81-8879 IRB Seward CountyWHEREAS, the City, jointly with Seward County, Kansas (the
"County") and in cooperation with local lending institutions,
has formulated a Single Family Mortgage Loan Program to assist
persons and families of moderate income in financing the
purchase and acquisition of safe, decent and sanitary housing
within their financial means; and
WHEREAS, the governing body of the City deems and declares
it necessary and desirable and in the interests of the public
health and welfare to provide for the establishment and
implementation of a Single Family Mortgage Loan Program (the
"Program") and to provide funds for implementation of said
Program through the issuance by the City, jointly and in
cooperation with the County, of Single Family Mortgage Revenue
Bonds (Multiple Originators and Servicers) 1981 Series A, in the
aggregate principal amount of $60,000,000 (the "Bonds") to be
secured under the provisions of a certain Indenture of Trust
ated as of October 1, 1981, by and between the City and County,
jointly as issuer, and Continental Illinois National Bank and
rust Company of Chicago, as Trustee;
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ORDINANCE NO. KI - 9111
AN ORDINANCE AUTHORIZING AND PROVIDING
FOR THE IMPLEMENTATION OF A SINGLE FAMILY
MORTGAGE LOAN PROGRAM; AUTHORIZING THE
EXECUTION AND DELIVERY OF AN INDENTURE OF
TRUST, DATED AS OF OCTOBER 1, 1981, BY AND
BETWEEN SEWARD COUNTY, KANSAS AND THE CITY
OF SALINA, JOINTLY AS ISSUER AND CONTINEN-
TAL ILLINOIS NATIONAL BANK AND TRUST COMPANY
OF CHICAGO, AS TRUSTEE; AUTHORIZING THE
ISSUANCE, AUTHENTICATION AND DELIVERY OF
SEWARD COUNTY, KANSAS AND CITY OF SALINA,
KANSAS, SINGLE FAMILY MORTGAGE REVENUE
BONDS (MULTIPLE ORIGINATORS AND SERVICERS)
1981 SERIES A, IN THE AGGREGATE PRINCIPAL
AMOUNT OF $60,000,000; AND AUTHORIZING THE
OFFICERS AND EMPLOYEES OF THE CITY TO EXE-
CUTE CERTAIN AGREEMENTS AND OTHER DOCUMENTS
AND INSTRUMENTS NECESSARY OR DESIRABLE TO
PROVIDE FOR IMPLEMENTATION OF SAID SINGLE
FAMILY MORTGAGE LOAN PROGRAM AND THE ISSUANCE
AND DELIVERY OF SAID 1981 SERIES A BONDS.
WHEREAS, pursuant to the home rule powers granted to cities
under the
provisions of Article 12, §5 of the Constitution of
the State
o.f Kansas, the City of Salina (the "City") is
empowered
to determine its local affairs and government by
ordinance
subject only to those enactments of the legislature
specified
in said Article 12, 55; and
WHEREAS, the City, jointly with Seward County, Kansas (the
"County") and in cooperation with local lending institutions,
has formulated a Single Family Mortgage Loan Program to assist
persons and families of moderate income in financing the
purchase and acquisition of safe, decent and sanitary housing
within their financial means; and
WHEREAS, the governing body of the City deems and declares
it necessary and desirable and in the interests of the public
health and welfare to provide for the establishment and
implementation of a Single Family Mortgage Loan Program (the
"Program") and to provide funds for implementation of said
Program through the issuance by the City, jointly and in
cooperation with the County, of Single Family Mortgage Revenue
Bonds (Multiple Originators and Servicers) 1981 Series A, in the
aggregate principal amount of $60,000,000 (the "Bonds") to be
secured under the provisions of a certain Indenture of Trust
ated as of October 1, 1981, by and between the City and County,
jointly as issuer, and Continental Illinois National Bank and
rust Company of Chicago, as Trustee;
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NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE
ITY OF SALINA, KANSAS:
Section 1. Legislative Findings, Declaration of Need.
It is hereby found and declared that there exists within the
ity of Salina and the State of Kansas a serious shortage of
ecent, safe and sanitary housing which persons and families of
oderate income can afford. It is hereby further declared that:
(a) Such shortage is injurious to the safety, health and
lfare of the citizens and residents of the City and State;
(b) the cost of financing such additional housing is a
ajor and substantial factor affecting the supply and
vailability of decent, safe and sanitary housing within the
inancial means of persons and families of moderate income;
(c) the shortage of such housing is not transitory and
elf -curing and the resources of private enterprise are not
dequate to provide necessary additional decent, safe and
anitary housing which will be within the financial resources of
ersons and families of moderate income;
(d) the construction of additional residential housing is
closely correlated with general economic activity and the
availability of residential housing which persons of moderate
income can afford will assist materially in promoting and
aintaining.full employment and promoting the economic
development of the City and the State;
(e) it is necessary and in ;the best interests of the City
and the State: (i) To provide for and promote the public
ealth, safety and welfare; (ii) to encourage tine expansion of
industrial and commercial activities and economic development;
and (iii) to assist persons and families of moderate income in
acquiring, owning and occupying decent, safe and sanitary
ousing which they can afford;
(f) an adequate supply of decent, safe and sanitary
esidential housing is essential to the promotion of increased
roductivity of the residents of the City and State, -for
etaining existing industry and commercial activities near or
ithin the City and within the State, and for attracting
dditional industry and commercial activities to the City and
he State, thereby enhancing the economic development of the
ity and the State;
(g) in order to remedy the existing shortage of
residential housing within the financial means of persons and
families of moderate income and to realize the social, economic
and other benefits which will result therefrom, it is necessary
and desirable to provide for the implementation of a public
rogram designed to reduce the costs of financing the
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cquisition of housing by persons and families of moderate
income;
(h) it is necessary and desirable to issue single family
ortgage revenue bonds to provide funds necessary to reduce the
Ood
sts of financing the acquisition and purchase of safe, decent
sanitary housing by persons and families of moderate income;
(i) the implementation of such program and the issuance of
uch single family mortgage revenue bonds pursuant to the
onstitution and laws of the State this Ordinance are in the
ublic interest, and constitute a necessary and essential
overnmental function.
SECTION 2. Authorization of the Program. There is
ereby authorized to be created, established, implemented and
.aintained by the City, jointly and in cooperation with Seward
ounty, Kansas a program to encourage, promote and assist in
financing the acquisition of decent, safe and sanitary
lesidential housing facilities for persons and families of
oderate income residing within the City, Seward County, Kansas
nd within the Cooperating Political Subdivisions (as said term
s hereinafter defined) to be designated the "Seward County,
ansas and City of Salina, Kansas Single Family Mortgage Loan
rogram" (hereinafter referred to as the "Program"). The
rogram shall be implemented, administered and carried out in
ccordance with this Ordinance and the Indenture Iereinafter
uthorized.,
Section 3. Powers of the City Necessary to Accomplish
he Purposes of this Ordinance_. Subject only to any provisions
f the Constitution or laws of the State of Kansas limiting or
rohibiting the exercise of powers by cities generally, the City
hall have all powers necessary or appropriate to accomplish the
urposes of this Ordinance and implementation of the Program,
ncluding, but not limited to, the following:
(a) to acquire, and to contract and enter into advance
ommitments to acquire home mortgage loans to be originated by
ending institutions at such prices and upon such terms and
onditions as the City shall determine.
(b) to make and execute contracts with lending institu-
ions for the origination and servicing of mortgage loans on
ehalf of the City and to pay the reasonable value of services
endered in accordance with such contracts.
(c) to establish such standards and requirements appli-
able to the origination and funding of mortgage loans as shall
e necessary or desirable to effectuate the public purposes of
his Ordinance, including but not limited to: (i) the time
ithin which lending institutions must make participation
Voe
mmitments and originate and sell home improvement loans; (ii)
terms and conditions of mortgage loans to be originated;
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(iii) the standards and criteria to be applied in defining
persons of moderate income; (iv) the amounts and types of
insurance coverage required on homes, mortgage loans and bonds;
(v) the representations and warranties to be required of persons
and lending institutions as evidence of compliance with such
standards and requirements; (vi) restrictions as to interest
ate and other terms of mortgage loans or the return realized
therefrom by lending institutions; and (vii) any other matters
elated to the origination and funding of home mortgage loans as
hall be deemed relevant or necessary.
(d) to issue single family mortgage revenue bonds to
efray, in whole or in part (i) the costs of originating
ortgage loans; (ii) the costs of studies and surveys, insurance
remiums, underwriting fees, legal, accounting and marketing
ervices incurred in connection with the issuance and sale of
uch bonds, including amounts required to establish reasonably
ecessary bond and reserve accounts, and trustee, custodian and
atir_g agency fees; and (iii) such other costs as are reasonably
elated to the foregoing.
(e) to authorize the sale or other disposition of any
ortgage loan, in whole or in part, upon such terms, at such
prices and times, and from time to time, as may be necessary to
assure that the revenues and receipts to be derived with respect
to the mortgage loans, together with any insurance proceeds,
funds held in reserve accounts and earnings thereon, shall
produce and provide revenues and receipts at least sufficient to
provide for the prompt payment of the principal of, or
redemption price, if any, and interest at maturity of all bonds
issued pursuant to this Ordinance.
(f) to pledge any revenues and receipts to be received
rom any mortgage loans to the punctual payment of bonds
uthorized and issued pursuant to this Ordinance and the
nterest thereon.
(g) to mortgage, pledge, or grant security interest in Any
ortgage loans, notes or other property in favor of the holder
r holders of bonds issued therefor.
(h) to appoint or designate a bank or trust company within
r without the State to serve as trustee and/or custodian for
he benefit of the bondholders and to delegate and assign
hereto, insofar as it may lawfully do so, the City's duties and
esponsibilities with respect to carrying out and enforcing the
erms and provisions of the Program and the Bonds.
(i) to provide for and authorize the use and disposition
of any funds remaining in the hands of any trustee or custodian
following payment and retirement of the Bonds issued pursuant to
this Ordinance.
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(j} to make and execute all contracts and other
'nstruments necessary or convenient to the exercise of any of
he powers specified herein.
Section 4. Execution of the Indenture; Designation
f Trustee and Co -Trustee. For the purposes of providing for
mplementation of the Program and to secure payment of the Bonds
ereinafter authorized, the Mayor is hereby authorized to
xecute and the City Clerk is hereby authorized to attest the
xecution of, the Indenture dated as of October 1, 1981 (the
Indenture") substantially in the form approved pursuant to the
esolution adopted by the City's governing body this date, with
uch changes or amendments thereto as the Mayor shall approve,
hich approval shall be evidenced by his execution of said
ndenture.
Continental Illinois National Bank and Trust Company of
'hicago, Chicago, Illinois is hereby designated to serve in the
apacity of Trustee under and pursuant to the terms of the
ndenture. Trustee shall evidence its acceptance of the Trust
state granted pursuant to the Indenture and its acceptance of
he rights, duties, responsibilities and obligations as Trustee
hereunder by its execution of said Indenture.
The Southwest National Bank of Wichita, Wichita, Kansas is
ereby designated to serve in the capacity of Co -Trustee under
nd pursuant to the terms of the Indenture. Co -Trustee's
cceptance of its rights, duties, responsibilities and
bligations as Co -Trustee shall be evidenced by its written
lertificate of acceptance to be delivered to the City Clerk
rior to or concurrently aith issuanc-- and delivery of the 1931
eries A Bonds hereinafter authorized.
Section 5. Authorization for Issuance of the 1981
leries A Bonds. For the purpose of providing funds necessary to
mplement the Program there is hereby authorized to be issued
nd delivered pursuant to this Ordinance and under and in
ccordance with Article II of the Indenture, jointly and in
ooperation with Seward County, Kansas a series of Bonds in the
ggregate principal amount of $60,000,000 to be designated
Seward County, Kansas and City of Salina, Kansas Single Family
ortgage Revenue Bonds, (Multiple Originators and Servicers)
1.981 Series A" (the "Bonds"). The Bonds shall be dated as of
ctober 1, 1981, shall mature on the dates, shall bear interest
ayable at the interest rates per annum on the dates and shall
e in the form, all as set forth and specified in said Article
I of the Indenture the Bonds shall be subject to redemption and
ayment prior to their respective maturities as provided in
rticle III of said Indenture. The Mayor and City Clerk are
ereby authorized to execute the Bonds and the coupons attached
hereto by their facsimile signatures in the manner specified in
he Indenture and in the Issuers Cooperation Agreement by and
etween the City and Seward County authorized by Section 7 of
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1
u
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his Ordinance and The City Clerk is hereby further authorized
nd directed to register the Bonds in his office.
Section 7. Execution of Cooperation Agreements. For
he purpose of providing for implementation of the Program, the
ayor and City Clerk are hereby authorized to execute and
eliver for and on behalf of the City the Issuer's Cooperation
greement dated as of October 1, 1981 by and between the City
nd Seward County, Kansas and the Interlocal Cooperation
greement dated as of October 1, 1981 by and among the City and
eward County, Kansas jointly as Issuer and the Cooperating
olitical Subdivisions named therein. Said Issuers Cooperation
greement and said Interlocal Cooperation Agreement shall be in
ubstantially the form approved pursuant to the resolution
dopted by the City's governing body this date, with such
hanges or revisions thereof as the Mayor shall approve, which
pproval shall be evidenced by his execution thereof.
Section 8. Sale of the Bonds;__Approval of Official
tatement. The 1981 Series A Bonds shall be sold and delivered
o Kirchner Moore & Company, Crocker National Bank, United
ecurities, Inc., E. F. Hutton & Company, Inc. and Ranson &
ompany, Inc., as Managers on behalf of themselves and the
nderwriters named in the Contract of Purchase dated
eptember 28, 1981, by and between the City and Seward County,
s Issuer and the aforementioned Managers on behalf of
hemselves and the Underwriters, which Contract of"Purchase the
ayor is hereby authorized to execute and deliver for, on behalf
f and as the act and deed of the City.
The Preliminary Official Statement dated September 17, 1981,
which was prepared without participation by the City for use in
connection with the offering of the Bonds and its use by the Under-
writers in connection with the offering of the Bonds is hereby ap-
proved as to form only. The Mayor is hereby further authorized
to approve as to form any necessary changes and amendments to said
Preliminary Official Statement to be incorporated in the final
Official Statement which approval shall be evidenced by the Mayor's
execution of said final Official Statement. Said Official State-
ment shall be furnished to the Managers named in the Contract of
Purchase in such quantities as they shall specify, but the costs
of printing or reproducing the same shall be paid by the Under-
writers. The Underwriters are hereby authorized to use and dis-
tribute said Official Statement in connection with the offering
and sale of the Bonds.
he issuance and delivery of the Bonds, and for the full,
unctual and complete performance of all of the terms,
ovenants, provisions and agreements set forth herein, in the
Bonds and in the Indenture.
Section 10. Effective Date. This Ordinance shall be in
full force and effect from and after its adoption and
publication once in the offical newspaper of the City.
ADOPTED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS
HIS q DAY OF SEPTEMBER, 1981.
ttest:
I"` / t ZD. L. Harrison, City Clerk
(Seal)
THE CITY OF SALINA, KANSAS
By
Merle A. Hodges, ayo