8082 IRB Community InnCONSOLIDATED-SALINA
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ORDINANCE NO. SOS Z
AN ORDINANCE AUTHORIZING AND DIRECTING
TITE ISSUANCE OF $900,000 PRINCIPAL AMOUNT
OF SALINA, KANSAS, COM14UNITY INN AND CON-
VENTION CEN`T'ER REFUNDING REVENUE BONDS OF
1970, SERIES A, OF SAID CITY FOR THE PUR-
POSE OF REFUNDING, REDEEMING AND PAYING
OFF AN EQUAL PRINCIPAL AMOUNT OF SALINA,
KANSAS COMTJJNITY INN AND CONVENTION CENTER
REVENUE BONDS OF 1967, SERIES A; PRESCRIB-
ING THE FORM AND AUTHORIZING THE EXECUTION
OF A LEASE AGREEMENT BY AND BET JTEN SAID
CITY AND SALINA CODZrIUNITY INN OF AMERICA,
INC., A KANSAS CORPORATION.
WHEREAS, pursuant to proceedings duly had by the govern-
ing body of the City of Salina, Kansas, said City heretofore
caused to be issued an issue of Salina, Kansas, Community Inn and
j Convent=ion Center Revenue Bonds of 1967, Series A, of said City
in the original total principal amount of $900,000, said issue
consisting of 180 bonds, numbered from 1 to 180, both inclusive,
each of said bonds being in the denomination of $5,000, all of
said bonds being dated July 1, 1967, said bonds having been
authorized by Ordinance No. 7012 of said Ci-ty passed October
16,-1967, and
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WHEREAS, all of said bonds are outstanding at this time
and are subject to redemption on any interest payment date and it
is necessary, expedient and advisable that said City refund the
- a amount f said issue of Salina
outstanding $900,000 principal moon o ,
Kansas, Community Inn and Convention Center Revenue Bonds of
1967, Series A, dated July 1, 1967, being bonds numbered 1 to
180, inclusive, all of said bonds becoming due on July 1, 1970
and bearing interest at the rate of five and one quarter per
cent (5-1/4b) per annum, interest on said bonds being payable
from January 1, 1968 on July 1, 1968 and thereafter semiannually
on January 1 and July 1 in each year, both principal of and
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April 15, 1970
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CONSOLIDATED -SALIVA
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interest on said bonds being payable at The National Bank of
America at Salina, in the City of Salina, Kansas,
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY
OF THE CITY OF SALINA, KANSAS:
Section 1. That for the purpose of refunding, redeeming
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and paying off $900,000 principal amount of Salina, Kansas, Community
Inn and Convention Center Revenue Bonds of 1967, Series A, dated
July 1, 1967, numbered 1 to 180, inclusive, hereinbefore described,
there shall be issued and hereby are authorized and directed to
be issued a series of Salina, Kansas, Community Inn and Conven-
tion Center Refunding Revenue Bonds of 1970, Series A, of the
City of Salina, Kansas, in the principal amount of $900,000.
Said bonds herein authorized, hereinafter sometimes referred to
as the "bonds" or the "revenue bonds", and all interest thereon
shall be paid solely from the money and revenue received from the
fees charged and rental received for the use of the real estate
buildings and improvements purchased and acquired In part with
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the proceeds of the said bonds being refunded (sometimes herein-
after described as the "Facility") in accordance with the pro-
visions of the Lease dated June 1, 1970, betti-reen said City and
Salina Community Inn of America, Inc. (hereinafter sometimes
referred to as the "Lease"), said Lease being authorized by the
provisions of this Ordinance, and not from any other fund or
source. The City hereby pledges the Facility and said rentals,
income and other moneys to the payment of the bonds and the
interest thereon.
Section 2. Said Refunding Revenue Bonds of 1970, Series
A of the Cit of Salina, lana, Kansas, shall consist of 900 bonds,
numbered from 1 to 900, inclusive, each of said bonds being in
the denomination of $1,000. All of said bonds shall be dated
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June 1, 1970, and said bonds shall be numbered, shall become due
serially on January 1 and July 1 in each year and shall bear inter-
est as folio -:s:
KUMBERS
1-9
10 - 22
23 - 35
36 - 4►9
50-611
65 - 79
80 - 94
95 - 110
111 - 126
127 - 142
11+3 - 159
16o - 176
177 - 194
195 - 212
213 - 231
232 - 250
251 - 270
271 - 290
291 - 311
312 - 332
333 - 354
355 - 376
Soo - 4923
9
421 - 448
449 - 173
474 - 499
500 - 525
526 - 552
553 - 579
580 - 607
6o8 - 636
637 - 666
667 - 697
698 - 729
730 - 761
762 - 795
796 - 829
830 - 864
865 - 900
AMOU11T
95000
13,000
13,000
111, 000
15,000
15,000
15,000
16,000
16, Doo
16, 000
17,000
17,000
18,000
13,000
19,000
19,000
20,000
20,000
21,000
21,000
22, 000
22,000
23,000
2.4., 000
25,000
25,000
26,000
26, o00
27,000
27,000
28,000
29,000
30,000
31,000
32,000
32,000
311-, 000
343000
35,000
36, 000
MATURITY
January 15 1971
July 1, 1971
January 15 1972
July 1, 1972
January 1, 1973
July 1, 1973
January 1, 19711
July 15 1971
January 15 1975
July 13 1.975
January 1, 1976
July 15 1976
January 1, 1977
July 1, 1977
January 1, 1978
July 1, 1973
January 1, 1979
July 1, 1979
January 1, 1980
July 13 1980
January 1, 1981
July 1, 1981
January 1, 1982
July 13 1982
January 1, 1983
July 1, 1983
January 1, 19811
July 1, 1981E
January 1, 1985
July 1, 1985
January 15 1986
July 1, 1986
January 1., 1987
July 1, 1937
January 1, 1988
July 1, 1988
January 1, 1989
July 13 1989
January 1, 1990
July 1, 1990
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NTEREST
Said bonds shall bear interest from date payable January
15 1971 and thereafter semiannually on July 1 and January 1 in
each year, at the rate hereinabove specified.
Bonds numbered 1 to 900, inclusive, shall be subject
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to redemption and payment in whole or in part, in numerical
order, as hereinafter provided and from moneys that may be avail-
able for such purpose, on January 1, 1971, or on any interest pay-
ment date thereafter., at the par value thereof, plus accrued
interest thereon to date fixed for redemption and payment, without
premium.
Notice of any redemption provided for by this Ordinance
shall be given by United States registered mail to the paying
agent herein designated, such notice to be mailed at least30
days prior to the date fixed for redemption and pa -y -Ment and to
.i specify the cumbers of the bonds to be redeemed and paid. Inter-
est shall cease on any of said bonds so called for redemption
and payment as of the redemption date provided funds are avail -
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able to pay the same according to their terms.
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Said bonds and =interest coupons to be attached thereto
as hereinafter provided shall be payable in lawful money of the
j United States of America at The National Bank of America at
Salina, in the City of Salina, Kansas, hereinafter sometimes
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referred to as the "Paying Agent."
Section 3. Said bonds and each of them shall be exe-
cuted for and on behalf of the City by the facsimile signature of
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its Idayor and attested by the facsimile signature of its City Clerk,
with the seal of the City affixed. Interest coupons shall be
attached to said bonds representing the interest to mature thereon,
and said interest coupons shall bear the facsimile signatures of
the Mayor and City Clerk of said City.
Section 4. Each of said bonds and interest coupons and
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4NSOLIDATED-SALINA --
the certificates attached thereto shall be in substantially the
following for, -,,I:
No.
$1,000
UIdI TED STATES Or' A1,1ERI CA
STATE OF IANSAS
COU11TY OF SALINE
CITY 01' SALIIiA
SALI11A, KANSAS C01,1MUNITY INN AI`TD
CONUEITTION CEi,;TER RE110Ui' DIi'iG REVEI;UE BOND
OF 19705 SERIES A
KIST W ALL I,IEN BY THESE PRESET?TS : That the City o.f Salina,
in the County of Saline, State of Kansas, for value received, here-
by promises to pay, out of the revenues hereinafter specified, to
the bearer, the sum of
OI,E THOUSAND DOLLARS
in lat•rful money of the United States of America, on the first day
January,
Of July, 19 , and to pay interest thereon from the date hereof
at the rate of five and one-half per cent (5 1/2,) per annum
(likewise payable out of said revenues), payable January 1,
1971, and thereafter semiannually on July 1 and January l in
each year after the date hereof until the said principal sum shall
have been paid, upon presentation and surrender of the interest
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 pay-
able at The National Bark of America at Salina, in the City of
Salina, Kansas.
THIS BOND is one of an authorized series of 900 bonds
Of like date and tenor, except as to number, privilege of re-
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of the covenants of the City with respect to the collection,
segregation and application of the revenues of said Facility,
the nature and extent of the security of said bonds, the right
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demption and maturity, aggregating the principal amount of
$900,000, numbered from 1 to 900, inclusive, each in the de-
nomination of $1,000, authorized by ordinance of said City,
issued for the purpose of refunding, redeeming and paying off
an equal principal amount of Salina, Kansas Community Inn and
Convention Center Revenue Bonds of 1967, Series A, said bonds
having been issued by said City for the purpose of purchasing
and acquiring a building used for commercial facilities (herein --
after sometimes referred to as the "Facility") to be leased to
Salina Community Inn of America, Inc., a Kansas corporation, by
the authority of and in conformity with the provisions, restric-
tions and limitations of the Constitution and Statutes of the
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State of Kansas, including K.S.A. 12-1740 to 12-1749, 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 said City
of Salina, Kansas, solely and only from the money and revenue
received from the fees charged and rental received for the use
of the Facility and not from any other fund or source. Pursuant
to the provisions of said statute, the governing body of the City
has pledged said facility and said rentals, income and other
moneys to the payment of the series of bonds of which this bond
is a part, and the interest thereon. Reference is hereby made
to the ordinance aforesaid and to said Lease for a description
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of the covenants of the City with respect to the collection,
segregation and application of the revenues of said Facility,
the nature and extent of the security of said bonds, the right
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CONSOLIDATED-SALINA
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of the City to issue additional bonds to finance the Facility,
the rights, duties and obligations of the City and of the Fiscal
Agent with respect thereto, and the rights of the holders thereof.
Bonds numbered 1 to 900, inclusive, of the series of
bonds of which this bond is one, may be called for redemption and
payment prior to maturity, in whole or in part, in numerical
order, in the manner specified in the ordinance of the City author-
izing said issue of bonds, on January 1, 1971, or on any interest
payment date thereafter, at the par value thereof and accrued
interest to date of redemption, without premium.
Notice of the City's intention to redeem and pay said
bonds pursuant to an -,r of the redemption provisions aforesaid,
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specifying the numbers of the bonds to be redeemed and paid,
shall be given by United States registered mail to the Paying
Agent herein named not less than 30 days prior to the date fixed
for redemption and payment.
AND IT IS HEREBY DECLARED AND CERTIFIED that all acts,
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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 re-
quired by the Constitution and laws of the State of Kansas.
IN WITNESS WETIEREOF, the City of Salina, Kansas, by its
governing body, has caused this bond to be signed by the facsimile
signature of its P•layor and attested by the facsimile signature of
its City Clerk, and its corporate seal to be hereto affixed and
the interest coupons hereto attached to be signed with the facsimile
signatures of said officers, and this bond to be dated this first
day of June, 1970.
'facsimile
Mayor
A`.I"I.'EST
(Facsimile
City Clerk
^7r
COON SO LIDATED-SA LINA
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(FO_Rj:,l OF COUPON)
Coupon No.
First Coupon for
Other Coupons for
7 months due
6 months due July
January 1, 1971
1 and January 1.
Unless previously called for prior
July 15
redemption and payment thereof duly made or
January 1, 19 .
January,
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provided for, on the first day of July,
City of Salina,
Kansas
19 , the City of Salina, Kansas, will pay
Salina, Kansas
bearer, solely from the money and revenue
Community Inn
and Convention
received from: the fees charged and rentals
Center Rel"unding
Revenue Bond of
received for the use of the Facility de-
1970, Series A.
scribed in the bond to which this coupon
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is attached, and not from any other fund
or source, ,
in lawful money of the United States of
America, at The National Ban1r of America
at Salina, in the City of Salina, Kansas,
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being interest due on its Salina, Kansas,
Community Inn and Convention Center Re-
funding Revenge Bond of 1970, Series A,
dated June 1, 1970, Ivo.
(facsimile)
1.1ayor
i ATTEST:
facsimile
City Clerk
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STAT: OF K ESAS
Sti�
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C0 Tj. TY OF S f LIP:E
I, the undersigned, the City Cleric of the City, of Salina,
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Kansas, hereby certify that the within Bond, of the City of Salina,
Kansas, has been duly registered in my office according to law.
WITNESS my hand and official seal this day of June,
1970.
City Cler
Section 5. The Mayor and City Clerk are hereby authorized
and directed to prepare and execute in the manner hereinbefore speci-
fied the Salina, Kansas, Community Inn and Convention Center Refund-
ing Revenue Bonds of 1970, Series A, of the City herein authorized,
and to deliver said bonds to the purchasers thereof who shall surren-
der in exchange therefor outstanding Salina, Kansas, Community Inn
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and Convention Center Revenue Bonds of 1967, Series A, or pay cash
in the amount of the purchase price which shall be deposited with
the Fiscal Agent hereinafter designated.
Section 6. The City hereby designates The National Bank
of America at Salina, in the City of Salina, Kansas, as the City's
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Fiscal Agent, hereinafter referred to as the Fiscal Agent.
There is hereby authorized and ordered to be established in
the hands of the Fiscal Agent five separate accounts, as follows:
(a) "Salina Community Inn of America, Inc., Revenue
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Account" (hereinafter referred to as the "Revenue Account").
(b) "City of Salina, Kansas, Principal and Interest
Account for Salina, Kansas, Community Inn and Convention Center
Refunding Revenue Bonds of 1970, Series A, Dated June 1, 1970" (here-
inafter referred to as the "Principal and Interest Account for Series
A Bonds").
(c) "City of Salina, Kansas, Principal and Interest Ac-
count for Salina, Kansas, Community Inn and Convention Center
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Refunding Revenue Bonds, Series B, Dated June 1, 1970" (hereinafter
referred to as the "Principal and Interest Account for Series B Bonds").
(d) "Reserve Account for Salina, Kansas, Community Inn
and Convention Center Refunding Revenue Bonds, Series A, Dated June 1,
1970" (hereinafter referred to as the "Reserve Account for Series A
Bonds"). Upon payment of principal of and interest on all outstand-
ing Salina., Kansas, Community Inn and Convention Center Refunding
Revenue Bonds of 1970, Series A, any funds and investments in said
Reserve Account for Series A Bonds shall be transferred to the ac-
count created by subsection (e) of this Section 6.
(e) "Reserve Account for Salina, Kansas, Community Inn
and Convention Center Refunding Revenue Bonds, Series B, Dated June 1,
1970" (hereinafter referred to as the "Reserve Account for Series B
Bonds").
Section 7. In addition to the accounts referred to in Sec-
tion 6 hereinbefore set forth there shall be established with the
Fiscal Agent an account to be known as the "Refunding Account" into
which shall be deposited the proceeds of the Salina, Kansas, Community
Inn and Convention Center Refunding Revenue Bonds of 1970, Series A
and Series B. Concurrently with the issuance of said bonds the Fiscal
Agent shall (1) transfer all funds remaining in the City of Salina,
Kansas Principal and Interest Account for Salina, Kansas, Community
Inn and Convention Center Revenue Bonds of 1967, Series A, established
b Section 7 of Ordinance No. 7012 into the Principal and Interest
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Account for Series A Bonds established under Section 6 of this Ordi-
nance; (2) transfer all of the funds remaining in the City of Salina,
Kansas, Principal and Interest Account for Salina, Kansas Community
Inn and Convention Center Revenue Bonds of 1967, Series B, established
by Section 7 of Ordinance No. 7013, into the Principal and Interest
Account for Series B Bonds established under Section 6 of this Ordinance;
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j (3) transfer all of the funds remaining in the Salina Community Inn
of America, Inc. Revenue Account established by Section 7 of Ordi-
nance No. 7012, into the Reserve Account for Series A Bonds established
under Section 6 of this Ordinance; and (4) deposit all accrued inter-
est, if any, received b the
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y City on the issuance of such bonds in
the "Principal and Interest Account for Series A Bonds", and "Princi-
pal and Interest Account for Series B Bonds", respectively. The bal-
ance of the proceeds of the sale of the Salina, Kansas; Community
Inn and Convention Center Refunding Revenue Bonds of 1970, Series A
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and Series B, shall be used and applied as provided in Article IV of
the Lease described in Section 15 of this Ordinance. The Fiscal
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Agent shall make disbursements from funds deposited with it for pay-
ment of any expenses incurred by said City in connection with the is -
suance of the Refunding Series A and Series B Bonds, including but
not limited to underwriting expenses, legal fees and expenses of
counsel and publication expenses, which expenses shall be paid by the
Fiscal Agent as directed by the City.
Section 8. The City covenants and agrees that from and
after the delivery of the Series A Revenue Bonds herein authorized
and continuing so long as any of said bonds shall remain outstanding,
said City will maintain said accounts referred to in Section 6,
hereinbefore set out.
Section 9. As long as any of the Bonds herein authorized
remain outstanding and unpaid, Salina Community Inn of America, Inc.,
shall deposit with the Fiscal Agent in the 'Revenue Account" as here-
inbefore provided, monthly, beginning on the lst day of the month
following the date the bonds herein authorized are issued, but in
no case later than July 1, 1970, and on the lst day of each month
thereafter, (a) the monthly rental payments in the amount of $10,000
due under the Lease and (b) such additional amounts as may constitute
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additional rent as provided for in Article II of the Lease, and the
Fiscal Agent except when otherwise instructed by the City shall
apply and allocate these funds immediately upon receipt, as follows:
(a) There shall first be credited to and deposited in
the "Principal and Interest Account for Series A Bonds", as here-
inbefore established, an amount not less than one-sixth of the amount
payable as interest on such Series A Bonds on the next interest pay-
ment date and one-sixth of the amount payable as principal on such
Series A Bonds on the next principal payment date.
(b) There shall next be credited to and deposited in the
"Principal and Interest Account for Series B Bonds", as hereinbefore
provided, an amount not less than one -twelfth of the amount payable
as interest and, beginning July 1, 1990, one -twelfth of the amount
payable as principal, on such Series B Bonds on the next interest
and principal payment date.
(c) There shall next be credited to and deposited in the
"Reserve Account for Series A Bonds", as hereinbefore established,
the balance of said monthly rental payments due under the Lease until
the $100,000 amount set forth in subparagraph (d) of this Section has
accumulated therein. The City's obligations to make payments to said
Principal and Interest Account for Series B Bonds shall be junior and
subordinate in all respects to the City's obligation to make the pay-
ments provided for in subparagraph (a) above.
(d) All remaining uncredited and unallocated funds held
by the Fiscal Agent after making the payments provided for in subpara-
graphs (a), (b) and (c) shall be used by the Fiscal Agent when direc-
ted by Salina Community Inn of America, Inc. for the purpose of redeem-
ing and paying the Series A Bonds herein authorized prior to their
ultimate maturity and, after all of such Series A Bonds are paid and
redeemed, to the payment and redemption of the Series B Bonds prior
to their ultimate maturity, provided, however, that to the extent any
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such funds cannot be used for such purpose such funds shall be
retained by the Fiscal Agent and used to redeem and pay bonds prior
to maturity when sufficient funds are available.
All amounts credited to and deposited in said "Principal
and Interest Account for Series A Bonds" (subparagraph (a) above)
shall be expended and used for the sole purpose of paying the prin-
cipal of and interest on said Series A Bonds herein authorized as
the same become due. All moneys credited to and deposited in said
"Principal and Interest Account for Series B Bonds" (subparagraph
(b) above) shall be expended and used solely for the purpose of
paying interest on and principal of said Series B Bonds in manner
provided for by the ordinance authorizing said Bonds.
All amounts credited to and deposited in said "Reserve
Account for Series A Bonds"(subparagraph (c) above) shall be ex-
pended and used by the Fiscal Agent solely to prevent any default
in the payment of interest on or principal of said Series A Bonds
if moneys in the "Principal and Interest Account for Series A Bonds'
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are insufficient to pay said principal or interest as and when the
j same become due. When the amount in said "Reserve Account for Series
A Bonds" aggregates the principal amount of $100,000, the Fiscal
Agent shall not be required to make any further deposits to said ac-
count, but if the Fiscal Agent shall ever be compelled to use or ex-
pend any part of said deposits for the purpose of paying interest on
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or principal of the Series A Revenue Bonds herein authorized, then
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the Fiscal Agent shall, after making all deposits or credits at
the time required to be made under the provisions of subparagraph
(a) and (b) hereof, out of the first moneys available for that
purpose, thereafter credit and deposit in said "Reserve Account
for Series A Bonds" sufficient funds until said withdrawals are
restored. Said "Reserve Account for Series A Bonds" shall be used
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by the Fiscal Agent when directed by Salina Community Inn of
America, Inc. for the purpose of redeeming and paying the Revenue
Bonds herein authorized prior to their ultimate maturity provided
all of such outstanding Bonds are subject to payment and funds are
available to pay all of such Series A Bonds according to their
terms.
Section 10. When moneys accumulated in the Principal
and Interest Account for Series A Bonds and Reserve Account for
Series A Bonds shall aggregate an amount sufficient to pay the
principal of all of said Series A revenue bonds then outstanding,
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and all interest accrued to date fixed for redemption and payment,
and when said bonds became subject to redemption, said City when
directed by Salina Community Inn of America Inc. shallp roceed to
give notice of such redemption in the manner herein specified, and
said Fiscal Agent, as Paying Agent, shall use moneys in said Accounts
for said purpose. Any balance in said accounts not required for
said purpose shall be transferred to the Reserve Account for Series
B Bonds created by subparagraph (e) of Section 6 of this Ordinance.
Section 11. Moneys allocated and credited to and deposited
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in the Principal and Interest Account for Series A Bonds and the
Principal and Interest Account for Series B Bonds may be invested
by the Fiscal Agent, upon instructions from Salina Community Inn of
America, Inc.,in any direct obligations of the United States Govern-
ment becoming due not later than twenty days prior to the next prin-
cipal and interest paying date. Moneys in the Reserve Account for
Series A Bonds shall be invested by the Fiscal Agent upon the instruc-
tions from: Salina Community Inn of America, Inc., in any such obliga-
tions becoming due within five years from the date of purchase. No
investment shall be made pursuant to this Section for a period longer
than the time the I+'iscal Agent shall determine that said funds are not
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required for the purpose for which they are intended. All interest
on any bonds or other investments held in any account authorized and
established by this Ordinance shall accrue to and become a part of
such account.
Section 12. So long as any of the principal of and interest
on the revenue bonds herein authorized remain outstanding and unpaid,
the City covenants with each of the purchasers and owners of said bonds
as follows;
(A) The City will comply fully with all the terms, provi-
sions and conditions of the Lease which require performance by or im-
pose duties on the City and that it will not permit any default to
occur on the part of the City; that it will fully and promptly enforce,
and permit the Fiscal Agent to enforce on its behalf and on behalf of
the bondholders, all of the terms, provisions and conditions of the
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Lease which require performance by, or impose duties on Salina Com-
munity Inn of America, Inc., and in the event of the occurrence of
a default, as defined in the Lease will exercise and
� permit the
Fiscal Agent to exercise on its behalf and on behalf of the bond-
holders, all rights, and remedies conferred by the Lease for the full
and complete p protection of the security and rights of the bondholders
and to the extent permitted by the Lease, will use its best efforts
to procure a new tenant or tenants for the leased property under
lease provisions which will provide funds sufficient in amount to
make the rental payments and other charges which Salina Community
Inn of America, Inc. is required to make under the Lease dated
June 1, 1970. If the City is unable to procure a new tenant who
will enter into such a lease the City may, with the consent of the
holders of not less than seventy-five per cent (75io) of the bonds
herein authorized at the time outstanding, sell the Facility leased
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at a price not less than the amount of then outstanding revenue
bonds plus interest then unpaid.
(B) The City will enforce, and will permit the Fiscal
Agent to enforce on its behalf and on behalf of the bondholders,
collection of the rental payments and other charges in the amounts
and at the times set forth in the Lease authorized hereby and will
not reduce or cause or permit to be reduced the rental payments
and other charges fixed, established and required by the Lease nor
change or alter the time or times when the same are due and payable
under said Lease. The City's obligation to pay the expenses of such
enforcements shall be limited to funds made available to it for
that purpose by the bondholders or other interested parties.
(C) That until payment of all the bonds and interest
thereon has been duly made or provided for, the City will not con-
sent to any change, amendment, modification or termination of said
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Lease, except as provided therein, which will in any manner affect
adversely the rights, remedies or interest of the bondholders.
(D) Any purchase price of the leased property received
by the City pursuant to the termination of the Lease, any proceeds
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of condemnation awards, insurance proceeds or any other funds in-
tended for the purpose of paying said bonds will be used first
solely and exclusively to pay the bonds herein authorized and the
interest thereon according to their terms or to redeem and pay
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any of said bonds then outstanding and unpaid and then subject
to redemption and payment. Upon receipt of any such funds, if
said bonds be then subject to redemption and payment, the City
shall proceed promptly to call mid revenue bonds for redemption
and payment according to their terms and shall give notice thereof
provided for by the terms of this ordinance. Such funds shall
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be deposited with the Fiscal Agent, and the same shall be used
first solely for the payment of the revenue bonds herein author-
ized, accrued interest thereon, any premium provided for by this
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ordinance and the charges of the Fiscal Agent for paying the same.
(E) The City will not issue any other obligations pay-
able from payments made by Salina Community Inn of America, Inc.,
pursuant 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 said
Lease nor will it, unless required by law or by the terms of said
P,
Lease sell or otherwise dispose of the Facility or any part thereof;
provided, however, that said City may issue from time to time
additional revenue bonds for the purpose of extending and improv-
ing the facilities financed out of the proceeds of the revenue
bonds herein authorized or completing the construction or ac-
quisition thereof, or constructing and equipping additional im-
provements which extensions and improvements may be located on
the land hereinbefore described, provided the following terms and
conditions are met:
(a) The City shall have entered into a lease or agree-
ment with Salina Community Inn of America, Inc. with rentals or
payments at least sufficient to pay the principal of and interest
on said additional bonds as the same become due.
(b) Salina Community Inn of America, Inc. is not in
default with respect to the payment of rent or with respect to
any other material obligation or covenant contained in said
Lease.
(c) That the annual aggregate deposits made by the
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Company into the Revenue Account maintained by the Fiscal Agent
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as provided for in Section 9 of this Ordinance, including the
sum of all basic rents, additional rents and surplus rentals,
shall as shown by a certificate of a certified public account-
ant have exceeded for the two fiscal years prior to issuance
of any additional bonds, total annual requirements into the Prin-
cipal and Interest Account for Series A Bonds and Principal and
Interest Account for Series B Bonds by not less than one and
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one-half times, including the average annual requirements on any
bonds then proposed to be issued.
(d) Nothing contained in this Section 12 shall pre-
vent the City from issuing not to exceed $600,000 principal
amount of revenue bonds to refund, redeem and pay off the out-
standing Salina, Yansas,Community Inn and Convention Center
Revenue Bonds of 1967, Series B, dated July 1, 1967, provided
said additional bonds are junior and subordinate in all respects
to the Bonds herein authorized, including the payment of the
principal and interest and said additional bonds become due af-
ter July 1, 1990.
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(e) The City will cause Salina Community Inn of America,
Inc. to keep constantly insured all buildings and improvements
from time to time, constituting a part of the property and premises
leased by Salina Community Inn of America, Inc., in the manner
provided for by the Lease herein authorized. The City's share
of the proceeds of any such insurance policies shall be payable
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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 Article XX of said Lease.
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(f) The City will cause the Fiscal_ Agent to keep books
and records relating to the Facility, which shall be separate and
apart from all other books, records and accounts maintained for
the City, in which complete and correct entries shall be made in
accordance with standard principles of accounting of all trans-
actions relating to the leased property and improvements and the
original purchasers of the revenue bonds herein authorized, any
bondholder of the bonds authorized herein, or their agents, shall
have the right at all reasonable times to inspect all records,
accounts and data of the City relating to the leased property
and improvements.
The City shall cause the Fiscal Agent, at least once
a year, to compile a summary of all transactions relating to the
various accounts maintained with it relating to these Bonds and
j to mail a copy of such summary to the Company and to the original
purchasers of the bonds herein authorized.
jSection 13. The provisions of the bonds authorized by
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this ordinance and provisions of this ordinance may be modified
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or amended at any time by the City with the written consent of
the holders of not less than seventy-five per cent (750%) in
aggregate principal amount of the bonds herein authorized at the
time outstanding; provided, that no such modification or amendment
i shall permit or be construed as permitting:
(a) The extension of the maturity of the principal of
any of the bonds issued hereunder, or the extension of the maturity
of any interest on any bonds issued hereunder, (b) a reduction in
the principal amount of any bonds or the rate of interest thereon,
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or (c) a reduction in the aggregate principal amount of bonds,
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the consent of the holders of which is required for any such
amendment or modification. Any provision of the bonds or of this
ordinance may, however, be modified or amended in any respect
with the written consent of the holders of all of the bonds then
outstanding. Every amendment or modification of arovi-sio
p n of
the bonds or of this ordinance to which the written consent of
the bondholders is given as above provided shall be expressed
in an ordinance of the City amending or supplementing the pro-
visions of this ordinance and shall be deemed to be a part of
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this ordinance. It shall not be necessary to note on any of the
outstanding bonds any reference to such amendment or modification,
if any. A certified copy of every such amendatory or supplemental
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ordinance, if any, and a certified copy of this ordinance shall
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always be kept on file in the office of the City Clerk and shall
be made available for inspection by the holder of any bond or
prospective purchaser or holder of any bond authorized by this
ordinance, and upon payment of the reasonable cost of preparing
the same. A certified copy of any such amendatory or supplemental
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ordinance or of this ordinance will be sent by the City Clerk to
any such bondholder or prospective bondholder.
Section 14. The provisions of this ordinance shall con-
stitute a contract between the City of Salina, Kansas, and the
holders of the revenue bonds herein authorized, and the holder
of any one or more of said bonds may sue, in any action, in
mandamus, injunction, or other proceedings, either at law or in
equity, to enforce or compel performance of all duties and obliga-
tions required by this ordinance to be done or performed by said
City. Nothing contained in this ordinance, shall, however, be
construed to :impose on said City any duty or obligations to levy
any taxes either to meet any obligation contained herein or to pay
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the principal of or interest on the revenue bonds of the City
herein authorized.
Section 15. That the tract of land hereinbefore des-
cribed and the improvements and equipment to be acquired, installed
and constructed thereon pursuant to this ordinance shall be leased
to Salina Community Inn of America, Inc., under and pursuant to a
Lease dated June 1, 1970, substantially in the form attached to
this ordinance which Lease the Mayor
and City Clerk are hereby
authorized and directed to execute for and on behalf of and as
the act and deed of the City.
Section 16. If any one or more of the covenants, agree-
ments or provisions of this ordinance or of said Lease dated
June 1, 1970, should be held contrary to any express provision
of lava or contrary to the policy of express law, though not
expressly prohibited, or against public policy, or shall for any
reason whatsoever be held invalid, then such covenants, agreements
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or provisions shall be null_ and void and shall be deemed separate
from the remaining covenants, agreements or provisions, and shall
in no way affect the validity of the other provisions of this
Ordinance or of the bonds or coupons issued hereunder, or the
Lease.
Section
17.
This
ordinance shall take effect
and be
in force from and
after
its
passage and publication in
the
official City paper.
PASSED by the Governing Body of the City of Salina,
Kansas,
ATTEST:
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APPROVED by the Mayor this .26 day of J
1
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1970.
Mayor
ATTEST:
City Cler°lc
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