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8639 IRB Presbyterian ManorTABLE OF CONTENTS Recitals--------------------------------------------- Section 1. Authority to Acquire Real Property and to Construct, Purchase and Install the Facility---------------- ------------------- Section 2. Authorization of and Security for the Bonds -- Section 3. Description and Details of the Bonds, Designation of Paying Agent ---------------- Section 4. Redemption and Payment of Bonds Prior to Maturity----------------------------------- Section 5. Notice of Redemption ------------------------- Section 6. Unclaimed Principal and Interest Held by Fiscal Agent ------------------------------- Section 5. Method of Execution of Bonds ----------------- section 5. Form of Bonds -------------------------------- Section 9. Execution and Delivery of the Bonds, Deposit of Bond Proceeds, Designation of Fiscal Agent--------------------------------------- Section 10. Construction Fund ----------------------------- Section 11. Principal and Interest Account --------------- Section 12. Bond Reserve Account ------------------------- Section 13. Investments------7--------------------------- Section 14. Covenant to Pay Principal and Interest on the Bonds-------------------------------------- Section 15. Particular Covenants of the City ------------- Section 16. Additional Bonds ----------------------------- Section 17. Amendments ----------------------------------- Section 18. Enforcement ----------------------------------- Section 19. Default; Events of Default ------------------- Section 20. Acceleration of Matuirty in Event of Default - Section 21. Application of Moneys ------------------------ Section 22. Defeasance ----------------------------------- Section 23. List of Bondholders -------------------------- Section 24. Consent, Etc., of Bondholders ---------------- Section 25. Provisions Relating to the Fiscal Agent ------ Section 26. Payments Due on Saturdays, Sundays and Holidays----------------------------------- Section 27. Authorization of Lease ----------------------- Section 28. Approval of Guaranty Agreement --------------- Section 29. Severability --------------------------------- Section 30. Agreements of the City ----------------------- Section 31. Conveyance of Facility ----------------------- Section 32. Performance of Acts -------------------------- Section 33. Further Authority ---------------------------- Section 34. Effective Date ------------------------------- May 8, 1978 - 2 PAGE 1 1 2 2 3 4 5 5 5 11 11 11 12 12 13 13 16 1.6 17 17 18 18 20 21 21 22 24 24 24 25 25 25 25 26 26 hti shed Lr' tKe- S('A i "a'CL_ JDA ruAA Un ORDINANCE NO. 8639 AN ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS; TO ACQUIRE THE REAL PROPERTY HEREINAFTER DESCRIBED AND TO CONSTRUCT, PURCHASE AND INSTALL BUILDINGS AND IMPROVEMENTS AND MACHINERY AND EQUIPMENT TO BE LEASED TO SALINA PRESBYTERIAN MANOR, INC., A KANSAS NOT FOR PROFIT CORPORATION; AUTHORIZING AND DIRECTING THE ISSUANCE OF $2,000,000 PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES JUNE 1, 1978 (SALINA PRESBYTERIAN MANOR, INC.), OF SAID CITY FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF ACQUIRING SAID REAL PROPERTY AND CONSTRUCTING, PURCHASING AND IN- STALLING SAID BUILDINGS AND IMPROVEMENTS AND MACHINERY AND EQUIP- MENT TO BE LEASED TO SAID COMPANY; PRESCRIBING THE FORM AND AUTHORIZING THE EXECUTION OF A LEASE BY AND BETWEEN SAID CITY AND SAID COMPANY; AND PRESCRIBING THE FORM AND APPROVING THE EXECUTION OF A GUARANTY AGREEMENT BY UNITED PRESBYTERIAN FOUNDATION OF KANSAS, INC., A KANSAS NOT FOR PROFIT CORPORATION. WHEREAS, the City of Salina, Kansas, a city of the first class, hereinafter sometimes referred to as the "City," desires to promote, stimulate and develop the general economic welfare and prosperity of the City 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 12-1749a, as amended (the "Act"), the City is authorized to issue industrial 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 industrial revenue bonds of the City be authorized and issued for the purpose of providing funds to pay the cost of acquiring the real property hereinafter described and constructing, purchasing and installing buildings and improvements and machinery and equipment to be leased to Salina Presbyterian Manor, Inc., a Kansas not for profit corpora- tion, hereinafter sometimes referred to as the "Company"; NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: 91=12e1 - Leith2LI&I to AcaulLe�4��PLQL�L CoRj=act. Purchase and Install the Fjc;Lj6j_U. The City is hereby authorized to acquire the real property described and set forth on Schedule 1 attached hereto and made a part hereof, and to con- struct, purchase and install the buildings and improvements and machinery and equipment as described and set forth on said Schedule 1 attached hereto, in accordance with the provisions of the Lease dated as of June 1, 1978, between the City and the Company, hereinafter sometimes referred to as the "Lease," the Lease being authorized by the provisions of this Ordinance (said real property being hereinafter and in the Lease referred to as the "Land," and the Land, together with the buildings and improve- ments and machinery and equipment being hereinafter and in the Lease referred to as the "Facility'), all at an amount which will not exceed the cost of $2,000,000 to the City. SeQ112"- k21l0rizli0n of _nFi�� Sir Y�Qz hg_BQa��- For the purpose of providing funds to pay the cost of acquiring, constructing, purchasing and installing the Facility to be leased to the Company, there shall be issued and hereby are authorized and directed to be issued a series of Industrial Development Reve- nue Bonds, Series June 1, 1978 (Salina Presbyterian Manor, Inc.), of the City in the principal amount of $2,000,000. The Bonds herein authorized, hereinafter sometimes referred to as the "Bonds," and all interest thereon and any redemption premium shall be paid solely from the money and revenue received from the fees charged and rental received for the use of the Facility and not from any other fund or source (except to the extent paid out of Bond proceeds or the income from the temporary investment thereof and, under certain circumstances, condemnation awards and the pro- ceeds of insurance), and the City hereby pledges the Facility and the net earnings therefrom to the payment of the Bonds and the interest thereon. The payment of the principal of and interest on the Bonds shall be guaranteed by United Presbyterian Foundation of Kansas, Inc., a Kansas not for profit corporation, pursuant to the terms of the Guaranty Agreement, the form of which is approved by Section 28 of this Ordinance. Sec 14a_ 2elariptIOn-lial-2119,111_2f-Uh9-B2alss Dg�lgg�og�l Paq Agent. The Bonds shall consist of 400 cou- pon Bonds, numbered from 1 to 400, inclusive, each of said Bonds being in the denomination of $5,000. All of the Bonds shall be dated June 1, 1978, and the Bonds shall be numbered, shall become due serially on June 1 in each year, and shall bear interest from date as follows: -2- PRINCIPAL MATURITY INTEREST KUMBFRS AMOUNT �TyNE 1 RATE__ 1 - 11 $ 55,000 1981 5 3/47 12 - 22 55,000 1982 5 3/47 23 - 34 60,000 1983 5 3/47. 35 - 46 60,000 1984 6 1/49. 47 - 59 65,000 1985 6 1/49. 60 - 73 70,000 1986 6 1/47 74 - 88 75,000 1987 6 1/47 89 - 104 80,000 1988 6 1/49. 105 - 121 85,000 1989 6 3/47 122 - 139 90,000 1990 6 3/47 140 - 158 95,000 1991 6 3/47 159 - 178 100,000 1992 6 3/47 179 - 200 110,000 1993 6 3/47 201 - 223 115,000 1994 7 1/47 224 - 248 125,000 1995 7 1/47 249 - 274 130,000 1996 7 1/47 275 - 302 140,000 1997 7 1/47 303 - 332 150,000 1998 7 1/47 333 - 365 165,000 1999 7 1/47 366 - 400 175,000 2000 7 1/47 -2- The Bonds shall rear interest from date payable semi- annually on June 1 and December 1 in each year, commencing December 1, 1978s The Bonds and the interest coupons to be attached thereto shall be payable in lawful money of the United States of America at First State Bank and Trust Company, 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." In the event the interest on the Bonds is includible in the gross income of the recipients thereof for Federal income tax purposes by reason of the failure of the Bonds to qualify for the exemption provided in Section 1O3(b)(6)(D) of the Internal Revenue Code of 1954, as amended, all of the Bonds then outstanding shall mature and be due and payable at the principal amount thereof, plus accrued interest to the maturity date, together with a pre- mium which shall be, on each Bond, equal to the stated interest rate on such Bond multiplied times the principal amount of such Bond, for each full year or fraction of a year which elapses from the date on which the interest becomes includible in the gross in- come of the recipients and the date of maturity established by the City (which date of maturity shall not be earlier than 45 days or later than 120 days after the Internal Revenue Service, the Company or the Fiscal Agent hereinafter designated shill give written notice to the City of the inclusion of the interest on the Bonds in the gross income of the recipients thereof). aJLJ2Q_A. ledeaotion and Payment of, B2111_?_Llor to M1JL1=f1I. The Bonds shall be subject to redemption and payment prior to the stated maturity thereof, after the notice specified in Section 5 of this Ordinance, as follows: (a) Each of the Bonds shall be subject to redeap- tion and payment at the option of the City, upon instructions from the Company, on any interest pay- ment date upon any of the following conditions or events, provided all of the Bonds are redeemed and paid according to their teras: (1) if title to, or the use for a limited period of, substantially all of the Facility be condemned by any authority having the power of eminent domain; (2) if substan- tially all of the Facility is damaged or destroyed by fire or other casualty; or (3) if as a result of changes in the Constitution of the State of Kansas, or of legislative or administrative action by the State of Kansas or any political subdivision thereof, or by the United States, or by reason of any action instituted in any court, the Lease herein authorized shall become void.or unenforceable, or impossible of performance without unreasonable delay, or in any other way, by reason of such change of circumstances, unreasonable burdens or excessive liabilities are imposed on the -3- Company or the City. The Bonds redeemed pursuant to this paragraph shall be redeemed at the princi- pal amount thereof, plus accrued interest thereon to date fixed for redemption and payment, Without premium. (b) Each of the Bonds maturing in the year 1986 and thereafter is also subject to redemption and payment at the option of the City upon instructions from the Company, on June 1, 1985, and on any in- terest payment date thereafter, at the redemption prices (expressed as percentages of principal amount) set out below, plus accrued interest there- on to the date fixed for redemption and payment: Redemption Dates Redemption June 1, 1985 to December 1, 1985 103% June 1, 1986 to December 1, 1986 102 1/27 June 1, 1987 to December 1, 1987 102% June 1, 1988 to December 1, 1988 101 1/2R June 1, 1989 and thereafter 101% provided that Bonds shall not be redeemed pursuant to this paragraph in amounts less than five percent (5R) of the principal amount of Bonds at the time outstanding. Bonds to be redeemed and paid pur- suant to this paragraph shall be redeemed proportionately from each maturity, the Bonds to be redeemed to be selected by the Fiscal Agent herein- after designated in such equitable manner as it may determine. (c) Prior to the date fixed for redemption funds or securities in which such funds are invested shall be placed with the Fiscal Agent to pay the Bonds called for redemption and accrued interest thereon to the redemption date and the premium, if any. Upon the happening of the above conditions, the Bonds thus called for redemption, from and after the redemption date, shall cease to bear in- terest, shall no longer be entitled to the benefits and protection of the covenants herein contained and shall not be deemed to be outstanding here- under. Sec:LJ2a_,5. i=j..Qe of Redemot;LQg. Notice of any redemp- tion provided for by this Ordinance shall be given in the name of the City by the City, the Company or the Fiscal Agent by United States registered mail to the Paying Agent herein designated and to the original purchaser of the Bonds, such notice to be mailed at least 30 days prior to the date fixed for redemption and pay- ment and to specify the numbers of the Bonds to be redeemed and -4- paid. Notice of any such redemption shall also be published at least once not less than 30 days prior to the date fixed for re- demption in a financial journal published and of general circulation in New York, New York. Notice of any such redemption shall also be given by registered mail in the manner hereinbefore specified to any bondholder who files his name with the Fiscal Agent pursuant to Section 23 of this 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 the Bonds so called for redemption and pay- ment as of the redemption date, provided funds are available to pay the same according to their terms. Notice of any redemption as herein provided shall be given upon, but only upon, written instructions from the Company, as long as the Company is not in default in the payment of Basic Rent due under the Lease. $���QII�t • �D�l��€�_EL������a�_�IL�gL4��_Hgl�_�Y Any moneys deposited with the Fiscal Agent or the Paying Agent for the payment of the principal of or interest on the Bonds and remaining unclaimed for six years after such princi- pal and interest have become due shall be paid to the Company, and any bondholder entitled thereto shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the City, the Fiscal Agent or the Paying Agent with respect thereto shall cease; provided, however, that the Fiscal Agent and the Paying Agent before being required to make any such payment to the Company, may at the Company's expense cause to be published once in a publication of general circulation in New York, New York, notice that such moneys remain unclaimed and that after a date specified therein, which shall not be less than 30 days after the date of such publication, any such un- claimed moneys then remaining will be paid to the Company. q1Qt12a_2• 111h4dQF_EXQcut12a_2F_92U_dZ. The Bonds shall be executed for and on behalf of the City by the facsimile signature of its Mayor and attested by the manual signature of its City Clerk, with the seal of the City affixed thereto or imprinted thereon. Interest coupons shall be attached to the Bonds representing the interest to mature thereon, and said interest coupons shall bear the facsimile signatures of the Mayor and City Clerk of the City. In the event either said Mayor or City Clerk or both of said officers shall cease to hold such office before the Bonds and coupons bearing their signatures shall have been issued and delivered, said Bonds may be issued as though said officers had not ceased to hold office and such signatures appearing on the Bonds, coupons and registration certificates shall be valid and sufficient for all purposes as if they had remained in office until such issuance. 5&at"g6. F= of. Bond. Each of the Bonds and inter- est coupons attached thereto shall be in substantially the following form: 1 Nom _ $5,000 UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA INDUSTRIAL DEVELOPMENT REVENUE BOND SERIES JUNE 1, 1978 (SALINA PRESBYTERIAN MANOR, INC.) KNOW ALL MEN BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas, for value re- ceived, hereby promises to pay, out of the revenues hereinafter specified, to the bearer, the sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the first day of June, 19_, and to pay interest thereon from the date hereof at the rate of percent (N__R) per annum, payable semi- annually on June 1 and December 1 in each year after the date hereof commencing December 1, 1978, until the said principal sum shall have been paid, upon presentation and surrender of the in- terest coupons hereto attached, bearing the facsimile signatures of the Mayor and City Clerk of said City as said coupons severally become due, both principal of and interest on this Bond being payable at First State Bank and Trust Company, in the City of Salina, Kansas (the "Paying Agent"). In the event the interest on the Bonds is includible in the gross income of the recipients thereof for Federal income tax purposes by reason of the failure of the Bonds to qualify for the exemption provided in Section 103(b)(6)(D) of the Internal Revenue Code of 1954, as amended, then all of the Bonds then outstanding shall mature and be due and payable at the principal amount there- of, plus accrued interest to the maturity date, together with a premium which shall be, for each Bond, equal to the stated inter- est rate on such Bond aultiplied times the principal amount of such Bond, for each full Year or fraction of a year which elapses from the date on which the interest becomes includible in the gross income and the date of maturity established by the City (which date of maturity shall not be earlier than 45 days or later than 120 days after the Internal Revenue Service, the Company or the Fiscal lgent designated in the Ordinance authorizing this Bond shall give written notice to the City and the holders of the Bonds of the inclusion of the interest on the Bonds in the gross income of the recipients thereof). THIS BOND is one of an authorized series of 400 Bonds aggregating the principal amount of $2,000,000 (the "Bonds") au- thorized by an Ordinance (the "Ordinance") of the City of Salina, Kansas (the "City"), for the purpose of providing funds to pay the cost of acquiring real property and constructing, purchasing and installing buildings and improvements and machinery and equipment am (hereinafter sometimes referred to as the "Facility," the Facility being further identified in the Ordinance) to be leased to Salina Presbyterian Manor, Inc., a Kansas not for profit corporation (the "Company"), pursuant to a Lease dated as of June 1, 1978 (the "Lease"), by and between the City and the Company, by the author- ity of and in conformity with the provisions, restrictions and limitations of the Constitution and statutes of the State of Kansas, including K.S.A. 12-1740 to 12-1749a, and all amendments thereof and acts supplemental thereto, and all other provisions of the laws of said State applicable thereto and this Bond and all interest hereon are to be paid by the City solely and only from the money and revenue received from the fees charged and rental received for the use of the Facility under the Lease and not from any other fund or source (except to the extent paid out of Bond proceeds or the income from the temporary investment thereof and, under certain circumstances, condemnation awards and the proceeds of insurance). Pursuant to the provisions of said statutes, the governing body of the City has pledged the Facility and the net earnings therefrom to the payment of the series of Bonds of which this Bond is a part and the interest thereon. The payment of the principal of and interest on this Bond has been guaranteed by United Presbyterian Foundation of Kansas, Inc., a Kansas not for profit corporation (the "Guarantor"), pursuant to the terms of a Guaranty Agreement (the "Guaranty") dated June 1, 1978, between the Guarantor and the Fiscal Agent designated in the Ordinance. This Bond does not constitute a debt of the City within the meaning of any constitutional or statutory limitation. Reference is hereby made to the Ordinance, to the Lease and to the Guaranty for a description of the Facility and the covenants of the City, the Company and the Guarantor with respect to the pay- ment, collection, segregation and application of the money and revenue received from the fees charged and rental received for the use of the Facility, the rights, duties and obligations of the City, the Company, the Guarantor and the Fiscal Agent with respect thereto and otherwise 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 prior to maturity at the option of the City, upon instructions from the Company, on any in- terest payment date upon any of the following conditions or events, provided all of the Bonds are redeemed and paid according to their terms: (1) if title to, or the use for a limited period of, substantially all of the Facility be condemned by any author- ity having the power of eminent domain; (2) if substantially all of the Facility is damaged or destroyed by fire or other casualty; or (3) if as a result of changes in the Constitution of the State of Kansas or of legislative or administrative action by the State of Kansas or any political subdivision thereof, or by the United States, or by reason of any action instituted in any court, the Lease shall become void or unenforceable or impossible of performance without unreasonable delay, or in any other way by reason of such change of circumstances, unreasonable burdens or excessive liabilities are imposed on the Company or the City. The Bonds redeemed as provided in this paragraph shall be redeemed at the principal amount thereof, plus accrued interest thereon to and -7- including the date fixed for redemption and payment, without pre- mium. Each of the Bonds of the series of which this Bond is one maturing in the year 1986 and thereafter is also subject to redemption and payment prior to maturity at the option of the City, upon instructions from the Company, on June 1, 1985, and on any interest payment date thereafter, at the redemption prices (expressed as percentages of principal amount) set out below, plus accrued interest thereon to the date of redemption and payment: Redemption Dates 112th—LIZlY.-21 Redemption Ezlar-- June 1, 1985 to December 1, 1985 103% June 1, 1986 to December 1, 1986 102 1/2% June 1, 1987 to December 1, 1987 102% June 1, 1988 to December 1, 1988 101 1/29. June 1, 1989 and thereafter 101% provided that Bonds shall not be redeemed pursuant to the provisions described in this paragraph in amounts less than five percent (5%) of the principal amount of Bonds outstanding. Bonds to be redeemed and paid pur- suant to the provisions described in this paragraph shall be redeemed proportionately from each maturity, the Bonds to be redeemed to be selected by the Fiscal Agent designated in the Ordinance in such equitable man- ner as it may determine. Notice of the City's intention to redeem and pay said Bonds pursuant to any of the redemption provisions aforesaid, specifying the numbers of the Bonds to be redeemed and paid, shall be given by United States registered mail to the Paying Agent not less than 30 days prior to the date fixed for redemption and pay- ment. Notice of any such redemption shall also be published at least once not less than 30 days prior to the date fixed for re- demption in a financial journal published and of general circulation in New York, New York, and given by registered mail at least 30 days prior to the date fixed for redemption to any bond- holder who files his name with the Fiscal Agent as provided in the Ordinance. 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 facsimile signature of its Mayor and attested by the manual signature of its City Clerk, and its corporate seal to be affixed hereto or im- printed hereon, and the interest coupons hereto attached to be signed with the facsimile signatures of said officers, and this cm Bond to be dated this first day of June, 1978. ATTEST: City Clerk (facsimile) Mayor G Coupon No. (FORM OF COUPON) All Coupons for 6 Months due JllIlg 1 �IlSI_�ece tQ��L- �------- On the First day of -----------, 19--f ) unless the Bond to which this coupon is attached ) be called for redemption and payment duly made or ) City of Salina, provided for, the City of Salina, Kansas, will ) Kansas pay bearer, solely,from the money and revenue re- ) ceived from the fees charged and rental received ) ------------------ for the use of the Facility described in the Bond ) Industrial Develop - to which this coupon is attached, and not from ) ment Revenue Bond any other fund or source, the amount shown hereon, ) Series June 1, 1978 in lawful money of the United States of America, ) (Salina Presbyterian at First State Bank and Trust Company, Salina, ) Manor, Inc.) Kansas, being interest due on its Industrial } Development Revenue Bond, Series June 1, 1978 ) (Salina Presbyterian Manor, Inc.), dated ) June 1, 1978, No• ��_�• ) Mayor ) ATTEST: ) City Clerk } ) ------------------------------------------------------------------------ -10- Sectiga_9. Execut gn_and_De�iv_e�y_gf_tt�e_Bgndsl_DeQgs t Qf_Bond_P�gceed��_De�gnat�,on_gf_F�ca�_Agarat. The Mayor and City Clerk are hereby authorized and directed to prepare and execute, in the manner hereinbefore specified, the Bonds herein authorized, and to deliver said Bonds to The Columbian Securities Corporation, Topeka, Kansas, the purchaser thereof, on payment of the purchase price. The proceeds of the sale of the Bonds shall be deposited with First State Bank and Trust Company, in the City of Salina, Kansas, hereby designated as the City's Fiscal Agent for the Bonds and herein referred to as the "Fiscal Agent," the rights and duties of the Fiscal Agent being further specified in Section 25 and elsewhere in this Ordinance, and in the Lease. Secti2Q_10. There is hereby author- ized and ordered to be established in the hands of the Fiscal Agent a separate fund or account designated as "City of Salina, Kansas - Salina Presbyterian Manor, Inc. Construction Fund," here- inafter referred to as the "Construction Fund." The Fiscal Agent shall, first, promptly pay from the proceeds of the sale of the Bonds into the Principal and Interest Account hereinafter created the accrued interest and premium, if any, received upon such sale. The balance of the proceeds of the sale of the Bonds shall be deposited in the Construction Fund. The Construction Fund shall be used for the purpose of providing funds to pay the cost of acquiring the Land and constructing, purchasing and installing the Facility to be leased -to the Company as provided in the Lease. Any moneys not required for said purpose shall, when the Facility is complete as provided in the Lease, be paid to the Company. SyctiQnThere is hereby authorized and ordered to be established in the hands of the Fiscal Agent a separate account to be known as the "City of Salina, Kansas, Principal and Interest Account for Industrial Development Revenue Bonds, Series June 1, 1978 (Salina Presbyterian Manor, Inc.), dated June 1, 1978," herein referred to as the "Principal and Interest Account." The City covenants and agrees that from and after the delivery of any of the Bonds, the City will maintain said Account with the Fiscal Agent. All pay- ments of Basic Rent and Additional Rent due under the Lease and all other moneys intended to pay the principal of and interest on the Bonds and the charges of the Fiscal Agent and Paying Agent shall be applied and allocated by the Fiscal Agent to the Principal and Interest Account. All amounts credited to and .deposited in the Principal and Interest Account shall be used by the Fiscal Agent and forwarded to the Paying Agent for the sole purpose of paying the principal of and interest on the Bonds as and when the same become due or are called for redemption and pay- ment, and for paying the charges of the Fiscal Agent and Paying Agent for acting hereunder. The Fiscal Agent shall make appro- priate arrangements with and shall transmit funds to the Paying Agent to pay such principal and interest as the same become due, -11- and the charges of the Fiscal Agent and the Paying Agent herein referred to. Any balance remaining in the Principal and Interest Account, shall, When the Bonds have been paid, or payment provided for in accordance with Section 22 of this Ordinance, be paid to the Company. Section_12. Bond ReseL:v_e_Accgunt. There is hereby au- thorized and ordered to be established in the hands of the Fiscal Agent a separate account to be known as the "City of Salina, Kansas, Bond Reserve Account for Industrial Development Revenue Bonds, Series June 1, 1978 (Salina Presbyterian Manor, Inc.), dated June 1, 1978," hereinafter referred to as the "Bond Reserve Account." The City covenants and agrees that from and after the delivery of any of the Bonds it will maintain said Account with the Fiscal Agent. All payments of Additional Rent due under the Lease for deposit into the Bond Reserve Account shall be applied and allocated by the Fiscal Agent to the Bond Reserve Account. Moneys in the Bond Reserve Account shall be used solely and ex- clusively by the Fiscal Agent and forwarded to the Paying Agent to prevent any default in the payment of the principal of or interest on the Bonds, and any redemption premium, if moneys in the Princi- pal and Interest Account are insufficient to pay the same as the same become due or are payable; provided that when the moneys in the Principal and Interest Account and the Bond Reserve Account are sufficient to pay, at the times required, the principal of and redemption premiums, if any, and interest on all the Bonds out- standing, the moneys in the Bond Reserve Account shall be trans- ferred to the Principal and Interest Account. Sectjon_12. nv_estments. Moneys in the Construction Fund shall, upon instructions from the Company, be invested by the Fiscal Agent in (i) direct obligations of the United States of America, or agencies thereof, or in (ii) certificates of deposit secured by such obligations, becoming due within twelve months from the date of purchase. Moneys allocated and credited to and deposited in the Principal and Interest Account and moneys on de- posit in the Bond Reserve Account shall be invested by the Fiscal Agent, upon instructions from the Company, in (i) direct obliga- tions of the United States of America, or agencies thereof, or in (ii) certificates of deposit secured by such obligations. Moneys from time to time held by the Fiscal Agent for the payment of matured coupons or Bonds not yet presented for payment shall be invested by the Fiscal Agent in passbook savings accounts. No in- vestment shall be made pursuant to this Section for a period longer than the time the Fiscal Agent shall determine that said funds are not required for the purpose for which they are intended. All interest or income on investments held in the Construction Fund shall accrue to and become a part of the Con- struction Fund, and all interest or income on investments held in any other fund or account shall accrue to and become a part of the Principal and Interest Account. Any losses suffered on invest- ments held in any fund or account shall be charged to such fund or -12- account. Whenever the Fiscal Agent determines that the cash balance in any fund or account is insufficient for the purposes of such fund or account, it shall sell and reduce to cash securities held in such fund or account until the cash balance is sufficient for such purposes. Any investments made by the Fiscal Agent pursuant to this Ordinance may be made through its own bond department, and any certificates of deposit may be those of the Fiscal Agent. 5ggUQQ_14.Cov_gI_#�Q_Pay_PLncigal 3n3_Intenes_on thg_BQnda. The City covenants that it will promptly pay, or cause to be paid, the principal of and interest and redemption premium, if any, on the Bonds issued under this Ordinance, on the dates and in the manner provided herein and in the Bonds, according to the true intent and meaning thereof. The principal and interest and redemption premium, if any, are payable solely from the revenues received from the fees charged and rental received for the use of the Facility (except to the extent paid out of moneys attributable to Bond proceeds or the income from the temporary investment thereof and, under certain circumstances, condemnation awards and proceeds of insurance) and the Facility and the net earnings therefrom are pledged to the payment of the Bonds and the interest thereon as provided in Section 2 hereof. The City further cove- nants that it will make or cause to be made all other payments and deposits required under the provisions of this Ordinance from funds made available for such purpose under the lease. 529ti2n_15. So long as any of the principal of and interest on any of the Bonds remains outstanding and unpaid, or until provisions are made for the payment thereof, in accordance with Section 22 of this Ordinance, the City covenants with each of the holders and owners of the Bonds as follows: (a) The City will use the proceeds of the Bonds as soon as practicable and with all reasonable dispatch for the purpose for which the Bonds are issued as hereinbefore set forth. Said proceeds will not be invested in any securities or obliga- tions 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. The City further covenants that the proceeds of. the Bonds will not be used to acquire securities or obligations (other than obligations described in subsection (a)(1) of such Section) 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 -13- Service of the United States or a decision by a court of ultimate jurisdiction holds that the acquisition of securities or obligations producing a yield higher than the Bonds will not cause the Bonds to be Arbitrage Bonds as defined in said Section 103(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 and it will not permit any default to occur on the part of the City; it will fully and promptly enforce all of the terms, provisions and conditions of the Lease which require performance by, or impose duties on, the Company, and in the event of the occurrence of a default, as defined in the Lease, will exercise all rights and remedies conferred by the Lease for the full and complete protection of the security and rights of the bond- holders 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 provisions which will provide funds sufficient in amount to make the rental payments and other payments 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 sell the Facility at a price not less than the amount suf- ficient to pay the then outstanding Bonds plus in- terest then unpaid. (c) The City will enforce collection of the rental payments and other charges in the amounts and at the time set forth in the Lease and will not reduce or cause or permit to be reduced the rental pay- ments 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 the Lease, except as provided therein, which will in any manner affect adversely the rights, remedies or interest of the bondholders, nor will it consent to any merger, consolidation, dissolution or liquidation by the Company, except to the extent provided in the Lease. -14- (e) Any purchase price of the Facility, any condemnation awards, or any 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 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 Ordi- nance. Such funds shall be deposited with the Fiscal Agent, and the same shall be used solely for the payment of the Bonds and the accrued interest thereon, and the charges of the Paying Agent and the Fiscal Agent for paying the same. (f) The City will cause the Company to keep constantly insured all buildings and improvements and machinery and equipment from time to time constituting a part of the property leased to the Company in the manner provided for by the Lease. The City's share of the proceeds of any such insurance policies shall be payable to and deposited with the Fiscal Agent as Insurance Trustee. Any of the proceeds of such policies shall be used and applied in the manner set forth in the Lease. (g) The City will cause the Fiscal Agent to maintain adequate records and accounts relating to the Facility, separate and apart from all other records or accounts of the City or the Fiscal Agent, which records and accounts shall be main- tained in accordance with generally accepted principles of trust accounting and shall include complete details of all financial transactions related to the Bonds authorized herein and the leased property. 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 the agents of the Company or any of the holders of the Bonds during the regular business hours of the Fiscal Agent. -15- Sgg_112n 16. Additionai_�onds. The City covenants with each of the holders and owners of the Bonds that it will not issue any other obligations payable from payments by the Company pur- suant to the Lease, nor voluntarily 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 the Lease, nor will it, unless required by law or by the terms of the Lease, sell or otherwise dispose of the Project or any part thereof; pro- vided, however, that the City may issue from time to time additional revenue bonds for the purpose of completing the acquisition, construction, purchase and installation of the Facility, or adding additions thereto (including additional stories to existing buildings), provided that the following terms and conditions are met: (a) The City shall have entered into an amendment to the Lease or a new lease or agreement with the Company providing for rentals or payments which, together with any rentals under the Lease, will be at least sufficient to pay the principal of and interest on the Bonds and said additional bonds as the same become due. (b) The Company is not in default in the payment of rent due under the Lease. (c) The issuance of said additional bonds shall not affect the exemption from Federal income taxa- tion of the interest on the Bonds herein author- ized. In the event of the issuance of any such additional bonds the City may pledge the Facility and the net earnings therefrom to the pay- ment of such additional bonds and the interest thereon, provided the City also pledges the additional construction, machinery and equipment and the net earnings therefrom, purchased out of the proceeds of such additional bonds, to the payment of the Bonds herein authorized and the interest thereon. Section -17. Amendments. The provisions of the Bonds and the provisions of this Ordinance may be modified or amended at any time by the City with the written consent of the Company (if it is not in default under the Lease) and the holders of not less than sixty-six and two-thirds per cent (66 2/3%) in aggregate principal amount of the Bonds at the time outstanding, provided that no such modification or amendment shall permit or be construed as permitting: (a) the modification of any duties or responsibilities of the Fiscal Agent or the Paying Agent unless it consents thereto, (b) the extension of the maturity of the princi- pal of any of the Bonds or the extension of the maturity of the interest on any Bonds, (c) a reduction in the principal amount of -16- 1 any of the Bonds or the rate of interest thereon, or (d) a reduction in the aggregate principal amount of Bonds, the consent of the holders of which is required for any such amendment or modification. Any provision of the Bonds or of this Ordinance (other than those referred to in (a) above) may, however, be modified or amended in any respect with the written consent of the Company (if it is not then in default under the Lease) and the holders of all of the Bonds then outstanding. Amendments to this Ordinance which, in the opinion of the City, correct omissions or ambiguities or which add to the security of the bondholders may be made by the City when agreed to by the Company. Every amendment or modification of a provision of the Bonds or of this Ordinance to which the written consent of the bondholders is required 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 such amendment or modification, if any. Upon payment of the rea- sonable cost of preparing the same, a certified copy of every such amendatory or supplemental ordinance, if any, and a certified copy of this Ordinance will be sent by the City Clerk to any bondholder or prospective bondholder requesting the same. The Lease may be amended by the City and the Company, except as to rent or certain other matters which may be made only with the consent of a specified percentage of the holders of the then outstanding Bonds, as provided therein. Se9t120_18. EnfQzceman:L. The provisions of this Ordi- nance shall constitute a contract between the City and the holders of the Bonds, and the holder of any one or more of the Bonds may sue to recover interest or principal which has not been paid according to the terms of said Bond. The holders of twenty-five per cent (25%) of the principal amount of Bonds then outstanding 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 Ordi- nance to be done or performed by the City or the Company. 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 Bonds. Section 19. Defaultl_Evgnts_of_Default. If any of the following events occur, it is hereby defined as and declared to be and to constitute an "event of default" within the meaning of this Ordinance: (a) Default in the due and punctual payment of any interest on any Bond; -17- 1 1 (b) Default in the due and punctual payment of the principal of or redemption premium, if any, on any Bond, whether at the stated maturity thereof, or upon any redemption, or upon the maturity thereof by declaration as provided in Section 20 hereof; or (c) Default in the performance or observance of any other of the covenants, agreements or condi- tions on the part of the City in this Ordinance or in the Bonds contained, or default on the part of the Company under the Lease in failing to pay or causing to be paid the rentals or other payments provided in the Lease or its failure to maintain such insurance as is required by the Lease, and the continuance thereof for a period of thirty (30) days after written notice given to the City by the Fiscal Agent or by the holders of not less than twenty-five percent (25%) of the aggregate princi- pal amount of Bonds then outstanding. Sectt2a_20. Acceleretion_of _Mutu�ty_n_Ev_ent_of lie—fault. Upon the happening of an event of default, as defined in Section 19 hereof, the holders of twenty-five per cent (25%) or more of the aggregate principal amount of Bonds then outstanding may, by written notice given to the Mayor or City Clerk of the City and to the Company, declare the principal of and interest on all of the Bonds then outstanding to be due and payable im- mediately, and upon such declaration given as aforesaid, said principal and interest shall be immediately due and payable, any- thing in the Bonds or this Ordinance contained to the contrary notwithstanding. This provision, however, is subject to the con- dition that if at any time thereafter all arrears of interest, ex- cept interest accrued but not yet due, and all arrears of princi- pal shall have been paid in full, or such default otherwise cured, then in every such case such declaration and its consequences shall be rescinded and annulled, but no such rescission or annul- ment shall extend to or affect any subsequent default or impair any rights consequent thereon. sectl2n_21. ALPS sit 52II_Qt_MQi1cY�• Anything in this Ordinance to the contrary notwithstanding, if at any time the moneys in the Principal and Interest Account shall not be suffi- cient to pay the principal of, premium, if any, and interest on the Bonds as they become due and payable, all moneys received by the Fiscal Agent shall, after payment of the cost and expenses of the proceedings resulting in the collection of such moneys and of the expenses, liabilities and advances incurred or made by the Fiscal Agent, be applied by the •Fiscal Agent as follows: (a) Unless the principal have become or shall have payable, all such moneys -18- of all the Bonds shall been declared due and shall be applied: FIRST - To the payment to the persons en- titled thereto of all installments of interest then due on the Bonds, in the order of the maturity of the installments of such interest and, if the amount available shall not be suf- ficient to pay in full any particular install- ment, then to the payment ratably, according to the amounts due on such installment, to the persons entitled thereto, without any dis- crimination or privilege; and SECOND - To the payment to the persons entitled thereto of the unpaid principal of and premium, if any, on any of the Bonds which shall have become due (other than Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of this Ordinance), in the order of their due dates, with interest on such Bonds from the respective dates upon which they become due and, if the amount available shall not be suf- ficient to pay in full the principal of, pre- mium, if any, and such interest on the Bonds due on any particular date, then to the payment ratably, according to the amount of the principal, interest and premium, if any, due on such date, to the persons entitled thereto without any discrimination or privilege. (b) If the principal of all the Bonds shall have become due or shall have been declared due and pay- able, all such moneys shall be applied to the pay- ment of the principal, premium, if any, and inter- est then due and unpaid upon the Bonds, without preference or priority, ratably, according to the amounts due respectively for principal, premium, if any, and interest, to the persons entitled thereto without any discrimination or privilege. (c) If the principal of all the Bonds shall have been declared due and payable, and if such declaration shall thereafter have been rescinded and annulled under the provisions of Section 20 hereof then, subject to the provisions of paragraph (b) of this Section 21 in the event that the prin- cipal of all the Bonds shall later become due or be declared due and payable, the moneys shall be ap- plied in accordance with the provisions of para- graph (a) of this Section. -19- Whenever moneys are to be applied pursuant to the provisions of this Section, such moneys shall be applied at such times, and from time to time as the Fiscal Agent shall determine, having due re - Bard to the amount of such moneys available for such application in the future. Whenever the Fiscal Agent shall apply such funds, it shall fix the date (which shall be an interest payment date un- less it shall deem another date more suitable) upon which such ap- plication is to be made, and upon such date interest on the amounts of principal to be paid on such date shall cease to ac- crue. The Fiscal Agent shall give such notice as it may deem ap- propriate of the deposit with it of any such moneys and of the fixing of any such date and shall not be required to make payment to the bearer of any unpaid coupon or the holder of any Bond until such coupon or such Bond and all unmatured coupons, if any, apper- taining to such Bond shall be presented to the Fiscal Agent for appropriate endorsement or for cancellation if fully paid. Sestfoa_22. Def easanee. When all of the Bonds and all coupons representing interest thereon shall have been paid and discharged, then the agreements, obligations, covenants and re- quirements contained in this Ordinance (other than those set forth in this Section) and the pledge of the Facility and the net earnings therefrom made hereunder and all other rights granted hereby shall cease and terminate. The Bonds and coupons shall be deemed to have been paid and discharged within the meaning of this Ordinance and within the meaning of the Lease when there shall have been deposited with (i) the Fiscal Agent, (ii) a bank located in the State of Kansas, or (iii) the State Treasurer of the State of Kansas, at or prior to the maturity or redemption date of the Bonds and coupons, in trust for and irrevocably appropriated thereto, moneys and/or direct obligations of, or obligations, the principal of and interest on which are guaranteed by, the United States of America, which moneys and obligations, together with the interest to be earned on such obligations, will be at least suffi- cient for the payment of the principal of and premium, if any, on the Bonds and interest to accrue thereon to the date of maturity or redemption, as 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 of the Bonds are to be redeemed prior to the maturity thereof, the City (and the Company, if required hereunder) shall have elected to redeem such Bonds and such Bonds shall have been called for redemption or irrevocable instructions to call such Bonds for redemption shall have been given. Any moneys and obligations which at any time shall be deposited by or on behalf of the City for the purpose of paying and discharging any of the Bonds or coupons shall be, and are hereby, assigned, transferred and set over to the Fiscal Agent, such bank or the State Treasurer, as the case may be, in trust for the respective holders of the Bonds and coupons, and such moneys and obligations shall be and are hereby irrevocably appropriated to the payment and discharge thereof. If, through lapse of time or otherwise, the holders of the Bonds or coupons -20- shall no longer be entitled to enforce payment of their obliga- tions, then, in such event, it shall be the duty of the holder of such moneys and obligations forthwith to pay such moneys and obli- gations to the Company, as provided in Section 6 above. Section 23. List of_Bogdholders. To the extent that such information shall be made known to the City under the terms of this Section, it will keep on file at the principal office of the Fiscal Agent a list of the names and addresses of the last known holders of the Bonds. Any bondholder may request that his name and address be placed on said list by filing a written re- quest with the City or with the Fiscal Agent, which request shall include a statement of the principal amount of Bonds held by such holder and the numbers of such Bonds. The Fiscal Agent shall be under no responsibility with regard to the accuracy of said list. At reasonable times and under reasonable regulations, established by the Fiscal Agent, said list may be inspected and copied by the Company or by the holders and/or owners (or a designated representative thereof) of twenty-five per cent (25%) or more in principal amount of Bonds then outstanding, such ownership and the authority of any such designated representative to be evidenced to the satisfaction of the Fiscal Agent. ', SeQUOR-21• 9929ig1ts_, Etc=y_2f 121.ihol3€17s. Any con- sent, request, direction, approval, objection or other instrument required by this Ordinance or the Lease herein authorized to be signed and executed by the bondholders may be in any number of concurrent writings of similar tenor and may be signed or executed by such bondholders in person or by agent appointed in writing. Proof of the execution of any such consent, request, direction, approval, objection or other instrument or of the writing appoint- ing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Ordinance and shall be in favor of the City, the Fiscal Agent, the Paying Agent and the Company with regard to any action taken under such request or other instrument, namely: (a) The fact and date of the execution by any person of any such writing may be proved by the certificate of any officer in any juris- diction who by law has power to take acknowledgments within such jurisdiction that the person signing such writing acknowledged before him the execution thereof, or by affidavit of any witness to such execution. (b) The fact of the holding by any person of Bonds and/or coupons transferable by delivery and the amounts and numbers of such Bonds, and the date of the holding of same, may be proved by a certificate executed by any trust company, bank or bankers, wherever situated, -21- stating that at the date thereof the party named therein did exhibit to an officer of such trust company or bank or to such bankers, as the property of such party, the Bonds and/or coupons therein mentioned if such certificate shall be deemed by the person to whom such consent is addressed to be satisfactory. Such person may, in his discre- tion, require evidence that such Bonds have been deposited with a bank, bankers or trust company before taking any action based on such ownership. In lieu of the foregoing such person may accept other proofs of the foregoing as he shall deem appropriate. Secti2D_2S. PZ2v_isiorns_Relaji4g_tq_the_Fi�c�i_Ag�Q . (a) Prior to the receipt of the Bond proceeds pursuant to the provisions of Section 9 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 be limited to those expressly set forth in this Ordinance and the Lease. (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 instruments 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 the Company. (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 -22- 1 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 or the coupons relating thereto without giving notice thereof to the City or the Company or any bond- holder and without incurring any liability whatsoever with respect thereto. (g) The Fiscal Agent may be removed at any time by the City with the consent of the Company, and may resign by an instrument in writing delivered to the City and the Company to take effect not sooner than ninety (90) days after its delivery, upon such removal or resignation the City, with the consent of the Company, 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 which has a capital stock and surplus aggregating at least $5,000,000. Such successor fiscal agent shall be subject to the same duties and obligations and shall have the same rights, privileges and immunities specified in this Ordinance and in the Lease for the Fiscal Agent. Any such successor fiscal agent shall file an acceptance in the form referred to in subsection (a) hereof with the City Clerk within ten (10) days of its appointment. (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, 311 such fees and expenses to be paid by the Company as Additional Rent as specified in Article II of the Lease. (i) The Fiscal Agent shall have the right to con- tinue, or to enter into, banking relationships with the Company, with the City, and with any corpora- tion, all or any part of the stock of which is owned by the Company or the City, including, with- out limitation, the acceptance of deposits of funds from or the making of secured or unsecured loans to -23- the Company or the City and any such corporation, without giving either notice thereof or -notice of any information concerning the Company or the City or any such corporation which comes to the atten- tion of the Fiscal Agent as result thereof, to the City or to any bondholder, and the Fiscal Agent shall not incur any liability whatsoever to the City or to any bondholder as a result thereof, or as a result of the collection or other enforcement by the Fiscal Agent of its rights with respect to any such transaction. Secti2rU_26. Payfietls_Dgg_on_Satur�aYst_SuB3ays_r�� Holijil . In any case where the date of maturity of interest on or principal of the Bonds or the date fixed for redemption of any Bonds shall be a Saturday, a Sunday or a legal holiday or a day on which banking institutions are authorized by law to close, then payment of interest or principal need not be made on such date but may be made on the next succeeding business day not a Saturday, a Sunday or a legal holiday or a day upon which banking institutions are authorized by law to close, with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue on the amount being paid for the period after such date. Secti2Q_22. AU_tjLni,zation f_I ease. The Facility shall be leased to the Company under and pursuant to a Lease dated as of June 1, 1978, substantially in the form attached to this Ordinance and marked Exhibit "A", which Lease (with such corrections and changes therein as the officers executing the same deem appropriate) the May and City Clerk are hereby authorized and di- rected to execute for and on behalf of and as the act and deed of the City. 29911Qa_Z8. ApgLoval ofCThe Guaranty Agreement dated as of June 1, 1978, pursuant to which United Presbyterian Foundation of Kansas, Inc., a Kansas not for profit corporation, unconditionally guarantees to the Fiscal Agent, for the benefit of the bondholders, the payment of the principal of and interest on the Bonds, is hereby approved in the form attached to this Ordinance and marked Exhibit "B", which Guaranty Agreement the Fiscal Agent is authorized to accept. The Fiscal Agent shall enforce the Guaranty Agreement for the benefit and protection of the holders of the Bonds as long as the Bonds remain outstanding and unpaid and prevent any default or prospective default in the payment of the Bonds or the interest thereon at the stated maturity thereof or the redemption, as the case may be, or in the observance of any covenant, agreement or undertaking contained in the Guaranty Agreement. The Fiscal Agent shall not permit or consent to any change, amendment, modification or termination of the Guaranty Agreement except to the extent pro- vider therein. -24- Section_29. Severability. 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 provision of law or contrary to the policy of express 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 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 of the Lease. Section_30. Agreementa_gf the_City. All covenants, stipulations, and obligations of the City contained in this Ordi- nance and the Lease shall be deemed to be the covenants, stipula- tions, obligations and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipula- tions, obligations and agreements shall be binding upon the City and its successors from time to time and upon any board, body or agency to which any powers or duties affecting such covenants, stipulations, obligations and agreements shall be transferred by or in accordance with law. Except as otherwise provided in this Ordinance, all rights, powers and privileges conferred and duties and liabilities imposed upon the City or any officials thereof by the provisions of this Ordinance or the Lease shall be exercised or performed by the City or by such officers as may be required by law to exercise such powers and to perform such duties. No cove- nant, stipulation, obligation or agreement herein contained or contained in the Lease shall be deemed to be a covenant, stipula- tion, obligation or agreement of any official, officer, agent or employee of the City in his individual capacity, and neither the officials of the City nor any officer executing the Bonds shall be liable personally on the Bonds or by such for any personal liabil- ity or accountability by reason of the issuance thereof. SectiQa_11. CQnv_eYagce_of_Facilfty. Upon receipt by the City of the purchase price of all or any part of the property subject to the Lease, title to said property shall be transferred and conveyed to the Company as provided in the Lease, and the Mayor and other appropriate officers of said City are hereby au- thorized and directed to execute such deeds, bills of sale and other instruments as may be necessary to effect such conveyance and transfer. Secti2n_32.Performamrcg_of_Acts. All acts, conditions and things required by the Constitution and laws of the State of Kansas, relating to the enactment of this Ordinance, to the is- suance of the Bonds, to the execution of the Lease Bonds and to the execution of the Lease and to the approval of the Guaranty Agreement, to happen, exist and be performed precedent to and in the enactment of this Ordinance, precedent to the issuance of the Bonds, precedent to the execution of Bonds and precedent to the 0 -25- execution of the Lease the Lease and precedent to approval of the Guaranty Agreement have happened, exist and have been performed as so required by law. Section 33. FuLthgr_Auth4r�ity. The officials of the City, and the attorneys, engineers and other agents or employees of the City are hereby authorized to do all acts and things re- quired of them by this Ordinance and the Lease for the full, punc- tual and complete performance of all of the terms, covenants and agreements contained in the Bonds, the Lease and this Ordinance. Seat2n_34. Ef�ect,v_e_Date. This Ordinance shall take effect and be in force from and after its passage and publication in the official City paper. PASSED AND APPROVED by the governing body of the City of Salina, Kansas, this nth day of June_--_, 1978. ATTEST: __-------- -- -- City Clerk 0 -26- p Mayor SCHEDULE 1 TO LEASE DATED JUNE 1, 1978, BY AND BETWEEN THE CITY OF SALINA, KANSAS, AND UNITED PRESBYTERIAN FOUNDATION OF KANSAS, INC. AND TO ORDINANCE NO. 3,639 OF SAID CITY. (a) TRACT I: A tract of land lying in the Southwest Quarter (SW 1/4) of the Southeast Quarter (SE 1/4) of Section Seventeen (17), Township Fourteen (14) South, Range Two (2) West, of the Sixth Principal Meridian in Saline County, Kansas, being more particularly described as follows: Commencing at the Southwest corner of said Southwest Quarter (SW 1/4) of the Southeast Quarter (SE 1/4), thence Northerly on an assumed bearing of North 00 degrees 00 minutes 00 seconds East along the West line of said Southwest Quarter (SW 1/4) of the Southeast Quarter (SE 1/4) a distance of Forty-five and no Hundredths (45.00) feet, said point being on the North right-of- way line of a county road, thence North 89 degrees 22 minutes 27 seconds East along said North right-of-way line a distance of Nine Hundred and Ninety and Forty-two Hundredths (990.42) feet, said point being the Southeast corner of the West tract and point of beginning, thence North 00 degrees 37 minutes 33 seconds West along East line.of said West tract a distance of Two Hundred and Fifty-nine and Thirty-four Hundredths (259.34) feet; thence North 45 degrees 37 minutes 33 seconds West along East line of said West tract a distance of Sixty-seven and Eighty-two Hundredths (67.82) feet, thence North 00 degrees 37 minutes 33 seconds West along East line of said West tract a distance of Ninety-two and Forty-six Hundredths (92.46) feet, thence North 89 degrees 22 minutes 27 seconds East along East line of said West tract a distance of Eight and no Hundredths (8.00) feet, thence North 00 degrees 37 minutes 33 seconds West along East line of said West tract a distance of One Hundred and Forty-two and Seven Hundredths (142.07) feet to the Northeast corner of said West tract, thence North 89 degrees 22 minutes 27 seconds East a distance of Two Hundred and Forty-two and no Hundredths (242.00) feet, thence South 00 degrees 37 minutes 33 seconds East a distance of Five Hundred and Forty-one and Eighty-three Hundredths (541.83) feet to a point on the North right-of-way line of a county road, thence South 89 degrees 22 minutes 27 seconds West along said North right-of-way line a distance of Two Hundred and Two and Five Hundredths (202.05) feet to point of beginning. L- TRACT II: A tract of land lying in the Southwest Quarter (SW 1/4) of the Southeast Quarter (SE 1/4) of Section Seventeen (17), Township Fourteen (14) South, Range Two (2) West, of thea Sixth Principal Meridian in Saline County, Kansas, beingmore particularly described as follows: Commencing at the Southwest corner of said Southwest Quarter (SW 1/4) of the Southeast Quarter (SE 1/4), e rtherly on an assumed bearing of North 00 degrees 00 minutes 00 seconds East along the West line of said Southwest Quarter (SW 1/4) of the Southeast Quarter (SE 1/4) a distance of Forty-five and no Hundredths (45.00) feet, said point being on the North right-of- way line of a county road, thence North 89 degrees 22 minutes 27 seconds East along the said North right-of-way line a distance of Six Hundred and Fifty-eight and Seventy-three Hundredths (658.73) feet, to the point of beginning, thence North 00 degrees 37 minutes 33 seconds West a distance of Two Hundred and Fifty and Nine -hundredths (250.09) feet, thence North 44 degrees 22 minutes 27 seconds East a distance of One Hundred and Eighty-three and Thirty-three Hundredths (183.33) feet, thence South 45 degrees 37 minutes 33 seconds East a distance of Twelve and no Hundredths (12.00) feet, thence North 44 degrees 22 minutes 27 secondstEast a distance of Fifty-two and Fifty Hundredths (52.50) feet, North 45 degrees 37 minutes 33 seconds West a distance of Twelve and no Hundredths (12.00) feet, thence North 44 degrees 22 minutes 27 seconds East a distance of One Hudnred and Seventy -Six and Seventy-five Hundredths (176.75) feet, thence South 00 degrees 37 minutes 33 seconds East a distance of one Hundred and Forty-two and Seven -hundredths (142.07) feet, thence South 89 degrees 22 minutes 27 seconds West a distance of Eight and no Hundredths (8.00) feet, thence South 00 degrees 37 minutes 33 seconds East a distance of Ninety-two and Forth -six Hundredths (92.46) feet, thence South 45 degrees 37 minutes 33 seconds East adistance of Sixty-seven and Eighty-two Hundredths (67.82) feet, thence South 00 degrees 37 minutes 33 seconds East a distance of Two Hundred and Fifty-nine and Thirty-four Hundredths (259.34) feet to a point on the North right-of-way of a county road, thence South 89 degrees 22 minutes 27 seconds West along said county road right-of-way a distance of Three Hundred and Thirty-one and Sixty-nine Hundredths (331.69) feet to the point of beginning. -2- 1 1 Subject to (i) easements, conditions, restrictions, covenants, agreements and reservations now of record, (ii) the rights of the public in and to any part of the premises lying or being in public roads, alleys or highways, and (iii) taxes and assessments, general and special, not now due or payable; (b) And all buildings, fixtures, furnishings and equipment located or installed thereon pursuant to said Lease. -3-