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95-4891 Issue NotesGILMORE & BELL Draft - July 12, 1995 Document No. K 10269 1 \Authres 1 RESOLUTION NO.g�J—q OF THE CITY OF SALINA, KANSAS $1,900,000 GENERAL OBLIGATION MUNICIPAL TEMPORARY NOTES (LANDFILL PROJECT) SERIES 1995-1 E401934 St ti Secti Secti Secti 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16 17 18 19 20 A INDEX Definitions ................................. Authorization of and Security for the Notes .............. Description of the Notes, Designation of Paying Agent and Note Registrar ............................ No Redemption of Notes Prior to Maturity .............. Method and Place of Payment of Principal of and Interest on the Notes ................................ Execution, Authentication and Delivery of the Notes ........ Registration, Transfer and Exchange of Notes ............ Persons Deemed Owners of Notes .................... Mutilated, Lost, Stolen or Destroyed Notes .............. Cancellation and Destruction of Notes Upon Payment ........ Form of Notes ................................ Disposition of Note Proceeds and Other Funds ............ Levy and Collection of Annual Taxes .................. Transfer of Funds to Paying Agent and the Note Registrar ..... Authorization of Agreement Between the City and the Note Registrar ............................... Tax Covenants ................................ Defeasance .................................. Severability .................................. Further Authority .............................. Effective Date ................................ PAGE 1 3 3 4 4 4 6 6 6 6 7 7 7 7 7 9 9 9 9 E401934 RESOLUTION NO. q 5 `1 691 ARESOLUTION AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF $ ,900,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION MUNICIPAL TEMPORARY NI)TES (LANDFILL PROJECT), SERIES 1995-1 OF THE CITY OF SALINA, KANSAS FOR THE PI JRPOSE OF PROVIDING FUNDS TO PAY THE COST OF CERTAIN IMPROVEMENTS TO AND T 1E ACQUISITION OF NECESSARY EQUIPMENT FOR THE CITY'S SOLID WASTE FACILITY; P SCRIBING THE FORM AND DETAILS OF SAID NOTES; PROVIDING FOR THE LEVY AND C LLECTION OF THE NECESSARY TAXES FOR THE PURPOSE OF PAYING THE PRINCIPAL O7 AND INTEREST ON SAID NOTES AS THEY BECOME DUE; AND AUTHORIZING AN A REEMENT BETWEEN THE CITY AND THE NOTE REGISTRAR. WHEREAS, the City of Salina, Kansas (the "City"), collects and disposes of solid waste as a al function under the laws of the State of Kansas, including K.S.A. 12-2101 et sea. (the "Act); WHEREAS, the governing body of the City hereby finds and determines that it is necessary to uct improvements to and to acquire necessary equipment for the City's solid waste facility (the xt") and that the City has insufficient funds to pay for the entire cost of the Project at the present and WHEREAS, pursuant to Resolution Number 94-4687, the City has previously expressed its intent ssue approximately $1,500,000 of temporary notes and general obligation bonds (the "Obligations") the Project, and, pursuant to the authority established by Resolution Number 94-4687, the City has ped $285,000 principal amount of Municipal Temporary Notes (Landfill Project) Series 1994-B and )rtion of its General Obligation Internal Improvement Bonds, Series 1995-A in the principal amount 735,000, which leaves $420,000 of remaining authority for additional City Obligations to be issued er Resolution Number 94-4687; and WHEREAS, the City is continuing work on the Project by constructing improvements to and a6luiring equipment for the City's solid waste facility and pursuant to Resolution Number 95- I'a , the C y has previously expressed its interest to issue additional obligations in the amount of approximately $ (which is in addition to the $420,000 of remaining authority under Resolution Number 9 4687); and WHEREAS, all legal requirements pertaining to the Project have been complied with, and the has entered into additional contracts for the construction of certain improvements to and the sition of certain equipment which are a part of the Project; and WHEREAS, the governing body of the City now finds and determines that the cost of the of resaid equipment and related expenses (including issuance costs of the notes herein authorized) is $1 900,000 and it is necessary for the City to issue the notes herein authorized to pay said cost of this portion of the Project; and WHEREAS, the governing body of the City is authorized by law, including K.S.A. 10-123, to general obligation notes of the City to pay the costs of the Project; and WHEREAS, the governing body of the City has requested bids for the purchase of the notes authorized and the interest rates established herein are the rates of the lowest bidder; and E401934 "Project" means the construction of certain improvements to and the acquisition of necessary = for the City's solid waste facility. "Registration Date" means the effective date of registration of a Note as evidenced by the Note r in the Certificate of Authentication appearing on the Note. "Regular Record Date" for the interest payable on any Interest Payment Date means the 15th day hether or not a business day) of the calendar month next preceding such Interest Payment Date. "Resolution" "this Resolution" "hereof" "herein" "hereto" and similar terms shall refer to this on of the City authorizing the Notes, as originally executed or as it may be supplemented or I from time to time. "Special Record Date" for the payment of any Defaulted Interest, as defined in Section 5, means a ate fixed by the Note Registrar pursuant to Section 5. "Stated Maturity" when used with respect to any Note or any installment of interest thereon ans the date specified in Section 3 of this Resolution as the fixed date on which the principal of such to or such installment of interest is due and payable. Section 2. Authorization of and Security for the Notes. For the purpose of providing funds for Project, there shall be issued and are hereby authorized and directed to be issued the General igation Municipal Temporary Notes (Landfill Project), Series 1995-1, of the City in the principal unt of $1,900,000. The sale of the Notes to 7&OAA-y- 1V w , LL.4c,-, )j Sa% , is authorized and approved. The Notes shall be general obligations of the City, payable as to both principal and interest from ai I valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible p perty, real and personal, within the territorial limits of the City. The full faith, credit and resources o the City are hereby irrevocably pledged for the payment of the Notes and the interest thereon as the same become due. Section 3. Description of the Notes. Designation of Paying Agent and Note Re isg tray. The Notes 1 consist of fully registered Notes, without coupons, transferable to subsequent owners only in the to Register maintained by the Note Registrar as hereinafter provided. Each Note shall be in the nomination of $100,000 or any integral multiple of $50,000 in excess thereof, not exceeding the ncipal amount of Notes maturing in the year in which such Note becomes due, as specified by the lder of such Note. The Notes shall be numbered in a manner determined by the Note Registrar. The tes shall be dated as of July 1, 1995 and shall mature and shall bear interest at the rates per annum follows: MATURITY PRINCIPAL INTEREST DATE AMOUNT RATE March 1, 1996 $300,000 530% September 1, 1996 300,000% March 1, 1997 300,000 % September 1, 1997 300,000 qog% March 1, 1998 350,000 QL% September 1, 1998 350,000 q./S % -3- E401934 The Notes shall bear interest from the most recent Interest Payment Date to which interest has i paid in full or, if no interest has been paid, from July 1, 1995. Interest on the Notes at the rates •esaid shall be payable semiannually on March 1 and September 1 in each year, beginning March 1, 6. The State Treasurer of Kansas, Topeka, Kansas, is hereby designated as the Paying Agent and as Note Registrar for the Notes. Section 4. No Redemption of Notes Prior to Maturity. The Notes shall not be subject to ion and payment prior to their Stated Maturity. Section 5. Method and Place of Payment of Principal of and Interest on the Notes. The principal premium, if any, and interest (computed on the basis of a 360 -day year of twelve 30 -day months) on e Notes shall be payable in such coin or currency of the United States of America as at the time of yment is legal tender for the payment of public and private debts. Payment of the interest on each Note all be made by the Paying Agent on each Interest Payment Date to the Person appearing as the Holder -.reof in the Note Register at the close of business on the Regular Record Date next preceding said terest Payment Date, by check or draft mailed to such Holder at the Holder's address as it appears in Note Register. The principal of and redemption premium, if any, each Note shall be payable to the )lder thereof upon the presentation of such Note for payment and cancellation at its Maturity at the incipal office of the Paying Agent. Notwithstanding any of the foregoing provisions of this Section to the contrary, any interest on Notes which is payable, but is not punctually paid on any Interest Payment Date (herein called lefaulted Interest"), shall be payable to the persons in whose names the Notes are registered at the close business on a Special Record Date. The Special Record Date shall be fixed in the following manner: The City shall notify the Note Registrar in writing of the amount of Defaulted Interest proposed to paid on the Notes and the date of the proposed payment, which proposed payment date shall be at least days after receipt by the Note Registrar of spch notice from the City; (2) at the same time the City ill deposit with the Paying Agent an amount of money equal to the aggregate amount to be paid in ,pest of such Defaulted Interest or shall make arrangements satisfactory to the Paying Agent for such ?osit prior to the date of the proposed payment; and (3) thereupon, the Note Registrar shall fix a :tial Record Date for the payment of such Defaulted Interest which shall not be more than 15 nor less m 10 days prior to the date of the proposed payment. The Note Registrar shall promptly notify the City of such Special Record Date and, in the name at the expense of the City, shall cause notice of the proposed payment of such Defaulted Interest and Special Record Date therefor to be mailed, first class postage prepaid, to the Holder of each Note at Holder's address as it appears in the Note Register, not less than 10 days prior to such Special Record e. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor ing been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the :es are registered at the close of business on such Special Record Date. idSubject to the foregoing provisions of this Section, each Note delivered under this Resolution on transfer of or in exchange for or in lieu of any other Note shall carry the rights to interest accrued unpaid, and to accrue, which were carried by such other Note. Section 6. Execution. Authentication and Delivery of the Notes. The Notes shall be executed behalf of the City by the facsimile signature of its Mayor and attested by the facsimile signature of City Clerk, and shall have the seal of the City affixed thereto or imprinted thereon. In the event any -4- E401934 facer whose signature or facsimile thereof appears on any Note shall cease to be such officer before the .livery of such Note, such signature or facsimile thereof shall nevertheless be valid and sufficient for I purposes, the same as if such person had remained in office until delivery. Any Note may be executed such persons as at the actual time of the execution of such Note shall be the proper officers to sign ch Note although at the original date of such Note such persons may not have been such officers. The Notes shall have endorsed thereon a Certificate of Authentication substantially in the form reinafter set forth and which shall have the date of registration inserted and shall be manually executed the Note Registrar. The Notes shall be countersigned by the manual or facsimile signature of the City erk and the seal of the City shall be affixed or imprinted adjacent thereto following registration of the )tes by the Treasurer of the State. No Note shall be entitled to any security or benefit under this Resolution or shall be valid or ligatory for any purpose unless and until such Certificate of Authentication shall have been duly ecuted by the Note Registrar by manual signature. Such executed Certificate of Authentication upon y Note shall be conclusive evidence that such Note has been duly authenticated and delivered under this :solution and that such registered owner has been entered on record in the Note Register kept by the )te Registrar. The Certificate of Authentication shall be deemed to have been duly executed if the ;gistration Date has been inserted and if it has been signed by any authorized officer or employee of Note Registrar, but it shall not be necessary that the same officer or employee sign the Certificate of ithentication on all of the Notes that may be issued hereunder at any one time. The Mayor and the City Clerk are hereby authorized and directed to prepare and execute the )tes in the manner hereinbefore specified, the City Clerk is hereby authorized and directed to register Notes, and the Mayor and the City Clerk are hereby authorized and directed to cause the Notes to registered in the office of the State Treasurer of Kansas as provided by law, and when the Notes have an duly registered with the Note Registrar, to deliver the Notes to the original purchaser named in ction 2 hereof upon the payment of the aggregate principal amount of the Notes plus accrued interest the date of payment and delivery, together with any premium. Section 7. Registration. Transfer and Exchange of Notes. So long as any of the Notes remain tstanding, the City shall cause the Note Register to be kept at the principal office of the Note Registrar i all of the Notes and transfers and or exchanges thereof shall be fully registered as to both principal I interest in the names of the Holders in the Note Register and shall not be registered to bearer. Notes may be transferred in the Note Register only upon surrender thereof to the Note Registrar ly endorsed for transfer or accompanied by a written instrument of transfer duly executed by the elder thereof or his attorney or legal representative in such form as shall be satisfactory to the Note gistrar. Upon any such transfer, the City shall execute and the Note Registrar shall authenticate and iver in exchange for such Note a new Note or Notes, registered in the name of the transferee, of any iomination or denominations authorized by this Resolution in an aggregate principal amount equal to principal amount of such Note, of the same Maturity and bearing interest at the same rate. Notes, upon surrender thereof at the principal office of the Note Registrar, together with a written trument of transfer duly executed by the Holder thereof or his attorney or legal representative in such m as shall be satisfactory to the Note Registrar, may, at the option of the Holder thereof, be exchanged an equal aggregate principal amount of Notes of the same Maturity, of any denomination or iominations authorized by this Resolution, and bearing interest at the same rate. -5- E401934 In all cases in which Notes shall be exchanged or transferred hereunder, the City shall execute d the Note Registrar shall authenticate and deliver at the earliest practicable time Notes in accordance th the provisions of this Resolution. All Notes surrendered in any such exchange or transfer shall rthwith be cancelled by the Note Registrar. No service charge shall be made to any Noteholder for ;istration, transfer or exchange of Notes, but the City or the Note Registrar may make a charge for cry transfer or exchange of Notes sufficient to reimburse it or them for any tax or other governmental arge required to be paid with respect to such transfer or exchange, and such charges shall be paid fore any such transfer or exchange shall be completed. The City and the Note Registrar shall not be required to issue, transfer or exchange any Note ig a period beginning at the opening of business on the day after receiving written notice from the of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the lent of Defaulted Interest pursuant to this Resolution. Section 8. Persons Deemed Owners of Notes. The Person in whose name any Note shall be tiered shall be deemed and regarded by the City, the Note Registrar and the Paying Agent as the lute owner thereof, whether such Note shall be overdue or not, for the purpose of receiving payment ;for or on account thereof and for all purposes, and neither the City, the Note Registrar nor the ng Agent shall be affected by notice to the contrary. Payment of or on account of the principal of interest on any Note shall be made only to or upon the order of the Holder thereof or his legal -Isentative. All such payments shall be valid and effectual to satisfy and discharge the liability upon Note, including the interest thereon, to the extent of the sum or sums so paid. Section 9. Mutilated, Lost. Stolen or Destroyed Notes. In the event any Note shall become itilated, or be lost, stolen or destroyed, the City shall, if necessary, execute and the Note Registrar ill authenticate and shall deliver a new Note of like date and tenor as the Note mutilated, lost, stolen destroyed; provided that, in the case of any mutilated Note, such mutilated Note shall first be gendered to the Note Registrar, and in the case of any lost, stolen or destroyed Note, if the luirements of K.S.A. 84-8-405 are met and if an indemnity note and affidavit of loss are provided to Note Registrar and the City at the expense of the Holder. Such indemnity note and affidavit of loss ist be sufficient, in the judgment of the Note Registrar and the City, to protect the Note Registrar and City from any loss which either of them might suffer if the Note is replaced. In the event any such ite shall have matured, instead of issuing a substitute Note the City may pay or authorize the payment the same without surrender thereof. Upon the issuance of any substitute Note, the City and the Note gistrar may require the payment of an amount sufficient to reimburse the City and the Note Registrar any tax or other governmental charge that may be imposed in relation thereto and any other isonable fees and expenses incurred in connection therewith. The provisions of this Section are -lusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the )lacement or payment of mutilated, lost, stolen or destroyed Notes. Section 10. Cancellation and Destruction of Notes Upon Payment. All Notes surrendered for p yment, transfer or exchange shall be delivered to the Note Registrar and, if not already cancelled, the to Registrar shall cancel such Notes and record such cancellation in the Note Register. Thereafter, siich cancelled Notes shall be delivered to the City. Section 11. Form of Notes. The Notes and the Note Registrar's Certificate of Authentication be endorsed thereon shall be in substantially the form attached hereto as Exhibit "A". The Notes may e endorsed thereon such legends or text as may be necessary or appropriate to conform to any W iplicable rules and regulations of any governmental authority or any custom, usage or requirement of w with respect thereto. Section 12. Disposition of Note Proceeds and Other Funds. All accrued interest and premium, any, received from the sale of the Notes shall be deposited in the Principal and Interest Account for eneral Obligation Municipal Temporary Notes (Landfill Project), Series 1995-1 (the "Principal and terest Account") held by the City Treasurer for the retirement of the Notes. The remaining balance of the proceeds derived from the sale of the Notes shall be deposited in fund (the "Series 1995-1 Project Fund") held by the City Treasurer and shall be used solely for the irpose of paying the costs of the Project and the costs of issuing the Notes. Any moneys remaining in e Series 1995-1 Project Fund after the completion of the Project will be deposited in the Principal and terest Account and used to pay the next maturing principal of and interest on the Notes. Section 13. Levy and Collection of Annual Taxes. The governing body of the City shall mually make provision for the payment of the principal of and interest on the Notes as the same become ie by levying and collecting the necessary taxes therefor in the manner provided by law. Section 14. Transfer of Funds to Patting Agent and the Note Registrar. The City Treasurer is reby authorized and directed to withdraw from the funds received in payment of the taxes and from e Principal and Interest Account of the City and forward to the Paying Agent sums sufficient to pay the incipal of and interest on the Notes as and when the same become due and to pay the charges of the ying Agent for acting as paying agent in the payment of principal and interest. In addition, the City easurer is hereby authorized and directed to withdraw from the Principal and Interest Account and %rward to the Note Registrar sums sufficient to pay the charges of the Note Registrar for acting as note r gistrar. Sums sufficient to pay said charges shall be forwarded to the Paying Agent and Note Registrar C,Yer and above the amount of the principal of and interest on the Notes. Section 15. Authorization of Agreement Between the City and the Note Registrar. The greement between the City and the State Treasurer of Kansas, in substantially the form attached hereto, ith respect to the duties of the State Treasurer as Note Registrar is in all respects hereby approved, ithorized and confirmed and the Mayor and City Clerk are hereby authorized and directed to execute id Agreement for and on behalf of the City. Section 16. Tax Covenants. (a) The City covenants and agrees that (1) it will comply with all applicable provisions of Internal Revenue Code of 1986, as amended (the "Code"), including Sections 103 and 141 through ), necessary to maintain the exclusion from gross income for federal income tax purposes of the ;rest on the Notes and (2) it will not take any action, or fail to take any action, if any such action or ure to take action would adversely affect the exclusion from gross income of the interest on the Notes. City will, in addition, adopt such other ordinances or resolutions and take such other actions as may necessary to comply with the Code and with all other applicable future laws, regulations, published ings and judicial decisions, in order to ensure that the interest on the Notes will remain excluded from eral gross income, to the extent any such actions can be taken by the City. (b) The City covenants and agrees that (1) it will comply with all requirements of Section of the Code to the extent applicable to the Notes, (2) it will use the proceeds of the Notes as soon -7- E401934 is practicable and with all reasonable dispatch for the purposes for which the Notes are issued and (3) t will not invest or directly or indirectly use or permit the use of any proceeds of the Notes or any other ands of the City in any manner, or take or omit to take any action, that would cause the Notes to be Carbitrage bonds" within the meaning of Section 148(a) of the Code. (c) The City covenants and agrees that it will pay or provide for the payment from time to e of all amounts required to be rebated to the United States pursuant to Section 148(f) of the Code and Treasury Regulations applicable to the Notes from time to time. This covenant shall survive payment full or defeasance of the Notes. The City specifically covenants to comply with the Arbitrage tructions attached as Exhibit A to the Arbitrage Certificate. Notwithstanding anything to the contrary stained herein, the Arbitrage Instructions may be amended or replaced if, in the opinion of counsel ionally recognized on the subject of municipal notes, such amendment or replacement will not ,ersely affect the exclusion from gross income for federal income tax purposes of interest on the Notes. (d) The City makes the following representations in connection with the exception for small cental units from the arbitrage rebate requirements under Section 148(f)(4)(D) of the Code: (1) the City is a governmental unit under Kansas law with general taxing powers; (2) none of the Notes is a private activity bond as defined in Section 141 of the Code; (3) 95 percent or more of the net proceeds of the Notes are to be used for local governmental activities of the City; (4) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof) during the calendar year 1995 is not reasonably expected to exceed $5,000,000); and (5) the City (including all subordinate entities thereof) will not issue in excess of $5,000,000 of tax-exempt bonds (including the Notes but excluding private activity bonds) during the calendar year 1995 without first obtaining an opinion of nationally recognized counsel in the area of municipal finance that the exclusion of the interest on the Notes from federal gross income will not be adversely affected thereby. (e) The City hereby designates the Notes as "qualified tax-exempt obligations" as defined in 265(b)(3) of the Code. In addition, the City hereby represents that: (1) the aggregate face amount of all tax-exempt obligations (other than private activity bonds which are not "qualified 501(c)(3) bonds") which will be issued by the City (and all subordinate entities thereof) during calendar year 1995 is not reasonably expected to exceed $10,000,000; and (2) the City (including all subordinate entities thereof) will not issue an aggregate principal amount of obligations designated by the City to be "qualified tax-exempt obligations" during the calendar year in which the Notes are issued, including the Notes, in excess of $10,000,000, without first obtaining an opinion of Bond Counsel that the designation of the Notes as "qualified tax-exempt obligations" will not be adversely affected. -8- E401934 Mayor is hereby authorized to take such other action as may be necessary to make effective the ;nation in this subsection (f). (f) The foregoing covenants shall remain in full force and effect notwithstanding the ice of the Notes pursuant to Section 17 of this Resolution until the final maturity date of all Notes Section 17. Defeasance. When all of the Notes shall have been paid and discharged, then the quirements contained in this Resolution and all other rights granted hereby shall terminate. Notes shall deemed to have been paid and discharged within the meaning of this Resolution if there shall have en deposited with the Paying Agent or with a bank located in the State of Kansas and having full trust wers, at or prior to the Stated Maturity of said Notes, in trust for and irrevocably appropriated thereto, )neys and/or direct obligations of, or obligations the principal of and interest on which are guaranteed the United States of America, or in evidences of ownership of such obligations, which, together with interest to be earned on any such obligations, will be sufficient for the payment of the principal of 4 Notes and interest accrued to the Stated Maturity, or if default in such payment shall have occurred such date, then to the date of the tender of such payments. Any moneys and obligations which at any ie shall be deposited with said Paying Agent or bank or on behalf of the City, for the purpose of ying and discharging any of the Notes, shall be and are hereby assigned, transferred and set over to h Paying Agent or bank in trust for the respective Holders of the Notes, and such moneys shall be and hereby irrevocably appropriated to the payment and discharge thereof. All moneys deposited with .d Paying Agent or bank shall be deemed to be deposited in accordance with and subject to all of the visions contained in this Resolution. Section 18. Severability. If any one or more of the covenants or agreements provided in this olution (including the exhibits hereto) on the part of the City should be contrary to law, then such enant or covenants or agreement or agreements shall be deemed severable from the remaining enants and agreements, and shall in no way affect the validity of the other provisions of this olution or of said exhibits. It shall not be necessary for said exhibits to be published in the official r newspaper, but all such exhibits shall be on file in the office of the City Clerk and shall be available inspection by any interested party. Section 19. Further Authority. The Mayor, City Clerk, Finance Director and other City officials hereby further authorized and directed to execute any and all documents and take such actions as they i deem necessary or advisable in order to carry out and perform the purposes of the Resolution to ce alterations, changes or additions in the foregoing agreements, statements, instruments and other uments herein approved, authorized and confirmed which they may approve and the execution or ng of such action shall be conclusive evidence of such necessity or advisability. Section 20. Effective Date. This Resolution shall take effect and be in full force from and after passage by the governing body. N U7 -IJ -p5 U1.37FM FROM GILMORE & BELL TO 19138267244 P013/018 PASSED by the governing body of the City of Salina, Kansas, chis 17th day of July, 1995. (SEAL) ATTEST: (—L�"erk -10- Vice Mayor E401934 EXHIBIT A EGISTERED REGISTERED NUMBER $ UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA GENERAL OBLIGATION MUNICIPAL TEMPORARY NOTES (LANDFILL PROJECT) SERIES 1995-1 Maturity Dated Date Date CUSIP % Per Annum July 1, 1995 HOLDER: AL AMOUNT: DOLLARS The City of Salina, in the County of Saline, State of Kansas (herein called the "City"), for value ;eived, hereby promises to pay to the Registered Holder identified above, or registered assigns, on the aturity Date identified above, the Principal Amount identified above and to pay interest thereon at the serest Rate specified above from the most recent Interest Payment Date to which interest has been paid full or, if no interest has been paid, from July 1, 1995, semiannually on March 1 and September 1 in -h year, beginning March 1, 1996. INTEREST on this Note will be paid by check or draft mailed to the person in whose name this ate (or one or more predecessor Notes) is registered in the Note Register maintained by the Note gistrar at the close of business on the fifteenth day of the month next preceding each interest payment :e (the "Regular Record Date"). Interest not punctually paid will be paid as otherwise provided in the �olution authorizing this Note (the "Resolution"). The Principal Amount of this Note shall be payable check or draft to the Registered Holder upon presentation and surrender hereof at the principal office the State Treasurer of Kansas, in the City of Topeka, Kansas. The full faith, credit and resources of City are hereby irrevocably pledged for the prompt payment of the principal of and interest on this ite as the same become due. The principal of and interest (computed on the basis of a 360 -day year twelve 30 -day months) on this Note are payable in such coin or currency of the United States of nerica as at the time of payment is legal tender for payment of public and private debts. REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON REVERSE HEREOF. SUCH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME ''CT AS IF SET FORTH HERE. A-1 THIS NOTE shall not be valid or become obligatory for any purpose or be entitled to any ty or benefit under the Resolution until the Certificate of Authentication hereon shall have been and executed by the Note Registrar. IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions and things required to done and to exist precedent to and in the issuance of this Note have been done and performed and do st in due and regular form and manner as required by the constitution and laws of the State of Kansas, I that the total indebtedness of the City, including this Note and the series of which it is one, does not .eed any constitutional or statutory limitation. IN WITNESS WHEREOF, the governing body of the City of Salina, Kansas, has caused this e to be signed by facsimile signature of its Mayor and attested by facsimile signature of its City Clerk, City's corporate seal to be printed hereon and this Note to be dated July 1, 1995. CITY OF SALINA, KANSAS By (facsimile) Mayor ITTEST: City Clerk This Note shall not be negotiable unless and until countersigned below by the City Clerk ig registration by the Treasurer of the State of Kansas. CERTIFICATE OF AUTHENTICATION TION DATE: (facsimile) City Clerk This Note is one of the Notes described in the within mentioned Resolution. OFFICE OF THE STATE TREASURER OF KANSAS Note Registrar )te Registrar and Paying Agent: 'ATE TREASURER OF KANSAS Registration No. 0322-085-070195-951 A-2