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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; -2- 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; -2- 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 -3- 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; -4- (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. E610 (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 M12 1 u 1 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