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
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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"),
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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
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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
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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:
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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
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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.
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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.
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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.
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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
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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:
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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
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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.
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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.
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Mayor
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