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HomeMy Public PortalAboutOrd 089 GO Refunding Bonds '85 GAAR & BELL 1-3-85 (Published in THE DAILY REPORTER, on JANUARY 10, 1985.) ORDINANCE NO. a <:J AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS OF THE CITY OF BEL AIRE, KANSAS, IN THE TOTAL PRINCIPAL AMOUNT OF $2,145,000.00 FOR THE PURPOSE OF ADVANCE REFUNDING CERTAIN OUTSTANDING GENERAL OBLIGATION BONDS OF THE CITY; PRESCRIBING THE TERMS AND DETAILS OF THE BONDS; AND PROVIDING FOR THE PAYMENT OF SAID REFUNDING BONDS AND THE MAKING OF CERTAIN COVENANTS AND EXECUTION OF CERTAIN AGREEMENTS IN CONJUNCTION THEREWITH. WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas (hereinafter the "District"), has heretofore issued its General Obligation Bonds, Series A, 1965 (the "Series 1965 Bonds"), dated February 1, 1965, authorized by a Resolution adopted February 1, 1965 (the Series 1965 Ordinance), in the original principal amount of $127,709.00, of which $5,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1966 (the "Series 1966 Bonds"), dated December 1, 1966, authorized by a Resolution adopted November 14, 1966 (the Series 1966 Ordinance), in the original principal amount of $10,585.00, of which $2,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1968 (the "Series 1968 Bonds"), dated August 1, 1968, authorized by a Resolution adopted July 31, 1968 (the Series 1968 Ordinance), in the original principal amount of $42,495.00, of which $8,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and -- WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1971 (the "Series A, 1971 Bonds"), dated November 1, 1971, authorized by a Resolution adopted December 24, 1971 (the Series A, 1971 Ordinance), in the original principal amount of $25,410.00, of which $13,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series B, 1971 (the "Series B, 1971 Bonds"), dated November 1, 1971, authorized by a Resolution adopted December 24, 1971 (the Series B, 1971 Ordinance), in the original principal amount of $83,496.00, of which $40,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1973 (the "Series 1973 Bonds"), dated April I, 1973, authorized by a Resolution adopted March 21, 1973 (the Series 1973 Ordinance), in the original principal amount of $29,425.00, of which $12,000,00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1976 (the "Series A, 1976 Bonds"), dated April I, 1976, authorized by a Resolution adopted April 19, 1976 (the Series A, 1976 Ordinance), in the original principal amount of $78,500.00, of which $48,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series B, 1976 (the "Series B, 1976 Bonds"), dated April 1, 1976, authorized by a Resolution adopted April 19, 1976 (the Series B, 1976 Ordinance), in the original principal amount of $55,100.00, of which $36,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series C, 1976 (the "Series C, 1976 Bonds"), -2- .. dated April 1, 1976, authorized by a Resolution adopted April 19, 1976 (the Series C, 1976 Ordinance), in the original principal amount of $96,900.00, of which $60,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1977 (the "Series A, 1977 Bonds"), dated November 1, 1977, authorized by a Resolution adopted November 21, 1977 (the Series A, 1977 Ordinance), in the original principal amount of $69,000.00, of which $51,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series B, 1977 (the "Series B, 1977 Bonds"), dated November 1, 1977, authorized by a Resolution adopted November 21, 1977 (the Series B, 1977 Ordinance), in the original principal amount of $61,000.00, of which $43,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series C, 1977 (the "Series C, 1977 Bonds"), dated December 1, 1977, authorized by a Resolution adopted November 27, 1977 (the Series C, 1977 Ordinance), in the original principal amount of $215,000.00, of which $155,000,00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1978 (the "Series 1978 Bonds"), dated October 1, 1978, authorized by a Resolution adopted September 18, 1978 (the Series 1978 Ordinance), in the original principal amount of $139,800.00, of which $115,000,00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1979 (the "Series 1979 Bonds"), dated April 1, 1979, authorized by a Resolution adopted April 9, 1979 (the Series 1979 Ordinance), in the original -3- principal amount of $331,000.00, of which $270,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the Bel Aire Improvement District, Sedgwick County, Kansas, has heretofore issued its General Obligation Bonds, Series A, 1980 (the "Series 1980 Bonds"), dated February 1, 1980, authorized by a Resolution adopted January 30, 1980 (the Series 1980 Ordinance), in the original principal amount of $412,000.00, of which $355,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, on November 26, 1980, the Board of County Commissioners of Sedgwick County, Kansas, did incorporate the City of Bel Aire, Kansas, as a City of the third class, which city boundaries encompassed all of the areas of the District; and WHEREAS, the governing body of the City of Bel Aire, Kansas, did pursuant to Ordinance assume all outstanding bonded debt obligations of the District; and WHEREAS, in order to provide funds for certain internal improvement projects, the City of Bel Aire, Kansas (hereinafter the "City"), has heretofore issued its General Obligation Bonds, Series A, 1982 (the "Series 1982 Bonds"), dated August 1, 1982, authorized by Ordinance No. 40 (the Series 1982 Ordinance), in the original principal amount of $853,199.00, of which $800,000.00 remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the City of Bel Aire, Kansas (hereinafter the "City"), has her-etofore issued its General Obligation Bonds, Series A, 1983 (the "Series A, 1983 Bonds"), dated October 1, 1983, authorized by Ordinance No, 66 (the Ser-ies A, 1983 Or-dinance), in the original principal amount of $77,900.00, all of which remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the City of Bel Aire, Kansas (hereinafter the "City"), has heretofore issued its General Obligation Bonds, Series B, 1983 (the "Series B, 1983 Bonds"), dated October 1, 1983, authorized by Ordinance No, 67 (the Series B, 1983 Ordinance), in the original principal amount of $48,000.00, all of which remains outstanding and unpaid, all of which shall be advance refunded; and WHEREAS, in order to provide funds for certain internal improvement projects, the City of Bel Aire, Kansas (hereinafter the "City"), has heretofore issued its General -4- Obligation Bonds, Series A, 1984 (the "Series 1984 Bonds"), dated April 1, 1984, authorized by Ordinance No. 75 (the Series 1984 Ordinance), in the original principal amount of $47,000.00, all of which remains outstanding and unpaid, and shall be advance refunded; and WHEREAS, the Series 1965; 1966; 1968; A, 1971; B, 1971; 1973; A, 1976; B, 1976; C, 1976; A, 1977; B, 1977; C, 1977; 1978; 1979; 1980; 1982; A, 1983; B, 1983; and 1984 Bonds are collectively hereinafter referred to as the "Refunded Bonds", and the Series 1965; 1966; 1968; A, 1971; B, 1971; 1973; A, 1976; B, 1976; C, 1976; A, 1977; B, 1977; C, 1977; 1978; 1979; 1980; 1982; A, 1983; B, 1983; and 1984 Ordinances are collectively hereinafter referred to as the "Refunded Bond Ordinances"; and WHEREAS, in order to provide an orderly plan of financing, to modify certain covenants of the Refunded Bond Ordinances in order to restructure the debt payments on the Outstanding General Obligation Bonds to more closely equal the receipt of the tax revenues levied and collected for said debt payment, to achieve interest cost savings, and to provide a more economical and efficient program for the retirement of the indebtedness represented by the Refunded Bonds, it has become desirable and in the best interest of the City and its inhabitants to advance refund immediately the Refunded Bonds; and WHEREAS, in order to provide for the advance refunding of the Refunded Bonds, and pursuant to an Escrow Trust Agreement (the "Escrow Trust Agreement"), dated as of January 15, 1985, by and between Issuer and The Southwest National Bank of Wichita, Wichita, Kansas (the "Escrow Trustee"), Issuer shall establish an escrow trust account (the "Escrow Trust Account") and deposit into the Escrow Trust Account from the proceeds of the Series 1985 Bonds herein authorized a sum which, together with other available monies, will be sufficient to purchase certain Government Securities (as defined in the Escrow Trust Agreement) to provide for the payment of the Refunded Bonds; and WHEREAS, Issuer hereby finds and determines that is necessary and essential to provide for the advance refunding of said Refunded Bonds by the issuance of General Obligation Refunding Bonds, Series 1985, in the amount of $2,145,000.00 pursuant to K.S.A. 10-427 et seq., and all acts amendatory, supplementary and complimentary thereto (hereinafter collectively referred to as the "Act"); and THEREFORE, BE IT ORDAINED BY THE GOVEN~ING BODY OF THE CITY OF BEL AIRE, KANSAS: -5- SECTION 1. For the purpose of advance refunding the Refunded Bonds, and paying the costs incurred in conjunction therewith, there is hereby authorized, ordered and directed to be issued General Obligation Refunding Bonds of the City of Bel Aire, Kansas, Series 1985, in the total principal amount of Two Million One Hundred Forty-Five Thousand Dollars ($2,145,000.00). SECTION 2. The Bonds shall be issued as fully registered certificated bonds without coupons in denominations of $5,000,00 or any integral multiple thereof not exceeding the principal amount of the Bonds maturing on the respective Principal Payment Dates, and shall be numbered in such manner as the Bond Registrar hereinafter designated shall determine. The Bonds shall be dated as of January 15, 1985 and shall mature on March 1 and September 1 (the "Principal Payment Dates") in the years and in the principal amounts and shall bear interest at the respective rates per annum as follows: INTEREST PRINCIPAL RATE MATURITY AMOUNT PER ANNUM DATE $225,000.00 7.00% September 1 , 1985 70,000.00 7,50% March 1, 1986 75,000.00 7.50% September 1, 1986 70,000.00 8.00% March 1, 1987 75,000.00 8,00% September 1 , 1987 70,000.00 8,25% March 1 , 1988 75,000.00 8,25% September 1 , 1988 70,000.00 8,50% March 1, 1989 70,000.00 8.50% September 1, 1989 70,000.00 8,75% March 1 , 1990 70,000,00 8.75% September 1 , 1990 70,000,00 9.00% March 1, 1991 70,000.00 9.00% September 1, 1991 70,000.00 9.25% March 1 , 1992 75,000.00 9.25% September 1, 1992 70,000,00 9.50% March 1 , 1993 75,000.00 9,50% September 1 , 1993 70,000,00 9.75% March 1, 1994 75,000,00 9.75% September 1, 1994 70,000.00 10,00% March 1 , 1995 75,000.00 10,00% September 1, 1995 75,000.00 10,20% March 1 , 1996 80,000.00 10.20% September 1 , 1996 70,000.00 10.40% March 1 , 1997 75,000.00 10.40% September 1, 1997 75,000.00 10.50% March 1 , 1998 75,000,00 10.50% September 1 , 1998 35,000.00 10.60% March 1 , 1999 -6- The principal of, and premium, if any, on the Bonds shall be payable in lawful money of the United States of America at the principal office of the Paying Agent, hereinafter designated, upon presentation of the Bonds for payment and cancellation, The interest on the Bonds shall be payable in lawful money of the United States of America by check or draft of the Paying Agent, hereinafter designated, by mailing to the registered owner thereof at the address appearing on the registration books of the City maintained by the Bond Registrar or at such other address as is furnished in writing by such registered owner to the Bond Registrar. Interest on the Bonds shall be payable semiannually on March 1 and September 1 (the "Interest Payment Dates") in each year succeeding their date, commencing September 1, 1985, to the respective owners thereof appearing on the books maintained by the Bond Registrar on the 15th day of the month next preceding the Interest Payment Dates (the "Record Dates"), The Bonds shall bear interest from the Interest Payment Date immediately preceding their effective registration dates unless such effective registration date shall be as of an Interest Payment Date in which case the Bonds shall bear interest from such Interest Payment Date or unless the effective registration date shall be prior to the first Interest Payment Date in which case the Bonds shall bear interest from January 15, 1985. The effective date of registration shall be set forth on each such Bond, such effective date of registration to be the date of authentication thereof by the Bond Registrar. SECTION 3. The Bonds of this issue are not subject to redemption prior to maturity. SECTION 4. The Bonds shall be executed for and on behalf of the City by the manual or facsimile signatures of the Mayor and City Clerk, and shall have impressed or imprinted thereon the official seal of the City or a facsimile thereof. The Bonds shall be registered in the Office of the City Clerk, which registration shall be evidenced by the manual or facsimile signature of the City Clerk on the Certificate of Registration appearing on the reverse of the Bonds, and the seal of the City or a facsimile thereof shall be affixed or impressed opposite the signature of the City Clerk on the Certificate of Registration, The State Treasurer shall register the Bonds in the municipal bond register in her office and shall execute the certificate of the State Treasurer on the Bonds to that effect, by manual or facsimile signature and shall have impressed or imprinted thereon the official seal of the State Treasurer or a facsimile thereof. In case any officer of the City or of the State whose signature or whose facsimile signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or the facsimile signature thereof shall nevertheless be valid and sufficient for all purposes, the same as if he or she remained in office until delivery. -7- SECTION 5. No Bond shall be valid or obligatory for any purpose unless and until a certificate of authentication on such Bond shall have been duly executed by the Bond Registrar and such executed certificate of the Bond Registrar upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The Bond Registrar's certificate of authentication on any Bond shall be deemed to have been executed by it if manually signed by an authorized officer or signatory. It shall not be necessary that the same officer of signatory manually sign the certificate of authentication on all of the Bonds issued hereunder. SECTION 6. The City shall payout of the proceeds of the Bonds all costs incurred in connection with the issuance, transfer, exchange, registration, redemption and payment of the Bonds except (a) the reasonable fees and expenses in connection with the replacement of a Bond or Bonds mutilated, stolen, lost or destroyed or (b) any tax or other governmental charge imposed in relation to the transfer, exchange, registration, redemption or payment of the Bonds. Pursuant to K.S.A. (1983 Supp.) 10-620 et seq., as amended and supplemented, the Governing Body of the City does hereby elect to have the provisions of the Kansas Bond Registration Law apply to the Bonds and pursuant thereto, does hereby designate and appoint the State Treasurer in the City of Topeka, Kansas, as Bond Registrar and Paying Agent for the Bonds. The Mayor and City Clerk are hereby authorized to execute any necessary agreements with the Bond Registrar and Paying Agent to effectuate this designation. SECTION 7. The Bonds issued under this Ordinance and the Bond Registrar's certificate of authentication shall be in the form hereinafter approved by the governing body. Said Bonds shall contain recitals as required by the Constitution and laws of the State of Kansas, including a recital that said Bonds are issued pursuant to the Act, SECTION 8. The City shall cause books for the registration and transfer of ownership of the Bonds authorized In this Ordinance to be kept by the Bond Registrar. Any Bond may be transferred only upon the books maintained by the Bond Registrar for the registration and transfer of Bonds upon surrender thereof to the Bond Registrar duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar. Upon surrender for transfer of any Bond at such office, the Bond Registrar shall authenticate and deliver in the name of the transferee or transferees a new Bond or Bonds of authorized denomination of the same maturity in the aggregate principal amount and bearing interest at the same rate as the surrendered Bond. -8- All Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in form and with guaranty of signature satisfactory to Bond Registrar, duly executed by the Registered Owner thereof or by his duly authorized attorney. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. Neither the City nor the Bond Registrar shall be required to transfer or exchange any Bonds during a period beginning on the day following the Record Date preceding any Interest Payment Date and ending at the close of business on the Interest Payment Date, or to transfer or exchange any Bonds selected or called for redemption in whole of in part subsequent to the date notice of such redemption is given in accordance with this Ordinance, Replacement Bonds delivered upon any transfer or exchange shall be valid obligations of the City, evidencing the same debt as the Bonds surrendered, shall be secured by pledges made in this Ordinance and shall be entitled to all of the security and benefits hereof to the same extent as the Bonds surrendered. The person in whose name any Bond is registered as shown on the registration books required to be maintained by the Bond Registrar shall be deemed and regarded as the absolute owner thereof for all purposes. Payment of, or on account of the principal of and premium, if any, and interest on any such Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. SECTION 9. In the event any Bond is mutilated, lost, stolen or destroyed, the City shall execute and the Bond Registrar shall authenticate and deliver a new Bond of like date, maturity, denomination and interest rate, as that mutilated, lost, stolen or destroyed; provided, that in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the Bond Registrar, and, in the case of any lost, stolen or destroyed Bond there shall be first furnished to the Bond Registrar and the City evidence of such loss, theft or destruction satisfactory to them, together with an indemnity satisfactory to the City and the Bond Registrar, In the event any such Bond shall have matured or been called for redemption, instead of issuing a duplicate Bond, the City may pay the same without surrender thereof, The City and the Bond Registrar may charge to the registered owner of such Bond their reasonable fees and expenses in connection with replacing Bond or Bonds mutilated, stolen, lost or destroyed. -9- SECTION 10. Whenever any outstanding Bond shall be delivered to the Bond Registrar after payment of the principal amount and interest represented thereby or for replacement pursuant to this Ordinance, such Bond shall be cancelled and destroyed by the Bond Registrar and counterparts of a Certificate of Destruction describing the Bonds so destroyed evidencing such destruction shall be furnished by the Bond Registrar to the City. SECTION 11, The Mayor and City Clerk of the City of Bel Aire, Kansas, are hereby empowered, authorized and directed to prepare and execute the Bonds including a reasonable quantity of replacement bonds for use in accordance with Section 8 hereof, in the form and manner hereinbefore specified, without unnecessary delay; and when executed the Bonds shall be registered in the Office of the City Clerk and in the Office of the Treasurer of the State of Kansas, as required by law. The Bonds shall be sold as provided by law, and shall be delivered to the purchaser thereof upon receipt by the City of the full purchase price therefor, being par, premium, if any, and accrued interest from the date of the Bonds to the date of delivery; less an underwriting discount of 3.50%; and the proceeds of the Bonds shall be used for the purpose hereinabove stated. SECTION 12. Until definitive Bonds are prepared, the City may execute, in the same manner as is provided in this Ordinance, and, upon the request of the City, the Bond Registrar shall authenticate and deliver, in lieu of definitive bonds, but subject to the same provisions, limitations and conditions as the definitive Bonds, one or more temporary Bonds substantially of the tenor of the definitive Bonds in lieu of which such temporary Bond or Bonds are issued, in denominations authorized in Section 2 hereof, authorized by the City and with such omissions, insertions and variations as may be appropriate to temporary Bonds. The City at its own expense shall prepare and execute and, upon the surrender of such temporary Bonds for exchange and upon the cancellation of such surrendered temporary Bonds, the Bond Registrar shall authenticate and, without charge to the Registered Owner thereof, deliver in exchange therefor definitive Bonds of the same aggregate principal amount and maturity as the temporary Bonds surrendered. If the City shall authorize the issuance of temporary Bonds in more than one denomination, the Registered Owner of any temporary Bond or Bonds may, at his option, surrender the same to the Bond Registrar in exchange for another temporary Bond or Bonds of like aggregate principal amount and maturity of any other authorized denomination or denominations, and thereupon the City shall execute and the Bond Registrar shall authenticate and, upon payment of any applicable taxes, fees -10- and charges, shall deliver a temporary Bond or Bonds of like aggregate principal amount and maturity in such other authorized denomination or denominations as shall be requested by such Owner, All temporary Bonds surrendered in exhange either for another temporary Bond or Bonds or for a definitive Bond or Bonds shall be forthwith cancelled by the Bond Registrar, SECTION 13. (1) The proceeds of the Series 1985 Bonds, upon issuance and delivery thereof shall be deposited as follows: (a) In the City's Debt and Interest Fund (the Debt and Interest Fund), a sum equal to the accrued interest on the Bonds. (b) In the 1985 Refunding Cost of Issuance Account with the Escrow Trustee (the Cost of Issuance Account), the sum of $45,000.00. Monies in the Cost of Issuance Account shall be used to pay the cost of issuing the Bonds, including all printing, signing and mailing expenses in connection therewith, all legal fees and expenses of Bond Counsel, any accounting expenses incurred in connection with determining that the Bonds are not arbitrage bonds, in connection with receiving ratings on the Bonds, and the Escrow Trustee's initial fees and the fiscal fees. Any funds remaining in the Cost of Issuance Account on August 1, 1985 shall be transferred to the City's Debt and Interest Fund to pay a portion of the first debt service due on the Series 1985 Bonds. (c) The balance of the proceeds of the Bonds shall be deposited with (the Escrow Trustee), pursuant to the Escrow Trust Agreement, dated as of January 15, 1985. The form of such Escrow Trust Agreement is hereby approved and said document is hereby incorporated in this Ordinance as though fully set forth herein, The Mayor is hereby authorized and directed to execute the Escrow Trustee Agreement with any changes, insertions and omissions as in the opinion of the Mayor are necessary and desirable, and the City Clerk is hereby authorized and directed to attest the Mayor's signature and affix the City's seal, such execution and attestation being conclusive as to the approval, correctness and completeness of said Escrow Trust Agreement. (2) Simultaneously with the Issuance of the Bonds, the City shall: -11- Transfer the amount of $16,626.56 from the City's Principal and Interest Account for General Obligation Bonds to the Escrow Trustee for deposit in accordance with the Escrow Trust Agreement. SECTION 14, When the principal of, redemption premium, if any, and interest on the Bonds shall have been paid and discharged, then the requirements contained herein and all other rights granted by this Ordinance shall cease and determine, Bonds and interest shall be deemed to have been paid and discharged within the meaning of this Ordinance if there shall have been deposited with the Paying Agent or a bank located in the State of Kansas and having full trust powers, at or prior to the maturity or redemption date of the Bonds, in trust for and irrevocably appropriated thereto, moneys and/or Government Securities consisting of direct obligations of, or obligations, payment of the principal of and interest on which are guaranteed by, the United States of America, which together with the interest to be earned on such Government Securities, will be sufficient for the payment of the principal of the Bonds, the redemption premium, if any, thereon, and interest thereon to the date of maturity or redemption, as the case may be, or if default in such payment shall have accrued on such date, then to the date of the tender of such payments, provided always that if any such Bonds shall be redeemed prior to the maturity thereof, the City shall have elected to redeem such Bonds and notice of such redemption shall have been given as hereinbefore provided, Any monies which at any time shall be deposited with the Paying Agent or said Kansas bank by or on behalf of the City, for the purpose of payment and discharging any of the Bonds or interest, shall be and are hereby assigned, transferred and set over to the Paying Agent or such Kansas bank in trust for the respective holders of the Bonds, and such monies shall be and are hereby irrevocably appropriated to the payment and discharge thereof, All monies deposited with the Paying Agent or said Kansas bank shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Ordinance. SECTION 15. The full faith, credit and resources of the City of Bel Aire, Kansas are hereby pledged to secure the payment of the principal of and interest on the Bonds as the same severally becomes due and payable. The governing body of the City shall make provision for the payment of said principal and interest on the Bonds by levying an annual tax on the property liable therefor in amounts sufficient to pay the installments of said principal and interest on the Bonds as the same accrues and becomes payable. SECTION 16. The City of Bel Aire, Kansas hereby covenants with each and all of the purchasers and holders of the General Obligation Refunding Bonds, Series 1985, herein authorized, that so long as any of the Bonds remain outstanding and unpaid, the City will make no use of the proceeds of the -12- Bonds which, if such use had been reasonably expected on the date of issuance of the Bonds, would have caused the Bonds to be arbitrage bonds within the meaning of Section l03(c) of the Internal Revenue Code of 1954, as amended; and the City will comply with all applicable requirements of said Section 103(c) and the Rules and Regulations of the United States Treasury Department thereunder for so long as any of the Bonds remain outstanding and unpaid. SECTION 17. Distribution of the Official Statement relating to the Series 1985 Bonds in substantially the form presented to the Governing Body of the City and the use thereof by the underwriters of the Series 1985 Bonds as provided in the Bond Purchase Agreement previously entered into between the City and the underwriters is hereby approved, and the Mayor and City Clerk are hereby authorized to execute such Official Statement on behalf of the City, with such corrections, omissions, insertions or changes as they may approve. PASSED AND APPROVED by the Governing Bel Aire, Kansas, on January 3, 1985. II V. ~; .L ~,"'" . \.~ .....--, /,...:: ... '/ I _v: _IJ: I, ... ~ " ",:I"~~~'a 1sT'" . 1:" '> /}\~, /";;,."'XcivIEST: " ,f, .'.,," "" ;"", ", 'I,',"/, '\',r, """;' /~ ~, I '/., /' , ....., 'J;,." " ",I,,} .,...~"","".,'~,','~" .\",: ~ ~ .,..., I """'" ,~. . _ '...1, . '" : >:/1 I.!< .'.". . " _" ~ ( ,,' C' Y C 1 e r k Body of the City of f , r. t I 1 1 ~... ,~ SECTION 18. This Ordinance shall be in force and take effect from and after its passage, approval and publication once in the official city newspaper. " .~~~ ~~ Mayor -13-