HomeMy Public PortalAboutOrd 113 GO Bonds A 1987
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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
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(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
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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:
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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.
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"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
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"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.
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"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
%
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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
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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
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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
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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
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ATTEST:
By
(facsimile)
City Clerk
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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
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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.
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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.
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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.
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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
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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)
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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
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CERTIFICATE OF CITY CLERK
STATE OF KANSAS
)
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)
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
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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
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WITNESS my hand and official seal.
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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.
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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 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,
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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.
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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
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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
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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.
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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
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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.
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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] .
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Mp:dttt-
Mayor
.oJkn / ~
CIty Clerk
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