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8082 IRB Community InnCONSOLIDATED-SALINA 1 1 1 j ?t L it 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 I 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 i April 15, 1970 4� 1 CONSOLIDATED -SALIVA $OCL 1 1 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 i 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 h i 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 -2- CONSOLIDATED-SALINA 1 1 1 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 U 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 -3- CONSOLIDATED-SALINA - ----------- - I 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 - p able to pay the same according to their terms. I 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 i 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 I 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 1 1 --- -- 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- -5- C6NSOLIDATED-SALINA D 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 M 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 j 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 D 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 M CONSOLIDATED-SALINA C< i 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, I 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, I 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 1 (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, r 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 i ------------- 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, II 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 1 STAT: OF K ESAS Sti� c . C0 Tj. TY OF S f LIP:E I, the undersigned, the City Cleric of the City, of Salina, -8- CONSOLIDATLD-SALINA 1 J 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 i 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 I 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 i 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 i I CONSOLIDATED-SALINA 1 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 y � p 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; -10- W CONSOLIDATED-SALINA 1 1 J 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 i 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 i 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 i 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 -11- CONSOLIDATED-SALINA 1 1 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 -12- f CONSOLIDATED-SALINA 1 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' i 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 I or principal of the Series A Revenue Bonds herein authorized, then i 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 -13- CONSOLIDATED-SALINA - -.- 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, i 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 1 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 -14- CdN SOLIDATED-SAL INA -. 1 F� 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 j 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 -15- CONSOLIDATED-SALINA 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 i 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 i I 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 I 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 I CONSOLIDATED-SALINA 'J 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 i 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 -17- C6NSOLIDATED-SALINA -18- Company into the Revenue Account maintained by the Fiscal Agent i 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 i 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. i (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 I 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. i -18- CONSOLIDATED -SA LINA 1 11 1 (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 I this ordinance and provisions of this ordinance may be modified i 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, i or (c) a reduction in the aggregate principal amount of bonds, i i I I -19- CONSOLIDATED-SALINA -" �OS{Z --_ - -- -- - -- i i i -20- 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 i 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 i ordinance, if any, and a certified copy of this ordinance shall i 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 I 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 -20- CONSOLIDATED-SALINA 442- ---- 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 i 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: 1 -21- CONSOLIDATED-SALINA- APPROVED by the Mayor this .26 day of J 1 1 1970. Mayor ATTEST: City Cler°lc -22-