91-4401 Issue NoteRESOLUTION NUMBER 91-4401
A RESOLUTION
AUTHORIZING AND DIRECTING THE ISSUANCE
OF MUNICIPAL TEMPORARY
NOTE NUMBER 1, SERIES
PT -108, OF THE CITY
OF SALINA, KANSAS, IN THE AMOUNT OF $110,000
FOR THE PURPOSE OF
PROVIDING FUNDS TO PAY
THE CONSTRUCTION OF
STREET AND UTILITY
IMPROVEMENTS IN KING,
MEYER AND MAYFAIR
ADDITIONS AND THE
j CONSTRUCTION OF CERTAIN
CONNECTING LINKS, ALL
IN SAID CITY.
WHEREAS, pursuant to K.S.A 12-6a01 through 12-6a17, inclusive,
and all other provisions of the laws of the State of Kansas applicable thereto,
by proceedings duly had and other actions duly and legally taken, the City of
Salina, Kansas (the "City"), is proceeding with the construction of street and
utility improvements and the construction of certain connecting links, in the
City ( the "Project") , and
WHEREAS, the cost of the Project is to be paid in whole or in part
by the issuance of general obligation bonds of the City in the manner provided
by law, and
ji WHEREAS, pursuant to actions duly taken in connection with the
Project, the City has entered into contracts and has incurred costs and
expenses in the amount of $110,000.00 on account of the Project, and
WHEREAS, it is necessary for the City to
provide
cash funds to
meet its obligations incurred
in constructing the
Project
prior to the
completion of the Project and the
issuance of the bonds
of the
City, and it is
desirable and to the interest of
the City that such funds be
raised by the
issuance of temporary notes of the City, said temporary
notes to
be issued by
the City under and pursuant to
the provisions of K.S.A. 10-123, SO NOW,
THEREFORE
BE IT RESOLVED by the Governing Body of the City of Salina,
Kansas, as follows:
Section 1. For the purpose of providing funds to pay obligations
incurred by the City in building and constructing the Project, there shall be
issued and hereby is authorized to be issued a municipal temporary note of the
City in the principal amount of $110,000 (the "Note"). The Note shall be
numbered 1, shall be designated Municipal Temporary Note, Series PT -108, and
shall be in the form hereinafter set forth, The Note shall be dated
December 1, 1991 shall become due December 31, 1993, shall bear interest from
December 1, 1991, at the rate of four and eight tenths percent (4.8%) per
annum payable at maturity and shall be redeemable at the option of the City
and at any time prior to maturity at the principal amount thereof plus accrued
interest to the date of payment, without premium, on not less than thirty days'
written notice given by first class mail sent to the registered holder of the
Note.
Section 2. Upon the execution and registration of the Note, it
shall be delivered to the purchaser thereof upon payment of the purchase price
thereof, being not less than the principal amount thereof plus accrued
interest.
Section 3. The City Clerk shall keep the note registration books
of the City on which it shall record the initial and all subsequent registered
owners of the Note and all transfers thereof. The Note may be transferred on
such registration books as specified in the form of Note set forth in
Section 4.
Section 4. The Note shall be issued in certificated form in
substantially the form set forth in this Section subject to changes and
variations as may be required to comply with the Kansas Bond Registration
Law, K.S.A. 10-620 to 10-632, inclusive, and the rules and regulations
appertaining thereto published in the Kansas Register by the Attorney General
for the State of Kansas. The certificated Note may have endorsed thereon such
legends or test as may be necessary or appropriate to conform to any applicable
rules and regulations of any governmental authority or any custon, usage or
requirement of law with respect thereto.
I
REGISTERED REGISTERED j
NUMBER $110,000
R-1 UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
MUNICIPAL TEMPORARY NOTE
SERIES PT -108
Interest Maturity Note
Rate Date Date
4.80% December 31, 1993 December 1, 1991
REGISTERED HOLDER: FOURBANK & CO., WICHITA, KANSAS
PRINCIPAL AMOUNT: ONE HUNDRED TEN THOUSAND DOLLARS
THE CITY OF SALINA, KANSAS (the "City"), for value received,
hereby promises to pay to the Registered Holder identified above, or registered
assigns, on the Maturity Date identified above, unless called for redemption
prior to maturity, the Principal Amount identified above and to pay interest
thereon on the Maturity Date at the Interest Rate specified above from the Note
Date identified above. Both principal and interest are payable to the
Registered Holder upon presentation and surrender hereof at the Office of the
City Treasurer in the City of Salina, Kansas.
The CITY hereby reserves the right to redeem and pay this Note
at any time prior to its maturity at the principal amount thereof plus accrued
interest to date of payment, without premium, provided the City shall give not
less than thirty days' written notice of its intent to pay this Note, such
notice to be given by first class mail sent to the Registered Holder of this
Note.
THIS TEMPORARY NOTE is issued for the purpose of providing
funds to pay the cost of street and utility improvements in the King, Meyer
and Mayfair Additions, and for the construction of certain connecting links in
the City (the "Project") , the Project having been duly and regularly authorized
by the Governing Body of the City. The Project is to be paid for in whole or
in part by the issuance of bonds of the City and is being made under, and this
Note is being issued under, the authority of and in full compliance with the
provisions, restrictions and limitations of the Constitution and statutes of
the State of Kansas, K.S.A. 12-6a01 through 12-6a17, inclusive, and all other
provisions of the laws of said State applicable thereto. This Note and all
interest thereon are to be paid by the City.
THIS NOTE is transferable only in the Note Register at the office
of the City Clerk of the City (hereinafter referenced as the Note Registrar
when acting in that capacity) upon surrender of this Note to the Note Registrar
duly endorsed for transfer or accompanied by a written instrument of transfer
satisfactory to the Note Registrar duly executed by the registered owner hereof
or his attorney or legal representative and thereupon a new Note in the same
aggregate principal shall be issued to the transferee in exchange therefor.
THIS NOTE shall not be valid or become obligatory for any purpose
or be entitled to any security or benefit under the Resolution of the City
authorizing the issuance of this Note until the Certificate of Registration
hereon shall have been dated and executed by the Note Registrar.
IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions
and things required to be done and to exist precedent to and in the issuing of
this Note have been properly done and performed and do exist in regular and
due form as required by the constitution and laws of the State of Kansas, and
that the total indebtedness of the City, including this Note, does not exceed
any constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Salina, Kansas, has caused this
Note to be signed by its proper officers and its corporate seal to be affixed,
and the same to be dated as of December 1, 1991.
[SEAL]
ATTEST:
Mayor
City Clerk
COUNTERSIGNATURE CERTIFICATE
This Temporary Note shall not be negotiable unless and until
countersigned below following registration by the Treasurer of the State of
Kansas.
Countersignature Date:
City Clerk
[ SEAL ]
...............................................................................
CITY CLERK'S CERTIFICATE
STATE OF KANSAS )
) SS
COUNTY OF SALINE )
I, the undersigned, City Clerk of the City of Salina, Kansas,
hereby certify that the within Temporary Note 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 ,
1990.
City Clerk
[SEAL]
...............................................................................
STATE TREASURER'S CERTIFICATE
I, Sally Thompson, Treasurer of the State of Kansas, hereby
certify that a full and complete transcript of the proceedings leading up to
the issuance of this Temporary Note has been filed in my office, and that this
Temporary Note was registered in my office according to law this
WITNESS my hand and official seal.
Treasurer of the State of Kansas
By
Assistant State Treasurer
[SEAL]
...............................................................................
ASSIGNMENT
FOR VALUE RECEIVED the undersigned does (do) hereby sell,
assign and transfer to
(Name and Address)
(Social Security or Taypayer
Identifying Number)
the note
to
which this assignment is
affixed in the outstanding principal
amount of
$
, standing in the
name of the undersigned on the books
of the City
Clerk of Salina, Kansas.
The undersigned does (do) hereby
revocably
constitute
and appoint
attorney to transfer the
said bond
to
the substitution in the premises.
Dated:
Name
Account No.
Signature
(Sign Here Exactly as on the Face of the
Face of the Certificate)
(Signature Guarantee)
...............................................................................
Section 5. The Note
shall be executed by the Mayor and
City
Clerk and the Seal of the City
shall
be affixed thereto, and after
such
executeion of the registration of the Note
by the City Clerk and by the
State
Treasurer, shall be countersigned
by the
City Clerk and shall be delivered to
the purchaser thereof upon receipt
of the
purchase price thereof, said price
to
be not less than par. The proceeds of
the Note shall be placed in the
City
Treasury and applied solely to pay
the cost of the Project.
Section 6. The City will comply with all applicable provisions of
the Internal Revenue Code of 1986 (the "Code"), including Section 103 thereof,
and the regulations of the Treasury Department thereunder, from time to time
proposed or in effect, in order to maintain the exclusion from gross income for
purposes of federal income taxation of the interest on the Note.
The City covenants and agrees that it will use the proceeds of the
Note as soon as practicable and with all reasonable dispatch for the purpose
for which the Note is issued as hereinbefore set forth, and that no part of the
proceeds of the Note shall be invested in any securities, obligations or other
investments except for the temporary period pending such use nor used, at any
time, directly or indirectly, in a manner which, if such use had been
reasonable anticipated on the date of issuance of the Note, would have caused
the Note to be or become "arbitrage bonds" within the meaning of Section
103(b)(2) or Section 148 of the Code and the regulations of the Treasury
Department thereunder proposed or in effect at the time of such use and
applicable to obligations issued on the date of issuance of the Note.
Since more than seventy-five percent of the proceeds of the Notes
are expected to be expended for "construction" as that term is used in
Section 148(f) (4) (B) (iv) of the Internal Revenue Code of 1986, as amended (the
"Code"), the City elects to pay the penalty provided in
Section 148(f)(4)(B)(iv)(V) of the Code rather than rebate any arbitrage
earnings in the event that expenditures do not meet the requirements of
Section 148(f)(4)(B)(iv)(II) of the Code.
The City hereby designates the Note as "qualified tax-exempt
obligations" as defined in Section 265(b)(3)(B) of the Code. The aggregate
face amount of all tax-exempt obligations (excluding private activity bonds
other than qualified 501(c)(3) bonds) issued or to be issued by the City (and
all subordinate entities thereof) during calendar year 1989 is not reasonably
expected to exceed $10,000,000. The City hereby covenants that the City and
all its subordinate entities will not issue in excess of $10,000,000 of
qualified tax-exempt obligations (including the Note but excluding private
activity bonds other than qualified 501(c)(3) bonds) during the calendar year
1989 without first obtaining an opinion of nationally recognized counsel in the
area of municipal finance that the designation of the Bonds as "qualified
tax-exempt obligations" will not be adversely affected.
Section 3. Upon the execution and registration of the Note, it
shall be delivered to the purchaser thereof upon payment of the purchase price
thereof, being not less than the principal amount thereof plus accrued
interest.
Adopted by the Board of Commissioners and signed by the Mayor
this 18th day of November, 1991.
Stephen C. RyM, Mayor
[ SEAL]
ATTEST:
1 a_ww
Jacqu$line Shiever, City Clerk