or
amount upon all the taxable tangible property within the territori-
al limits of the City. The full faith, credit and resources of the
City are hereby irrevocably pledged for the payment of the Bonds
and the interest thereon as the same become due.
Section 3. Description of the Bonds, Designation of Paying
Agent and Bond Registrar. The Bonds shall consist of fully regis-
tered certificated bonds, without coupons, transferable to subse-
quent owners only in the Bond Register maintained by the Bond Reg-
istrar as hereinafter provided. Each Bond shall be in the
denomination of $5,000 or any integral multiple thereof not exceed-
ing the principal amount of Bonds becoming due on the Stated Matur-
ity of such Bond, as specified by the Holder of such Bond. The
Bonds shall be numbered in a manner determined by the Bond Regis-
trar. The Bonds shall be dated October 15, 1985, shall have the
Stated Maturities, and shall bear interest at the rates per annum,
as follows:
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The Bonds shall bear interest from the most recent Interest
Payment Date to which interest has been paid in full or, if no in-
terest has been paid, from October 15, 1985. Interest on the Bonds
at the rates aforesaid shall be payable semiannually on April 1 and
October 1 in each year, beginning April 1, 1986. First National
Bank and Trust Company of Salina, Salina, Kansas, is hereby desig-
nated as the Paying Agent and as the Bond Registrar for the Bonds.
Section 4. Method and Place of Payment of Principal of and
Interest on the Bonds. The principal of and interest (computed on
the basis of a 360 -day year of twelve 30 -day months) on the Bonds
shall be payable in such coin or currency of the United States of
America as at the time of payment is legal tender for the payment
of public and private debts. Payment of the 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 Record Date next preceding said Inter-
est 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 and redemption premium, if any, for each Bond shall be payable
to the Holder thereof upon the presentation of such Bond for pay-
ment and cancellation at its Maturity at the principal office of
the Paying Agent.
Payment of principal of and interest on a Bond may be made by
such other method of transferring funds as may be requested by the
Holder of the Bond, provided that the Paying Agent shall first re-
ceive a written request from such Holder (i) specifying the method
and route for transferring funds and (ii) providing for the Paying
Agent to be reimbursed by the Holder for all expenses incurred in
connection with such fund transfers.
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 S. 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 sig-
nature of its City Clerk, and shall have the seal of the City af-
fixed 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
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PRINCIPAL
INTEREST
MATURITY
AMOUNT
RATE
April 1,
1986
5710,000
5.75%
October
1, 1986
685,000
5.75%
April 1,
1987
625,000
6.50%
October
1, 1987
645,000
6.50%
April 1,
1988
500,000
7.00%
October
1, 1988
520,000
7.00%
April 1,
1989
455,000
7.50%
October
1, 1989
475,000
7.50%
April 1,
1990
385,000
7.75%
October
1, 1990
400,000
7.75%
April 1,
1991
305,000
8.00%
October
1, 1991
320,000
8.00%
April 1,
1992
255,000
8.25%
October
1, 1992
265,000
8.25%
April 1,
1993
260,000
8.50%
October
1, 1993
270,000
8.50%
April 1,
1994
225,000
8.70%
October
1, 1994
235,000
8.70%
April 1,
1995
205,000
8.90%
October
1, 1995
215,000
8.90%
April 1,
1996
160,000
9.00%
The Bonds shall bear interest from the most recent Interest
Payment Date to which interest has been paid in full or, if no in-
terest has been paid, from October 15, 1985. Interest on the Bonds
at the rates aforesaid shall be payable semiannually on April 1 and
October 1 in each year, beginning April 1, 1986. First National
Bank and Trust Company of Salina, Salina, Kansas, is hereby desig-
nated as the Paying Agent and as the Bond Registrar for the Bonds.
Section 4. Method and Place of Payment of Principal of and
Interest on the Bonds. The principal of and interest (computed on
the basis of a 360 -day year of twelve 30 -day months) on the Bonds
shall be payable in such coin or currency of the United States of
America as at the time of payment is legal tender for the payment
of public and private debts. Payment of the 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 Record Date next preceding said Inter-
est 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 and redemption premium, if any, for each Bond shall be payable
to the Holder thereof upon the presentation of such Bond for pay-
ment and cancellation at its Maturity at the principal office of
the Paying Agent.
Payment of principal of and interest on a Bond may be made by
such other method of transferring funds as may be requested by the
Holder of the Bond, provided that the Paying Agent shall first re-
ceive a written request from such Holder (i) specifying the method
and route for transferring funds and (ii) providing for the Paying
Agent to be reimbursed by the Holder for all expenses incurred in
connection with such fund transfers.
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 S. 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 sig-
nature of its City Clerk, and shall have the seal of the City af-
fixed 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
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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 offi-
cers 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 Authen-
tication 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 un-
less and until such Certificate of Authentication shall have been
duly executed by the Bond Registrar by manual signature. Such exe-
cuted Certificate of Authentication upon any Bond shall be conclu-
sive evidence that such Bond has been duly authenticated and deliv-
ered under this Ordinance and that such registered owner has been
entered of record in the Bond Register kept by the Bond Registrar.
The Certificate of Authentication shall be deemed to have been duly
executed if signed and dated 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 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 City Clerk are hereby authorized and di-
rected 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 with the Bond Registrar, to deliver the
Bonds to United Securities Inc., Wichita, Kansas, upon the payment
of the purchase price of 97.4% of the principal amount of the Bonds
plus accrued interest to the date of payment and delivery.
Section 6. 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 sur-
render 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 au-
thenticate and deliver in exchange for such Bond a new Bond or
Bonds, registered in the name of the transferee, of any denomina-
tion or denominations authorized by this Ordinance in an aggregate
principal amount equal to the principal amount of such Bond, of the
same Stated Maturity and bearing interest at the same rate.
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 representa-
tive 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 Stated 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 au-
thenticate and deliver at the earliest practicable time Bonds in
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accordance with the provisions of this Ordinance. All Bonds sur-
rendered in any such exchange or transfer shall forthwith be can-
celled 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.
f The City and the Bond Registrar shall not be required (i) to
issue, transfer or exchange any Bond during a period beginning at
the opening of business 15 days preceding a mailing of a notice of
redemption for Bonds selected for redemption pursuant to Section 10
and ending at the close of business on the date of such mailing;
(ii) to transfer or exchange any Bond so selected for redemption in
whole or in part, or (iii) to transfer or exchange any Bond begin-
ning on the day following each Record Date and ending at the close
of business on each Interest Payment Date or Maturity.
Section 7. Persons Deemed Owners of Bonds. The Person in
whose name any Bond shall be registered shall be deemed and re-
garded by the City, the Bond Registrar and the Paying Agent as the
absolute owner thereof, whether such Bond shall be overdue or not,
for the purpose of receiving payment therefor or on 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. Pay-
ment 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 ef-
fectual to satisfy and discharge the liability upon such Bond,
including the interest thereon, to the extent of the sum or sums so
paid.
WE
Section 8. 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 Reg-
istrar shall authenticate and shall deliver a new Bond of like date
and tenor as the Bond mutilated, lost, stolen or destroyed; provid-
ed 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, that the requirements of
K.S.A. 84-8-405 are met and that 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 sur-
render thereof. Upon the issuance of any substitute Bond, the City
and the Bond Registrar may require the payment of an amount suffi-
cient 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 9. 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 can-
celled, 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 10. Redemption of Bonds Prior to Maturity. At the
option of the City, Bonds maturing on October 1, 1992, and
WE
thereafter may be called for redemption and payment prior to matur-
ity, as a whole or in part, in inverse order of maturity on April
1, 1992, or on any Interest Payment Date thereafter, at the Redemp-
tion Price of the principal amount thereof plus accrued interest to
and including the Redemption Date, without premium.
The Bond Registrar shall call Bonds for redemption and payment
as herein provided upon receipt by the Bond Registrar at least 45
days prior to the Redemption Date of a written request of the City.
Such request shall specify the principal amount of Bonds and their
maturities to be called for redemption, the applicable Redemption
Price or Prices and the Redemption Date.
Bonds shall be redeemed in inverse order of maturity in the
principal amount of $5,000 or any integral multiple thereof. In
the case of a partial redemption of Bonds of the same maturity the
Bonds to be redeemed shall be selected by the Bond Registrar from
the Outstanding Bonds of that maturity by such method as the Bond
Registrar shall deem fair and appropriate and which may provide for
the selection for redemption of portions of the principal of Out-
standing Bonds of that maturity of a denomination larger than
$5,000. The portions of the principal of Outstanding Bonds so se-
lected for partial redemption shall be equal to $5,000 or integral
multiples thereof. Any Bond which is to be redeemed only in part
shall be submitted to the Paying Agent and delivered to the Bond
Registrar, who shall authenticate and deliver to the Holder of
such Bond, without service charge, a new Bond or Bonds of any au-
thorized denomination as requested by such Holder in an aggregate
principal amount equal to and in exchange for the unredeemed por-
tion of the principal of the Bond so surrendered. If the Holder of
any such Bond of a denomination greater than $5,000 shall fail to
present such Bond to the Paying Agent for payment and exchange as
aforesaid, such Bond shall, nevertheless, become due and payable on
the Redemption Date to the extent of the principal amount of such
Bond called for redemption (and to that extent only).
If and when the City shall call any of the Bonds for redemp-
tion and payment prior to the maturity thereof, the Bond Registrar
shall give written notice in the name of the City of its intention
to redeem and pay such Bonds at the office of the Paying Agent.
Notice of Redemption shall be given by first class mail, postage
prepaid, mailed not less than 30 days prior to the Redemption Date,
to each Holder of Bonds to be redeemed, at his address appearing in
the Bond Register. All notices of redemption shall state:
(i) The Redemption Date;
(ii) The Redemption Price;
(iii) If less than all Outstanding Bonds are to be
redeemed, the identification (and, in the case of partial
redemption, the respective principal amounts) of the
Bonds to be redeemed;
(iv) That on the Redemption Date, the Redemption
Price will become due and payable upon each such Bond,
and that interest thereon shall cease to accrue from and
after said date; and
(v) The place where such Bonds are to be surren-
dered for payment of the Redemption Price (which shall be
the office of the Paying Agent).
Section 11.
Form of Bonds. The Bonds shall be issued in cer-
tificated form in substantially the form set forth in this Section
subject to such changes and variations as may be required to comply
with the Kansas Bond Registration Law, K.S.A. 1984 Supp. 10-620 to
10-632, inclusive, and the rules and regulations appertaining
thereto published in the Kansas Register by the Attorney General of
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F_
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the State of Kansas. The certificated 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 STATED OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
GENERAL OBLIGATION REFUNDING BOND
SERIES 1985
Interest
Rate
0
REGISTERED HOLDER:
PRINCIPAL AMOUNT:
Maturity
Date
Bond
Date
October 15, 1985
CUSIP
DOLLARS
THE CITY OF SALINA, 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 iden-
tified above, unless called for redemption prior to maturity, 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 in-
terest has been paid, from October 15, 1985, said interest being
payable semiannually on April 1 and October 1 in each year, begin-
ning April 1, 1986.
INTEREST on this Bond will be paid on each Interest Payment
Date to the person in whose name this Bond is registered in the
hereinafter referred to Bond Register at the close of business on
the fifteenth day (whether or not a business day) of the calendar
month next preceding each interest payment date (the "Record Date")
to the registered owner hereof at such person's address as it ap-
pears in the Bond Register. The principal of this Bond shall be
payable to the Registered Holder upon presentation and surrender
hereof at the principal office of First National Bank and Trust
Company of Salina, in the City of Salina, 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.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET
FORTH ON THE REVERSE HEREOF. SUCH PROVISIONS SHALL FOR ALL PURPOS-
ES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
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THIS BOND shall not be valid or become obligatory for any pur-
pose or be entitled to any security or benefit under the Ordinance
of the City authorizing the issuance of this Bond (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 all acts, conditions
and things required to be done and to exist precedent to and in the
issuance of the Bonds have been done and performed and do exist in
due and regular form and manner as required by the constitution and
laws of the State of Kansas, and that the total indebtedness of the
City, including the Bonds, does not exceed any constitutional or
statutory limitation.
IN WITNESS WHEREOF, the City has caused this Bond to be exe-
cuted by facsimile signature of its Mayor and attested by the fac-
simile signature of its City Clerk, the City's corporate seal to be
printed hereon and this Bond to be dated October 15, 1985.
[SEAL]
ATTEST:
facsimile
City Clerk
CITY OF SALINA, KANSAS
By
facsimile
Mayor
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within men-
tioned Ordinance.
REGISTRATION DATE:
FIRST NATIONAL BANK AND TRUST
COMPANY OF SALINA
Bond Registrar and Paying Agent
By
State Treasurer's Registration Number: 0322-085-101585-595
[ON REVERSE SIDE]
THIS BOND is one of an authorized series of fully registered
bonds of the City designated "General Obligation Refunding Bonds,
Series 1985", aggregating the principal amount of $8,115,000 (here-
in called the "Bonds"), issued for the purpose of providing funds,
together with other funds of the City that are or will become
available, to refund $9,433,000 principal amount of outstanding
general obligation bonds of the City, under the authority of and in
full compliance with the provisions, restrictions and limitations
of the constitution and laws of the State of Kansas, including
K.S.A. 10-101 to 10-132, inclusive, K.S.A. 10-427 to 10-429, inclu-
sive, and all laws amendatory thereof and supplemental thereto, and
pursuant to 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 re-
mainder of the principal and interest are payable 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.
1
IN THE EVENT any of the Bonds are called for redemption and
payment as aforesaid, written notice thereof will be given by first
class mail mailed not less than 30 days prior to the date fixed for
redemption and payment to each holder of Bonds to be redeemed. All
Bonds so called for redemption will cease to bear interest on the
specified redemption date, provided funds are deposited with the
Paying Agent on such redemption date.
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 the payment of public and pri-
vate debts. Interest shall be paid to the person appearing as the
registered owner hereof in the bond register of the City (the "Bond
Register") maintained by First National Bank and Trust Company of
Salina, Salina, Kansas, as Bond Registrar, or its successor.
THIS BOND is transferable only in the Bond Register at the of-
fice 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 exe-
cuted by the registered owner hereof or his attorney or legal rep-
resentative, and thereupon a new Bond or Bonds in the same aggre-
gate principal amount shall be issued to the transferee in exchange
therefor subject to the conditions provided in the Ordinance. The
Bonds for each maturity are issuable only in the form of fully reg-
istered certificated Bonds, without coupons, in the denomination of
$5,000 or any integral multiple thereof. The registered owner 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 provided in the Ordi-
nance. No service charge shall be made for any such transfer or
exchange, but, prior to any transfer or exchange, the registered
owner hereof shall pay to the City or the Bond Registrar an amount
sufficient to reimburse it or them for any tax or other governmen-
tal charge required to be paid with respect to such transfer or ex-
change. 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.
Mem
THE BONDS maturing on
option of the City, may be
October 1,
called for
1992, and thereafter, at the
redemption and payment prior
to maturity, as a whole or
in part in
inverse order of maturity, on
April 1, 1992, or on any
interest payment
date thereafter, at the
principal amount thereof plus
accrued
interest to and including the
date of redemption, without
premium.
1
IN THE EVENT any of the Bonds are called for redemption and
payment as aforesaid, written notice thereof will be given by first
class mail mailed not less than 30 days prior to the date fixed for
redemption and payment to each holder of Bonds to be redeemed. All
Bonds so called for redemption will cease to bear interest on the
specified redemption date, provided funds are deposited with the
Paying Agent on such redemption date.
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 the payment of public and pri-
vate debts. Interest shall be paid to the person appearing as the
registered owner hereof in the bond register of the City (the "Bond
Register") maintained by First National Bank and Trust Company of
Salina, Salina, Kansas, as Bond Registrar, or its successor.
THIS BOND is transferable only in the Bond Register at the of-
fice 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 exe-
cuted by the registered owner hereof or his attorney or legal rep-
resentative, and thereupon a new Bond or Bonds in the same aggre-
gate principal amount shall be issued to the transferee in exchange
therefor subject to the conditions provided in the Ordinance. The
Bonds for each maturity are issuable only in the form of fully reg-
istered certificated Bonds, without coupons, in the denomination of
$5,000 or any integral multiple thereof. The registered owner 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 provided in the Ordi-
nance. No service charge shall be made for any such transfer or
exchange, but, prior to any transfer or exchange, the registered
owner hereof shall pay to the City or the Bond Registrar an amount
sufficient to reimburse it or them for any tax or other governmen-
tal charge required to be paid with respect to such transfer or ex-
change. 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.
Mem
1
BOND ASSIGNMENT
FOR VALUE RECEIVED the undersigned does (do) hereby sell, as-
sign 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 un-
dersigned on the books of the State Treasurer of Kansas. The un-
dersigned does (do) hereby revocably constitute and appoint
attorney to transfer the said bond on the
books of said State Treasurer of Kansas with full power of substi-
tution 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, D. L. Harrison, City Clerk of the City of Salina, Kansas,
do hereby certify that this Bond has been duly registered in my of-
fice on October 23, 1985.
WITNESS my hand and official seal
[FACSIMILE
SEAL]
(facsimile
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 is-
suance of this Bond has been filed in my office and that this Bond
was registered in my office according to law on October 23, 1985.
WITNESS my hand and official seal.
[SEAL] State Treasurer of Kansas
By:
Assistant State Treasurer
Section 12. Uncertificated Bonds. All Bonds shall be issued
in certificated form. Issuance of uncertificated Bonds is prohib-
ited.
Section 13. Disposition of Bond Proceeds. All accrued inter-
est received from the sale of the Bonds shall be deposited in the
general obligation bond fund held by the City Treasurer for the re-
tirement of general obligation bonds of the City.
The $7,904,010 of proceeds received in payment for the princi-
pal amount of the Bonds shall be used solely to refund the Refunded
Bonds and shall be allocated and disbursed according to the follow-
ing instructions:
(a) There shall first be set aside such amounts as shall
be required for the payment of the costs, fees and expenses in-
curred in connection with the issuance of the Bonds, including cre-
ation of the escrow and carrying out the duties provided by the Es-
crow Trust Agreement, which funds shall be used and disbursed for
such purposes.
(b) The remainder of such proceeds, together with other
moneys provided by the City, shall be used to purchase and deposit
with the Escrow Trustee the obligations and cash required to be de-
posited with the Escrow Trustee pursuant to the Escrow Trust Agree-
ment. Such proceeds shall be irrevocably paid over to and depos-
ited with the Escrow Trustee, and such moneys, and the obligations
in which such moneys may be invested pursuant to the provisions of
the Escrow Trust Agreement, shall be deposited to and held in the
"City of Salina, Kansas, Escrow Account" (the "Escrow Account"), a
special and irrevocable escrow account created by the Escrow Trust
Agreement, which account shall be held in trust in the custody of
the Escrow Trustee in accordance with the terms and provisions of
the Escrow Trust Agreement. Moneys so deposited in such Escrow Ac-
count shall be invested in direct and general obligations of the
United States of America or obligations unconditionally guaranteed
by the United States of America, or in evidences of ownership of
such obligations, as provided in the Escrow Trust Agreement. Such
obligations shall mature in principal amounts at such times so that
sufficient moneys will be available from maturing principal of and
interest on such obligations to pay, as the same mature and become
due, the principal of, redemption premium, if any, and interest on
the Refunded Bonds. Moneys and obligations in the Escrow Account
and all earnings thereon shall be used and applied, in accordance
with the terms of the Escrow Trust Agreement, solely for the pay-
ment of the principal of and interest on the Refunded Bonds.
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(c) Any moneys remaining from the sale of the Bonds
after the allocations and payments required by subparagraphs (a)
and (b) have been completed shall be deposited in the general obli-
gation bond fund held for the retirement of general obligation
bonds of the City.
Section 14. Sufficiency of Funds for Payment of the Refunded
Bonds. Prior to or concurrently with the issuance and delivery of
the Bonds, the City shall obtain verification by an independent
certified public accountant that the moneys and obligations re-
quired to be irrevocably deposited in trust with the Escrow Trustee
pursuant to Section 13 of this Ordinance, together with the earn-
ings to accrue thereon, will always be sufficient for the payment
of the principal of and interest accrued to the date of maturity of
the Refunded Bonds.
Section 15. Arbitrage Covenant. The City covenants and
agrees that no part of the proceeds of the Bonds or of the moneys
in the Escrow Account shall be used, at any time, directly or in-
directly, in a manner which, if such use had been reasonably anti-
cipated 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(c) of the Internal Revenue Code of 1954, as amended,
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.
Section 16. Levy and Collection of Annual Assessments and
Taxes. The governing body of the City shall annually make provi-
sion for the payment of the principal of and interest on the Bonds
as the same become due by levying and collecting the necessary as-
sessments and taxes required therefor in the manner provided by
law.
Section 17. Transfer of Funds to Paying Agent and Bond
Registrar. The City Treasurer is hereby authorized and directed to
withdraw from the funds received in payment for special assessments
and from the general obligation bond fund and forward to the Paying
Agent sums sufficient to pay both principal of, premium, if any,
and interest on the Bonds as and when the same become due, and also
to pay the charges made by the Bond Registrar and Paying Agent for
services rendered as bond registrar and paying agent for the Bonds.
Said charges for services rendered shall be forwarded to the Paying
Agent over and above the amount of the principal of and interest on
the Bonds.
Section 18. Authorization of Escrow Trust Agreement. The
Mayor and City Clerk are hereby authorized and directed to execute
the Escrow Trust Agreement dated as of October 15, 1985, between
the City and First National Bank and Trust Company of Salina,
Salina, Kansas, substantially in the form attached to this Ordi-
nance and marked Exhibit A, with such changes therein to correct
omissions and ambiguities as such officials may deem appropriate,
for and on behalf of and as the act and deed of the City and its
governing body.
Section 19. Authorization of Agreement Between the City and
the Bond Registrar and Paying Agent. The Agreement between the
City and the Bond Registrar and Paying Agent with respect to the
duties of the Bond Registrar and Paying Agent, substantially in the
form attached to this Ordinance and marked Exhibit B, is in all re-
spects hereby approved, authorized and confirmed and the Mayor and
City Clerk are hereby authorized and directed to complete and exe-
cute said Agreement for and on behalf of the City and its governing
body.
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i
1
Section 20. Effective Date. This Ordinance shall take effect
and be in full force from and after its publication in the official
City newspaper.
Introduced: October 7, 1985
Passed: October 21, 1985
rc ct Mayor
[SEAL]
ATTEST:
City Clerk
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