84-9026 IRB Hutchinson1
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1
FINANCE iNo. 84-9026 OF THE CITY OF SALINA, KANSAS
INDEX
Page
tecitals--------------------------------------------------
1
;ection
1.
Authority to Acquire Real Property and to
Construct and Purchase Facility ------------------
1
;ection
2.
Authorization of and Security for the Bonds ------
2
;ection
3.
Description and Details of the Bonds,
Designation of Paying Agent ----------------------
2
ection
4.
Redemption and Pa3m)ent of Bonds Prior
to Maturity --------------------------------------
3
ection
5.
Notice of Redemption -----------------------------
3
ection
6.
Method of Execution of Bonds ---------------------
3
ection
7.
Form of Bond -------------------------------------
3
ection
8.
Execution and Delivery of the Bonds, Deposit of
Bond Proceeds, Designation of Fiscal Agent -------
6
ection
9.
Construction Fund --------------------------------
6
ection
10.
Principal and Interest Account -------------------
6
ection
11.
Covenant to Redeem Bonds -------------------------
7
ection
12.
Investments --------------------------------------
7
ection
13.
Particular Covenants of the City -----------------
7
ection
14.
Amencinents---------------------------------------
10
ection
15.
Enforcement --------------------------------------
11
ection
16.
Declaration of Maturity of Bonds in the
Event of Default ---------------------------------
11
ection
17.
Accelerated Maturity of Bonds in the
Event of Taxability ------------------------------
12
ection
18.
Defeasance ---------------------------------------
12
ection
19.
Registration of Bondholders, Transfer of Bonds ---
13
ection
20.
Provisions Relating to the Fiscal Agent ----------
13
ection
21.
Waiver of Tax Exemption --------------------------
15
ection
22.
Bond Purchasers ----------------------------------
15
ection
23.
Authorization of Lease ---------------------------
16
ection
24.
Severability -------------------------------------
16
ection
25.
Conveyance of Facility ---------------------------
16
ection
26.
Effective Date -----------------------------------
16
xhibit "A" Description of Property
ORDNANCE NO. 84-9026
�N ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS, TO AC-
, CZUIRE FOR DEVELOPMENT PURPOSES THE REAL PROPERTY HEREINAFTER
ESCRIBED AND TO CONSTRUCT AND PURCHASE BUILDINGS, llYIPROVE-
IENTS, MACHINERY AND EQUIPMENT TO BE LEASED TO BYRON F.
DESCRIBED
AUTHORIZING AND DIRECTING THE ISSUANCE OF ?200,000
RINCIPAL AMOUNT OF REVENUE BONDS, BYRON F. HUTCHISON SERIES
F 1984, OF SAID CITY FOR THE PURPOSE OF PROVIDING FUNDS TO PAY
HE COST OF ACQUIRING THE REAL PROPERTY HEREINAFTER DESCRIBED
ND TO CONSTRUCT AND PURCHASE BUILDINGS, IMPROVEMENTS, MA-
HINERY AND EQUIPMENT TO BE LEASED TO BYRON F. HUTCHISON; AND
RESCRIBING THE FORM AND AUTHORIZING THE EXECUTION OF A LEASE
Y AND BETWEEN SAID CITY AND SAID INDIVIDUAL.
WHEREAS, the City of Salina, Kansas, hereinafter sometimes
referred to as the "City," desires to promote, stimulate and develop the
eneral welfare and economic prosperity of the City of Salina, Kansas, and
is environs and thereby to further promote, stimulate and develop the
eneral welfare and economic prosperity of the State of Kansas; and
WHEREAS, pursuant to the provisions of K.S.A. 12-1740 to
2-1749a, as amended, said City is authorized to issue revenue bonds of the
ity, and it is hereby found and determined to be advisable and in the
nterest and for the welfare of the City and its inhabitants that revenue
onds of the City be authorized and issued for the purpose of providing
unds to pay the cost of acquiring real property hereinafter described and
o construct and purchase buildings, improvements, machinery and equipment
o be leased to Byron F. Hutchison, of Salina, Kansas, hereinafter sometimes
referred to as "Hutchison"; and
WHEREAS, the City will acquire prior to or concurrently with the
ssuance of the Bonds herein authorized the real property hereinafter de-
cribed ;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY
F THE CITY OF SALINA, KANSAS:
Section 1. Authority to Acquire Real Property and to Con-
truct and Purchase Facility. The City of Salina, Kansas, is hereby au -
ori zed to acquire the real property described and set forth in Exhibit "A"
ttached hereto and made a part hereof and to construct and purchase
uildings, improvements, machinery and equipment described in said Exhibit
A" (said real property, buildings, improvements, machinery and equipment
eing sometimes hereinafter described collectively as the "Facility") , in
,ccordance with the provisions of the Lease dated as of July 1, 1984 between
aid City and Hutchison (hereinafter sometimes referred to as the "Lease") ,
aid Lease being authorized by the provisions of Section 23 of this
Aggregate
Bond Principal
Numbers Amount n".aturi ty
rdinance, all at an amount which will not exceed the cost of $200,000 to
$20,000
said City.
Section 2. Authorization of and Security for the Bonds. For
20,000
he purpose of providing funds to pay the cost of acquiring the real prop-
rty described in said Exhibit "A" and to construct and purchase buildings,
20,000
mprovements, machinery and equipment to be leased to Hutchison, there
hall be issued and hereby are authorized and directed to be issued a series
20,000
f Revenue Bonds, Byron F. Hutchison Series of 1984, of the City of Salina,
Kansas, in the principal amount of $200,000. Said Bonds herein authorized,
20,000
ereinafter sometimes referred to as the "Bonds," and all interest thereon
hall be paid solely from the money and revenue received from the fees
20,000
barged and rental received for the use of the Facility and not from any
ther fund or source. The City hereby pledges the Facility and the net
20,000
arnings therefrom to the payment of the Bonds and the interest thereon.
Section 3. Description and Details of the Bonds, Designation
20,000
f Paying Agent. Said Revenue Bonds, Byron F. Hutchison Series of 1984,
f the City of Salina, Kansas, shall consist of 20 Bonds, numbered from 1 to
20,000
0, inclusive. Each of the said Bonds shall be in the denomination of
10,000.00. All of said Bonds shall be dated as of July 1, 1984, and shall
20,000
ear interest from date at a rate equal to seventy-five percent (75%) of the
ase lending interest rate in effect at Planters Bank and Trust Co., Salina,
Kansas, as of July 1, 1984, which rate of interest shall be adjusted annually
n each July 1 thereafter, so that such rate of interest payable for the
ensuing year will equal seventy-five percent (750) of -the base lending
interest rate then prevailing and chargeable at Planters Bank and Trust
Co., Salina, Kansas as of said date. Said Bonds shall become due as
follows:
Aggregate
Bond Principal
Numbers Amount n".aturi ty
The interest on said Bonds shall be payable semiannually on
anuary 1 and July 1 in each year, beginning on January 1, 1985 until
iaturity or called for redemption.
V,
1-2
$20,000
7-1-85
3-4
20,000
7-1-86
5-6
20,000
7-1-87
7-8
20,000
7-1-88
9-10
20,000
7-1-89
11-12
20,000
7-1-90
13-14
20,000
7-1-91
15-16
20,000
7-1-92
17-18
20,000
7-1-93
19-20
20,000
7-1-94
The interest on said Bonds shall be payable semiannually on
anuary 1 and July 1 in each year, beginning on January 1, 1985 until
iaturity or called for redemption.
V,
Said Bonds shall be payable to the registered owner thereof in
awful money of the United States of America at Planters Bank and Trust
Co., in the City of Salina, Kansas, hereby designated as the City's paying
agent for the payment of the principal of and interest on the Bonds and
herein sometimes referred to as the "Paying Agent."
Section 4. Redemption and Payment of Bonds Prior to
Maturity. Said Bonds and each of them shall be subject to redemption and
payment at the option of the City, upon instructions from Hutchison, in
whole or in part, on January 1, 1985, or on any interest payment date
hereafter, at the par value thereof plus accrued interest to the date fixed
or redemption and payment, without premium; provided, however, that any
. onies transferred from the Construction Fund to the Principal and Interest
Account pursuant to Section 9 of this Ordinance shall promptly be applied to
redemption and payment of the Bonds, in whole or in part to the extent of
he full amount of such monies, at the par value thereof plus accrued in-
terest to the date fixed for redemption and payment, without premium.
Bonds to be redeemed and paid pursuant to this Section shall be redeemed in
inverse numerical order.
Section 5. Notice of Redemption. Notice of any redemption
rovided by this Ordinance shall be published once not less than 30 days
prior to the date fixed for redemption in the official city paper of the City.
Notice of any such redemption shall also be given by the Fiscal Agent by
United States certified or registered mail to each registered bondholder
hown on the records of the Fiscal Agent pursuant to Section 19 of the
Ordinance, provided that the failure to give any notice by mail as herein
specified shall not affect the validity of any such call for redemption.
Interest shall cease on any of said Bonds so called for redemption and
payment as of the redemption date, provided funds are available to pay the
same according to their terms. Notice of any redemption as herein provided
hall be given upon, but only upon, written instructions from Hutchison, as
ong as Hutchison is not in default in the payment of Basic Rent due under
he Lease.
Section 7. Form of Bond. Each of said Bonds and the
rtificate attached thereto shall be in substantially the following form:
3
Section 6. Method of Execution of bonds. Said Bonds and
each of them shall be executed
for and on behalf of the City by the signa-
ture of its
Mavor and attested
by the signature of its City Clerk, with the
seal of the
City affixed. Said Bonds and each of them shall be registered in
e office
rtificate
Fe
of the City Clerk,
on the reverse side
which registration shall be evidenced by a
thereof bearing the signature of the City
erk .
Section 7. Form of Bond. Each of said Bonds and the
rtificate attached thereto shall be in substantially the following form:
3
0. $10,000
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
REVENUE BOND
BYRON F. HUTCHISON
SERIES OF 1984
KNOW ALL MEN BY THESE PRESENTS: That the City of Salina,
the County of Saline, State of Kansas, for value received, hereby prom -
es to pay, solely out of the revenues hereinafter specified, to
0
registered assigns the principal sum of
TEN THOUSAND DOLLARS
n lawful money of the United States of America, on the first day of
19_, and to pay interest thereon from the date hereof at a rate
equal to seventy-five percent (75%) of the base lending interest rate in
effect at Planters Bank and Trust Co., Salina, Kansas on July 1, 1984,
which rate of interest shall be adjusted annually on July 1 in each year after
ate hereof so that such rate of interest payable for the ensuing year will
qual seventy-five percent (75%) of the base lending interest rate then
revailing and chargeable at Planters Bank and Trust Co., Salina, Kansas as
f said date. The interest on this Bond shall be payable semiannually on
January 1 and July 1 in each year after the date hereof, beginning on
,January 1, 1985, until the said principal sum shall have been paid, both
rincipal of and interest on this Bond being payable at Planters Bank and
Trust Co. , in the City of Salina, Kansas (hereinafter sometimes referred to
s the "Paying Agent" or the "Fiscal Agent") .
THIS BOND is one of an authorized series of 20 Bonds aggregating
he principal amount of $200,000 authorized by Ordinance of said City (the
'Ordinance") for the purpose of providing funds to pay the cost of ac-
quiring real property and constructing and purchasing buildings, improve-
ents, machinery and equipment (hereinafter sometimes referred to as the
'Facility," said Facility being further identified in the Ordinance) to be
eased to Byron F. Hutchison of Salina, Kansas, ("Hutchison"), pursuant to
Lease dated July 1, 1984 (the "Lease") , by and between said City and
utchison, by the authority of and in conformity with the provisions, re-
strictions and limitations of the Constitution and statutes of the State of
ansas, including K.S.A. 12-1740 to 12-1749a, and all amendments thereof
nd acts supplemental thereto, and all other provisions of the la%� s of said
tate applicable thereto, and this Bond and all interest hereon are to be
aid by said City of Salina, Kansas, solely and only from the money and
4
revenue received from the fees charged and rental received for the use of
he Facility under said Lease and not from any other fund or source.
Pursuant to the provisions of said statutes, the governing body of the City
as pledged said Facility and the net earnings therefrom to the payment of
he series of Bonds of which this Bond is a part and the interest thereon.
This Bond does not constitute a debt of the City within the meaning of any
Constitutional or statutory limitations. Reference is hereby made to the
rdinance and to the Lease for a description of the covenants of the City
I ith respect to the payment, collection, segregation and application of the
revenues derived from said Facility, the nature and extent of the security
or the Bonds, the rights, duties and obligations of the City and the Fiscal
Agent with respect thereto, and the rights of the holders of this Bond.
Each of the Bonds of the series of which this Bond is one is
subject to redemption and payment in whole or in part, on January 1, 1985,
r on any interest payment date thereafter, at the par value thereof plus
ccrued interest to the redemption and payment date, without premium.
Bonds to be redeemed pursuant to this paragraph shall be redeemed in
nverse numerical order.
Notice of the City's intention to redeem and pay said Bonds pursu-
ant to the redemption provision aforesaid, specifying the numbers of the
Bonds to be redeemed and paid, shall be published once not less than 30
days prior to the date fixed for redemption and payment in the official city
aper of the City. Notice of such redemption shall also be given by United
tates certified or registered mail to each registered bondholder shown on
he records of the Fiscal Agent.
AND IT IS HEREBY DECLARED AND CERTIFIED that all acts,
onditions and things required to be done and to exist precedent to and in
he issuance of this Bond have been properly done and performed and do
xist in due and regular form and manner as required by the Constitution
and laws of the State of Kansas.
IN WITNESS WHEREOF, the City of Salina, Kansas, by its govern -
ng body, has caused this Bond to be signed by the signature of its Mayor
and attested by the signature of its City Clerk, and its corporate seal to be
ereto affixed to be signed with the signatures of said officers, and this
Pond to be dated this first day of July, 1984.
TTEST:
City Clerk
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Mayor
TATE OF KANSAS, COUNTY OF SALINE, ss:
I, the undersigned, City Clerk of the City of Salina, Salina,
Kansas, hereby certify that the within Revenue Bond, Byron F. Hutchison
Series of 1984 of the City of Salina, Kansas, has been duly registered in my
ffice according to law.
WITNESS my hand and official seal this day of ,
1984.
City Clerk
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D
Section 8. Execution and Delivery of the Bonds, Deposit of
Bond Proceeds, Designation of Fiscal Agent. The Mayor and City Clerk are
ereby authorized and directed to prepare and execute, in the manner
ereinbefore specified, the Bonds herein authorized, and to deliver said
Bonds to the purchasers thereof on payment of the purchase price. The
roceeds of said Bonds shall be deposited with Planters Bank and Trust
o. , in the City of Salina, Kansas, hereby designated as the City's Fiscal
gent and herein referred to as the "Fiscal Agent," the rights and duties of
aid Fiscal Agent being further specified in Section 20 of this Ordinance.
Section 9. Construction Fund. There is hereby authorized
nd ordered to be established in the hands of the Fiscal Agent a separate
and or account designated as "City of Salina, Kansas, Byron F. Hutchison
onstruction Fund," hereinafter referred to as the "Construction Fund."
he Fiscal Agent shall, first, promptly pay from the proceeds of the sale of
aid Bonds into the Principal and Interest Account, the amount of any
accrued interest and premium, if any, received from such sale. Further,
he Fiscal Agent is authorized to pay fiscal and legal fees and other ex-
enses relating to the issuance of said Bonds. The balance of the proceeds
f the sale of said Bonds shall be deposited in said Construction Fund. Said
onstruction Fund shall be used for the purpose of providing funds to pay
he construction and acquisition costs of the Facility to be leased to
utchison as provided in said Lease, and the Fiscal Agent shall make dis-
ursements from said Construction Fund in accordance with this Ordinance
and the Lease. Any moneys not required for said purpose shall, when the
Facility is complete as provided in the Lease, be deposited by the Fiscal
bent in said Principal and Interest Account.
Section 1.0. Principal and Interest "iccount. There is hereby
uthorized and ordered to be established in the hands of the Fiscal ii ent an
D
dditional separate account to be known as the "City of Salina, Kansas,
Principal and Interest Account for Revenue Bonds, Byron F. Hutchison
Series of 1984, dated July 1, 1984," hereinafter referred to as the "Principal
and Interest Account." The City covenants and agrees that from and after
he delivery of any of the Revenue Bonds herein authorized and continuing
o long as any of said Bonds shall remain outstanding, said City will main-
tain said Account with the Fiscal Agent. All payments of Basic Rent and
Additional Rent due under said Lease between the City and Hutchison in -
ended to pay the principal of and interest on the Bonds shall be applied
and allocated by the Fiscal Agent to said Principal and Interest Account.
11 amounts credited to and deposited in said Principal and Interest Account
hall be used by the Fiscal Agent and forwarded to the Paying Agent for the
ole purpose of paying the principal of and interest on the Revenue Bonds
herein authorized as and when the same become due or are called for re-
emption and payment. Any balance remaining in said Principal and Interest
Account, including interest earned on deposits made into said Account as
repayments of rent due under Article II of said Lease, shall, when said
onds have been paid, or payment provided for, be paid to Hutchison.
Section 11. Covenant to Redeem Bonds. When moneys accu-
mulated in said Principal and Interest Account shall aggregate an amount
ufficient to pay the principal of all of the Bonds then outstanding, and all
Mterest accrued to date fixed for redemption and payment, and redemption
remium, if any, and when said Bonds become subject to redemption, said
City shall, upon receipt of instructions from Hutchison, proceed to give
notice of such redemption in the manner herein specified, and said Fiscal
Agent shall use such funds for said purpose.
Section 12. Investments. Subject to the provisions of para-
graph (A) of Section 13 of this Ordinance, moneys in the Construction Fund
and the Principal and Interest Account shall, upon instructions from
Hutchison, be invested by the Fiscal Agent in obligations of the United
States Government or any agency or instrumentality thereof, or in Certifi-
cates of Deposit or other savings or time deposits of a state or national
bank, including the Fiscal Agent, in such amounts and maturing at such
Imes as shall reasonably provide for monies to be available when required in
said Construction Fund and Principal and Interest Account. All income from
.nvestment of the Construction Fund and Principal and Interest Account shall
accrue to and become a part of and be transferred to the Principal and
Interest Account.
Section 13. Particular Covenants of the City. So long as
ny of the principal of and interest on the Bonds herein authorized remain
utstanding and unpaid, or until provisions are made for the payment
7
iereof, the City covenants with each of the purchasers and owners of said
onds as follows:
9
(A) The City will use the proceeds of the series of
Bonds herein authorized as soon as practicable and with all reasonable
dispatch for the purpose for which said Bonds are issued as herein-
before set forth. Said proceeds will not be invested in any securities
or obligations except for the temporary period pending such use and
said proceeds will not be used directly or indirectly so as to cause all
or any part of the Bonds herein authorized to be or become "Arbitrage
Bonds" within the meaning of Section 103(c) of the Internal Revenue
Code of 1954, as amended. The City further covenants that the pro-
ceeds of the series of Bonds herein authorized will not be used to
acquire securities or obligations that will produce a yield higher than
the yield of the Bonds herein authorized unless a statute, regulation of
the Treasury Department of the United States, ruling by the Internal
Revenue Service of the United States or a decision by a court of ulti-
mate jurisdiction holds that an acquisition of securities or obligations
producing a yield higher than said Bonds will not cause said Bonds to
be Arbitrage Bonds as defined in said Subsection (c) .
(B) The City will comply fully with all the terms,
provisions and conditions of the Lease which require performance by or
impose duties on the City; will not permit any default to occur on the
part of the City; will fully and promptly enforce, and will permit the
Fiscal Agent to enforce on its behalf and on behalf of the owners of the
Bonds, all of the terms, provisions and conditions of the Lease which
require performance by or impose duties on Hutchison; and in the event
of the occurrence of a default, as defined in the Lease, will exercise,
and permit the Fiscal Agent to exercise on its behalf and on behalf of
the owners of the Bonds, all rights and remedies conferred by the
Lease for the full and complete protection of the security and rights of
the bondholders and, to the extent permitted by the Lease, will use its
best efforts to procure a new tenant or tenants for the leased property
under lease provisions which will provide funds sufficient in amount to
make the rental payments and other charges which Hutchison is re-
quired to make under the Lease. If the City is unable to procure a
new tenant who will enter into such a lease the City may, with the
consent of the holders of not less than sixty-six and two-thirds percent
(66 2/3%) of the Bonds herein authorized at the time outstanding, sell
the Facility leased at a price not less than the amount of the then
outstanding Bonds plus interest then unpaid.
(C) The City will enforce, and will permit the Fiscal
Agent to enforce on its behalf and on behalf of the owners of the
9
9
Bonds, collection of the rental payment and other charges in the
amounts and at the time set forth in the Lease authorized hereby and
will not reduce or cause or permit to be reduced the rental payments
and other charges fixed, established and required by the Lease nor
change or alter the time or times when the same are due and payable
under the Lease. The City's obligation to pay the expenses of such
enforcement shall be limited to funds made available to it for that
purpose by the holders of the Bonds or other interested parties.
(D) Until payment of all the Bonds and interest thereon
has been duly made or provided for, the City will not consent to any
change, amendment, modification or termination of said Lease, except as
provided therein, which will in any manner affect adversely the rights,
remedies or interest of the bondholder.
(E) Any purchase price of the lease property, any
proceeds of condemnation awards or insurance proceeds, any of which
are received by the City pursuant to the termination of the Lease, or
any other funds intended for the purpose of paying the Bonds will be
used solely and exclusively to pay the Bonds herein authorized and the
interest thereon according to their terms or to redeem and pay any of
the Bonds then outstanding and unpaid then subject to redemption and
payment. Upon receipt of any such funds, and as soon as the Bonds
are subject to redemption and payment, the City shall proceed promptly
to call the Bonds for redemption and payment according to their terms
.and shall give notice, or cause notice to be given thereof, as provided
for by the terms of this Ordinance. Such funds shall be deposited with
the Fiscal Agent, and the same shall be used solely for the payment of
the Bonds herein authorized, accrued interest thereon, any premium
provided for by this Ordinance and the charges of the Paying Agent
and the Fiscal Agent for paying the same.
(F) The City will not issue any other obligations pay-
able from payments by Hutchison, pursuant to the Lease, nor volun-
tarily create or cause to be created any debt, lien, pledge, assignment,
encumbrance, or any other charge on said payments or on the property
subject to said Lease nor will it, unless required by law or by the
terms of said Lease, sell or otherwise dispose of the Facility or any
part thereof; provided, however, that said City may issue from time to
time additional revenue bonds for the purpose of completing the con-
struction or acquisition thereof on the land herein referred to, provided
the following terms and conditions are met:
(i) The City shall have entered into a lease or agree-
ment with Hutchison with rentals or payments at least sufficient to
9
pay the principal of and interest on said additional bonds as the
same become due.
(ii) Hutchison is not in default in the payment of rent
due under the Lease.
(iii) The issuance of said additional bonds shall not
affect the exemption from Federal income taxation of the interest
on the Bonds herein authorized.
In the event of the issuance of any such additional bonds the City
may pledge the Facility and the net earnings therefrom to the payment
of such additional bonds and the interest thereon, provided the City
also pledges the additional construction, fixtures and equipment and the
net earnings therefrom, constructed or purchased out of the proceeds
of such additional bonds, to the payment of the Bonds herein author-
ized and the interest thereon.
(G) The City will cause Hutchison to keep constantly
insured all buildings and improvements from time to time constituting a
part of the property and premises leased to Hutchison in the manner
provided for by the Lease herein authorized. The City's share of the
proceeds of any such insurance policies shall be payable to and depos-
ited with the Fiscal Agent as Insurance Trustee. Any of the proceeds
of any such insurance policies shall be used and applied in the manner
set forth in said Lease.
(H) The City will cause the Fiscal Agent to maintain
adequate records and accounts relating to the Facility, separate and
apart from all other records of accounts of the City or the Fiscal
Agent, and such records and accounts shall be maintained in accordance
with generally accepted principles of accounting and shall include
complete details of all financial transactions related to the Bonds au-
thorized herein and the leased facilities. Such records and accounts
shall be specifically designed and maintained to show whether or not the
provisions of this Ordinance and the Lease referred to herein are being
complied with. Such books and records shall be available for inspection
by Hutchison or his agents or any of the holders of the Bonds au-
thorized herein during the regular business hours of the City or the
Fiscal Agent.
Section 14. Amendments. The provisions of the Bonds
uthorized by this Ordinance and the provisions of this Ordinance may be
odified or amended at any time by the City with the written, consent of the
olders of not less than sixty-six and two-thirds percent (66-2/39;) in aggre-
ate principal amount of the Bonds herein authorized at the time outstand-
g, provided that no such modification or amendment shall permit or be
onstrued as permitting: (a) the modification of any duties or
10
1
n
1
responsibilities of the Fiscal Agent unless it consents thereto, (b) the exten-
sion of the maturity of the principal of any of the Bonds issued hereunder,
or the extension of the maturity of the interest on any Bonds issued here-
under, (c) a reduction in the principal amount of any Bonds or the rate of
interest thereon, or (d) a reduction in the aggregate principal amount of
Bonds, the consent of the holder of which is required for any such amend-
ment or modification. Any provision of the Bonds or of this Ordinance may,
however, be modified or amended in any respect with the written consent of
the holders of all of the Bonds then outstanding. Amendments to this
Drdinance which correct omissions or ambiguities or which add to the secur-
.ty of the bondholders may be made by the City when agreed to by
Hutchison. Every amendment or modification of a provision of the Bonds or
if this Ordinance to which the written consent of the bondholders is given
is above provided shall be expressed in an ordinance of the City amending
)r supplementing the provisions of this Ordinance and shall be deemed to be
i part of this Ordinance. It shall not be necessary to note on any of the
)utstanding Bonds any reference to such amendment or modification, if any.
Jpon payment of the reasonable cost of preparing the same, a certified copy
if every such amendatory or supplemental ordinance, if any, and a certified
:opy of this Ordinance will be sent by the City Clerk to any such bond-
iolder or prospective bondholder requesting the same.
The Lease herein authorized may be amended by the City and
iutchison as provided therein, except as to rent or certain other matters
vhich may be made only with the consent of a specified percentage of the
solders of the then outstanding Bonds.
Section 15. Enforcement. The provisions of this Ordinance
;hall constitute a contract between the City and the holders of the Bonds
ierein authorized, and the holder of any one or more of said Bonds may sue
o recover interest or principal which has not been paid according to the
erms of said Bond. The holders of twenty-five percent (25%) of the princi-
►al amount of Bonds then outstanding may sue in any action, in mandamus,
njunction or other proceedings, either at law or in equity, to enforce or
,ompel performance of all duties and obligations required by this Ordinance
o be done or performed by said City or by Hutchison. Nothing contained
n this Ordinance shall, however, be construed to impose on said City any
luty or obligation to levy any taxes either to meet any obligation contained
Herein or to pay the principal of or interest on the Bonds of the City herein
uthorized.
Section 16. Declaration of Maturity of Bonds in the Event of
iefault. In the event the principal of or interest on the Bonds herein
uthorized is not paid according to the terms thereof either on maturit•,- or
pon call for redemption, then the holders of twenty-five percent (2,5% of
11
he principal amount of Bonds then outstanding may, by written notice given
o the Fiscal Agent, declare the principal of all the Bonds herein authorized
hen outstanding to be due and payable immediately, and upon such declara-
ion given as aforesaid, all of said Bonds shall be immediately due and
avable, anything in said Bonds or in this Ordinance to the contrary not-
vithstanding. Upon receipt of any such written notice from such Bond-
olders, the Fiscal Agent shall immediately notify the City in writing of the
eceipt of such notice. This provision, however, is subject to the condition
hat if at any time thereafter, all arrears of interest, except interest ac -
rued but not yet due, and all arrears of principal shall have been paid in
ull, then in every such case, the holders of a majority in principal amount
f the Bonds then outstanding, by written notice to the Fiscal Agent, may
escind and annul such declaration and its consequences, but no such
escission or annulment shall extend to or affect any subsequent default or
impair any rights consequent thereon. The Fiscal Agent shall immediately
notify the City in writing in the event of such rescission or annulment.
Section 17. Accelerated Maturity of Bonds in the Event of
�axability. In the event the interest on the Bonds is includible in the gross
ncome of the Bondholders for federal income tax purposes by reason of the
ailure of such Bonds to qualify for the exemption provided in Section
03(b) (6) (A) of the Internal Revenue Code of 1954, as amended, or by
eason of the termination of such exemption, then in either of such events
1 of such Bonds then outstanding shall mature and be due and payable at
he principal amount thereof, plus accrued interest to the maturity date,
ogether with a premium which shall be, on each Bond then outstanding,
qual to thirty-three and one-third percent (33-1/3%) of the interest other -
vise paid or payable on such Bond for each year the interest on such Bond
s includible in the gross income of the Bondholders for federal income tax
urposes . The date of maturity shall be 60 days after the Internal Revenue
ervice, Hutchison or the Fiscal Agent shall give written notice to the City
f the inclusion of the interest on the Bonds in the gross income of the
ondholders .
Section 18. Defeasance. When all of the Bonds of the City
herein authorized shall have been paid and discharged, then the require-
ents contained herein and the pledge of revenues made hereunder and all
ther rights granted hereby, shall cease and determine. Bonds shall be
eemed to have been paid and discharged within the meaning of this Ordi-
ance when there shall have been deposited with the Fiscal Agent at or prior
o the maturity or redemption date of said Bonds in trust for and irrevo-
ably appropriated thereto, sufficient moneys for the pavment of the princi-
al thereof and interest accrued to the date of maturity or redemption, as
12
the case may be, or if default in such payment shall have occurred on such
date, then to the date of the tender of such payments; provided, always,
that if any such Bonds shall be redeemed prior to the maturity thereof, the
City shall have elected to redeem such Bonds and notice of such redemption
shall have been given. Any moneys which at any time shall be deposited
with the said Fiscal Agent by or on behalf of the City, for the purpose of
paying and discharging any of the Bonds, shall be, and are hereby, as-
signed, transferred and set over to such Fiscal Agent 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. If, through
lapse of time or otherwise, the holders of said Bonds shall no longer be
entitled to enforce payment of their obligations, then, in such event, it shall
be the duty of said bank forthwith to return said funds to the City. All
moneys deposited with such Fiscal Agent shall be deemed to be deposited in
accordance with and subject to all of the provisions contained in this Ordi-
Section 19. Registration of Bondholders, Transfer of Bonds.
The Fiscal Agent shall keep on file at its principal office a register setting
forth the names and addresses of the holder or holders of each Bond, which
Bond shall be identified by number. The Bonds shall be so registered as to
both principal and interest and payment of the Bonds and the interest due
thereon shall be made by the Fiscal Agent only to the registered owner of
said Bonds as reflected on the records of such Fiscal Agent. Transfer of
the Bonds and the right to receive payment of the principal and interest
thereon may be effected only by the entry and recording of such transfer on
the ownership register maintained by the Fiscal Agent and by the surrender
of the Bond to be transferred to the Fiscal Agent and the reissuance by the
City of such Bond to the new record owner. At reasonable times and under
reasonable regulations established by the Fiscal Agent, the register of
ownership may be inspected and copied by Hutchison or any registered
owner (or a designated representative thereof) of any Bond then outstand-
ing.
Section 20. Provisions Relating to the Fiscal Agent.
(A) Prior to the receipt of the Bond proceeds pursuant
to the provisions of Section 8 hereof, the Fiscal Agent shall file with
the City Clerk its written acceptance of the duties specified in this
Ordinance and in the Lease and its agreement to act in said capacity.
(B) The Fiscal Agent's duties and responsibilities shall
include those expressly set forth in this Ordinance and in the Lease
and shall further include those rights, duties, responsibilities and
obligations i•;hich are reserved to or imposed upon the City under t:.is
Ordinance and the Lease, excepting on1v such or those rights, duties,
13
responsibilities and obligations as may only be properly and lawfully
exercised by or imposed upon the City.
(C) All resolutions, opinions, certificates and other
instruments referred to or provided for herein or in the Lease may be
accepted by the Fiscal Agent as conclusive evidence of the facts,
opinions and conclusions stated therein and shall be full warrant,
protection and authority to the Fiscal Agent for any action reasonably
taken pursuant thereto. The Fiscal Agent shall be under a duty to
examine any such resolutions, opinions, certificates and other instru-
ments to determine whether or not they conform to the requirements of
this Ordinance and the Lease.
(D) The Fiscal Agent shall not be liable with respect to
any action taken or omitted to be taken by it in good faith and, if
appropriate, upon advice of counsel who may be counsel for the Fiscal
Agent or the City or Hutchison.
(E) No provision contained in this Section shall be
construed to relieve the Fiscal Agent from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct,
except that this subsection shall not be construed to limit the effect of
subsections (B), (C) and (D) of this Section and the Fiscal Agent shall
not be liable for any error of judgment made in good faith unless it
shall be proved that the Fiscal Agent was negligent in ascertaining the
pertinent facts.
(F) The Fiscal Agent shall have the right to buy, sell,
own, deal or trade in the Bonds without giving notice thereof to the
City or Hutchison or any bondholder and without incurring any liability
whatsoever with respect thereto.
(G) The Fiscal Agent may resign by an instrument in
writing delivered to the City and Hutchison to take effect not sooner
than 90 days after its delivery, whereupon the City, with the consent
of Hutchison, shall immediately, in writing, designate a successor fiscal
agent. Such successor fiscal agent shall be a bank, trust company or
national banking association which is a member of the Federal Reserve
System and has a capital stock and surplus aggregating at least that of
the Fiscal Agent at the time of its designation. hereunder. Such suc-
cessor fiscal agent shall be subject to the same duties and obligations
14
and shall have the
same rights,
privileges and
immunities specified in
this Ordinance and
in the Lease
for the Fiscal
Agent. Any such suc-
cessor fiscal agent
shall file an
acceptance in
the form referred to in
subparagraph (A)
hereof with
the City Cleric
within 10- days of its
appointment.
14
(H) The Fiscal Agent shall be entitled to payment or
reimbursement for reasonable fees for its ordinary services and all
advances, counsel fees and other ordinary expenses reasonably and
necessarily made or incurred by it in connection with its ordinary
services, all such fees and expenses to be paid by Hutchison as Addi-
tional Rent as specified in Article II of the Lease.
Section 21. Waiver of Tax Exemption. These revenue bonds
re issued under the conditions that the provisions of the Lease will provide
hat Hutchison will waive any ad valorem property tax exemption which would
otherwise be available to the project under the provisions of K.S.A.
9-201(a) Second, as amended.
Section 22. Bond Purchasers. The Bonds are issued on the
ondition that the purchasers of the Bonds, prior to the issuance thereof,
each represent and certify that:
(a) The Bonds to be acquired by the purchaser are
cquired for investment purposes only and not for resale or further dis-
tribution to any person other than a bank and such Bonds shall not be
offered for resale in a public offering without obtaining the prior written
onsent of the City or an opinion of counsel acceptable to the City. At the
time of the execution and delivery of each Bond, the purchaser thereof shall
ertify that it has no present intention, agreement or arrangement for dis-
ribution, transfer, assignment, resale or division of its interest in such
and in a manner inconsistent with the provisions hereof.
(b) All materials and information requested by the
urchaser or its counsel or others representing its interests, including any
nformation requested to verify any such information furnished, has been
urnished and there has been direct communication between Hutchison and
is representatives on the one hand and the purchaser of such Bonds and
is representatives and advisers on the other hand in connection with all of
he information furnished hereunder arid otherwise requested and the terms
A the acquisition of the Bonds from the City as set forth herein. There
as been made available to the satisfaction of the purchaser and its advisers
dequate opportunity to ask questions of and receive answers from Hutchison
nd his representatives concerning the terms and conditions of the Bonds to
btain all additional information desired or necessary to verify the accuracy
f the information furnished.
(c) The City shall be released from anv requirement,
duty, obligation or commitment, express or implied, to furnish the purchaser
r any subsequent holder of any Bond issued hereunder any financial infor-
ation concerning Hutchison or to investigate and furnish such purchaser or
ny subsequent holder with an -y information concerning- the financial sta-us
15
I�esourcesfHutchison. Each purchaser shall represent that it is relying upon its own
and expertise to obtain and evaluate all such information.
Section 23. Authorization of Lease. The tract of land herein
referred to and the buildings and improvements to be acquired and con-
structed thereon pursuant to this Ordinance shall be leased to Byron F.
Hutchison under and pursuant to a Lease dated as of July 1, 1984, substan-
ially in the form attached to this Ordinance and incorporated herein by
°eference, which Lease the Mayor and City Clerk are hereby authorized and
irected to execute for and on behalf of and as the act and deed of the
Icity.
Section 24. Severability. If any one or more of the cove -
ants, agreements or provisions of this Ordinance, or of the Lease, should
e held contrary to any express provision of law or contrary to the policy of
xpress law, though not expressly prohibited, or against public policy, or
should for any reason whatsoever be held invalid, then such covenants,
agreements or provisions shall be null and void and shall be deemed separate
rom the remaining covenants, agreements or provisions, and shall in no way
ffect the validity of the other provisions of this Ordinance or of the Bonds
ssued hereunder, or of the Lease.
Section 25. Conveyance of Facility. Upon receipt by the
City of the purchase price of the property subject to said Lease, title to
said property shall be transferred and conveyed to Hutchison as provided in
he Lease and the Mayor and other appropriate officers of said City are
iereby authorized and directed to execute such deeds, bills of sale and
ther instruments as may be necessary to effect such conveyance and trans-
er.
Section 26. Effective Date. This Ordinance shall take effect
rid be in force from and after its passage and publication in the official
ity paper.
PASSED AND APPROVED by the governing body of the City of
alina, Kansas, this 18th day of June 1984.
Mayor
.TTEST:'��
y uier
1
16
1
1
EXHIBIT "A" TO LEASE DATED JULY 1, 1984
BETWEEN THE CITY OF SALINA, KANSAS, AND
BYRON F. HUTCHISON
AND TO ORDINANCE NO. 84-9026 OF SAID
CITY RELATING THERETO
(a) The North One-half (NJ) of the East One Hundred Fifty-
aven and Seventy-six One Hundredths Feet (E 157.76') of Block Two (2),
iverdale Addition to the City of Salina, in Saline County, Kansas.
Subject to: (i) easements, restrictions and reservations now of
:cord, (ii) the rights of the public in and to any part of the premises lying
being in public roads, alleys or highways, and (iii) taxes and assess-
ents, general and special, not now due or payable; and
(b) All buildings and improvements and machinery and equipment
structed or located thereon pursuant to Article IV of said Lease.
1
1
Affidavit of Publication
Following is a true and correct copy
together with proof of publication of the same.
AFFIDAVIT
being first duly sworn according to law declare that I am
the 69arketi ng Ili rpctnr
manager of the Sal Ina Jolirnal
a newspaper published in the City of Salina, Saline
County, Kansas, and of a general circulation in said city,
and continually and uninterruptedly published for more
than one year prior to the date of the attached
Ordinance dumber 84-9026
and that
was correctly pu
nance Plumber 84-9026
�of the date of
—19 84 a fur I say,p
ul G. llebb
Substtribed and sworn to before me
June 27, , 19 84
J.L. Harrison Notary Public
�
TARY RM - drat d KM
D.L. HARRISON
MY APP! EkA A* 31r M
(Published In The Salina Journal
June 26 1984)
ORDINANCE NO. 84.9026
AN ORDINANCE AUTHORIZING THE
CITY- OF SALINA, KANSAS, TO AC-
QUIK,g FOR DEVELOPMENT PURPOSES
THE REAL PROPERTY HEREINAFTER DE-
SCRIBED AND TO CONSTRUCT AND
PURCHASE BUILDINGS, IMPROVE-
MENTS, MACHINERY AND EQUIPMENT
TO Be LEASED TO BYRON F. HUTCHI-
SON; AUTHORIZING AND DIRECTING
THE ISSUANCE OF $200,000 PRINCIPAL
AMOUNT OFAVENUE BONDS, BY.
RON F. HUTCHIS73N SERIES OF 1984,
OF SAID CITY FOR THE PURPOSE OF
PROVIDING FUNDS TO PAY THE COST
OF ACQUIRING THE REAL PROPERTY
HEREINAFTER DESCRIBED AND TO
CONSTRUCT AND PURCHASE BUILD.
INGS, IMPROVEMENTS, MACHINERY
AND EQUIPMENT TO BE LEASED TO
BYRON F. HUTCHISON, AND PRES.
CRIBING THE FORM AND AUTHOR-
IZING THE EXECUTION OF A LEASE BY
AND BETWEEN SAID CITY AND SAID
INDIVIDUAL.
WHEREAS, the City of Salina, Kan.
sas, hereinafter sometimes referred
to as the "City,". desires to promote,
stimulate and develop the general
welfare and economic pr1r.' erity of
the City of Salina, -Kansas, and its en-
virons and thereby to further pro.
mote, stimulate -and develop the gen-
eral welfare kind economic prosperity
of the State of Kansas: and
WHEREAS, pursuant to the provi.
sions of K.S.A. 12-1740 to 12-1749x,
as amended; said City is 'authorized
to issue revenue bnds of the City, and
itis hereby found and determined to
be advisable and in the interest and
for the welfare of the City and its in-
habitants that revenue bonds of the
City be authorized and issued for ing
purpose of providing funds to pay th8
cost of acquiring real property here-
inafter described and to construct and
purchase buildings, improvements,
mochinery and equipment to be
leased by Byron F.' Hutchison, of So -
lino, Kansas, hereinafter sometimes
referred to as "Hutchison"; and
WHEREAS, the. City will acquire pri.
orto or concurrently with the is.
suonce of the Bonds herein author.,
ized the real property hereinafter de -j
scribed:
NOW, THEREFORE, BE IT ORDAINED.
BY THE GOVERNING BODY OF THE
CITY OF SALINA, KANSAS:
Section 1. Authority to Acquire Real
Property and to Construct and Pur-.
chase Facility. The City of Salin.,
Kansas, is hereby authorized to ac-
quire the real property described ancill
set forth in Exhibit "A' attached here-
to and made a part hereof and to
construct and purchase buildings, im-
provements, machinery and equip-,
ment -described in said Exhibit "A"
(said real property, buildings, im-
provements, machinery and equip-
ment being sometimes hereinafter
described collectively as the "Facil-
ity"), in accordance with the provi-
sions of the Lease dated as of July 1,'
1984 between said City and Hutchison
(hereinafter sometimes referred to as
the "Lease"), said Lease being au-
thorized by the provisions of Section
23 of this Ordinance, all at an amount
which will not exceed the cost of
$200,000 to said City.
Section 2. Authorization of and
Security for the Bonds. For the pur-
pose of providing funds to pay the
cost of acquiring the real property de-
scribed in said Exhibit "A" and to con-
struct and purchase buildings, im-
provements, machinery and ayuip-
ment to be leased to Hutchison, there
shall be issued and hereby are au-
thorized and directed to be issued a
series of Revenue Bonds, Byron F.
Hutchison Series of 1984, of the City
of Salina, Kansas,in the principal
amount of $200,000. Said Bonds hero-
in authorized, hereinafter sometimes
referred to as the " &ands ' and a
interest thereob t"
be- POW solei
from the money Ad re-'
ceived from the fees chanted and
rental received for the use of the Fa-
cility arfd not from any other fund or
source: The City hereby pledges the
Facility and the net earnings there-
from to the payment of the Bonds and
the interest thereon.
Section 3. Description and Details
of the Bonds, Designation of Paying
Agent. Said Revenue Bonds, Bynon F.
Hutchison Series of 1984, of the City
of Salina; Kansas, shall consist of 20
Bonds, numbered "from 1'to 20, indu-
sive. Each of the said Bonds. shall be
in the denomination of $10,000. All of
said Bonds shall be dated as of July
I, 1984, and shall bear interest from
data at a rate equal to seventy-five
percent (75%) of the bass lending in-
terest rate in effect at Planters Bank
and Trust Co., Salina, Kansas, as of
July 1, 1984 which rats of itite[sst
shall be a annually' each
July 1 t $o !lilt: of
interest, -For ear
will equal seventy- , )
of the base lendln8l a then
prevailing and chargeA '-it Planters
Bank and Trust Co., Salina, Kansas as
of said date. Said Bonds shall become
due as follows:
Bond o ncipa
Num 2q Maturity
3.4� 7-1.85
5.6 20 I-1.87
7-8 20 "7.1-88
9-10 , 0x10 7.1-89
11-12 (AO •x7.1.90
13-14 i0 7.1.91
15.16 -20t 7-1-92
17-18 20 7-1.93
19.20 20,000 °`. 7.1-94
The interest on, said Bonds shall be
payable semiannually on ;.January 1
and July 1 in each year, IigBinning on
Januory 1, 1.985 until" j"rity or
called for redemption.
Said Bonds shall be to the
registered owner fha lawful
money of the United Siatee`bf Amer-
ica at Planters Bank and.Traff Co., in
the City of Salina, Kansas. hereby
designated as the City's p a ant
for the payment of the p of
and interest on the Bong; rein
sometimes referred to as A 4 ?ayin9
Agent."
Section 4, Redemption ottti*Ayyrrtont
of Bonds Prior to Matud .,y, go hands
and each of them shalt be t to
redemption and payment 8t
Op-
tion of the City, upon insfiadlio
from Hutchison, in whole. pr.,% part,
on January 1, 1985, or onany"lnteres!
pa meet dote thereafter, PrIlhe par
value therof plus accrued Interest to
the date fixed for redempbn and
payment, without premium;`�7 ded,
however, that
any monies fjl3irlfirred
from the Construction Furth'''#to the
Principal arrd Mterest Acl�isfyfit pur-
suant to Section 9 of thhwCWinance'
shall promptly be applied to r*demp-
tion and payment of the; flprsds, in
whole or in part to the ext4prtt of the
full amount of such manse/; a1 the
par value thereof plus acchihod inter-
est to the date fixed for redemption
arrd payment; without tum.
Bonds to be 1, d mod a , pur-
suant to tKh' Si clion re-
deemod in Iriwrso numer.
Seeflon S. Notice of -ion.
Noticeol'any'redemy tion pr by
this Ordinance j 1 be
;once not less than.30 dayl r to
:the dotefixed for rodempfbg` the
offfcigl city paper of the I:Ify ice
,of any such redemption sf , be
given by the Fiscal Agent•1ted
Stoles 'certified or registerpil to
each registered bondholdeb <ifbwn on
khe records of the Fiscal
t,.
quant to Section 19 of the O
�iall
ovided that the failure-yt`9t
tice by moil as herelef' not affect the validity-
such call for redempt
a
shall cease on ny of s$ nds
tolled for redemption ons ent as
of the redemption daisi't ' rovided i
funds are available to pay a some
according to their terms. Notice of
any redemption as hCin provided
shall be given upon, byt only upon
written instructions from-Hyfchison,,
as long as Hutchison is not In default
in the payment of Basic Rent, due un-
der the Lease.
Section 6. Method pf E ion of
bonds. Said Bonds and eaa7t` them
shall be executed for'ortf ' hehalf
of the City by the sfgnq of Its
Mayor and attested by t azure
of its City Clerk, with the' of the
City affixed. Said Bonds o ` ' ch of
them shall be register in office
of the City Clark, ration
shall be evidenced by 0 to on
the reverse side thereon 'g the!
signature of the City Clerk 4
Section 7. Form of Each of
said 8gpds nd the q.ce ate at-
tached �teretao shall hesubstan-
tially the following form:
No. :.''t 5101000
UNITED STATES
STATE OF
COUNTY Q
CITY OF I
BYRON F. HUTCH11
SERIES OF I
KNOW ALL MEN 8Y'
SENTS: That the City of §r
County of Saline, State of
value received, hereby I
pay, solely out of the rets
inafter specifie
a
assigns the principal lurk
TEN THOUSAND 00
in lawful Toney of ?:►
of America, on the f
19_ qnd;
est thereon from the dole
rate equal to Pev
(75%) of the bq>
rate in effect of PIL
Ta
Trust Co.; Salina; 1Kbbent
1984, which rote of.
adjusted'annuall
year after date
rote of interest pa
suing year will equaf
The
until the 011114officlool surto
PRE -
in the
is, for
WS to
here -
M
rsT", ay of;
t. ,inter-
at a
ant
In est
nk and
.;ionJuly 1,
sholf be
I in each
sa that such
for the en -
seventy -five
I lending in -
and c -
and Trust
to.
be
nuo.. fit:
1, 1985,
shall have i
ge two
1
�J
1
ins
Ordinance Number 8479026
In
somelifieat-riferrlsd to as th'w"(lloiOne
Agenf l or the "Fiscal Agent ):
coom, aesngnatea as _ofy. of'Belin,
Keenios, B( ton F. Hutchison CtstttMhte-
THIS.BOND is oris of an ayNlrMl ad
mon Fu^d, ' hereinafter referrsld to ea
series of 20 Bonds ager JAa
tie '"Construction Fund." The Fiscal
,
principal amount of 3200,.
Ago* shall, first, prom tly ply Nttm
� the PI
ted by Ordinance of said 4: (Ma
"Ordinance') for 4ho pYrpose o pre•.
proceeds of SOLBald
�s into the Principal and IeNreM
viding funds to pay the cost aNtltst(yft
Account,the amount of any mcnad
irhg real property oral eorlsYtYdjng
and purchasing bulldfnps �
interest and premium, if any, no.
calved from such sale. Further, Ija
Fisica! Agent is
merits, machinery and
authorized to My fie.
(hereinafter sometimes rete sio-sat
cal and legal fees and other an mm"
the "Facility"', said Facility fur.
ther Identified in the Ordinanco. to by
relating to the issuance of seed
Bonds. The balance of the proceeds
lensed to Byron F. Hutchisao al So.
of the sale of said Bonds shell de-
lina, Kansas, ("Hutchison'), �Mrsu�n
posited in said Construction Fund.
to a Lease dated July 1, 1 (fleet
"Lease'), by and between nilift city
Said, Construction Fund shall be used
for the purpost of providing funds to
and Hutchison, by the au
� pay the construction and OcgidMstan
and In conformity with ,thsr
costs of the Facility to be leased to
Hutchison
restrictions wand
as provided In said- ss,
land the Fiscal Agent
r
Constitution anal statutes of 14
shall mala dfs.
bursements from said 'Construction
ai Kansas. Inthsding..K.S.A. tf}liid'10
12-1749x, fond all amendmesMs' sbo e-
Fund in accordance with this Ord-
rang and the lease. Any mortice not
of and acts supplemeMd t ani
all other provisions of the Iowrs of
required for said purpose shall, w han
ten Facility is complete as provided In,
said State applicable' thereto,' and this
the Lease, be deposited by the Fiscal
Bond and all interest hereon are to
be paid by said City of Satins, Kan•
.Agent in said Principal and interest
sae, solely and only from the moneySection
Account.
10. Principal and bhlsreN
and revenue received from the fees
charged and rental received for the
Account Theas is hereb�y' outAeriasd
al
use to the Facility under sold Lease
and ordered to- in Ase
hmds of the Fiscal Agent an odwtwoo -
and -not from any other Iwd or
source. Pursuant to the provisions of
of separateroccount to bo`knassN M
the "City of Salina, Kansas, Pr(ttclit
said statutes, the governing body of
the City has pledged said Facility and
and lnterest..,AccoVnt for Rswsnhr
Bonhds, Byron F. Hutchison S oust of
the net earnings therefrom to ttno
payment of the, series of Bonds of
1984 dated July 1, 1984:', heralasdtar
"Principal
which this Bond is a part and the in-
referred to as the seal mor
milt Account". The City covenants
terest thereon. This Bond -do" not
and agrees that from and after fen
constitute a debt of the City within
delhmry of any of the Revenue 111,
the meaning of any Constitutional or
herein authorized and Conti nq to
statutory limitations. Reference is
long as any of said Bonds sfilMf re -
hereby made to the Ordinance end to
mein outstanding, said City wilUssaht-
the lease for a description of the cov-
rain said, Account with the, Pisces
enants of,the City with respect to int
Agent. All payments of Bosiq Raw
payment, collection, segregation and
and Additional Rent due under sold
application of the revenues hived
Lease between the City and Hutrl isen
from said Facility, the nature sad ex-
intended to pay the principal of end
tent of the security for the Bonds, the
duties
interest on the Bonds shall be opphd
rights, and obligations of the
and allocated by the Fiscal Agent to
City aria the Fiscal Agent with respect
said Principal and Interest AFcount.
thereto, and the rights of the holders
All amounts credited to and depos-
of this Bond.
tied in said Principal and Interco Ac -
Each of the Bonds of the series of
count shall be used by the Heed
which this Bond is one issubject to
nt
Ageand forwarded to ,the ►ayhy'
redemption and payment in, dtale or
Agent for the sole purpose of poy"
in part, on January 1, 1985, or on any
Me principal of and interest on Mme
interest payment dote thereafter, at
Revenue Bonds hotein aatborisd as
the par valor therof plus accrued In-
terest to the
end when the same.jdue or
redemption and pay""""
date, without_ premium. Bondstorant,
ore called for rethimpMiin and pay
Any balance remaining in set
redeemed pursuant to this pVagroph
Principal and Interest Account, tricke&
shall be redeemed in inverse rwmer-
ical
inn interest earned on dopqsits made i
order.
Notice of the City's intention to re.
into -said Account as prepayments of
rent and'due under Article IF of calci
deem and pay said Bonds purausat to
Loose, shall, when said Bonds have
the redemption provision Is old,
specifying the numbers of mss Bonds
been paid, or poymltt provided for,
be to Hutchison:
to be redeemed and paid, shall be
rid
SFr i1. Conyerant to Rods"
published once not less than -0 days
BsnBs When monies ciccumulo W in
prior to the date fixed for M----1
sold Principal and Interest Accewrt
Cpayment in the official�p
of the City. Notice of
shall aggregate an omauM auricles
sushi
shall also be, given by United States
certified or re�iot, malt. ta each
bondholder
to'
o Pay the principal of all the month
them outstanding and all Interco sc-
' crit. to date fixed for red, opNmsn.
registered shown on the
and payment, and redemption pas -
records of the Fiscal Agent.
mium, if any, and when said Bents
AND IT IS HEREBY DECLARED AND
become sub*t to,risdiibption, said
CERTIFIED that all acts, condlllons and
things required be done
CMV shall, upon receipt of; instructions
to and I* ox-
I.,to and in the.Nsuence
fra}n Hutchison, proceed to gnue nes
precedent
of this Bond hove been pr dao
tion -of such sIptio. in the ran
nor herein specified, and aid, Fieaal ,
and performed and doe due
Agent shall' use such funds for seW
and regular form and mannaf as re-
purpose.
quired by the Constitution end laws
Section 12. Investments. Subpd to
of the State of Konsas.
the provisions of paragraph 01) of
IN WITNESS' WHEREOF, Mie City of
Section 13 of this Ordinance, animistsSalina,
Kansas, by its govorrWy body,
has caused this Bond L to be signed by
in the Construction Fund and the Prin-
cipal and Interest Account shall, upon
the signature of its Mayos and at.
instructions from Hutchison, be in=
tested by the signature of Its City
Clerk, and Its be I
vested by the Fiscal Agent In obligoo
corporate, q1
4. to
hereto affixed to be signed with the
tions of the United States tn
ment or an agency or Instrumento•
signatures of said' officers; lnd thk
Bond to be dated this fist day of
lily ther.7 or , in Grtfficates of
Deposit or, other savings or time do -
July, 1984.
posits of a'state or national bank. Its
chiding the Fiscal Agent, in such
Mayor
amounts and maturing at such times
ATTEST:
as shall reasonably provide for ow..
nes to be available when required in
City Clark
said Construction Fund and. Principal
STATE OF KANSAS, COUNTY OF SA.
LINE,
and Interest Account. All income from
ss:
1, the undersigned, City Berk of
investment of the Construction Fwd
and Prinrypal and Interest Account
the City of Salina, Saline, Kansas,
hereby certify that the wNMn Revs
'Byron
shall accrue to and become a port of
and be transferred to the Principal
nue Bond, F. Hutchioo s Sorles
and interest Account.
of 1984 ofibe City of Salines, Kwsos,
Section 13. Particular Covenant of
has been du? registered in my e8ka !
according to cow.
Me City. So long as any of ths'psnscl.
of and interest the Bonds.Mwe-
WITNESS my hand and o(ifYdsl "W
pat an
in authorized remain olitsfandint shot
this __ 'day of
unpaid, or until provisions aro mads
1981.
for time payment thereof, the Ciff�Irr con-
Citt'Perk
venants with each ofli%e purnflhews
and owners of sold Bohds as follows:
Section 8, Execution e1d o11 I
(A) The City will use the proceeds
of the series of Bonds heroinomthte►-
the Bonds, Deposit of
Designation of Flscal Ape May
ized as soon as practicable and wish
or and City Clerk are 6ir:6 author-
all reasonable dispatch for the
for Bonds
Ized and directed to prepare and exe-
pose which -said are
cute, in the manner hereinbefore
as hereinbefore set forth, Sahf pro -
specified, the Bonds herein author-'
coeds will not be invested tit why
Ized, and to deliver sold Bowie to the
securities or, obligations exaspt est
purchasers thereof on payment of the
the temporary period penditly •srxh
Ixrrchosa pprrice Th�o ppror4eds d, said
Bonds'tdreT4'. h. die,�i(6re..61616 est....._ i
use and sscsuttd Pio¢qq��� wJi14 sat be
used dfroc or' indliactiv `stn. as to
rights o
being (Adra
of this Ordinal
cifI souse40,1 ei any' of the °ponds
as: he►eirr
y-anh t��44b ning
eve-
ue `Thee
ad.
cl
aatYrititss or obligations that sv1R
llistts a yie(dhigher than the M
In
t al the issue
Ilmi pends, or oNthoriked
►Nelms of the maturity,
sttlato,"regulations of
OepsrfMwit of the Unit ssi Statas
an wsy Bonds issued he
romloc' n in the princip
o!*,/ands the
LIN e Internal Revenue Servic
the (�ia of
y States or a decisioA by ei
or rot
(d) a reduct
court N ulitmate jurisdiction h hits
Mat an acquistion of securities or eb-'
f
ligir"oas producing a . yield higher
than std Bonds will not cause ,NNd
out■sof the pr
I bonds, to the I
Bonds fo be Arbitrage Bonds ac de-
outho"
fined M said Subsection (c).
(5)
(B) The City will comply fully with
all thie,ternis, pray�s,s ions and Conch-
homeless thereon.
(0) City will cause H
keep. o nstontly insured 44
tions the Lease 3(ch requfel.,per-
forme' by
�ovements fromrth
f^B a
or impose cutiss cif the
City; will not permit any defouh to
lar* of ,tint
sales�n�i"s looatd..to 14
Occur in the part of the CHV;,: will
fully and promptly enforce, onnd will
the, tnor provfdedf bi
AarjlM( authorized. ThitsCity
ern
pmt the Fiscal Agent to enfdrto 9n
be. a"
Its behalf and on behalf of tfsw hA-
art if the Bonds', all of the t Nil
I
PONCIP shall r
PosMM►-with floe fiuol Ay
Trustee. Any
prevfsiehs and, conditions of the ten �
Which req'ufre plrforftronce by er M. I
surasse of tis
of doff' such insurance po
be in
o�ppss.� duties on Hut' Ison; anj fn' Ow
event of the occurrence of a
�a and app led 0
sl�,�"� m said Lease.'
M dO&*.d in the Lease, will ettefLiiie'
std peFrynit the Flicaf Agent te' ,
N1f'lhe City will cause
Ateto maintain. ' adegtna
cse wits behalf dnd on behalf jrifho a" amounts rotating to 0
e and a rt frase.asl
of the Boi+Hl; all rigllii end ad/itrs/ Pa
AM�t
conferred'by the L 'for,
of accounts of the t
she fun and complete prole slut of
the soft antd rights of tin` bond-
o�Agent, dnd sufh .ry
s 'shall be maintop
hold"cmcl, to the lxtent permitted csritwca - with generally
bt'tM Lease, wNl'use its best oilers privlFies of accouMMg as
to ereyre a new tenant or lsrhanM chile complete details of a
for eased .pDroperty uador foo"
I" Ions related t9 the
s°a^d cow Ie
For s whkft will providck-,�ands
in amount to make ibe t-
of nts nd other chargee kis
. Such records,enfl
�, dltally dbigniH
Z.: to showr.whothor'i
Is hired to ma
8e Lease. If the City is unablee], le pro• prehrlions of ibis Ordinate
cum a New tenant who will suntan into I Low* referred'.
such a lease the City may, trrlih ten ced with. Such book
m
scale g�R �
shall be avdlable fir
consort of the holders of pas, lea
flan sixty-six 9nd two-thirds,g♦Icont
(el #41 of the.Boads heiroin,40nor•
Filson or his aponft
den of the Bonds
Ind of the timpo outstanding,; soti the
Facility lbs
during t re"i
� the City or, the Fists
:teased at price not then
the account of chi' than outele ng
Sastbrh
flanderphus Interest then unpdW
14. A t!
Monts
of the Bo outs
1!t
(C) isms City will enforce, wHl
permit the Fiscal Ag"t to a on
rdinanc�e and the pr+
,his Ordinance may be,
1
Its behalf and on behalf of awn.
on of the Bonds, collectick" the
athwh at any time by Mw
shot, written consent of the
rental " mont, and other c " in
no friss than sl)rtysix' and,
the amounts and at Mte t)me, fartA
in the lease outhorli4d ho . and
paawM (ft62/3%) in aggrs�y
Pat Mount of the Bonds l
will net reduce or cause at to
be 1- l
ilhaitd--ot the time outstor
that no
is - the rental
eMmmr cAames fixed, ast i add
squired 4y:tho Lsatk dor a
vW*d such mods(
int shell permit a
strrsi as permitting: (a) IN
after tI� time or times the
sense :doe she
tion of ant duties or romp
of thefiscal Agent unless
Ord tlhl#Sr
levo.=ma'thy'a "110- tiyl�fi+yr tins
- (e) the oxtensht
beBcmtsd.to funds madopygoame to
BemBs .issuid hereuride
it for Illicit purpose by the
►Nelms of the maturity,
ten Bends or other IMervted Pdttios
(D III payment of ail thea--- -
an wsy Bonds issued he
romloc' n in the princip
o!*,/ands the
end rest thereon has, bares dul
made M provided for, the CAy wiof
or rot
(d) a reduct
not gtibent to any change, ittmand-
modification
principal amm
llfgnhsent of Aoks
mint..
std e, except as providoilAsfor
or terminetlsn4-a�
'ony
apy,`such a
'Any
In, tihtdh will In marmottion.
�dvm�t rthe rights, remedipt or
prof
msl► oral this Ordinow
Forces of the bondholder.
(91 Any purchase price of
, be modified or an
res�t i w writs
Prepei9y any proceeds of c
tka 8aldars' f ;all al t
Mos ,mgrds ar inwrante ps�pmmtt
ensu , ich are received by Nje City'
ceding mendmd
dlrasmc0 who correct
to the termination 'mol
er any other funds,
al Renis
ties; •which a+
ambiguities ers
.purport pvYYtry tltlh
YMd soioly. arhd.eXCIflMvehy ta
so6-1 -ogr-e
tion
City
m fir" - to Ordina to
O1 o{ be
ttsta�
to r pr lied
d ss Ordird a of
we wNect to redemption mrd Mpoyy
meat; We City shall-, It on f>�M
to call she Bonds for redempsbn( end
paysn8 0 accordiitp to *air terms and
shell yste notice, or cause notice to
be given therreof, as provided for ��y
the terms alt this Ordnance, ihntA
funds shall be deposited with the Flo -
CC "Mont, and IN* seine 'srl" be
"ad solely :ter; the, psymery R# the
Bards herein authorized, eccnued M-
teresFMerson, any premium Pr. M.A
for by this Ordinance and the chin
of tits Paying Agent and the,"
Agent for paying the some.
The City will not issue cosy ether
ns payable from pays siaft by
pursuant to the Lass, nue
voleatmlly encumbrance, or slay =oth-
er crap an said payments or till the
praeorty subject to said Leave nor
will it. unless required by law or by
the s of'Wd Lease, sell a oder-
whe ose.of the Facility W any
part Nhoreof; provided, howevoic that
seed gz May. issue from time ail lime
addrl8aal revenue bonds for tee par -
pace of completing this, conoult ion
�r esrlWisltion, thereof -on the ,lend
hMe et'Paflrred to, provided fol-
(ewrirne fPrnis and conditions a�if ai:
R [Ia City sAall hgva �lifserad
iflMei,a of or"ogreemeM vtl�
skilless with,rentals or, paynelift at
in* oummeat fo pay the
.amt 4M Interest Ci "id a efmd
bends w+thtr some become dap.
(ti) it lit isnot lot dotaelr+inAm
of the
which
id old
Aall.b
the Ci
the. o
h satstanyl $Dods an
to errCA a on,or M
sisjr dpon. mon of the!
al pre
E
ing the earn
ry such a
euppem
a certif
ndR'%e sent
sci �iond
AbMMr requ
This Lea
col oydinan!
copy of this
Jho City Cl
I t or prosPa
Ing the some
herouthc
to* or c
n other, rthat W**
maybe m
only with enliew
al hews ape 1 ed percan
hotda►s of
8orsdi6
lib than o .
$motion l
Woo of thi
rdorcomont: pMNm
rdinanae s
Noe a cont
'between A
the holders
the fiontde ee
tharissd,
the holder
w ,turns of
d'8ond!
page three
lSection 16.
ot Bends.,
on >
1
wthor on maturity or upon co11lpM
domptlon, then the holders of#.
five percent (2SX) of the
amount of Boners' then outs
may, be written notice given less
Fiscal ACnt; declare the poi 61
oli fhe 6ondr herein=,
outstanding to be due and
Immediately, anal upon such
tion given as oforewid, all at sold
Sortds. shall be immediately dice and
payable, anything in said Bonds or M
this Ordinance to: the contravy nob
withstanding. Upon receipt 11:
such written notice from such
holden, the Fiscal Agent shall i
diatsly notify the city in writini dl the !I
receipt of such notice. This p
however, 'b subject Yo the c
that If'ot any time thereafterarar-
rears of interest, except IntsnMcl oc•I
trued but not yet due; and all ttstesxs l
of prinatpal shall Ixtve been pedal in
full, then in every such cast, the'
holden of a majority in 01 'psi
amount of the Bonds thew out-
standing, Ily written notice to NlWFIs-
cal Agent, may rescind and "nwyst1�
such trloclaration and its conse-
nul onf shall extentdtosors'
subsequent default or ins erry
rights .consequent thereon. tris Pisa.
Agent shall Immediately no* fhe
City in writing in the event so Urfsh
rescission or annulment. ,
Section 17. Accelerated Moserlly of
Bonds in the Event of TaxaMRNy. M
the event the Interest on the 60iAl is
includible in the gross income el
Bondholders for federal Incom
purposes by reason of the fell!such Bonds to qualify for the
tion rovided In Section 1
of the Internal Revenue Code
as amended, or by reason of Are for
mination of such exemption, Aran in
either of such events all e/ ova
bonds then outstanding shall Mralrrral
and be due. and payable at the prks�i.
pal amount thereof, plus actptrad in.
terest to the, snaturity date,
f�s
with a premium which shod lie, ort �
each :and then outstanding, ooW to
thirty-three and one-third
(331/3%), of the interest o
paid or payable on such beadk1yyrr
each year the interest on sush =
is includible in the gross imer m of
the Bondholders for federal . (raceme
tax purposes. The date of plpkwify
shall be 60 days after the hdorwol
Revenue Service, Hutchison or the
Fiscal Agent shall give writl, notice
to the City of the inclusion uM 11111,11Fins'
terest on the Bonds in the 00se In.
come of the Bondholders.
Section 18. Woosanco, %%" an
the Bonds of the City herein *rNw-
ized shall have been paid d4 -
charged, then the requirement
con-
tained herein and the pledgeof reve-
nues made hereunder 'and ON eNser
rights granted hereby, shoN cosec
and determine. Bonds shaill\be
deemed to have been paid end.
charged within the means of
Ordinance when there shIstsve
been deposited with the FisoW A@W
at or prior to the maturity or rednep•
tion nate of sold Bonds in dant. for
and irrevocably apppropriated IlInI on,
sufficient moneys for the 'i_
i_?ea
the principal thereof and interest ec-
crued to the dote of matur#r,.4W re-
(demption, as the case may of N
default in such pa ment s Reaps
occurred on such date, then to dw
date of the tender of such payanaNr.
provided, always, that if arW such
Bondi shall be redeemed prier to Hill
.maturity thereof, the City sholl heft
elected to redeem such Boards iwid
notice of such' redemption s" Dsloe
beengnvon. Any moneys whiell of �aMs�yy
time sha11 be deposited with Mss tlaM
Fiscol Agent by or on be *1 0&
City, for the purpose of poylwr pelt.
diacMrging any of the Bo pltsN
be, and are hereby, assigned, it*
ferred and set over to such Fieil
Agent it( trust for the respecMci hald-
ers of the Bonds and such
shall be and are hereby irr9yt i
appropriated to the payment meal ISs.
charge thereof. If, throw �yy� at
time or otherwise, the Mfderli ei`Wrg
Bonds shall no tongs! bs enNl ed so 1,
enforce payment of their obfigMNerss,
then, in such event, if shah' fN ciao
duty of said bank forthwith fe neserrr
said funds to the City. All mei t>7�
PPosned with such Fiscal LAMB,
cited
to be deposited
once with and subject to eN
provisions contained in t* ordl-
lonce.
Section 19. Registration
holders, Transfer of Bonds.
Agent shall keep on file at
pal office a register setting
names and addresses of the
holders of each Bond, wl
shall be identified; by nun
Bonds shill be so register
both principal and intense*
entry and recording of su
on the ownership register
Ordinance Number 84-9026
11 00 Fiscal tqt per) 3 the* torr.
Mia I bifid j p�
siwatF �Y the C ty of loch
carer,record owner. At neo
odd under' real bis 11
s 'established by the R ,
the register of ownership
0jins�tted and copied by Hut odshaa
r any registered owner (or a
rued representative thereof) of eny,
>N~ 20. Provisions Relating Ie'
W Plaoel Agent.
(A) Prior to the `receipt of ft
tiered proceeds pursuant to the pro-
tdsiens of Section 8 hereof, the Fk-
Agent shall file with fhe tbY
its written, acceptance d �q
dellesspecified in this Ord4selice
sinal in the Lease and its ogreoo
f �d'in sold coparJty,
q) TM Fiscal Aaent's duties,and
-and in the Lease
fMlher include those righ
ebllponsibilities and ob
MMMkh are reserved to or
rt�Nt the City under this C
anal fhe Lease, excepting
of she rhes, duties,
bNNfes eniaiibp��Mo�s
its prepaly; ,
by or inrpeeasi upon she H
(C) All resolutions, opinions, ow.
tificates and other instrumerns,
tarred to or provided for h ar
in the Lease may be arca
the Fiscal Agent as conclusive
dente of the facts; opinio
conclusions stated therein and
be full warrant, protection seal ge.
thority to the Fiscal Agent for ony
action reasonably taken pursubst
thwato. Thal ,Fiscal Agent 914611, Aril
urrdrp- a duty'. to examine art t i
r tions opinions; car
onrd.ether instruments to deleswlsior
whether or not they conform to..
rentwkements of this Ordinomm-
the tease.
jp) The Fiscal Agent shall
liable with respect to any. vcNpn
taken or omitted to be taken+
in good faith and, if oppr
upon advice of counsel who�iiY`
covinsel for the Fiscal Agent etN19M
Citer Hutchison. •�+ m»c
() No provision contained In Mtb't
Section shall be construed so ro-
lieve the Fiscal Agent from BMbtN1y
for 04 own negligent action,: iSMaMfn
negogent failure to act, or dYwartn
w9 I misconduct, except t(itlj1.11ys
subsection shall not be conseved jo
limit the effect of subsections
(C) and (D) of this Section
Fiscal Agent shall nm be lit
any error of judgment' ` n
Good faith unless it aholF be'
t the Fiscal Agent was ne010.
M
in ascertaining the pertinent I aq.
(F) The Fiscal Agent shah I
the (right to buy, sell, own,
croft in the Bonds wlthouf
lU
naYae thereof to the City of,Modif
son or any bondholder and mwl�ptn
Incurring any liability whahegvsl,
wHFF!respect thereto.
(G) The Fiscal Agent mots.
by an instrument In writing dial
to the City and Hulchiasdj
effect not sooner than W
epbr its delivery, 'whereu
Cl", with the consent of H
Shelf immediately, in writing,
nate a successor fiscal a ant.
successor fiscal agent shag fee e
.be*, trust company or 01 -m el
betaking association which is a
melfllfor of the Federal Res"
tyres and has a capital statla,
sw s aggregating at least
cite Isco' Agent at the time �M-fife'
de"nation hereunder. Sup�Nee•,
caner fiscal agent shall be soNeat'
to tits same duties and obllpet,MrN•
and shall have the sam* rI
privileges and immunities
in this Ord[nonce and in the IAIINR
for the Fiscal Agent. Any sae(t.Ipt4-,
castor fiscal agent shall file on AK'U'
c ptence in the form referred_te.'
subparagraph (A) hereof wilth "Ase'
City Clerk within 10 days of its'elf.-
polntment..
(N) The Fiscal Agent shall be
fernas payment s or itsreimb=
ter reasonable fees for Its
services and alt advances,
feet and other ordinary experess
reasonably and necessarily m�N
Incurred by It in connection w1d1lis
ordinary services, all such fess ani
oapenses to be paid, by H
ee Additional Rent as speer,
AnR1e 11 of the Lease.
Section 21. Waiver -of Tax�st�y�.
lion. These revenue bonds ora=
undo the conditions that thepIc�M11
ova of the Lease will provtdll°eMif '
tichison will waivo any Qd volar"
operty tax eyemption which
Wworise be available to the
r the provision of K.S.& .
Second, as amended, ry,
n 22. Bond Purchasers.
TRIM_ art, issued- on the c
Purchasers df the Botox
Issuance, thereof,
IIMaf oral M►tthdf:.. ,
roni ln�
Poses onlyy. tt milt,`.
"her drstribtltlon to a
r than a bank and
all not be offered for
c ois offeringwlthouf ob
ffN fitter written consent of chi
M an opinion of counsel accep&Iii,
se CRy. At the time of the exeaw—
'� delivery of each Hand, liter
h r thereof shelf certify shelaWr
no present intention, agraemrlM t
or arrangement' for distribistlot,-,
Mertsfor, assignment, resale or OWy 1"
$lon of Its interest in such Bonikkr%d'
moslmt 'inconsistent with the Wowl•'
Akin boreal.
IN All materials and infortnaWN►�
reeieeeted by the purchaser ar iW
co.kosol or others representing bs-04
teKoels,� Including any informatUM'1si
gWitelf to verily aqy such in(rlfl W
`tion fwnished, has been furtiiMwadC
end11mot has been direct corOnspni-•
cofffse between Hutchison and his
negtatian the one handasel
she pmhaser of such Bonds end 1W
tatives and advisers oho tMnf
hand in connection with allsd
Information furnished hereertiir
Ip.�d otherwise requested ants" titin
tiswns if the acquisition of the blesi s'
fir" ' Ole City as set forth hoiakk• '
Ms been made available Ie Nee
on f the purchaser and Ne••
adequate opportunity e
of and receive atrerers
tchison and his
fksne repNike heterms ad
u
=n=o
obtain a
ciente. fnformotion desired or eeq
>•ry b verify the accuracy of festa:;
irdonasetione furnished.
(chis city she" beOW
relalrMflA'
hoof
holder r
r any financial inf
ng Hutchison or to ktvaistt-�
d furnish such purchaser d'r
equent holder with aA�r
concerning I . financial
Hutchison. Each purchaser
rearesent that it is relying ufson
aytfm resources and expertise to
tdn and evaluate all such indartsri�.
fi�n�
�oeNen 23. Authorizationof
tract Tile of land herein reo'22
and the buildings and impro,
to fie acquired and construct
on. Pursuant 'to this Ordina
be teased to Byron F. Hutchia
qnd pursuant to a Lease dat
July 1, 1984, substantially in go
aneeked to this Ordinance Id
corporated herein, by re
wltkh tease the Mayor and C
ort hereby authorized and directedto
snrecfrte for and on behalf of O; ft
the ea and deed of the City.
SelMon 24. Severability. If a
or more of ,the coveng%Jv,
rnertfs or provisions e
+nonce, or of the Lease, shwld
held contra to a exp�orss
sions of law or contrary td the " °e
of ass -law, though not
pr ed, or against publij s
or 1d for any reason whstrrosresr
be hold invalid, then such c, -nes
ngreeZnts or provisions shell 40
null ar(d void and shall be A I_
separate from the remainistB` AU
melts, agreements or provi
anrd shall in no way affect the
of else other provisions of tpie
none* or of the Bonds issu
vnder,'or of the Lease.
Sedan, 25. Conveyance of teal
Upsµ receipt by the City of
chose price of the property
said Lease, title It said property
be transferred and conveyed to
chison as provided in the Lines and
the Mayor and other a propripfo eih
can of said City are hereby -It�.
*11
izady mind directed to exepge,.astclt
deeds, bills of sale and other instru-
nne?>rs•as may be necessary b effect
ssiijIlesenveyance and transfer,
,mon 26. Effective fate. Thb:Cor:
61Mide shall take effect and be in
face from and after' us pasaap+o"t,
pelrYestion in the official Cityscapes;.,.
, tMED AND APPROVED by dW
wovesAing body of the City of Soliwds -
1(gryes, this 18th day of June, #4" O;
/s/Charles B. Rock
Mayor
ATTEST:
./s/D.L. Harrison m, nos t
City Clerk no ow,
ExNWT "A" TO LEASE DATED JUWV
1984 BETWEEN THE CITY OF
KANSAS, AND BYRON F. MUT '
AND TO ORDINANCE NO. 84-9= bF
IAM/ CITY RELATING THERETO
(a) The North One-half (N'h) 41111—
Eel} One Hundred Fiftyseveo e�1i88
One Hundredths be"
ISAsixBlock Two (2), R�
Addition to the City of Saline, Ig.,
Bras County, Kansas. ft
$400 t to: (i) easements, raw ecNiitii
61111 reservations now of recon♦, (}ij
tisoe1tts of the public in geld to 41'
to roads, alleys or hiyhrs
Totes and assessment!,
Specials no now due or