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81-8878 Real Estate Purchase1 1 u (Published in The Salina Journal, &P2,:00b0_r c_! , 1981) . ORDINANCE No. .. 78 AN ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS, TO PURCHASE AND ACQUIRE CERTAIN REAL ESTATE LOCATED WITHIN THREE MILES OF THE CORPORATE LIMITS OF THE CITY AND TO CONSTRUCT ON SAID REAL ESTATE AND ADJOINING LEASEHOLD INTERESTS CERTAIN RAILROAD TRACK SIDINGS, TRACKS, TIES, SWITCHES, GRADING AND RELATED IMPROVEMENTS, FOR THE ENLARGEMENT AND IMPROVEMENT OF GRAIN STORAGE AND HANDLING WAREHOUSES, INCLUDING THE ACQUISITION OF THE SITE (CONSISTING OF CERTAIN REAL ESTATE AND LEASEHOLD INTERESTS), NECESSARY SITE PREPARATION, STRUCTURES, EASEMENTS, RIGHTS-OF-WAY AND APPURTENANCES NECESSARY AND CONVENIENT FOR THE ACQUISITION AND CONSTRUCTION THEREOF, TO BE LEASED TO MORRISON GRAIN COMPANY, INC., OF SALINA, KANSAS; AUTHORIZING AND DIRECTING THE ISSUANCE OF $400,000.00 PRINCIPAL AMOUNT OF SALINA, KANSAS, MORRISON GRAIN COMPANY, INC. REVENUE BONDS OF 1981 OF SAID CITY FOR THE PURPOSE OF PROVIDING FUNDS FOR THE PURCHASE, ACQUISITION, CONSTRUCTION, ENLARGEMENT AND IMPROVEMENT OF SAID PROPERTY AND THE IMPROVEMENTS CONSTRUCTED AND TO BE CONSTRUCTED THEREON, TO BE USED FOR AGRICULTURAL AND COMMERCIAL FACILITIES TO BE LEASED TO MORRISON GRAIN COMPANY, INC.; AND PRESCRIBING THE FORM A'INM AUTHORIZING THE EXECUTION OF A LEASE BETWEEN THE CITY AND MORRISON GRAIN COLPANY, INC. WHEREAS, the City of Salina, Kansas, hereinafter some- times referred to as "City", desires to promote, stimulate and develop the general economic welfare and prosperity of the City of Salina, Kansas, and its environs and thereby to further promote, stimulate and develop the general economic welfare and prosperity of the State of Kansas; and WHEREAS, pursuant to the provisions of K.S.A. 12-1740 to K.S.A. 12-1749a inclusive, as amended, hereinafter sometimes referred to as "Act", the City is authorized to issue revenue bonds of the City, and it is hereby found and determined to be advisable and in the interest and for the welfare of the City and its inhabitants that revenue bonds - 1 - NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: of the City in the principal amount of $400,000.00 be autho- rized and issued, for the purpose of providing funds to purchase and acquire certain real estate located within three miles of the corporate limits of the City and to construct on said real estate and adjoining leasehold interests certain railroad track sidings, tracks, ties, switches, grading and related improvements for the enlargement and improvement of grain storage and handling warehouses, all to be used as agricultural and commercial facilities to be leased to Morrison Grain Company, Inc., a Kansas corporation with its principal place of business at Salina, Kansas, hereinafter sometimes referred to as "Company", the proceeds of said Bonds to be used for said purposes in conjunction with funds otherwise made available for said purposes: NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: SECTION 2. That for the purpose of providing funds to pay the cost of the project there shall be issued and hereby are authorized and directed to be issued a series of Salina, Kansas, Morrison Grain Company, Inc. Revenue Bonds of 1981, of the City of Salina, Kansas, in the aggregate principal amount of $400,000.00, hereinafter sometimes referred to as "Bonds" or "revenue Bonds". The Bonds and interest thereon shall be paid solely and only from the money, revenues, fees, charges, rentals and other amounts received under the terms of the Lease of the project to the Company and not from any other fund or source. The City hereby pledges the project, the Lease and the amounts receivable thereunder to the payment of the Bonds and the interest thereon, so that payment thereof is secured by a first lien on the project. - 2 - SECTION 1. That the City of Salina, Kansas, is hereby authorized to purchase, lease or otherwise acquire the real estate described on Exhibit "A" attached hereto and by reference made a part hereof, and to construct on said real estate and adjoining leasehold interests certain railroad track sidings, tracks, ties, switches, grading and related improvements, for the enlargement and improvement of grain storage and handling warehouses, hereinafter sometimes referred to as the "project", to be used as agricultural and commercial facilities in accordance with the provisions of a Lease dated as of July 1, 1981, between the City and the Company, hereinafter sometimes referred to as "Lease", said Lease being authorized by Section 16 of this Ordinance, all at a cost to be paid by the City from the proceeds of the revenue bonds herein authorized not in excess of $400,000.00. SECTION 2. That for the purpose of providing funds to pay the cost of the project there shall be issued and hereby are authorized and directed to be issued a series of Salina, Kansas, Morrison Grain Company, Inc. Revenue Bonds of 1981, of the City of Salina, Kansas, in the aggregate principal amount of $400,000.00, hereinafter sometimes referred to as "Bonds" or "revenue Bonds". The Bonds and interest thereon shall be paid solely and only from the money, revenues, fees, charges, rentals and other amounts received under the terms of the Lease of the project to the Company and not from any other fund or source. The City hereby pledges the project, the Lease and the amounts receivable thereunder to the payment of the Bonds and the interest thereon, so that payment thereof is secured by a first lien on the project. - 2 - Series A Bonds in the aggregate principal amount of $150,000.00 shall be payable on or before July 1, 1986, and shall bear interest on the unpaid principal balance thereof at the rate of 10.25% per annum from July 1, 1981, until fully paid; Series B Bonds in the aggregate principal amount of $125,000.00 shall be payable on or before July 1, 1991, and shall bear interest on the unpaid principal balance thereof at the rate of 10.375% per annum from July 1, 1981, until fully paid; and Series C Bonds in the aggregate principal amount of SECTION 3. The Salina, Kansas, Morrison and shall bear interest on the unpaid principal balance thereof at the rate of 10.50% per annum from July 1, Grain Company, Inc. Revenue Bonds of 1981, shall be dated as of July 1, amount of each series of Bonds as set forth herein and with 1981, and shall be issued in three separate series which shall be the same in all respects except as to interest numbered from one consecutively upward in order of issuance. rates and maturity dates, as follows: July 1st of each year commencing July 1, 1982. The Series A Bonds in the aggregate principal amount of $150,000.00 shall be payable on or before July 1, 1986, and shall bear interest on the unpaid principal balance thereof at the rate of 10.25% per annum from July 1, 1981, until fully paid; Series B Bonds in the aggregate principal amount of $125,000.00 shall be payable on or before July 1, 1991, and shall bear interest on the unpaid principal balance thereof at the rate of 10.375% per annum from July 1, 1981, until fully paid; and The Bonds of each series shall be subject to redemption and payment, as follows: (a) The Bonds or portions thereof of each series shall be subject to mandatory redemption, and payment in - 3 - Series C Bonds in the aggregate principal amount of $125,000.00 shall be payable on or before July 1, 1996, and shall bear interest on the unpaid principal balance thereof at the rate of 10.50% per annum from July 1, 1981, until fully paid. Each series of Bonds shall be fully registered, without coupons, and shall be in the denomination of $5,000.00 or any multiple thereof, not exceeding the aggregate principal amount of each series of Bonds as set forth herein and with the Bonds of all of the series specified herein not exceeding the aggregate principal amount of $400,000.00. The Bonds of each series shall be identified as Series A, Series B or Series C, respectively, and each series shall be numbered from one consecutively upward in order of issuance. Interest shall be payable semi-annually on January 1st and July 1st of each year commencing July 1, 1982. The principal of and interest on the Bonds shall be payable by check or draft in lawful money of the United States of America at the principal office of The First National Bank and Trust Company, a national banking association with its principal place of business at Salina, Kansas, hereby desig- nated as the fiscal agent for the Bonds and as the City's bond registrar and hereinafter sometimes referred to as the "Paying Agent" or as the "Bond Registrar". The Bonds of each series shall be subject to redemption and payment, as follows: (a) The Bonds or portions thereof of each series shall be subject to mandatory redemption, and payment in - 3 - 1 u fl specified annual amounts pursuant to the terms of the sinking fund described herein, on July 1, 1982, and on July 1st of each year thereafter, at the principal amount thereof plus accrued interest thereon to the date fixed for such redemption and payment, without premium. As and for a sinking fund for the retirement of the Bonds, but subject to the provisions hereof, the basic rent payments specified in Article II of the Lease which are to be deposited in the principal and interest account hereinafter created, on or before July 1, 1982, and July 1st of each year thereafter, shall be sufficient in amount to redeem and the City hereby agrees to redeem from the deposits thereunder the following principal amounts of Bonds on July 1st of each of the following years: July 1st 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 Total Series Principal Amount A $ 30,000.00 A $ 30,000.00 A $ 30,000.00 A $ 30,000.00 A $ 30,000.00 B $ 25,000.00 B $ 25,000.00 B $ 25,000.00 B $ 25,000.00 B $ 25,000.00 C $ 25,000.00 C $ 25,000.00 C $ 25,000.00 C $ 25,000.00 C $ 25,000.00 $400,000.00 (b) Each series of Bonds or portions thereof shall be subject to redemption and payment prior to the date for the mandatory redemption and payment thereof pursuant to the terms of the sinking fund described in sub- paragraph (a) of this Section 3, at the option of the City upon instructions from the Company, in whole or in part, in the principal amount of not less than $5,000.00 or any multiple thereof, on July 1, 1982, or on any interest payment date thereafter, at the princi- pal amount thereof plus accrued interest thereon to the date specified for such redemption and payment, plus a MAM (c) Whenever any series of Bonds or portions thereof are to be redeemed pursuant to the provisions hereof, the principal amount of each Bond of such series to be redeemed shall be redeemed and paid prorata or as nearly prorata as is practical from each owner of each series of Bonds in accordance with the principal amount of such series of Bonds held by each such owner. (d) At least 15 days prior to the date fixed for redemption, the Company shall pay or cause to be paid to the Paying Agent the amounts required to pay the Bonds or portions thereof called for redemption, including accrued interest and any prepayment consideration. Upon the happening of the above condi- tions, the Bonds or portions thereof called for redemp- tion from and after the redemption date shall cease to bear interest, shall no longer be entitled to the benefits and protection of the covenants herein contained and shall not be deemed to be outstanding hereunder. - 5 - prepayment consideration based upon a percent of the principal amount of the Bonds which are prepaid, as follows: In the event the Series A Bonds are prepaid in whole or in part, then the prepayment consideration shall be an amount equal to 2% of the principal amount prepaid on the Series A Bonds; in the event the Series B Bonds are prepaid in whole or in part, then the prepayment consideration shall be an amount equal to 1% of the principal amount prepaid on the Series B Bonds; but there shall be no premium or prepayment considera- tion applicable to the prepayment of the Series C Bonds or any part thereof. Any amounts prepaid hereunder shall be applied to the payment of the series of Bonds specified in instructions given by the Company to the City and the Paying Agent, but in the absence of any such instructions, such prepayment shall be applied first to the payment of the Bonds of the series with the longest maturity dates. At least 15 days prior to the date fixed for such redemption and prepayment, there shall be deposited in the principal and interest account hereinafter created, and held as a part of the sinking fund described herein, the amount necessary for the redemption and prepayment of the Bonds or portions thereof, including the prepayment consideration required, if any, as specified by the City upon instructions from the Company. (c) Whenever any series of Bonds or portions thereof are to be redeemed pursuant to the provisions hereof, the principal amount of each Bond of such series to be redeemed shall be redeemed and paid prorata or as nearly prorata as is practical from each owner of each series of Bonds in accordance with the principal amount of such series of Bonds held by each such owner. (d) At least 15 days prior to the date fixed for redemption, the Company shall pay or cause to be paid to the Paying Agent the amounts required to pay the Bonds or portions thereof called for redemption, including accrued interest and any prepayment consideration. Upon the happening of the above condi- tions, the Bonds or portions thereof called for redemp- tion from and after the redemption date shall cease to bear interest, shall no longer be entitled to the benefits and protection of the covenants herein contained and shall not be deemed to be outstanding hereunder. - 5 - U 1 (e) If a Bond is redeemed in part, it need not be delivered to the Bond Registrar to note such partial redemption and payment, but in lieu thereof the owner of the Bond may endorse on the Bond an acknowledgement of partial redemption, such acknowledgement to be made in the form set out in Section 5 hereof. Such partial redemption shall be valid upon payment of the amount thereof to the registered owner of the Bond and the City and the Bond Registrar shall be fully released and discharged of all liability to the extent of such payment, regardless of whether such endorsement shall have been made upon the Bond by the registered owner thereof and irrespective of any error or omission in such endorsement. If a Bond is to be redeemed or paid in full, it shall be delivered to the Bond Registrar for payment. (f) Notice of any redemption of any Bond or portion thereof provided for or permitted by this Ordinance shall be given in the name of the City by the Company to the Bond Registrar by mail or by delivery in person to the Bond Registrar, such notice to be mailed or delivered in person at least 20 days prior to the date fixed for such redemption and payment and specify the amount of Bonds or portions thereof to be redeemed and paid on account of such payment. The Bond Registrar shall thereupon give notice of such redemption and payment to the registered owner of each Bond to be redeemed in full or in part at the address shown on the registration books to be maintained by the Bond Regis- trar, such notice to be given by mail or delivery in person at least 15 days prior to the date fixed for such redemption and payment and specify the number of each Bond to be redeemed and paid in whole or in part. Neither the Paying Agent nor the Bond Registrar shall be under any obligation to give any other notice of a redemption or payment hereunder. (g) The City covenants that it will, so long as any Bond remains outstanding, keep at the office of the Bond Registrar books for the registration of the Bonds as herein provided. The Bond Registrar shall maintain a record of the name, address and series of the regis- tered owner of each Bond. Each Bond shall be made payable only to the registered owner as shown on the registration books and may not be registered to the bearer thereof. Each Bond shall be transferable only upon the books maintained by the Bond Registrar by the registered owner thereof in person or by his attorney �sM 1 duly authorized in writing upon surrender thereof together with a written instrument satisfactory to the Bond Registrar duly executed by the registered owner or his duly authorized attorney. Upon the transfer of any such Bond, the Bond Registrar shall issue in the name of the transferee a new Bond or Bonds of the same series and of the same aggregate principal amount in maturity as the unpaid principal amount of the surrendered Bond, in any denomination herein autho- rized. Except for the costs and charges referred to below, any such transfer, registration or exchange of Bonds shall be without charge to the owner of the Bonds. Any series of Bond or Bonds upon surrender thereof to the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his duly authorized attorney, may, at the option of the registered owner thereof, be exchanged for an equal aggregate principal amount of the same series of Bonds of the same maturity in any denomination herein authorized. The City, the Bond Registrar, the Paying Agent and the Company may deem and treat the person in whose name any Bond shall be registered as the absolute owner of such Bond, and the address of the registered owner as shown on the books of the Bond Registrar as the address of such registered owner, whether such Bond shall be overdue or not, for the purpose of receiving any notice required or permitted under the terms of this Ordinance, the Lease or otherwise, for the purpose of receiving payment of or on account of the principal of and interest on such Bond and for all other purposes, and all such payments so made to such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid and neither the City, the Bond Registrar, the Paying Agent nor the Company shall be affected by any notice to the contrary, but such registration may be changed as herein provided. In all cases in which the privilege of trans- ferring the Bonds is exercised, the Bond Registrar shall authenticate and deliver a new Bond or Bonds in accordance with the provisions of this Ordinance. For every such exchange or transfer of a Bond, the Bond Registrar may make a charge to the owner of the Bond or - 7 - 1 Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or transfer. The fees and charges of the Bond Registrar for making any exchange or transfer provided for in this Ordinance and the expense of any Bond printing necessary to effect the subsequent exchange or transfer of the Bond will be paid by the Company. SECTION 4. The Bonds of each series and each of them shall be executed for and on behalf of the City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of the City Clerk on the face of each Bond, with the seal of the City affixed. The Bonds shall not be valid obligations under the provisions of this Ordinance until authenticated by the Bond Registrar by the execution of the Certificate of Authentication appearing on each such Bond. SECTION 5. Each of the Bonds and the certificates attached thereto shall be in substantially the following form: Series No. $ UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA SALINA, KANSAS, MORRISON GRAIN COMPANY, INC. REVENUE BONDS OF 1981 July 1, 1981 Series KNOW ALL MEN BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas, for value received, hereby promises to pay, solely out of the revenues hereinafter specified, to: MIA= the registered owner thereof, or registered assigns, the sum of: in lawful money of the United States of America, on July 1, 19 , except as the provisions hereinafter set forth with respect to redemption prior to maturity may become applicable thereto, and to pay to the registered owner hereof interest thereon at the rate of % per annum from July 1, 1981, until fully paid, with accrued interest on the unpaid principal sum to be payable semi-annually on January 1st and July 1st of each year commencing July 1, 1982, and continuing until said principal sum shall have been paid, with principal and interest to be payable at the principal office of The First National Bank and Trust Company, a national banking association with its principal place of business at Salina, Kansas (hereinafter sometimes referred to as the "Paying Agent") . THIS BOND is one of three series of Bonds aggregating the principal amount of $400,000.00, authorized by Ordinance of said City, issued for the purpose of providing funds to purchase and acquire certain real estate located within three miles of the corporate limits of the City, to construct on said real estate and adjoining leasehold interests certain railroad track sidings, tracks, ties, switches, grading and related improvements, for the enlargement and improvement of grain storage and handling warehouses (hereinafter referred to as the "project") to be used as an agricultural and commercial facility to be leased to Morrison Grain Company, Inc., a Kansas corporation with its principal place of business at Salina, Kansas, herein- after sometimes referred to as the "Company", pursuant to a Lease dated as of July 1, 1981, by and between the City and the Company, for agricultural and commercial purposes, by the authority of and in conformity with the provisions and limitations of the Constitution and the Statutes of the State of Kansas, including K.S.A. 12-1740 to K.S.A. 12-1749a, and all amendments thereof and acts supplemental thereto, and all other provisions of the laws of the State of Kansas applicable thereto, and in accordance with a Lease dated as of July 1, 1981, between the City and the Company (hereinafter sometimes referred to as the "Lease"). This Bond does not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 1 - 10 - Each of the Bonds or portions thereof of the series of This Bond and all interest thereon shall be payable by the City of Salina, Kansas, solely and only from the money and revenue received from the fees charged and rental received for the use of the project and not from any other fund or source. Pursuant to the provisions of said statute, the governing body of the City does hereby pledge the project and the net earnings therefrom to the payment of the Bonds of which this Bond is a part and the interest thereon. Reference is hereby made to the Lease for a description of the covenants of the City with respect to the collection, segregation and application of the revenues derived from the project, the nature and extent of the security for the Bonds, the rights, duties and obligations of the City and of the Paying Agent with respect thereto, and the rights of the holders thereof. 1 - 10 - Each of the Bonds or portions thereof of the series of which this Bond is one is subject to mandatory redemption and payment in specified annual amounts pursuant to the terms of the sinking fund provided for in the Ordinance, on July 1, 1982, and on each July 1st thereafter to and including the maturity date of this Bond, without premium. Each of the Bonds or portions thereof of the series of which this Bond is one may be called for redemption and payment prior to maturity at the option of the City upon instructions from, the Company and in the manner specified in the Ordinance of the City authorizing the issuance of the Bonds, on July 1, 1982, or any interest payment date there- after (in the principal amount of $5,000.00 or any multiple thereof), at the par value thereof and accrued interest to date of redemption, with a prepayment consideration based upon the amount of the principal prepayment and the series of Bonds prepaid, as follows: in the case of the Series A Bonds, the prepayment consideration shall be 2% of the principal amount prepaid; in the case of the Series B Bonds, the prepayment consideration shall be 1% of the principal amount prepaid; and there shall be no premium or prepayment consideration applicable to the prepayment of the Series C Bonds. Bonds or portions of Bonds of each series to be redeemed and paid prior to maturity shall be selected by the Bond Registrar in accordance with instructions furnished by the Company to the City and the Bond Registrar, or in the absence of any such instructions shall be selected by the Bond Registrar in the manner specified in the Ordinance. 1 - 10 - 11 1 All Bonds or portions of Bonds subject to or called for redemption will cease to bear interest on the specified redemption date provided funds for their redemption and payment are on deposit with the Paying Agent prior to the redemption date. If this Bond is redeemed in part it need not be presented to the Bond Registrar but such partial redemption shall be marked on the form provided hereon. Notice of the City's intention to redeem and pay said Bonds pursuant to any of the redemption provisions aforesaid, specifying the number of the Bonds or portions thereof to be redeemed and paid, shall be given by the Bond Registrar not less than 15 days prior to the date fixed for redemption and payment. Notice of any such redemption may be given by certified mail or by personal delivery to the registered owner of the Bond and shall be deemed to have been given when mailed or delivered to the registered owner of the Bond at the address shown on the registration books maintained by the Bond Registrar. This Bond is transferable, as provided in the Ordinance, only upon the books of the City kept for that purpose at the office of the Bond Registrar, by the regis- tered owner hereof in person, or by his attorney duly autho- rized in writing, upon surrender of this Bond together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his duly authorized attorney, and upon payment of any charges prescribed in the Ordinance, and thereupon a new Bond or Bonds, shall be issued to the transferee in exchange therefor as provided in the Ordinance. The City, the Bond Registrar, the Paying Agent and the Company 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. The Bonds are issuable in the form of fully registered Bonds without coupons in the denomination of $5,000.00 or any multiple thereof. The owner of any Bond or Bonds may surrender the same to the Bond Registrar, together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or his duly authorized attorney, in exchange for a Bond or Bonds of the same series and maturity in an equal aggregate principal amount, in any denomination authorized by the Ordinance. This Bond shall not be valid or binding on the City until this Bond shall have been authenticated by the execu- tion by the Bond Registrar of the Certificate of Authentica- tion hereof. �8= 1 I[] AND 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 this Bond have been properly 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. IN WITNESS WHEREOF, The City of Salina, Kansas, by its governing body, has caused this Bond to be signed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its seal to be hereto affixed or imprinted hereon, and this Bond to be dated this 1st day of July, 1981. Mayor Attest: City Clerk - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Ordinance. The effective date of registration of this Bond is THE FIRST NATIONAL BANK AND TRUST COMPANY, OF SALINA, KANSAS BY: Authorized Signature - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto: - 12 - n the within Revenue Bond, Salina, Kansas, Morrison Grain Company, Inc. Revenue Bonds of 1981, of the City of Salina, Kansas, and hereby authorizes the transfer of this Bond on the Registration Books of the Bond Registrar. The under- signed certifies that the transferee has read the notice contained in the Acknowledgment of Partial Redemption which constitutes a part of this Bond. Dated: SIGNATURE GUARANTEED BY (Name of Bank) BY: Title: [SEAL OF BANK] ACKNOWLEDGMENT OF PARTIAL REDEMPTION Notice: Under the provisions of the Ordinance, partial payment or prepayment of the principal of this Bond may be made directly to the owner hereof without surrender hereof to the Bond Registrar. The owner hereof may record any such prepayment on the table set forth below. Accordingly, any purchaser or other transferee of this Bond should verify with the Bond Registrar the principal hereof outstanding prior to such purchase or transfer, and the records of the Bond Registrar shall be conclusive for such purposes. Payment Amount Payment Amount Date Paid Signature Date Paid Signature - 13 - 1 u - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SECTION 6. The Mayor and City Clerk are hereby autho- rized and directed to prepare and execute in the manner hereinbefore specified the Salina, Kansas, Morrison Grain Company, Inc. Revenue Bonds of 1981, of the City herein authorized and to sell and deliver said Bonds to The First National Bank and Trust Company, a national banking association with its principal place of business at Salina, Kansas, upon full payment of the purchase price therefore and upon compliance with Section 22 of this Ordinance, and to pay the proceeds from the sale thereof to the Paying Agent hereinafter designated to be deposited in Morrison Grain Company, Inc. Construction Fund (hereinafter referred to as "Construction Fund") and disbursed by the Paying Agent for the purposes set forth in Article III and Article IV of the Lease dated as of July 1, 1981, for the acquisition and construction of the project. Upon receipt of the following documents, the Bond Registrar shall authenticate and deliver Bonds in the principal amount of $400,000.00, as directed by the City: (a) A copy of this Ordinance duly executed by the Mayor and sealed and attested by the City Clerk. - 14 - (b) An original executed counterpart of the Lease authorized by this Ordinance and evidence of the authority of the Company to enter into the Lease. (c) A request and authorization to the Bond Registrar on behalf of the City and signed by the Mayor or City Treasurer, directing the Bond Registrar and the Paying Agent to authenticate and deliver the Bonds to the purchaser or purchasers therein identified upon payment to the Paying Agent, but for the account of the City, of a specified sum plus accrued interest. SECTION 7. There is hereby authorized and ordered to be established in the hands of the Paying Agent a sinking fund to be designated as the "City of Salina, Kansas, Principal and Interest Account for Morrison Grain Company, Inc. Revenue Bonds of 1981" (hereinafter referred to as "Principal and Interest Account"). In addition, there is hereby authorized and ordered to be established in the hands of the Paying Agent a separate account to be designated as "City of Salina, Kansas, Revenue Account for Morrison Grain Company, Inc. Revenue Bonds of 1981" (hereinafter referred to as "Revenue Account"). Prior to receipt of the proceeds from the issuance of the Bonds as herein set forth, the Paying 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. The duties and responsibilities of the Paying Agent shall be limited to those expressly set forth in this Ordinance and under the Lease and shall further include those duties, responsibilities and obligations which are imposed upon the City under this Ordinance and the Lease, excepting only such of those duties, responsibilities and obligations as may only be properly and lawfully exercised by or acted upon by the City. SECTIONS. The City covenants and agrees that from and after the delivery of the revenue Bonds herein authorized and so long as any of the Bonds shall remain outstanding the City will maintain the Principal and Interest Account and the Revenue Account referred to in Section 7. The City shall cause the Bond Registrar to keep on file at the principal office of the Bond Registrar the name and address of the holder of the Bonds issued hereunder. At reasonable times and under reasonable regulations established by the Bond Registrar, said list may be inspected and copied by Morrison Grain Company, Inc., of Salina, Kansas, or its u 1 1 representatives, or by the holders of 25% or more in principal amount of the Bonds then outstanding, or their representatives, with any such ownership and the authority of any designated representative to be evidenced to the satisfaction of the Bond Registrar. SECTION 9. So long as any of the Bonds herein autho- rized remain outstanding and unpaid, the Paying Agent shall deposit in the Principal and Interest Account, solely from funds paid to the Paying Agent under the terms of the Lease, semi-annually, prior to the 1st day of January and prior to the 1st day of July of each year, commencing January 1, 1982, the amount of the basic rent payable under the terms of the Lease, in an amount equal to (a) the interest becoming due on the Bonds on the next succeeding interest payment date, and (b) such additional amounts as may be necessary to pay the principal of the Bonds including any prepayment consideration when the same become due as set forth in Article II of the Lease, and as set forth in Section 3 of this Ordinance. All amounts credited to and deposited in the Principal and Interest Account shall be expended and used for the sole purpose of paying the principal of and interest on the Bonds herein authorized as the same become due. SECTION 10. So long as any of the Bonds herein autho- rized remain outstanding and unpaid, the Paying Agent shall deposit in the Revenue Account all amounts received under the Lease, from time to time as required, and upon demand of the Paying Agent, such amount or amounts of money as may be necessary to pay when due the fees, taxes, insurance premiums and other costs and expenses required to be paid as additional rent under the provisions of Article II of the Lease. The Paying Agent shall make disbursements from funds deposited with it in the Construction Fund to the extent thereof or from funds deposited with it in the Revenue Account for the payment of any expenses incurred by the City in connection with the issuance and sale of the Bonds, including but not limited to underwriting expenses, legal fees, expenses of counsel and publication expenses, which expenses shall be paid by the Paying Agent as directed by the City, and for the payment of all fees, charges and expenses of the Paying Agent, and for the payment of taxes, assessments, insurance premiums and the like required to be paid from amounts received from the Company as additional rent under the provisions of Article II of the Lease. If at any time the Paying Agent determined that there are more than sufficient funds in the Revenue Account to pay such fees, taxes, premiums and other expenses for the succeeding - 16 - u six months, the amount of such excess may be paid to the Company, provided that such excess shall not be paid to the Company if at such time the Principal and Interest Account is insufficient to fully pay interest and principal to become due on the next succeeding payment date in accordance with Section 9 of this Ordinance. SECTION 11. When money accumulated in the Principal and Interest Account shall aggregate an amount sufficient to pay the principal of any of the Bonds then outstanding, and all interest accrued to the date fixed for redemption and payment, and when the Bonds become subject to redemption as herein set forth, the Paying Agent shall proceed to give notice of such redemption in the manner herein specified, if such notice is required hereunder, and the Paying Agent shall use moneys in said account for said purpose. After full payment of the Bonds and interest thereon, any balance in the Principal and Interest Account shall be returned to the Company. IISECTION 12. Subject to the provisions of Section 21 of this Ordinance, money credited to and deposited in the - 17 - Construction Fund and moneys credited to and deposited in the Principal and Interest Account may be invested by the Paying Agent, upon instructions from the Company, in savings accounts and certificates of deposit of the Paying Agent or others or in direct obligations of the United States Govern- ment becoming due not later than the date funds in the Construction Fund are to be disbursed or not later than ter: days prior to the next interest payment date with respect to funds in the Principal and Interest Account. No investment shall be made hereunder for a longer period of time than the Paying Agent determines is reasonably necessary or required for the purpose for which they are intended. All interest on any Bonds or other investments held in the Construction Fund or the Principal and Interest Account shall accrue to and become a part of such respective fund or account. Any investments made by the Paying Agent pursuant to this Ordinance may be made through its own bond department. SECTION 13. So long as any of the principal of and interest on the revenue Bonds herein authorized remain outstanding and unpaid, the City covenants with each of the purchasers and owners of the Bonds as follows: (a) The City will comply fully with all the terms, provisions and conditions of the Lease to the extent it requires performance by or imposes duties on the City and it will not permit any default to occur on the part of the - 17 - 1 J City; that it will fully and promptly enforce, and permit the Paying Agent to enforce on its behalf and on behalf of the bondholders, all of the terms, provisions and conditions of the Lease to the extent it requires performance by or imposes duties on the Company; and, in the event of the occurrence of a default as defined in the Lease, that it will exercise, and permit the Paying Agent to exercise on its behalf and on behalf of the bondholders, all rights and remedies conferred by the Lease for the full and complete protection of the security and the 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 the Company is required 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 seventy-five per cent (75%) in principal amount of the Bonds herein authorized at the time outstanding, sell the project without any right of redemption at a price which is not less than the amount of the then outstanding revenue Bonds plus interest then unpaid. If the City is unable to sell the project at such a price, the City shall transfer and convey the project to the various bondholders without any right of redemption in the same proportions that the Bonds are then owned and held by them. The obligation of the City to enforce any provision of the Lease, or of this Ordinance, shall be conditioned upon the availability of funds for such purposes with such funds to be provided by the bondholders or other interested parties. (b) The City will enforce, and will permit the Paying Agent to enforce on its behalf and on behalf of the bond- holders, collection of the rental payments and other charges in the amounts and at the times set forth in the Lease, 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 said 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 bondholders or other interested parties. (c) 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 termi- nation of the Lease, except as provided therein, which will in any manner adversely affect the rights, remedies, security or interest of the bondholders. (f) The City will use the proceeds of the Bonds as soon as practicable and with all reasonable dispatch for the purposes for which such series of Bonds are issued as hereinbefore set forth. Said proceeds shall 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 such series of Bonds 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 proceeds of the Bonds will not be used to acquire securities or obligations [other than obligations described in Section 103(a)(1) of the Internal Revenue Code of 1954, - 19 - (d) Any purchase price of the leased property received by the City pursuant to the termination of the Lease, any proceeds of condemnation awards, any insurance proceeds and any other funds received by the City and intended for the payment of the Bonds and the interest thereon will be promptly deposited with the Paying Agent and 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 and then subject to redemption and payment. Upon receipt of any such funds, if the Bonds are then subject to redemption and payment, the Paying Agent shall proceed promptly to call the revenue Bonds for redemption and payment according to their terms and shall give notice thereof as required in this Ordinance. Such funds shall be deposited in the Principal and Interest Account maintained by the Paying Agent, and the same shall be used solely for the payment of the revenue Bonds herein authorized, accrued interest thereon and the charges of the Paying Agent for paying the same, and after full payment of such amounts, the balance of such funds, if any, shall be allocated and credited to the Revenue Account. (e) The City will not issue any other obligations payable from payments to be made by Morrison Grain Company, Inc., of Salina, Kansas, 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 pay- ments or on the property subject to the Lease nor will it sell or otherwise dispose of the project or any part thereof, unless required by law or required by the terms of the Lease. (f) The City will use the proceeds of the Bonds as soon as practicable and with all reasonable dispatch for the purposes for which such series of Bonds are issued as hereinbefore set forth. Said proceeds shall 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 such series of Bonds 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 proceeds of the Bonds will not be used to acquire securities or obligations [other than obligations described in Section 103(a)(1) of the Internal Revenue Code of 1954, - 19 - 1 1 D as amended] that will produce a yield higher than the yield of the Bonds of such series herein authorized unless a regulation of the Treasury Department of the United States, ruling by the Internal Revenue Service of the United States or a decision of a Court of ultimate jurisdiction holds the acquisition of securities or obligations producing a yield higher than the Bonds of such series will not cause the Bonds to be arbitrage Bonds as defined in said Section 103 (c ) of the Internal Revenue Code of 1954, as amended. SECTION 14. The provisions of the Bonds authorized by this Ordinance and provisions of this Ordinance may be modified or amended at any time by the City with the written consent of the holders of not less than seventy-five per cent (75%) in principal amount of the Bonds herein autho- rized at the time outstanding; provided, that no such modification or amendment shall permit or be construed as permitting: (a) the extension of the maturity of the principal of any of the Bonds issued hereunder, or the extension of the maturity of any interest on any Bonds issued hereunder; (b) the reduction in the principal amount of any Bonds or the rate of interest thereon, or (c) the reduction in the aggregate principal amount of Bonds, the consent of all of the holders of which are required for any such amendment 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. Every amendment or modifica- tion of a provision of the Bonds or of this Ordinance to which the written consent of the bondholders is given as above provided shall be expressed in an ordinance of the City amending or supplementing the provisions of this Ordinance and shall be deemed to be a part of this Ordinance. It shall not be necessary to note on any of the outstanding Bonds any reference to any such amendment or modification. A certified copy of every such amendatory or supplemental ordinance, and a certified copy of this Ordi- nance shall always be kept on file in the office of the City Clerk and shall be made available for inspection by the holder of any Bond or prospective purchaser or holder of any Bond authorized by this Ordinance, and upon payment of the reasonable cost of preparing the same, a certified copy of any such amendatory or supplemental ordinance or of this Ordinance will be sent by the City Clerk to any such bond- holder or prospective bondholder. SECTION 15. The provisions of this Ordinance shall constitute a contract between the City of Salina, Kansas, - 20 - and the holders of the revenue Bonds herein authorized, and the holder of any one or more of said Bonds may sue, in any action, in mandamus, injunction, or other proceedings, either at law or in equity, to enforce or compel performance of all duties and obligations required by this Ordinance to be done or performed by the City. Nothing contained in this Ordinance shall, however, be construed to impose on the City any duty or obligation to levy any taxes either to meet any obligation contained herein or to pay the principal of or interest on the revenue Bonds of the City herein authorized. SECTION 16. The tract of land herein referred to and the improvements to be acquired and constructed thereon pursuant to this Ordinance shall be leased to Morrison Grain Company, Inc., of Salina, Kansas, under and pursuant to a Lease, substantially in the form filed with the City Clerk, which Lease the Mayor and City Clerk are hereby authorized and directed to execute for and on behalf of and as the act and deed of the City. SECTION 17. The City of Salina, Kansas, shall have the right, if it shall find it desirable, to refund any of the revenue Bonds herein authorized then subject to redemption or becoming due under the provisions of any law then avail- able. Said Bonds or any part thereof may be refunded and the refunding Bonds so issued shall enjoy complete equality of pledge with any of the revenue Bonds issued hereunder, which are not refunded, if any there be, upon the revenues of the project, provided, however, that if only a portion of the revenue Bonds herein authorized be refunded and if said Bonds are refunded in such manner that the refunding Bonds bear a higher rate of interest or become due on a date earlier than that of any of the Bonds issued hereunder which are not refunded, then said Bonds may be refunded only by and with the written consent of the holders of seventy-five per cent (75%) in principal amount of the Bonds herein authorized not refunded. SECTION 18. If any one or more of the covenants, agreements or provisions of this Ordinance or of the Lease, should be held contrary to any express provisions of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions, and shall in no way affect the validity of the other provisions of this Ordinance or of the Bonds or coupons issued hereunder or of the Lease. - 21 - SECTION 19. Under the provisions of the Lease, the Company has waived any ad valorem property tax exemption which would otherwise be available to the project under the provisions of K.S.A. 79-201(a) Second, as amended. SECTION 20. 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 Morrison Grain Company, Inc., of Salina, Kansas, or its successors and assigns, as provided in the Lease and the Mayor, the City Clerk and other appropriate officers of the City are hereby authorized and directed to execute such deeds, bills of sale and other instruments as may be necessary to effect such conveyance and transfer. SECTION 21. The City hereby certifies that, on the basis of the facts, estimates and circumstances in existence on the date hereof, it is not expected that the proceeds of the issue of the Salina, Kansas, Morrison Grain Company, Inc. Revenue Bonds of 1981 will be used in a manner which would cause such obligations to be "arbitrage Bonds" within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and the Mayor and City Clerk are hereby authorized and directed to execute an Arbitrage Certificate which shall set forth the facts, estimates and circumstances in brief and summary terms, and state that to the best of their knowledge and belief there are no other facts, estimates or circumstances that would materially change such expectation. The Mayor and City Clerk shall furnish such Arbitrage Certificate to Morrison Grain Company, Inc., of Salina, Kansas, the Paying Agent and any of the holders of the Bonds authorized herein. SECTION 22. The Bonds are issued on the condition that The First National Bank and Trust Company, a national banking association with its principal place of business at Salina, Kansas, as the purchaser of the Bonds, prior to the issuance thereof, represents and certifies that: (a) The Bonds to be acquired by the purchaser are acquired for investment purposes only and not for resale or further distribution 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 consent 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 certify that it has no present intention, agreement or arrangement for distribution, transfer, assignment, resale or division o,f its interest in OWWW 1 such Bond in a manner inconsistent with the provisions hereof. (b) All materials and information requested by the purchaser or its counsel or others representing its inter- ests, including any information requested to verify any such information furnished, has been furnished and there has been direct communication between Morrison Grain Company, Inc., of Salina, Kansas, and its representatives on the one hand and the purchaser of such Bond and its representatives and advisers on the other hand in connection with all of the information furnished hereunder and otherwise requested and the terms of the acquisition of the Bond from the City as set forth herein. There has been made available to the satisfaction of the purchaser and its advisers adequate opportunity to ask questions of and receive answers from Morrison Grain Company, Inc., of Salina, Kansas, and its officers and employees and representatives thereof concerning the terms and conditions of the Bonds to obtain all additional information desired or necessary to verify the accuracy of the information furnished. (c) The City shall be released from any requirement, duty, obligation or committment, express or implied, to furnish the purchaser or any subsequent holder of any Bond issued hereunder any financial information concerning Morrison Grain Company, Inc., of Salina, Kansas, or to investigate and furnish such purchaser or any subsequent holder with any information concerning the financial status of Morrison. Grain Company, Inc., of Salina, Kansas. Each purchaser shall represent that it is relying upon its own resources and expertise to obtain and evaluate all such information. SECTION 23. The officials of the City and the attor- neys, engineers and other agents or employees of the City are hereby authorized to do all acts and things required of them by this Ordinance and the Lease for the full, punctual and complete performance of all of the terms, covenants and agreements contained in the Bonds, the Lease and this Ordinance. SECTION 24. This Ordinance shall take effect and be in force from and after its passage and publication in the official City paper. - 23 - A =Wz= PASSED AND ADOPTED by the City Council, not less than two-thirds of the members elected voting thereon, and APPROVED by the Mayor of the City of Salina, Kansas, this 28th day of September , 1981. A'J0,111. GG a?: Mayor Attest: lk CS�11 City Clerk =Wz= 1 1 1 MORRISON GRAIN COMPANY, INC. Description of Real Estate Exhibit "A11 The real estate to be acquired by the City of Salina, Kansas, and leased to Morrison Grain Company, Inc., in accordance with the Ordinance to which this Exhibit "A11 is attached, is described as follows: A tract of land in the Northeast Quarter (NE/4) along with a small 1001 x 491' partial in the Northwest Quarter (NW/4) of Section Sixteen (16), Township Fourteen (14) South, Range Two (2) West of the 6th P.M., in Saline County, Kansas, described as follows: Commencing at a point on the Southwest right-of-way line of the Missouri Pacific Railroad Company which is a distance of 275.81 Southeast of the point where said Southwest right-of-way line intersects the West line of said Northeast Quarter, thence South -Southwesterly a distance of 636' to a point, thence Southwesterly a distance of 204.21 to a point on the West line of said Northeast Ouarter which is 979.11 South of the point where the West line of said Northeast Quarter intersects the Southwest right-of-way line of the Missouri Pacific Railroad Company, thence South along the West line of said Northeast Quarter a distance of 330.881, thence West 1001, thence South 4911± parallel to the West line of the Northeast Quarter, thence East 1001 (this 1001 x 4911 partial is in the Northwest Quarter of said section), thence South 2001 to the center of said Section 16, thence East a distance of 1001 along the South line of said Northeast Quarter, thence North a distance of 4041 and parallel to the West line of said Northeast Quarter, thence turning an angle 23042'±RT and running a distance of 425.41±, thence turning an angle 66018'±RT and running East 1881, thence North a distance of 753.2' to the Southwest right-of-way line of the Missouri Pacific Railroad Company, thence Northwesterly along said right-of-way line a distance of 385.21' to the point of beginning containing 10.94 acres more or less.