93-9609 Issue BondsDraft - 11/15/93 (2)
Document No. K101962\ORD2
ORDINANCE NO. 93-9609
OF THE
CITY OF SALINA, KANSAS
$1,800,000
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES S-242
PAGE
Sd,tion 1.
Definitions ..................................
1
SEction 2.
Authorization of and Security for the Bonds ..............
3
Sd,tion 3.
Description of the Bonds. Designation of Paying Agent
Paying Agent and Bond Registrar ...................
3
So tion 4.
Redemption of Bonds Prior to Maturity ................
3
Sattion 5.
Method and Place of Payment of Principal of and Interest
on the Bonds ................................
5
Settion 6.
Execution, Authentication and Delivery of the Bonds ........
5
Stion 7.
Registration, Transfer and Exchange of Bonds ............
6
S tion 8.
Persons Deemed Owners of Bonds ...................
7
S tion 9.
Mutilated, Lost, Stolen or Destroyed Bonds ..............
7
S tion 10.
Cancellation and Destruction of Bonds Upon Payment .......
7
S tion 11.
Form of Bonds ................................
7
S tion 12.
Disposition of Bond Proceeds and Other Funds ............
8
S tion 13.
Levy and Collection of Annual Taxes and Assessments .......
8
S tion 14.
Transfer of Funds to Paying Agent and the Bond Registrar ....
8
S tion 15.
Authorization of Agreement Between the City and the
Bond Registrar ...............................
8
S tion 16.
Tax Covenants ................................
8
S tion 17.
Defeasance ..................................
9
S tion 18.
Approval of Preliminary Official Statement and Official Statement
10
Stion 19.
Severability ..................................
10
S tion 20.
Effective Date ................................
10
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A3 ORDINANCE AUTHORIZING AND DIRECTING THE ISSUANCE, SALE AND DELIVERY OF
$1,800,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL IMPROVEMENT
B DS OF THE CITY OF SALINA, KANSAS, SERIES S-242 FOR THE PURPOSE OF PROVIDING
F DS TO PAY THE COST OF CERTAIN IMPROVEMENTS TO THE CITY'S SOLID WASTE
F ILITY, MUNICIPAL GOLF COURSE AND STREETS IN THE CITY; PRESCRIBING THE
F M AND DETAILS OF SAID BONDS. PROVIDING FOR THE LEVY AND COLLECTION OF
Tf NECESSARY TAXES FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST
Or, SAID BONDS AS THEY BECOME DUE; AUTHORIZING AN AGREEMENT BETWEEN THE
CI—Y AND THE BOND REGISTRAR; APPROVING THE PRELIMINARY AND FINAL OFFICIAL
S TEMENTS.
WHEREAS, pursuant to K.S.A. 12-2101 et seg., 12-685 et seq. and 13-1024a as modified by
ner Ordinance No. 13 of the City adopted on September 19, 1977, all as amended, and other
visions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing
y of the City of Salina. Kansas (the "City"), has proceeded with certain improvements to the City's
d waste facility, municipal golf course and streets in the City; and
WHEREAS, all legal requirements pertaining to said improvements have been complied with,
the governing body of the City now finds and determines that the total cost of the aforesaid
ovements and related expenses (including issuance costs of the bonds herein authorized) less other
s on hand and available to pay the said cost is $1,800,000; and
WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds
of he City to pay the costs of said improvements; and
WHEREAS, the governing body of the City has advertised the sale of its general obligation bonds
in ccordance with the law and, at a meeting held in the City on November 22, 1993, awarded the sale
of Iruch bonds to the lowest bidder; and
WHEREAS, the governing body of the City now deems and finds it necessary to authorize the
of the aforesaid bonds for delivery to the purchaser thereof;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
A, KANSAS, AS FOLLOWS:
Section 1. Definitions. In addition to the words and terms otherwise defined herein, unless the
co text shall clearly indicate some other meaning, the words and terms defined in this Section shall for
all purposes of this Ordinance have the respective meanings specified in this Section, to wit:
"Bondholder" and "Holder" mean a Person in whose name a Bond is registered in the Bond
"Bond Register" means the register and all accompanying records kept by the Bond Registrar
ng the registration, transfer and exchange of Bonds.
"Bond Registrar" means the State Treasurer of Kansas when acting in the capacity as registrar
transfer agent for the registration, transfer and exchange of Bonds, and any successors thereto.
"Bonds" means $I, ZSUU,UUU original principal amount of Uenerai Obligation 11
s, Series S-242, authorized according to the terms provided in this Ordinance.
"City" means Salina, Kansas.
"Interest Payment Date" means the Stated Maturity of an installment of interest on the Bonds.
"Maturity" with respect to any Bond means the date on which the principal of such Bond becomes
and payable as therein or herein provided.
"Ordinance" "this Ordinance" "hereof', "herein" "hereto" and similar terms shall refer to this
ce of the City authorizing the Bonds, as originally executed or as it may be supplemented or
I from time to time.
"Outstanding" when used with respect to Bonds means, as of the date of determination, all Bonds
ire executed, authenticated and delivered under this Ordinance, except:
(i) Bonds theretofore cancelled by the Bond Registrar or delivered to the Bond Registrar
for cancellation;
(ii) Bonds that have been defeased by the deposit of funds or qualified securities with
the Paying Agent or other qualified party in compliance with this Ordinance; and
(iii) Bonds in exchange for or in lieu of which other Bonds have been authenticated and
delivered pursuant to this Ordinance.
"Paying Agent" means the State Treasurer of Kansas when acting in the capacity as paying agent
the payment of the principal of, premium, if any, and interest on the Bonds and any successors
"Person" means any individual, corporation, partnership, joint venture, association, joint-stock
any, trust, unincorporated organization or government or any agency or political subdivision thereof.
"Project" means the construction of certain improvements to the City's solid waste facility,
al golf course and streets in the City.
"Redemption Date" when used with respect to any Bond to be redeemed means the date fixed for
ion pursuant to this Ordinance.
"Registration Date" means the effective date of registration of a Bond as evidenced by the Bond
r in the Certificate of Authentication appearing on the Bond.
"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.
"Special Record Date" for the payment of any Defaulted Interest, as defined in Section 5, means
fixed by the Bond Registrar pursuant to Section 5.
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the date specified in Section 3 of this Ordinance as the fixed date on which the principal of such
or such installment of interest is due and payable.
Section 2. Authorization of and Security for the Bonds. For the purpose of providing funds for
Project, there shall be issued and are hereby authorized and directed to be issued the General
igation Internal Improvement Bonds, Series S-242, of the City in the principal amount of $1,800,000.
The Bonds shall be general obligations of the City, payable as to both principal and interest from
advalorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible
property, real and personal, within the territorial limits of the City. The full faith, credit and resources
of ihe City are hereby irrevocably pledged for the payment of the Bonds and the interest thereon as the
saine become due.
in
Section 3. Description of the Bonds. Designation of Paying Agent and Bond Registrar. The
ds shall consist of fully registered Bonds, without coupons, transferable to subsequent owners only
e Bond Register maintained by the Bond Registrar as hereinafter provided. Each Bond shall be in
denomination of $5,000 or any integral multiple thereof, not exceeding the principal amount of Bonds
ring in the year in which such Bond becomes due, as specified by the Holder of such Bond. The
ds shall be numbered in a manner determined by the Bond Registrar. The Bonds shall be dated as
ecember 1, 1993 and shall mature and shall bear interest at the rates per annum as follows:
MATURITY
PRINCIPAL
INTEREST
OCTOBER 1
AMOUNT
RATE
1994
$100,000
%
1995
190,000
%
1996
190,000
%
1997
190,000
%
1998
190,000
%
1999
190,000
%
2000
190,000
%
2001
190,000
%
2002
185,000
%
2003
185,000
%
The Bonds shall bear interest from the most recent Interest Payment Date to which interest has
n paid in full or, if no interest has been paid, from December 1, 1993. Interest on the Bonds at the
s aforesaid shall be payable semiannually on April 1 and October 1 in each year, beginning April 1,
14. The State Treasurer of Kansas, Topeka, Kansas, is hereby designated as the Paying Agent and as
Bond Registrar for the Bonds.
Section 4. Redemption of Bonds Prior to Maturity. The Series 5-242 Bonds maturing on
ber 1, 2001, and thereafter shall be subject to redemption and payment prior to their Stated Maturity
option of the City as a whole or in part in such principal amounts for such maturities as shall be
mined by the City on October 1, 2000, or on any Interest Payment Date thereafter in inverse order
ated Maturity, at the redemption price of 100% of the principal amount of Bonds redeemed and paid
accrued interest to the Redemption Date, without a premium.
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by hhe Bond Registrar at least 45 days prior to the Redemption Date of a written request of the City.
The Bonds shall be redeemed in the principal amount of $5,000 or any integral multiple thereof.
In ie case of a partial redemption of Series S-242 Bonds of the same Stated Maturity, the Bonds to be
r med shall be selected by the Bond Registrar from the Outstanding Bonds of that Stated Maturity by
suc i method as the Bond Registrar shall deem fair and appropriate and which may provide for the
sel ction for redemption of portions of the principal of Outstanding Bonds of that maturity of a
de urination larger than $5,000. The portions of the principal of Outstanding Bonds so selected for
pai ial redemption shall be equal to $5,000 or integral multiples thereof. Any Bond which is to be
r med only in part shall be submitted to the Paying Agent and delivered to the Bond Registrar, who
shInt
authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds,
ofy authorized denomination as requested by such Holder in an aggregate principal amount equal to
ann exchange for the unredeemed portion of the principal of the Bond so surrendered. If the Holder
ofy such Bond of a denomination greater than $5,000 shall fail to present such Bond to the Paying
A for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable
oa Redemption Date to the extent of the principal amount of such Bond called for redemption (and
toat extent only).
G
If and when the City shall call any of the Bonds for redemption and payment prior to the maturity
eof, the Bond Registrar shall give written notice in the name of the City of its intention to redeem
pay such Bonds at the office of the Paying Agent. Notice of redemption shall be given by first class
., postage prepaid, mailed not less than 30 days prior to the Redemption Date, to each Holder of
ds to be redeemed, at his address appearing in the Bond Registrar. All notices of redemption shall
(i) The Redemption Date;
(ii) The redemption price;
(iii) If less than all Outstanding Bonds are to be redeemed, the identification (and, in
the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed;
(iv) That on the Redemption Date, the redemption price will become due and payable
upon each such Bond, and that interest thereon shall cease to accrue from and after said date; and
(v) The place where such Bonds are to be surrendered for payment of the redemption
price (which shall be the office of the Paying Agent).
The failure of the Holder of any Bond to be redeemed to receive written notice mailed pursuant
to shall not affect or invalidate the redemption of said Bond. If any Bond is called for redemption
payment as aforesaid, all interest on such Bond shall cease from and after such redemption date,
ided funds are deposited with the Paying Agent for its payment on the Redemption Date at the
mption price.
The Bond Registrar is also directed to comply with any mandatory or voluntary standards then
t for processing redemptions of municipal securities established by the Securities and Exchange
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to be redeemed.
Section 5. Method and Place of Payment of Principal of and Interest on the Bonds. The
�ncipal of, premium, if any, and interest (computed on the basis of a 360 -day year of twelve 30 -day
)nths) on the Bonds shall be payable in such coin or currency of the United States of America as at the
ie of payment is legal tender for the payment of public and private debts. Payment of the interest on
-h Bond shall be made by the Paying Agent on each Interest Payment Date to the Person appearing as
Holder thereof in the Bond Register at the close of business on the Regular Record Date next
✓ceding said Interest Payment Date, by check or draft mailed to such Holder at the Holder's address
it appears in the Bond Register. The principal of and redemption premium, if any, each Bond shall
payable to the Holder thereof upon the presentation of such Bond for payment and cancellation at its
aturity at the principal office of the Paying Agent.
Notwithstanding any of the foregoing provisions of this Section to the contrary, any interest on
Bonds which is payable, but is not punctually paid on any Interest Payment Date (herein called
iefaulted Interest"), shall be payable to the persons in whose names the Bonds 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 Bond Registrar in writing of the amount of Defaulted Interest proposed to
paid on the Bonds and the date of the proposed payment, which proposed payment date shall be at
L.st 30 days after receipt by the Bond Registrar of such notice from the City; (2) at the same time the
ty shall deposit with the Paying Agent an amount of money equal to the aggregate amount to be paid
respect of such Defaulted Interest or shall make arrangements satisfactory to the Paying Agent for such
posit prior to the date of the proposed payment; and (3) thereupon, the Bond Registrar shall fix a
xial Record Date for the payment of such Defaulted Interest which shall not be more than 15 nor less
in 10 days prior to the date of the proposed payment.
The Bond Registrar shall promptly notify the City of such Special Record Date and, in the name
J 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 Bond
the Holder's address as it appears in the Bond Register, not less than 10 days prior to such Special
,cord Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date
;refor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose
mes the Bonds are registered at the close of business on such Special Record Date.
Subject to the foregoing provisions of this Section, each Bond delivered under this Ordinance
on transfer of or in exchange for or in lieu of any other Bond shall carry the rights to interest accrued
d unpaid, and to accrue, which were carried by such other Bond.
Section 6. Execution, Authentication and Delivery of the Bonds. The Bonds 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
Ficer whose signature or facsimile thereof appears on any Bond shall cease to be such officer before
delivery of such Bond, such signature or facsimile thereof shall nevertheless be valid and sufficient
all purposes, the same as if such person had remained in office until delivery. Any Bond may be
ecuted by such persons as at the actual time of the execution of such Bond shall be the proper officers
sign such Bond although at the original date of such Bond such persons may not have been such
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The Bonds shall have endorsed thereon a Certificate of Authentication substantiany in the Corm
einafter set forth and which shall have the date of registration inserted and shall be manually executed
the Bond Registrar.
No Bond shall be entitled to any security or benefit under this Ordinance or shall be valid or
o igatory for any purpose unless and until such Certificate of Authentication shall have been duly
e uted by the Bond Registrar by manual signature. Such executed Certificate of Authentication upon
Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under
th Ordinance and that such registered owner has been entered on record in the Bond Register kept by
thi Bond Registrar. The Certificate of Authentication shall be deemed to have been duly executed if the
_ R istration Date has been inserted and if it has been signed by any authorized officer or employee of
tht Bond Registrar, but it shall not be necessary that the same officer or employee sign the Certificate
oA Authentication on all of the Bonds 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
nds in the manner hereinbefore specified, the City Clerk is hereby authorized and directed to register
Bonds, and the Mayor and the City Clerk are hereby authorized and directed to cause the Bonds to
registered in the office of the State Treasurer of Kansas as provided by law, and when the Bonds have
;n duly registered with the Bond Registrar, to deliver the Bonds to the original purchaser thereof, upon
payment of the aggregate principal amount of the Bonds plus accrued interest to the date of payment
I delivery, together with any premium.
Section 7. Registration. Transfer and Exchange of Bonds. So long as any of the Bonds remain
tanding, the City shall cause the Bond Register to be kept at the principal office of the Bond Registrar
all of the Bonds and transfers and or exchanges thereof shall be fully registered as to both principal
interest in the names of the Holders in the Bond Register and shall not be registered to bearer.
Bonds may be transferred in the Bond Register only upon surrender thereof to the Bond Registrar
y endorsed for transfer or accompanied by a written instrument of transfer duly executed by the
Ider thereof or his attorney or legal representative in such form as shall be satisfactory to the Bond
;istrar. Upon any such transfer, the City shall execute and the Bond Registrar shall authenticate and
iver in exchange for such Bond a new Bond or Bonds, registered in the name of the transferee, of any
iomination or denominations authorized by this Ordinance in an aggregate principal amount equal to
principal amount of such Bond, of the same Maturity and bearing interest at the same rate.
Bonds, upon surrender thereof at the principal office of the Bond Registrar, together with a
itten instrument of transfer duly executed by the Holder thereof or his attorney or legal representative
such form as shall be satisfactory to the Bond Registrar, may, at the option of the Holder thereof, be
-hanged for an equal aggregate principal amount of Bonds of the same Maturity, of any denomination
denominations authorized by this Ordinance, and bearing interest at the same rate.
In all cases in which Bonds shall be exchanged or transferred hereunder, the City shall execute
the Bond Registrar shall authenticate and deliver at the earliest practicable time Bonds in accordance
the provisions of this Ordinance. All Bonds surrendered in any such exchange or transfer shall
iwith be cancelled by the Bond Registrar. No service charge shall be made to any Bondholder for
stration, transfer or exchange of Bonds, but the City or the Bond Registrar may make a charge for
y transfer or exchange of Bonds sufficient to reimburse it or them for any tax or other governmental
1.1
any such transfer or exchange shall be completed.
The City and the Bond Registrar shall not be required (i) to issue, transfer or exchange any Bond
duling a period beginning at the opening of business 15 days preceding the date of mailing of a notice
of edemption for Bonds selected for redemption under Section 4 and ending at the close of business on
tht day of such mailing; (ii) to transfer or exchange any Bond so selected for redemption in whole or in
p ; or (iii) to issue, transfer or exchange any Bond during a period beginning at the opening of business
on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending
at a close of business on the date fixed for the payment of Defaulted Interest pursuant to this Ordinance.
Section 8. Persons Deemed Owners of Bonds. The Person in whose name any Bond shall be
re istered shall be deemed and regarded by the City, the Bond Registrar and the Paying Agent as the
absolute owner thereof, whether such Bond shall be overdue or not, for the purpose of receiving payment
threfor or on account thereof and for all purposes, and neither the City, the Bond Registrar nor the
P ing Agent shall be affected by notice to the contrary. Payment of or on account of the principal of
interest on any Bond shall be made only to or upon the order of the Holder thereof or his legal
re resentative. All such payments shall be valid and effectual to satisfy and discharge the liability upon
su ch Bond, including the interest thereon, to the extent of the sum or sums so paid.
Section 9. Mutilated, Lost. Stolen or Destroyed Bonds. In the event any Bond shall become
tilated, or be lost, stolen or destroyed, the City shall, if necessary, execute and the Bond Registrar
11 authenticate and shall deliver a new Bond of like date and tenor as the Bond mutilated, lost, stolen
destroyed; provided that, in the case of any mutilated Bond, such mutilated Bond shall first be
rendered to the Bond Registrar, and in the case of any lost, stolen or destroyed Bond, if the
uirements of K.S.A. 84-8-405 are met and if an indemnity bond and affidavit of loss are provided to
Bond Registrar and the City at the expense of the Holder. Such indemnity bond and affidavit of loss
st be sufficient, in the judgment of the Bond Registrar and the City, to protect the Bond Registrar and
City from any loss which either of them might suffer if the Bond is replaced. In the event any such
ad shall have matured, instead of issuing a substitute Bond the City may pay or authorize the payment
he same without surrender thereof. Upon the issuance of any substitute Bond, the City and the Bond
;istrar may require the paN, ment of an amount sufficient to reimburse the City and the Bond Registrar
any tax or other governinental charge that may be imposed in relation thereto and any other
sonable fees and expenses incurred in connection therewith. The provisions of this Section are
Jusive 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 Bonds.
Section 10. _Cancellation and Destruction of Bonds Upon Payment. All Bonds surrendered for
gent, transfer or exchange shall be delivered to the Bond Registrar and, if not already cancelled, the
Registrar shall cancel such Bonds and record such cancellation in the Bond Register. Thereafter,
cancelled Bonds shall be delivered to the City.
Section 11. Form of Bonds. The Bonds and the Bond Registrar's Certificate of Authentication
be endorsed thereon shall be in substantially the form attached hereto as Exhibit "A". The Bonds may
ve endorsed thereon such legends or text as may be necessary or appropriate to conform to any
plicable rules and regulations of any governmental authority or any custom, usage or requirement of
v with respect thereto.
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y, received from the sale of the Bonds shall be deposited in the general obligation bond fund held
b Treasurer for the retirement of the Bonds.
The remaining balance of the proceeds derived from the sale of the Bonds shall be deposited in
a find (the "Series S-242 Project Fund") held by the City Treasurer and shall be used solely for the
puipose of paying the costs of the Project and the costs of issuing the Bonds. Any moneys remaining
in a S-242 Project Fund after the completion of the Project will be deposited in the general obligation
boppd fund and used to pay the next maturing principal of and interest on the Bonds.
Section 13. Levy and Collection of Annual Taxes and Assessments. The governing body of the
Ci i y shall annually make provision for the payment of the principal of and interest on the Bonds as the
sahe become due by levying and collecting the necessary taxes and assessments therefor in the manner
pr vided by law.
Section 14. Transfer of Funds to Paying Agent and the Bond Re isg tray. The City Treasurer is
heleby authorized and directed to withdraw from the funds received in payment of the taxes and special
assessments and from the debt service fund of the City and forward to the Paying Agent sums sufficient
to pay the principal of and interest on the Bonds as and when the same become due and to pay the
ch ges of the Paying Agent for acting as paying agent in the payment of principal and interest. In
a ition, the City Treasurer is hereby authorized and directed to withdraw from the debt service fund and
fo and to the Bond Registrar sums sufficient to pay the charges of the Bond Registrar for acting as bond
re istrar. Sums sufficient to pay said charges shall be forwarded to the Paying Agent and Bond Registrar
oNipr and above the amount of the principal of and interest on the Bonds.
Section 15. Authorization of Agreement Between the City and the Bond Registrar. The
cement between the City and the State Treasurer of Kansas, in substantially the form attached hereto,
respect to the duties of the State Treasurer as Bond Registrar is in all respects hereby approved,
)rized and confirmed and the Mayor and City Clerk are hereby authorized and directed to execute
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
US Internal Revenue Code of 1986, as amended (the "Code"), including Sections 103 and 141 through
1 , necessary to maintain the exclusion from gross income for federal income tax purposes of the
in iarest on the Bonds and (2) it will not take any action, or fail to take any action, if any such action or
f ure to take action would adversely affect the exclusion from gross income of the interest on the Bonds.
e City will, in addition, adopt such other ordinances or resolutions and take such other actions as may
be 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 Bonds will remain excluded from
fegeral 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 Bonds, (2) it will use the proceeds of the Bonds as soon
practicable and with all reasonable dispatch for the purposes for which the Bonds are issued and (3)
ill not invest or directly or indirectly use or permit the use of any proceeds of the Bonds or any other
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s of the City in any manner, or take or omit to take any action, that would cause the Bonds to be
itrage bonds" within the meaning of Section 148(a) of the Code.
(c) The City expects that it will expend all of the proceeds of the Bonds within six months
of I le date of issuance of the Bonds in accordance with the provisions of Section 148(f)(4)(B)(i) of the
Co e. The City covenants and agrees that it will pay or provide for the payment from time to time of
all imounts required to be rebated to the United States pursuant to Section 148(f) of the Code and any
Tr ury Regulations applicable to the Bonds from time to time. This covenant shall survive payment
in ll or defeasance of the Bonds. The City specifically covenants to comply with the Arbitrage
In ructions attached as Exhibit A to the Arbitrage Certificate. Notwithstanding anything to the contrary
coi tained herein, the Arbitrage Instructions may be amended or replaced if, in the opinion of counsel
na onally recognized on the subject of municipal bonds, such amendment or replacement will not
ad ersely affect the exclusion from gross income for federal income tax purposes of interest on the
(d) The City hereby designates the Bonds to be "qualified tax-exempt obligations" as such
is defined in Section 265(b)(3) of the Code. In addition, the City hereby represents that:
(i) the reasonably anticipated amount of 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 that the Bonds are issued is not reasonably
expected to exceed $10,000,000; and
(ii) 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 calendar year that the Bonds are issued, including the Bonds, in excess of $10,000,000,
without first obtaining an opinion of Bond Counsel that the designation of the Bonds as "qualified
tax-exempt obligations" will not be adversely affected.
e Mayor is hereby authorized to take such other action as may be necessary to make effective the
�ignation contained ir.: subsection.
(e) The fore : ovenants shall remain in full force and effect notwithstanding the
ice of the Bonds pursuanE to Section 17 of this Ordinance until the final maturity date of all Bonds
Section 17. Defeasance. When all of the Bonds shall have been paid and discharged, then the
luirements contained in this Ordinance and all other rights granted hereby shall terminate. Bonds shall
deemed to have been paid and discharged within the meaning of this Ordinance if there shall have been
>osited with the Paying Agent or with a bank located in the State of Kansas and having full trust
vers, at or prior to the Stated Maturity of said Bonds, 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
J Bonds 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
(ing and discharging any of the Bonds, shall be and are hereby assigned, transferred and set over to
ma
i Paying Agent or bank in trust for the respective Holders of the Bonds, and such moneys shall be
are hereby irrevocably appropriated to the payment and discharge thereof. All moneys deposited with
Paying Agent or bank shall be deemed to be deposited in accordance with and subject to all of the
risions contained in this Ordinance.
Section 18. Approval of Preliminary Official Statement and Official Statement. The Preliminary
cial Statement dated November 1, 1993, a copy of which has been submitted to and reviewed by the
erning Body of the City, was final within the meaning of Rule 15c2-12 under the Securities Exchange
of 1934 except for the omission of information relating to offering prices, interest rates, delivery
s, any other terms or provisions required to be specified in the bid for the Bonds, other terms of the
ds depending on such matters and the identity of the successful bidder for the Bonds, and the
rmation therein was accurate and complete. Said Preliminary Official Statement and the final Official
-ment, in substantially the form of the Preliminary Official Statement, and the public distribution of
same by the underwriters of the Bonds is hereby approved. The Mayor of the City is hereby
orized and directed to execute and deliver said final Official Statement on behalf of the City with such
iges therein or amendments or supplements thereto as shall be approved by the Mayor, the Mayor's
:ution thereof to be conclusive evidence of said representative's approval thereof.
Section 19. Severability. If any one or more of the covenants or agreements provided in this
finance (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 Ordinance
of said exhibits. It shall not be necessary for said exhibits to be published in the official City
vspaper, but all such exhibits shall be on file in the office of the City Clerk and shall be available for
aection by any interested party.
Section 20. Effective Date. This Ordinance shall take effect and be in full force from and after
publication in the official City newspaper.
PASSED by the governing body of the City of Salina, Kansas, this22ndjay oflVovember , 1993.
City Clerk
-10-
Mayor
EXHIBIT A
REGISTERED
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND
SERIES S-242
Maturity Bond
Date Date CUSIP
% Per Annum December 1, 1993
HOLDER:
CIPAL 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
iturity Date identified above, the Principal Amount identified above and to pay interest thereon at the
erest Rate specified above from the most recent Interest Payment Date to which interest has been paid
full or, if no interes.° has been paid, from December 1, 1993, semiannually on April 1 and October
n each year, beginnin-1, 1994.
�— INTEREST on this Bond will be paid by check or draft mailed to the person in whose name this
B nd (or one or more predecessor Bonds) is registered in the Bond Register maintained by the Bond
R gistrar at the close of business on the fifteenth day of the month next preceding each interest payment
dite (the Regular Record Date). Interest not punctually paid will be paid as otherwise provided in the
o inance authorizing this Bond (the "Ordinance"). The Principal Amount of this Bond shall be payable
by check or draft to the Registered Holder upon presentation and surrender hereof at the principal office
o the State Treasurer of Kansas, in the City of Topeka, Kansas. The full faith, credit and resources of
ti City are hereby irrevocably pledged for the prompt payment of the principal of and interest on this
nd as the same become due. The principal of and interest (computed on the basis of a 360 -day year
o twelve 30 -day months) on this Bond are payable in such coin or currency of the United States of
erica 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 BOND SET FORTH ON
REVERSE HEREOF. SUCH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME
'CT AS IF SET FORTH HERE.
A -I
ity or benefit under the Ordinance until the Certificate of Authentication hereon shall have been
and executed by the Bond 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 Bond 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,
1 that the total indebtedness of the City, including this Bond 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
nd to be signed by facsimile signature of its Mayor and attested by facsimile signature of its City
erk, the City's corporate seal to be printed hereon and this Bond to be dated December 1, 1993.
CITY OF SALINA, KANSAS
By (facsimile)
Mayor
City Clerk
Registration No. 0322-085-120193-554
CERTIFICATE OF AUTHENTICATION
TION DATE:
This Bona i� r,. Bonds described in the within mentioned Ordinance.
nd Registrar and Paying Agent:
ATE TREASURER OF KANSAS
OFFICE OF THE STATE TREASURER OF KANSAS
Bond Registrar
UZ
[ON REVERSE SIDE]
THIS BOND is one of an authorized series of fully registered bonds of the City designated
General Obligation Internal Improvement Bonds, Series S-242", aggregating the principal amount of
1,800,000 (the "Bonds"), issued by the City for the purpose of providing funds to pay the cost of the
nstruction of certain improvements to the City's solid waste facility, municipal golf course and streets
the City, under the authority of and in full compliance with the constitution and laws of the State of
A-2
K. -Cox Priming — Selina. Kansas
;as, including K.S.A. 10-101 et seg., 12-2101 et seg., 12-685 et sea. and 13-1024a as modified by
-ter Ordinance No. 13 of the City adopted on September 19, 1977, as amended and supplemented
all laws amendatory thereof and supplemental thereto, and pursuant to ordinances duly passed and
eedings duly and legally had by the governing body of the City.
THE BONDS are general obligations of the City, payable as to principal and interest in part from
valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible
)perty, real and personal, within the territorial limits of the City.
THE BONDS maturing on October 1, 2001, and thereafter are subject to redemption and payment
pi ior to maturity, at the option of the City, as a whole or in part in such principal amounts for such
maturities as shall be determined by the City on October 1, 2000, or on any interest payment date
thereafter, at the redemption price of 100% of the principal amount of Bonds redeemed and paid plus
I
rued interest to the redemption date, without a premium. In the case of partial redemption of Bonds
the same maturity, the Bonds to be redeemed shall be selected by the Bond Registrar in such manner
it shall deem fair and appropriate.
IN THE EVENT any of the Bonds are called for redemption as aforesaid, written notice thereof
be given by first class mail mailed not less than 30 days prior to the redemption date to each
istered Holder of Bonds to be redeemed. All Bonds so called for redemption will cease to bear
rest on the specified redemption date provided funds or certain securities in which such funds are
:sted for their redemption are on deposit with the Paying Agent on such redemption date, and will no
;er be secured by the Ordinance and will not be deemed to be outstanding under the provisions of the
inance.
THIS BOND is transferable only in the Bond Register at the office of the Bond Registrar upon
rrender of this Bond to the Bond Registrar duly endorsed for transfer or accompanied by a written
;trument of transfer satisfactory to the Bond Registrar duly executed by the Registered Holder hereof
his attorney or legal representative, and thereupon a new Bond or Bonds in the same aggregate
incipal amount shall be issued to the transferee in exchange therefor, subject to the conditions as
)vided in the Ordinance. The Bonds for each maturity are issuable only in the form of fully registered
ends without coupons in the denomination of $5,000 or any integral multiple thereof. The Registered
)lder of any Bond or Bonds may surrender the same in exchange for an equal aggregate principal
count of Bonds of any authorized denomination in the manner and subject to the conditions as provided
the Ordinance. No service charge shall be made for any such transfer or exchange, but, prior to any
nsfer or exchange, the Registered Holder hereof shall pay to the City or the Bond Registrar an amount
fficient to reimburse it or them for any tax or other governmental charge required to be paid with
>pect to such transfer or exchange. Thi City, the Bond Registrar and the Paying Agent may deem and
:at the person in whose name this Bond is registered as the absolute owner hereof for the purpose of
,eiving payment of, or on account of, the principal hereof and interest due hereon and for all other
rposes. If the date for making any payment of interest or principal occurs on a Saturday or Sunday
a holiday in the City of Topeka, Kansas, then such payment may be made on the next succeeding
siness day with the same force and effect.
A-3
(FORM OF ASSIGNMENT)
FOR VALUE RECEIVED the undersigned does (do) hereby sell, assign and transfer to
(Name and Address)
(Social Security or Taxpayer Identifying No.)
s Bond to which this assignment is affixed in the outstanding principal amount of $ , standing
the name of the undersigned on the books of the State Treasurer. The undersigned does (do) hereby
iocably constitute and appoint
orney to transfer the said Bond, on the books of said State Treasurer, with full power of substitution
the premises.
Name
Account No.
Signature
(Sign Here Exactly as Name or
Names Appear on the Face of
the Certificate)
(Signature Guarantee)
A-4
K,hmC . Printing — Salina, Kansas
TE OF KANSAS )
) SS.
1NTY OF SALINE )
I, Jacqueline Shiever, City Clerk of the City of Salina, Kansas, do hereby certify that this Bond
h4 been duly registered in my office according to law.
WITNESS my hand and official seal this December 1, 1993.
City Clerk
(FORM OF STATE TREASURER'S CERTIFICATE)
OFFICE OF THE STATE TREASURER OF KANSAS
I, SALLY THOMPSON, Treasurer of the State of Kansas, do hereby certify that a transcript of
proceedings leading up to the issuance of this Bond has been filed in my office and that this Bond was
istered in my office according to law this
WITNESS my hand and official seal.
A-5
(facsimile)
State Treasurer of Kansas