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HomeMy Public PortalAboutOrd 113 GO Bonds A 1987 -=-----.=a=~=_.==~========_=_=a===_~===========_==========~~=..=s ORDINANCE NO. 1/3 OF THE CITY OF BEL AIRE, KANSAS ADOPTED JANUARY 6, 1987 $527,545.80 GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS SERIES A, 1987 ============================================:==================== I j (PUBLISHED IN THE DAILY REPORTER ON JANUARY , 1987.) ORDINANCE NO. / / 3 AN ~DINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF $527,545.80 PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES A, 1987, OF THE CITY OF BEL AIRE, KANSAS, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF CERTAIN INTERNAL IMPROVEMENTS; PRESCRIBING THE FORM AND DETAILS OF SAID BONDS; AND PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE. WHEREAS, the City is a city of the third class, duly created, organized and existing under the laws of the State of Kansas; and WHEREAS, pursuant to K.S.A. 12-6aOl et seq., as amended, and other provisions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City has caused the following improvements to be made in the City, to wit: (1) Sanitary Sewer Extensions; in Eagle Lake Addition to Bel Aire, Sedgwick County, Kansas; (2) Street and Drainage Improvements; in Eagle Lake Addition to Bel Aire, Sedgwick County, Kansas; (3) Water Line Extensions; in Eagle Lake Addition to Bel Aire, Sedgwick County, Kansas; (4) Sanitary Sewer System Extensions in portions of Blocks 3, 5 and 6 in Kappelman's Bel Aire Heights, an Addition to Sedgwick County, Kansas; (5) Asphalt paving with concrete curb and gutter and related items on Farmstead Street from 47th Street North to 120 feet south of Farmstead Court No.5, Farmstead Court No. 4, Homestead Street from 47th Street North to Homestead Court No.1 and Homestead Court I I J I I I I No.1, all in Kappelman's Bel Aire Heights, an Addition to Sedgwick County, Kansas; and (6) Water Distribution System Extensions in portions of Blocks 3, 5 and 6 in Kappelman's Bel Aire Heights, an Addition to SedgwiCk County, Kansas; and WHEREAS, all legal requirements pertaining to the Improvements have been complied with, and the governing body of the City now finds and determines that the total cost of the Improvements and related expenses are at least $532,053.48, all of said cost to be paid by the owners of the property within the City benefited by the Improvements, and that the owners of the property benefited by the Improvements have paid $4,507.68 in cash into the City Treasury on account of the Improvements, leaving $527,545.80 to be paid for by the issuance of general obligation bonds; and WHEREAS, the governing body of the City is authorized by law to issue general Obligation bonds of the City to pay the costs of the Improvements; and WHEREAS, the governing body of the City has advertised the sale of its general obligation bonds in accordance with the law and at a meeting held in the City this date, awarded the sale of the bonds to the lowest bidder; and WHEREAS, the governing body of the City hereby finds and determines that it is necessary for the City to authorize the issuance and delivery of its general obligation bonds in the principal amount of $527,545.80 to pay the costs of the Improvements. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BEL AIRE, KANSAS, AS FOLLOWS: j i I I f I . j Section 1. Definitions. "Act" shall mean the Constitution and Statutes of the State of Kansas including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-620 et seq., and K.S.A. 12-6aOl et seq., as amended and supplemented. "Bond Registrar" shall mean the Treasurer of the State of Kansas, Topeka, Kansas. "Bond Counsel" means the firm of Gaar & Bell or any other attorney or firm of attorneys whose expertise in matters relating to the issuance of Obligations by states and their political subdivisions is nationally recognized and acceptable to the City. -2- "Bonds" shall mean the Series A, 1987 Bonds authorized by the Ordinance in the aggregate principal amount of $527,545.80, and dated January 1, 1987. "City" shall mean the City of Bel Aire, Kansas. "City Clerk" shall mean the duly appointed and acting City Clerk or in the City Clerk's absence the duly appointed and/or elected Deputy City Clerk or Acting City Clerk of the City. "Code" means the Internal Revenue Code of 1986, as amended, together with any regulations promulgated thereunder by the United States Department of the Treasury. "Cost of Issuance Account" shall mean that certain account referred to in Section 13 hereof. "Debt and Interest Account" shall mean the Debt and Interest Account of the City for General Obligation Bonds. "Improvement Fund" shall mean that certain Improvement Fund created by Section 13 hereof. "Improvements" shall mean the improvements referred to in the preamble to this Ordinance. "Interest Payment Dates" shall mean March 1 and September 1 of each year, commencing September 1, 1987 and ending March 1, 2002, or such other time as the Bonds are paid or provision is made therefor. "Mayor" shall mean the duly elected and acting Mayor of the City or in the Mayor's absence the duly appointed and/or elected Vice Mayor or Acting Mayor of the City. "Original Purchaser" shall mean I I I I I I t i j , ! ! I I I f i f "Ordinance" shall mean Ordinance No. -1J~ of the City authorizing the issuance of the Bonds. "Original Proceeds" means all proceeds, including accrued interest, derived from the sale of the Bonds to the Original Purchaser. "Owner(s)" shall mean the Registered Owners of the Bonds as appearing on the registration books of the City as maintained by the Bond Registrar. "Paying Agent" shall mean the Treasurer of the State of Kansas, Topeka, Kansas. "Principal and Interest Account" shall mean the Principal and Interest Account within the Debt and Interest Account created by Section 13 hereof. -3- "Principal Payment Dates" shall mean the 1st days of March, in the years 1988 through 2002, inclusive, or until such time as the aggregate principal amount of the Bonds have been paid or provision is made therefore. "Purchase Price" shall mean par value of the Bonds plus accrued interest to the date of delivery, plus a premium of $ , less a good faith deposit of $ "Record Dates" shall mean the 15th day of the month preceding the Interest Payment Dates of each year the Bonds are outstanding. "Yield of the Issue" means the rate per annum set forth in the Closing Certificate of the City for the Bonds. Section 2. Authorization of and Security for the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Internal Improvement Bonds, Series A, 1987, of the City in the principal amount of $527,545.80, for the purpose of providing funds to pay the cost of the Improvements. The Bonds shall be general obligations of the City payable as to both principal and interest from special assessments levied upon the property benefited by the construction of Improvements as said term is defined in this Ordinance, and, if not so paid, from ad valorem 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 balance of the principal and interest on the Bonds is payable from ad valorem 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 the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 3. Description of the Bonds. The Bonds shall consist of fully registered certificated bonds in denominations of $5,000 or any integral multiple thereof, except one Bond which shall be in the denomination of $2,545.80, and shall be numbered in such manner as the Bond Registrar hereinafter designated shall determine. All of the Bonds shall be dated January 1, 1987, shall become due on the Principal Payment Dates, and shall bear interest from the date thereof as follows: MATURITY MARCH 1 PRINCIPAL AMOUNT INTEREST RATE 1988 1989 1990 $32,545.80 35,000.00 35,000.00 % -4- 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 40,000.00 Interest on the Bonds at the rates aforesaid shall be payable on the Interest Payment Dates, to the Owners thereof whose names appear on the books maintained by the Bond Registrar at the close of business on the Record Dates. Section 4. Designation of Paying Agent and Bond Registrar. The Treasurer of the State of Kansas, Topeka, Kansas, is hereby designated as the Paying Agent and Bond Registrar for the Bonds. The principal of and premium, if any, and in teres t on the Bonds sha 11 be payab Ie in I awftt-l-me-ney e-f--- the United States of America by check or draft of the Paying Agent. The principal of and any premium on the Bonds shall be paid to the registered owner of each Bond upon presentation of the Bond at the maturity or redemption date to the Paying Agent for cancellation. Interest on the Bonds shall be mailed by the Paying Agent to the registered owner of each Bond at the registered owner's address as it appears on the registration books of the City maintained by the Bond Registrar as herein provided or at such other address provided in writing by such registered owner to the Bond Registrar on the Record Dates. The Mayor and City Clerk of the City are hereby authorized and empowered to execute on behalf of the City an agreement with the Bond Registrar and Paying Agent for the Bonds. Section 5. Redemption of the Bonds. Bonds maturing in the years 1988 to 1991, inclusive, shall become due without option of prior payment. At the option of the City, Bonds maturing in the years 1992 and thereafter, may be called for redemption and payment prior to maturity in whole or in part in inverse order of maturity (selection of bonds within the same maturity to be by lot by the City in such equitable manner as it may determine) on March 1, 1991, or on any Interest Payment Date thereafter at the redemption price of 102% (expressed as a percentage of the principal amount), plus accrued interest thereon to the date of redemption. Whenever the City is to select the Bonds for the purpose of redemption, it shall, in the case of Bonds in denominations greater than $5,000, if less than all of the Bonds then -5- outstcnding are to be called for redemption, treat each $5,000 of face value of each such fully registered Bond as though it were a separate Bond of the denomination of $5,000. If the City shall call any Bonds for redemption and payment prior to the maturity thereof, the City shall give written notice of its intention to call and pay said Bonds on a speciEied date, the same being described by maturity, said notice to be mailed by United States registered or certified mail addressed to the Owners of said Bonds, to the State Treasurer of Kansas, and to the original purchaser of the Bonds, each of said notices to be mailed not less than 30 days prior to the date fixed for redemption. If any Bond be called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the date for which such call is made, provided funds are available for its payment at the price hereinbefore specified. Section 6. Method of Execution and Authentication of the Bonds. The Bonds shall be executed for and on behalf of the City by the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the City Clerk and the seal of the City shall be affixed thereto or imprinted thereon. 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 with the seal of the City affixed thereto or imprinted thereon. The Bonds shall also be registered in the office of the State Treasurer, which registration shall be evidenced by the manual or facsimile signature of the State Treasurer with the seal of the State Treasurer thereto affixed or imprinted thereon. In the event that any of the aforementioned officers shall cease to hold such offices before the Bonds are issued and delivered, the Bonds may be issued and transferred to other Owners as though said officers had not ceased to hold office, and such signatures appearing on the Bonds shall be valid and sufficient for all purposes as if they had remained in office until such issuance or transfer. The Bonds shall not be valid obligations under the provisions of this Ordinance until authenticated by the Bond Registrar or a duly authorized representative of the Bond Registrar by execution of the Certificate of Authentication appearing on each Bond. It shall not be necessary that the same representative of the Bond Registrar execute the Certificate of Authentication on all of the Bonds. Section 7. Form of the Bonds. The Bonds shall be printed ln accordance with the format required by the Attorney General of the State of Kansas and shall contain information substantially as hereinafter set out or as may be required by the Attorney General pursuant to the Notice of Systems of -6- Registratio~ for Kansas Municipal Bonds, 2 Kan. Reg. 921 (1983) in accordance with the Kansas Bond Registration Law, K.S.A. 10-620 to 10-632, inclusive. REGISTERED NUMBER (Form of Bond) REGISTERED $ UNITED STATES OF AMERICA STATE OF KANSAS COUNTY OF SEDGWICK CITY OF BEL AIRE GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND SERIES A, 1987 Interest Rate: % Maturity Date: Dated: January 1, 1987 CUSIP: REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS: That the City of Bel Aire, in the County of Sedgwick, State of Kansas (the "City"), for value received, hereby acknowledges itself to be indebted and promises to pay to the registered owner identified above, or registered assigns, as of the Record Dates as hereinafter provided on the Maturity Date identified above, the Principal Amount identified above, and in like manner to pay interest on such Principal Amount from the date hereof at the rate of interest per annum set forth above, semiannually on March 1 and September 1 of each year, commencing September 1, 1987 (the "Interest Payment Dates"), until the Principal Amount is paid, unless this Bond shall have been previously called for redemption and payment as hereinafter set forth. The principal of and premium, if any, and interest on this Bond shall be payable in lawful money of the United States of America by check or draft of the Treasurer of the State of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"). The principal of and any premium on this Bond shall be payable to the registered owner hereof upon presentation of this Bond at the maturity or redemption date to the Paying Agent for payment and cancellation. The interest on this Bond shall be mailed to the registered owner hereof at the address appearing on the registration books of the City maintained by the Bond Registrar or at such other address provided in writing by the registered owner to the Bond Registrar at the close of business on the 15th day of the month preceding the Interest Payment Date (the "Record Dates"). The Bonds constitute general obligations of the City payable as to both principal and interest from special assessments levied upon the property benefited by the construction of certain Improvements as said term is defined in the Ordinance of the -7- City authorizing the Bonds (the "Ordinance"), and, if not so paid, from ad valorem 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 balance being payable from ad valorem 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 the City are hereby pledged for the payment of the principal of and interest on this Bond and the issue of which it is a part as the same respectively become due. The terms and provisions of this Bond are continued on the reverse hereof and shall for all purposes have the same effect as though fully set forth at this place. It is hereby declared and certified that all acts, conditions, and things required to be done and to exist precedent to and in the issuance of this Bond have been properly done and performed and do exist in due and regular form and manner as required by the Constitution and laws of the State of Kansas, and that the total indebtedness of the City, including this series of bonds, does not exceed any constitutional or statutory limitation. This Bond shall not be valid or become obligatory for any purpose until the Certificate of Authentication and Registration hereon shall have been lawfully executed by the Bond Registrar. IN WITNESS WHEREOF, the City has caused this Bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, and its corporate seal to be imprinted hereon, all as of the first day of January, 1987. CITY OF BEL AIRE, KANSAS (Facsimile Seal) (facsimile) Mayor , I I I j I I , ! I , . ATTEST: By (facsimile) City Clerk -8- .., Ii i ~ ====_==_a=_===================================================== CERTIFICATE OF AUTHENTICATION AND REGISTRATION This Bond is one of a series of General Obligation Internal Improvement Bonds, Series A, 1987, of the City of Bel Aire, Kansas, described in the within-mentioned Ordinance. Registration Date Office of the State Treasurer, Topeka, Kansas as Bond Registrar and Paying Agent By Registration Number ================================================================ FURTHER TERMS AND PROVISIONS This Bond is one of an authorized series of Bonds of the City designated "General Obligation Internal Improvement Bonds, Series A, 1987", in an aggregate principal amount of $527,545.80 (the "Bonds") issued for the purposes set forth in the Ordinance. The Bonds are issued by the authority of and in full compliance with the provisions, restrictions and limitations of the Constitution and laws of the State of Kansas, including K.S.A. 12-6aOl et seq., as amended and supplemented, and all other provisions of the laws of the State of Kansas applicable thereto. Bonds maturing in the years 1988 to 1991, inclusive, shall become due without option of prior payment. At the option of the City, Bonds maturing in the years 1992 and thereafter, may be called for redemption and payment prior to maturity in whole or in part in inverse order of maturity (selection of bonds within the same maturity to be by lot by the City in such equitable manner as it may determine) on March 1, 1991, or on any Interest Payment Date thereafter at the redemption price of 102% (expressed as a percentage of the principal amount), plus accrued interest thereon to the date of redemption. I i I I f Whenever the City is to select the Bonds for the purpose of redemption, it shall, in the case of Bonds in denominations greater than $5,000, if less than all of the Bonds then outstanding are to be called for redemption, treat each $5,000 of face value of each such fully registered Bond as though it were a separate Bond of the denomination of $5,000. -9- I If any Bonds are called for redemption and payment prior to maturity, the City shall give written notice of its intention to call and pay such Bonds on a specified date, the same being described by maturity, said notice to be mailed by United States registered or certified mail addressed to the State Treasurer of Kansas, to the original purchaser of the Bonds, and the registered owners of said Bonds, each of said notices to be mailed not less than 30 days prior to the date fixed for redemption. All Bonds so called for redemption and payment as aforesaid shall cease to bear interest from and after the date for which such call is made, provided funds are available for the payment of such Bonds at the price hereinbefore specified.] The Bonds are issued in fully registered form in denominations of $5,000 or any integral multiple thereof, except one Bond in the denomination of $2,545.80. This Bond may be exchanged at the office of the Bond Registrar for a like aggregate principal amount of Bonds of the same maturity of other authorized denominations upon the terms provided in the Ordinance. The City and the Bond Registrar may deem and treat the registered owner he-ree-f-as-t-he-a-b-solute owner hereof for purposes of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. This Bond is transferable by the registered owner hereof in person or by the registered owner's agent duly authorized in writing, at the office of the Bond Registrar, but only in the manner, subject to the limitations and upon payment of the charges provided in the Ordinance and upon surrender and cancellation of this Bond. The City shall payout of the proceeds of the Bonds all costs incurred in connection with the issuance, payment and initial registration of the Bonds and the cost of a reasonable supply of bond blanks. ==============:================================================= LEGAL OPINION I, the undersigned, City Clerk of Bel Aire, Kansas, hereby certify that the following is a true and correct copy of the approving legal opinion of Gaar & Bell, Attorneys at Law, Wichita, Kansas, on the within Bond and the series of which it is a part, except that it omits the date of such opinion; that -10- said opinion was manually executed and was dated and issued as of the date of delivery of and payment for the Bonds and is on file in my office. By (facsimile) City Clerk (PRINTED LEGAL OPINION) ==============================================-================= BOND ASSIGNMENT FOR VALUE RECEIVED, the undersigned do(es) hereby sell, assign and transfer to (Name and Address) (Social Security or Taxpayer Identification No.) the Bond to which this assignment is affixed in principal amount of $ , standing in undersigned on the books of the Bond Registrar. undersigned do(es) hereby irrevocably constitute appoint agent to transfer said Bond on the with full power of substitution in Dated the outstanding the name of the The and as books of said Bond Registrar the premises. Name Social Security or Taxpayer Identification No. Signature (Sign here exactly as name(s) appear on the face of Certificate) Signature guarantee: By I I -11- I: I I' . ji i . ===================================z============================ CERTIFICATE OF CITY CLERK STATE OF KANSAS ) ) SS. ) COUNTY OF SEDGWICK I, the undersigned, City Clerk of the City of Bel Aire, Kansas, hereby certify that the within Bond has been duly registered in my office according to law. WITNESS my hand and official seal as of January 6, 1987. (Facsimile Seal) (facsimile) City Clerk ================================================================ CERTIFICATE OF STATE TREASURER OFFICE OF THE TREASURER, STATE OF KANSAS I, JOAN FINNEY, Treasurer of the State of Kansas, do hereby certify that a transcript of the proceedings leading up to the issuance of this Bond has been filed in my office, and that this Bond was registered in my office according to law on (Facsimile Seal) (fa~simile) Treasurer of the State of Kansas I i i I i , I I . , , I I WITNESS my hand and official seal. ================================================================ Section 8. Transfer, Exchange and Registration of Bonds. The CIty shall cause the books for the registration and for the transfer of the Bonds as provided in this Ordinance to be kept by the Bond Registrar. Upon presentation of the necessary documents as hereinafter described, the Bond Registrar shall transfer or exchange any Bond(s) for new Bond(s) in an authorized denomination of the same maturity and for the same aggregate principal amount as the Bond(s) which was presented for transfer or exchange. -12- r i I' t I: 'i All Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Bond Registrar, duly executed by the registered owner thereof or by the registered owner's duly authorized agent. In addition, all Bonds presented for transfer or exchange shall be surrendered to the Bond Registrar for cancellation. Prior to delivery of the new Bond(s) to the transferee, the Bond Registrar shall register the same in the registration books kept by the Bond Registrar for such purpose and shall authenticate e~ch Bond. The City shall payout of the proceeds of the Bonds the fees of the Bond Registrar for registration and transfer of the Bonds and the cost of printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, are the responsibility of the Owners. The City and the Bond Registrar shall not be required to issue, register, 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. New 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 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 shall be deemed the absolute owner thereof by the City, the Paying Agent and the Bond Registrar, and any notice to the contrary shall not be binding upon the City, the Paying Agent or the Bond Registrar. Section 9. Surrender and Cancellation of Bonds. Whenever any outstanding Bonds shall be delivered to the Bond Registrar for cancellation pursuant to this Ordinance, upon payment of the principal amount thereof and interest thereon or replacement pursuant to this Ordinance, such Bond shall be canceled by the Bond Registrar and the canceled Bond shall be returned to the City Clerk. Se_~_t i~LO . Mutilated, Lost, Stolen 0 rDe_s t_I-Qye~!3o_nQ~. In the event any S()nd--is mutilated, lost, stolen or destroyed, the City may execute and the Bond Registrar may authenticate 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 City or the Bond Registrar, -13- 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, instead of issuing a duplicate Bond, the City and Bond Registrar may pay the same without surrender thereof. The City and 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. Section 11. Execution and Delivery of the Bonds. The Mayor and City Clerk are hereby authorized and directed to prepare and execute the Bonds in the manner hereinbefore specified, and to cause the Bonds to be registered in the offices of the City Clerk and the State Treasurer as provided by law, and, when duly executed and registered, to deliver the Bonds to the Original Purchaser of the Bonds, upon receipt by the City of the Purchase Price of the Bonds. Section 12. Tempor~Bonds. 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 3 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 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 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. -14- All temporary Bones surrendered in exchange either for another temporary Bond or Bonds or for a definitive Bond or Bonds shall be forthwith canceled by the Bond Registrar. Section 13. Creation of Various Accounts. Simultaneously with the issuance of the Bonds, there shall be created within the Treasury of the City the following accounts: (a) Improvement Fund for the City of Bel Aire, Kansas, General Obligation Internal Improvement Bonds, Series A, 1987; (b) Principal and Interest Account for the City of Bel Aire, Kansas, General Obligation Internal Improvement Bonds, Series A, 1987; and (c) Cost of Issuance Account for the City of Bel Aire, Kansas, General Obligation Internal Improvement Bonds, Series A, 1987; Section 14. Disposition of Bond Proceeds. The proceeds of the Bonds, upon issuance and delivery thereof shall be deposited as follows: (a) In the City's Principal and Interest Account, a sum equal to the accrued interest, and any premium paid on the Bonds. Monies in the Principal and Interest Account shall be used exclusively for the payment of the principal of, premium, if any, and interest on the Bonds and for the payment of Paying Agent fees. (b) In the Cost of Issuance Account, the sum of $20,168.24. 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 and other legal counsel, any accounting expenses incurred in connection with determining yield on the Bonds, or investment of the proceeds thereof, and in connection with receiving municipal bond insurance or ratings on the Bonds. Any funds remaining in the Cost of Issuance Account 30 days prior to the first Principal Payment Date shall be transferred to the Principal and Interest Account to pay a portion of the first principal due on the Bonds. (c) The balance of the proceeds of the Bonds shall be deposited by the City, immediately on receipt in the Treasury of the City in the Improvement Fund and shall be used solely for the purpose of paying the costs of the Improvements referred to -15- herein, including the retirement of ?rincipal of and any interest on temporary financing thereof. The City covenants that in the construction of the Improvements, it will perform all duties and obligations relative to such Improvements as are now or may be hereafter imposed by the Act and the provisions of this Ordinance. Withdrawals from the Improvement Fund shall be ~3de only on duly authorized and executed warrant accompanied by a statement of the Mayor and City Clerk, approved by the City Council, that such payment is being made for a purpose within the scope of such Improvements, and that the amount of such payment represents only the contract price or reasonable value of the property, labor, materials, service or obligation for which the warrant is issued. All moneys remaining in said Improvement Fund after the completion of all of such work approved by the City shall be transferred immediately thereafter to the Principal and Interest Account and applied to the next installment of principal due on the Bonds. Section 15. Levy and Collection of Annual Tax. The governing body of the City shall annually make provision for the payment of principal of, and premium, if any, and interest on the Bonds as the same become due by levying and collecting the nec~ssary taxes and/or assessments upon all of the taxable tangible property within the City in the manner provided by law. The taxes and/or assessments above referred to shall be extended upon the tax rolls in each of the several years, respectively, and shall be levied and collected at the same time and in the same manner as the general ad valorem taxes of the City are levied and collected, and the proceeds derived from said taxes and/or assessments shall be deposited in the Principal and Interest Account. If at any time said taxes and/or assessments are not collected in time to pay the principal of or interest on the Bonds when due, the City Treasurer is hereby authorized and directed to pay said principal or interest out of the general funds of the City and to reimburse said general funds for money so expended when said taxes and/or assessments are collected. Section l~. Transf~~~Funds to Paying Agent. The City Treasurer is hereby authorized and directed to withdraw from the Principal and Interest Account and forward to the Paying Agent sums sufficient to pay both principal of and premium, if any, and interest on the Bonds as and when the same become due, and also to pay the charges made by the Paying Agent for acting in such capacity in the payment of principal and interest on -16- the Bonds, and said charges shall be forwarded to the Paying Agent over and above the amount of the principal of and interest on the Bonds. Section 17. Investments. Moneys held in the Accounts herein created and established may be invested by the City 1n obligations of the United States Government or agencies or instrumentalities thereof, in obligations guaranteed by the United States Government or any agency or instrumentality thereof, or in certificates of deposits or other savings or time deposits of a state or national bank or federal or state chartered savings and loan association, which are secured by United States Government obligations or insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Association, or in other investments allowed by Kansas law in such amounts and maturing at such times as shall reasonably provide for moneys to be available when required in said Accounts or funds. Interest on any bonds or other obligations held in any Account, shall accrue to and become a part of said Account. Cash moneys in each of the Funds and Accounts herein -----~------e-reated and established shall be deposited in a bank(s) or federal or state chartered savings and loan association with home offices located in the City, which are members of the Federal Deposit Insurance Corporation or the Federal Savings and Loan Corporation, and all such deposits shall be adequately secured by the banks or savings and loan associations holding such deposits in accordance with Kansas law. Section 18. Non-Arbitrage Covenant. The City hereby covenants with each and all of the purchasers and owners of the Bonds herein authorized that, so long as any of said Bonds remain outstanding and unpaid, the City will make no use of the proceeds of the 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 148 of the Code, and the City will comply with all applicable requirements of the Code 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 19. General Tax Covenant. The City hereby covenants with each and all of the Owners of the Bonds, 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 Bonds which would violate the applicable provisions of the Code relating to tax exempt Obligations; and the City will take such action as may be necessary to comply with all applicable requirements of said Code and the Rules and Regulations of the United States Treasury Department thereunder for so long as any of the Bonds remain outstanding and unpaid. -17- Section 20. Amendments. The City may from time to time, without the consent of or notice to any of the Owners, provide for amendment to the Bonds or the Ordinance, for anyone or more of the following purposes: (a) To cure any ambiguity or formal defect or omission in this Ordinance or to make any other change not prejudicial to the Owners; (b) To grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners; (c) To more precisely identify the Improvements; (d) To conform such Ordinance to the Code or future applicable federal law concerning tax-exempt obligations; and (e) To provide for the issuance of coupon Bonds and the exchange of fully registered Bonds for coupon Bonds upon such terms and conditions as the City shall determine provided, however, that no such amendments shall become effective unless and until the City shall have received an opini-o-n-of~Hond~ Counsel in the form and substance satisfactory to the City, to the effect that the issuance of such coupon Bonds or the exchange of Bonds for such coupon Bonds will not cause the interest on the Bonds to be includible in the gross income of the recipients thereof under the provisions of applicable federal law; Provided, however, that no such modification or amendment shall permit or be construed as permitting: (a) the extension of the maturity of the principal of any of the Bonds issued hereunder, or the extension of the maturity of any interest on any Bonds issued hereunder, or (b) a reduction in the principal amount of any Bonds or the rate of interest thereon, or (c) a reduction in the aggregate principal amount of Bonds; the consent of 100% of the Owners of which is required for any such amendment or modification. Every amendment or modification of a provision of the Bonds or of this Ordinance to which the written consent of the Owners is given as above provided shall be expressed in a Ordinance of the City amending or supplementing the provisions of this Ordinance and shall be deemed to be a part of this Ordinance. It shall not be necessary to note on any of the outstanding Bonds any reference to such amendment or modification, if any. A certified copy of every such amendatory or supplemental ordinance, if any, and a certified copy of this Ordinance shall always be kept on file in the Office of the City Clerk and shall be made available tor inspection by the Owners of any Bond or prospective purchaser or Owners of any Bond authorized by this Ordinance, and upon paymen~ of the reasonable cost of preparing the same, a -18- certified copy of any such amendatory or supplemental ordinance or of this Ordinance will be sent by the City Clerk to acy such Owner or prospective Owner. Section 21. Defeasance. When all of the Bonds and interest thereon shall have been paid and discharged, then the requirements contained herein and the pledge of revenues made hereunder and all other rights granted hereby shall cease and determine. Bonds 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 said Bonds, in trust for and irrevocably appropriated thereto, moneys and/or direct obligations of, or obligations 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 investments, will be sufficient for the payment of the principal of tne Bonds, the redemption premium thereon, if any there be, and interest accrued 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 alHays that if any such Bonds--shai.t-rre-redeemed prior to the maturity thereof, the City shall have elected to redeem such Bonds and notice of such redemption shall have been given. Any moneys 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 paying and discharging any of the Bonds shall be and are hereby assigned, transferred and set over to the Paying Agent or such Kansas bank in trust for the respective owners of the Bonds, and such moneys shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All moneys 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. -19- Section 22. Effective Date. This Ordinance shall take effect and be in full force from and after its adoption by the governing body of the City and publication in the official City n....e~s~aJ?er . ,;t. ~...~ ':,1., , , /:( ,,~// ~~5-1:>' by the governing body of the Ci ty this 6th day of /~;<~~oyar~~' ~{~<a] . ,g4 ~~<'~~',/< .:;',' ( ""\ ',.. .,.. ,.. '_ ._, /, I ., "":''"./' 1 ,:,-< ~., .'''' < ~. . (~~';~.f~ ," I '., "-;'j:.- .... .. ~...I', "~'~ 1 ," A, ' ~-I'~ ,.' ,/ "v ^Jl:r~?-:r:?~\, .t,~..' ,..-.I",,,~,-,',>,:,~-~..._.,. Mp:dttt- Mayor .oJkn / ~ CIty Clerk -20-