HomeMy Public PortalAboutOrd 135 GO Bonds A 1988
GILMORE & BELL..
9/19/88
~====================:==========================;===========;======
ORDINANCE NO. _/ J5
OF THE
CITY OF BEL AIRE, KANSAS
PASSED
SEPTEMBER 20, 1988
$399,477,43
GENERAL OBLIGATION BONOS
SERIES 1988
.._.,_._._......_...._.._.__._.__.__...M__.._......___....._..._________._____.____.__.____._..__.___._.__.__.._____...__..._______...._.__.............._..
._...,...__..,."._._....,.__________._._..._..__.._...N.._________._..___._.__...__.....__......_____._..._,___.,.,__,...__________.___
ORDINANCE
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TABLE OF CONTENTS
P i!.~
Ti tIe ....,......,.............,......,.... 1
RE!citals .........,.....".....".,.....,.. 1
..B.B T I_~J.::..L.J.
DEFINITIONS
Section 101. DE!finitions of Words and Ter'ms ........,... 4-
Section 201.
Section 202.
Section 203.
Section 204.
Section 205.
Section 206.
Section 207.
Section 208.
Section 209.
Section 210.
Section 211.
Section
Section
SElction
~3ection
301.
302.
303,
304.
ARTICLE __II
AUTHORIZATION OF THE BONDS
Authorization of and Security for
the Bonds ..................,.,....,... '7
Description of the Bonds ..".,.."......., '7
Designation of Paying Agent
and Bond Registrar .....,...,....,..... 8
Method and Place of Payment of the Bonds .. 8
Method of Execution and Authentication
of the Bonds ....,...,...",...."..." 8
Registration, Transfer and Exchange of
Bond s ....."....,...,..,............., 9
Sur'render and CancE:~llation of Bonds "..... 10
Mutilated, Lost, Stolen or Destroyed
Bond s ..........,................,...., 10
Temporary Bonds .....,......,........,..... 10
Execution and Delivery of the Bonds ...",. 11
Official Statement.............". . . . , , . . , 11
aBIJ C _~.~_...IIJ..
REDEMPTION OF BONDS
OptJonal Redemption ..".........,...."..,
Selection of Bonds t:o be RE!dE!EHned ...,..,..
Notice of RedE!ITIption ......."....,.....,..
Effect of Call for RE!Clernpt.ion ..",.,..,...
12
12
12
13
(i)
A ~.I:r C L E_._:L\L
FORM OF THE BONDS
Section 401. Form of the Bonds..........,.,.,...,...". 13
ARTICLE V
ESTABLISHMENT OF FUNDS AND ACCOUNTS
Section 501. Creation of Funds and Accounts ....,......' 14
Section 502. Administration of Funds and Accounts ...... 14
ARTICLE VI
APPLICATION OF BOND PROCEEDS
Section
Section
Section
601.
602.
603.
Disposition of Bond Proceeds '.............
Withdrawals from the Improvement Fund .,...
Surplus in the Improvement Fund ...,.......
14
15
15
ARTICLE VII
PAYMENT OF THE BONDS
Section 701. Levy and Collection of Annual Tax ........' 15
Section 702, Application of Moneys in the Principal
and Interest Account .......',...,..... 16
Section 703 . Tr'(~nsfer of Funds to Paying Agent ......... 16
Section 704, Surplus in Principal and Interest
Account .......................,....... 16
ARTICLE VIII
--.-.---.-...................
DEPOSITS AND INVESTMENT OF FUNDS
Section 801. Deposits.......................,.......... 16
Section 802. Investments.......,.............,...".... 16
(ii)
Section
Section
Section
901.
902.
903.
B...fiIl~.t~._.!K
DEFAULT AND REMEDIES
RE!rnedies ........,.,..,................,...
Limi.tat.ion on Right:s of Bondowners .."....
Remedies Cumulative .....,..",.."...,....
.A R T I._~bI....2~
AMENDMENTS
17
17
18
Section 1001. Amendments...........,.........."",..... 18
Section 1002, Written Evidence of Amendments .........,.. 19
Section 1101.
Sect.ton 1201.
Sectton 1202,
Section 1203.
Section 1204.
Section 1205.
SE!ction 1206.
Sect.ion 1207.
.B.KIl~!:..~...JS.I
DEFEASANCE
DE!feasance
I I . . . . . I . . . . . I . . . . . . . I . . . . I . . . . .
ARTICLE XII
---.-...-.--.....--.-
MISCELLANEOUS PROVISIONS
Exception from Rebate Requirements ......,.
Designation of Bonds as Qualified Tax-
Exempt Obligations ....."....,........
Tax COVE!l1ants ........,..,....,............
Severability .............,...,......."...
Further Authority ..,.,...,...,........"..
Governin~l L.alJJ ............".."...,..,....
Effective Date ....,......,.......,.""...
Passage and Approval .,.........,..",.,... 22
Signatures and Seal .....,.,......"...,.., 22
(i:U.)
19
20
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21
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(PUBLISHED IN THE WICHITA EAGLE-BEACON ON SEPTEMBER 23, 1988)
ORDINANCE NO. __L~~__
AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF
$399,477.43 PRINCIPAL AMOUNT OF GENERAL OBLIGATION
BONDS, SERIES 1988, OF THE CITY OF BEL. AIRE, KANSAS,
FOR THE PURPOSE OF CONSTRUCTING CERTAIN STREET, SEWER
AND WATER IMPROVEMENTS; PRESCRIBING THE FORM AND
DETAILS OF SAID BONDS; AND PROVIDING FOR THE L.EVY AND
COLL.ECTION 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, organizE!d and existing under the laws of the State of
Kansas; and
WHEREAS, pursuant to 12-6a01 Q.t ~.Q.S.., as amended, and other
provisions of the laws of the State of Kansas applicable
therE!to, by procE!edings duly had, the governing body of the
Ci ty has caus ed the f ollolAJing improvements to be made in the
Ci ty, to-lAli t :
(a) StrE!et and Drainage Improvements constructed to
s(~rve the follol....ting area, to lAlit: Lots 1 through 18,
inclusive, Block 1 and Lots 1 through 42, inclusive, Block
2, all in Eagle Lake Second Addition, Bel Aire, Sedgwick
County, Kansas, according to the plans and specifications
to be furnish(~d by the Ci ty Engineer of the Ci ty of B(~l
Air'e, Kansas;
(b) Sanitary Sewer Extensions constructed to serve
the follol....ling area, t:o lAJit: Lots 1 through 18, inclusive,
Block 1 and L.ots 1 through 4.2, inclusive, Block 2, all in
Eagle L.ake Second Addition, Bel Aire, Sedgwick County,
Kansas, accor'ding to the plans and spt::~cifications to be
furni shed by t:he Ci ty Engi neer' of the Ci ty of Bel Ai re,
Kansas;
(c) Water Line Extensions constructed to serve the
following area, to wit: Lots 1 through 18, inclusive,
Bloclc 1 and Lots 1 through 42, inclusive, Block 2, all in
Eagle Lalce Second Addition, Bel Aire, Sedgwick County,
Kansas, accordin~l to the plans and specifications to be
fur'nished by the C'i t:y Enginet~r of th(~ Cit:y of BE!1 Aire,
Kansas;
(d) Sanitary Sewer Extensions constructed to serve
the follolAling area, to lAlit: Lot. 1 and 2, inclusive,
Sunrise Bible Chapel Addition to Bel Aire, Sedgwick County,
Kansas, according i7.0 the plans and specifications '17.0 be
furni shed by the Ci ty Engi neE!r of the Ci ty of Bel Ai. r'e ,
Kansas; and
(e) Sani.tary Sewer Extensions constructed to serve
the area in and about Cozy Homes Addi tion, Ci ty of Bel
Aire, SedglAJick County, Kansas more specifically described
as those 10ts and tracts locai:ed within the area described
by the following metes and bounds: Beginning on the center
line of 37th St. North and 100 feet IAlest of the IAlest line
of Cozy Homes Addi tion and running thence north paralleJ.
with said west line to the south line of the Missouri
Pacific Railroad right-of-way; thence northeasterly along
said right-of-way line to the northeast corner of Cozy
Homes Addition; thence south along the east 1ine of said
addi tion to i:he CE!nter line of 37th St. North; thence west
to the place of beginning.
WHEREAS, a11 legal requirements pertaining to the
Improvements have been complied with, and the governing body of
the Cit.y now finds and determines that the tota1 cost of the
Improvements and related expenses are at least $399,477.43,
with all of said cost to be paid by the owners of the property
within the City benefited by the Improvements none of which has
been prepaid leaving $399,477.43 to be paid for by the issuance
of general obligation bonds; and
WHEREAS, the governing body of the Cit.y is authorized by
law to is s ue general obI iga tion bond s of the Ci ty '1:0 pay the
costs of the Improvements; and
WHEREAS, the governing body of the Ci.ty has adverU.sed t:h(~
sale of its general obligation bonds in accordance with the law
and at a meeting held in the Ci ty on this date, alAJarded th~~
sale of such bonds to the lowest bidder; and
WHEREAS, the governing body of thE! City hereby finds and
de terrni ne s tha t 'it is ne ces s ary for the Ci ty t:o au thortz e the
issuance and dEd.i.ver'y of its general obligation bonds in the
principal amount of $399,477.43 to pay the costs of the
ImprovE!m~~nts .
NOW, THEr~EFORE, BE rr ORDAINED BY THE GOVERNING BODY OF THE
CITY OF BEL AIRE, KANSAS, AS FOLLOWS:
-2-
8646B
f).KI.tc L LJ~,
DEFINIT'IONS
Section 101,
De f i.n i t i 0 ~..__Q.L...!!Y 0 r ~t~3~n.g.--I~ r.!!,-~ .
"Act" means the Constitution and stat.utes of the State of
Kansas including K.S.A. 10--101 to 10-125, inclusivE!, K,S,A.
10-620, ~t ~., and K.S,A. l2..-6a01 .~t _se_9.., as amended and
supplemented.
"Authorized Investments" shall mean: (a) investments
authorized by K.S.A. 12-16'75 and amendments thereto; (b) direct
obligations of the United States Government or any agency
thereof; (c) the City's temporary notes issued pursuant to
K . S. A . 10-123 or amendment s thereto; (d) i nteres t-bearing time
deposits in commercial banks or trust companies located in the
county or counties in which the City is located which are
insured by the Federal Deposit Insurance Corporation or Federal
Savings and Loan Insurance Corporation or collateralized by
securities described in (b) above; (e) obligations of the
federal national mortgage association, federal home loan banks
or the federal home loan mortgage corporation; (f) repurchase
agreements collateralized by securities described in (b) or (e)
above; (g) investments agreements or other obligations of a
financial insti tution the obligations of which at the time of
investment are rated in either of the three highest rating
categories by Moody's Investors Service, Inc. or Standard &.
Poor's Corporation; (h) investments and shares or units of a
money market fund or trust the portfolio of which is comprised
entirely of securitiE!s described in (b) or (e) above; (i)
re ceipt s evidenci ng OlAlI1ers hip i nteres t sin s e curi tie s or
portions thereof describE!d in (b) or (e) above; (j) municipal
bond s or other obI iga tions is sued by any mu ni d.pal i ty of the
State of Kansas as defined "in K. S. A. 10-1101 IJJh"ich are gE!neral
obligations of the municipality issuing the same; or (k) bonds
of any municipality of the State of Kansas as defined in K,S.A.
10-1101 which have beE!n refunded in advance of their maturi ty
and are fully secured as to payment of principal and int:erest
therE!on by deposit in trust, under escrow agr'eement lAJith a
bank, of securities described in (b) or (e) above.
"Bond and Interest Fund" m<"1ans the Bond and Interest Fund
of the City for its general obligation bonds.
"Bond CounsE!l" ITIecH1S
other attorney or firm of
rEllat.ing to thE! issuanCE!
polit.ical subdivisions is
t.o the City.
thE:1 firm of Gilmore &. Bell or any
at.t.orneys whose expert.ise in matters
of obligat.':i.ons by st.ates and thEdr
naLionally rE!cogrl'."i.zed and accept:.able
II B 0 ndoWnE!r II s ha L1 ha vet he same ITIE!a nt ng as the t.Elr'm Ou.mer.
..-.3-
86468
BJ:tI!i'~J"".L..-I
DEFINIl'IONS
~_~.Lti.gn,...J-9.J.. .
Q.~j' trr::.Lti 0 IlL.9J:.J!.'l0 r 9....L..~ n .9.......L~X:.r.r.!~.. .
"Act" means l:he Constitul:"ion and stat.utes of the St.ate of
Kansas includin~~ K.S.A. 10-101 i:o 10.-125, inclusive, K,S,A,
10-620, .gl .~..~.9.., and K.S.A. 12-..6a01 g...t ..~...~..q., as amended and
supplE!mented,
"Aut.horized Investments" shall mean: (a) investments
authorizE!d by K.S.A. 12.-16'75 and amendments ther€~t:o; (b) direct
obligations of the United States Government or any agency
i:hereof; (c) the City's temporary notes issued pursuant to
K , S. A . 10-123 or amendments thereto; (d) intere s t-beari ng time
deposits in commercial banks or trust companies located in the
county or counties in which the City is located which are
insured by the Federal Deposit Insurance Corporation or Federal
Savings and Loan Insurance Corporation or co11ateralized by
securities described in (b) above; (e) obligations of the
federal national mortgage association, federal homE! loan banks
or the federal home loan mortgagE! corporation; (f) repurchase
agreements collateralized by securities described in (b) or (e)
above; (g) invE!stments agreE!ments or other obligations of a
financial institution the obligations of which at the time of
investment are rated in either of the three highest rating
categoY'ies by Moody I s Investors Service, Inc, or Standard &
Poor's Corporat.ion; (h) investmE!l1ts and shares or units of a
money market fund or trust the portfolio of which is comprised
eni:irely of securitiE!S described in (b) or (e) above; (i)
receipts evidencing olAmership interest.s in securit.ies or
portions l:.hereof described in (b) or (e) above; (,j) municip~l
bonds or othE~r obligations issued by any municipality of the
State of Kansas as defined in K.S,A. 10.-1101 IAlhich are 9E!ney'al
obligc:ltions of the lTlunicipality issuing the same; or (k) bonds
of any municipality of the State of Kansas as defined in K.S.A.
10.....1101 IJJhich have bElen refunded in advance of their mat.uy'it:.y
and i:'.lrE! fully SE!cured as to payment of py'inc:ipal and intE:~rE!st
therE!Cl\1 by deposit. in trust, under escrOlAJ agreE!m~~nt. with a
bank, of securit.ies described in (b) or (e) above.
"Bond and InterE!st Fund" m~~ans t.he Bond and IntE!rest. Fund
of t.he City for its general obligat.ion bonds,
"Bond CounsE!l" mE!ans
other att:oy'ney Ol~ f"il~m of
relating to thE:! iSSUanCE!
pol.ittcal subdtv"istonsis
to t.he C"ity.
the firm of GiIITIor~~ &. BE!ll or any
att.orneys whose expertise "in matters
of obligat.ions by st.at.es and t.h~~ir
nat"ionally rE!cognized and i:'1ccept.abIe
"Bondowner" shall have thE! same mE!an"ing as thE! tE!Y'rn OlAlrley'.
-4.-
86468
IIBond Registrarll means the TrE!asur'er of the State of
Kansas, Topeka, Kansas.
IIBondsll mE!i:\ns the Series 1988 Bonds authorized by the
Ordinance in the aggregate principal amount of $399,477.43, and
dated September 1, 1988.
IICityll means the City of Bel Aire, Kansas.
IICity Cler'kll means the duly appointed cmd 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.
IICodell means the Int.ernal Revenue Code of 1986, as amended,
and the applicable regulat.ions proposed or promulgat.ed
thereunder of the United States Department of the Treasury.
IICOSt.S of IsSUanCE! Accountll means the
Account for the City of Bel Aire, Kansas,
Bonds, Series 1988 created herein,
Costs of Issuance
General Obligation
IICosts of Issuancell means all costs of issuing the Bonds,
including all publication, printing, signing and mailing
expenses in connection t:herewith, registration feEls, all legal
fees and expenses of Bond Counsel and other legal counsel, and
any E!XpE!llSeS incurred in connection b.d th detE!r'mining Yield on
t.he Bonds, or investment of the proceeds of the Bonds.
II Improvement Fund II mE!anS the ImprovE:1ment Fund for t:he Ci ty
of Bel AirE!, Kansas, General Obligation Bonds, Series 1988,
c rea b:!d herei n ,
IIlmprovementsll mE!anS the improvements referred to in the
preamble to this Ordinance.
IIInterest Payment Dat.esll means March 1 and SE!pternber 1 of
each YE!ar, commE!I'lcing March 1, 1990, and (~nding on the matur'ity
date of the Bonds, or such other time as t.he Bonds are paid or
provision is made for the payment t.hereof,
"Mayorll mE!anS t:hE:1 duly elected and acting Mayor of the Cit.y
or, 'in the Mayor IS abSE!nCe, the duly appointE!d and/or electod
Voice Mayor or Acting Mayor of the City.
1I0rdinancoll ITIE:1i:'H1S this Ordi.nanco authorizing t.he issuanCE!
of th~:! Bonds.
1I0r'Jgi.nal PIH'chaSE!r,1I moans
1I0utst:and'ing" 1T)(:'i:'lnS as of a part.icular' dal:o,
her'E!tofor'e i.ssued, authenticated and dE:1livor'~:!d
provisions of this Ordinance, except:
all Bonds
under' the
-5-
86468
(a) Bonds ther'etoforE! cancelled by the Paying Agent
or dEd.tverE!d t:o the Paying AgE!I'lt: for cancellation pursuant: l:.o
this Or'dinance;
(b) Bonds for the
monies or inVE!S tments hav~~
this Ordinance; and
payment or redemption of which
beE!n depos:i.t.ed '.in accordance IJJith
(c)
Bonds have
Ordinance,
Bonds in exchangE! for or in lieu of lAlhich othE!r
been au the n ti ca ted and de I i v~~red purs uant t:o thi s
"0IAlnE!r" or II RegistE!red OIAJnE!r" when used with r'eSpE!ct to any
Bond means the person in whose name such Bond is registered on
the rE!gi s tra tion boo k s of the Ci ty as ma'.i ntained by the Bond
Registrar,
II Pclyi ng AgE! nt It means the Treasurer of thE! State of Kans as,
Topeka, Kansas.
II Principal and
Interest Account
Obligation Bonds,
Bond and Interest
IntE!rest Accountlt means the Principal and
for the City of Bel Aire, Kansas, General
SeriE! s 1988, crea tE!d herein wi thi 1'1 the Ci ty I S
Fund,
It PrJncipal PaYTllE!nt Dat:es II means the first day of September',
in thE! years 1990 through 1998, inclusive, or unt:il such time
as the aggregate principal amount of the Bonds has been paid or
proviston is made for the payment thereof,
ItPurchase Pricelt
accrued interE!st to
$ _._..........._.........................................._J '
means the par value
the date of delivE!ry
of the
[plus a
Bonds plus
prE'rniurn of
"Recor'd Dates" means thE! fiftE!enth day of each month
preceding the Interest Payment Dates of each year the Bonds are
Outstanding.
"Yield" means thE:! discount ratE! lAlhich, when used '.in
comput:ing t:hE! present lA)orth of all pi:.tymE!nts of pr'incipal and
i ntE!rE! s t t:o be paid on an obI iga t'.ion, produ c E! s an amou nt equal
to thE! purchase price of such obligat:Jon, The Yield on both
the Bonds and any Nonpurpose Investments shall be calculated by
the USE! of the samE! frequency int:~~rva1. of cornpoundi.ng
int.E!r'E!st, In cornpul:.ing t.he YJeld on the Bonds, the purchas~~
price shall equal:
(a) for' a pubLi.c offerin~l, UH~ inittal offering price
of t:he Bonds to the public (not includinq bond hOUSE!s and
brokers, or sim'.ilar persons or organizat.ions acting in the
capaci.t:y of under'IAJI"tt:.E!rS or IAlholesalers) at:. IAJhtch price a
substanttal amount of each maturit.y of the Bonds were sold,
or
-.6-.
8646B
(b) for a private placernent., the price paid by the
first. buyer of thE! Bonds or t.he acquisit.ion cost of the
first buyer.
.8JLTI~LE_JI
AUTHORIZATION OF THE BONDS
9 e ,~~J: i QXL? 0 1 . flJ:l-1b.9 r i ~iiQ..r.L_...p f::...__i!.n9_.._ S e cur it Ij for the
..~onds. There shall be issued and hereby are authorized and
directed to be issued the General Obligation Bonds, Series
1988, of the Cii:y in t.he principal amount of $399,4'77,43, for
the purpose of providing funds to pay the cost of the
ImprovEHnents.
ThE! Bonds shall be general obligations of the Ci ty payable
as to both principal and interest from special assessments
levied upon the property benefited by the construction of the
Improvements and, if not so paid, from ad valorem taxes which
may be levied without limitation as to rate or amount upon all
i:he taxable tangible property, real and personal, IAli thin the
terri torial 1 irni ts of the Ci ty , The full fai th, c redi t and
resources of the City are hereby pledged for the payment of the
pri nci pal of and i nteres t on thi s Bond and the is sue of whi c h
it is a part as the same respectively become due.
? E! c:.tiQ1L.~Q..?.. . P_~.~~...~..r..i..p...t.iQ.!J..__.o f...__th.~__.....!t(.L'l~ . The Bon d s s hall
consist of fully registered bonds in the denomination of $5,000
or any integral multiple thE~reof, except one Bond tAJhtch shall
be in the denominat:':i.on of $4,lrl'7.ln, and shall be numbE!red in
such mC:'lnnE!r as the Bond Regtstrar' sha11 dE!tE!rminE!. All of the
Bonds shall b(~ datE!d September I, 1988, shall. become due on the
Principal Payment Dates, and shal.l bear' interest from the date
thereof as fol.lows:
MATURITY
~E ~I!..M.!H~...!L...l
1990
1991
1992
1993
1994
1995
1996
199'7
1998
PRINCIPAL.
AMOUNT
..-....-.........--.-................-
INTEREST
RATE
..---..------
$4A., 4.7'7 . 4.3
4.5,000,00
4.5,000.00
l~5,OOO.00
4.5,000.00
45,000.00
4.5,000.00
45,000.00
4.0, 000 , 00
-_.%
%
-..-.._%
....-.._%
-._%
%
-..-...-....%
...--......%
-..-.............%
-7..-
8646 B
Int.erest: on t.he Bonds at thE:! rat(~s aforE~said (computed on
the basis of a 360.-day year of hlJelvE! 30..-day months) From the
most Y'E!Cent Int.ey'est Payment Dat.e to lA/hich int.E!rE!st has been
paid or duly provided for, shall bE! payablE! on t.he IntorE!S t
Pa yme n t Da t.e s to the OlAmers th(~1reof whos 0 narrH:! s appe a ran th e
books maint.ained by the Bond Registrar at the close of business
on the Record Dates.
?gs...t.ig-.rL.~ QI . Q.~_s ~.9.D_~.t. i Q..rr.........._.9..f::_........J~f!yj~..Q5L.................~.sLQ..Q..t....._.__a n 9......----1!..9-.!1ft
..R..~.gi..~...tr..~..!:. The TreasurElr of l:he Stal:e of Kansas, Topeka,
Kansas, is hereby designated as the Paying Agent and Bond
Regis t.y'ar for thE! Bonds. The Mayor and Ci ty Clerk of the Ci ty
are hereby authorized and empowered to execute on behalf of the
City an agreement with the Bond Registrar and Paying Agent for
the Bonds,
S e c t ion 204- . ~ e t ~Jg_g_....._ a Q.9__.. P l.~. c e _.....9 f............P-EJLffi.Q..r.!..t._9f....._ the _...... B 0 !J~
The -py:Tnc'iF,"alof, premium, if any, and interest on the Bonds
shall be payable in any coin or currency which, on t.he
respect:ive dates of payment thereof, is legal tender for the
payment of debts due the United States of America.
The principal of and any premium on the Bonds shall be paid
to the Regi S tered Owner of €lac h Bond u pan pres enta tion of the
Bond at the maturity or redemption date to the Paying Agent for
cancellation. The interest payable on the Bonds on any
Interest Payment Date shall be paid by check of draft mailed by
t he Paying Agent to the Regi s tered Owner of E!aC h Bond a t the
Regi s tEl rEld Owner Is addrE!s s as it appears on the regi s tra tion
books of the City maintained by t.he Bond Regist.rar as herEdn
providEld or at such ot:her address provided in wY'it.ing by such
Registered Owner t.o the Bond Regist.rar on the Record Dates.
The
paymE~nt
Bonds.
Paying Ag(~nt
of principal
shall keep
of, py'emiurn,
:in
if
i t.S
any,
officE!s a recoy'd of
and interE!st on all
~?..~f...t.j.._9...!l_2..Q..2 ' ~~.t..tt.~~.9_........_Qf__f::...~~.f...~...tt.2n.........._~_Q.9..........i)...!:l.J...h..~...r.:Ltif..f!.t.j:.9....r.!...._....9i.
..t;.h~..........~..2D..g.?_. The Bonds shall be eXE!CutE!d fay' and on bE!half of
the City by t.he manual or facsim:ile signature of the Mayor,
att.ested by t.he manual or facsimile signature of the C:ity Clerk
and the seal of the City shall be affixed thereto or imprinted
t.hE!rE!on. rhe Bonds shaLl be registered in the offtce of the
City Clerk, which registrat.:ion shall be evidenced by the manual
or facs-.i.m:iIE! signature of l:he City C1.el"k IAlith t:he seal of the
Cit.y affixed t.herE:1to or imprintE!d theY'E:1On. The Bonds sh<:\1.:1
also be registered in the office of the State Treasurer, which
registration shall be evidenced by the manual or facsimile
siqnaturE! of t:hE! StatE! TrE:1asurer IAlit:h the seal of l:hEl State
'rreaSUY'ElY' affixed U1ElY'Ed.:o or imprintE:H;I ther'eon. In l:he event
that any of the afor'(!menl'.:ioned ofFtcers shall c(~ase to hold
such offices beforE:! the Bonds arE:1 issued and c1elivE:'rElcl, t.he
13 0 n d s Inil y be oi s s u ~:! cI and t ran sf c-! r I" E! d t~ () 0 t h E~ r OlAlI1 El r s a s I: h 0 ugh
-8-.
86 '16 B
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 the Ordinance until authent:icatE!d 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,
-~.~.~.,.!;.t.Q.n__?'Q.2. . J1~:.9..t2.j;.r:? t ion, T r ~ n _~ f ~.!:-_.. a r:!..<.;I__.~~,.~~.l!.9..g___Qf
!tonQ2... As long as the Bonds remain Outstanding, the City shall
cause the books for the registration and transfer of the Bonds
as provided in the Ordinance to be kept by the Bond Registrar.
Upon presentation of the necessary documents as hereinafter
described, the Bond RE!gistrar 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.
All. Bonds presented for transfer or exchange shaII be
accompanied by a written instrument or instruments of transfer
or authorization for exchange, in a form and lAdth guarantee of
signature sat:isfactory t:o the Bond Registrar, duly E!xecuted by
the Registered Owner thereof or by the Registered Owner's duly
author'ized agent:. In addition, alI Bonds pr'esented 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 each Bond.
The Cit.y shall. payout of the proceeds of the Bonds the
fees of the Bond Registrar for registration and transfer of the
Bonds and t:hE! cost. of prinU,ng a r'easonab1e supply of
registered bond bl.anks, Any additiona1 costs or fees that
might be incurred in the secondary market, other than fE!es of
the Bond Registrar, are the responsibil.ity of the Owners,
The City and the Bond Reg:istrar sha1l. not be r'equirE!d to
iSSUE!, r'~~g'isb'~r, transfE!r or' E!xchi:ilnge any Bonds during a portod
beginni.ng on the day foll.ol^Ji.n~~ the RE!cord Dab:! precedin~l iHlY
Int:.er'E!st PaymE!nt Date and ending at: the close of businE!ss on
the Interest Payment Date, or wi.thin 30 days of a date on wh'ich
Bonds are rE!deE!lnE!d after' not:'ice of such rE!demptton has beE'n
given in accordance with Artic1e III of this Ordinance,
-9-
8646 B
New Bonds delivered upon any transfer or exchange shall be
valid obligations of thE! Ci ty, evidencing the same debt as the
Bonds surrendered, shaLl be secured by the OrdinancE! and shall
be entitled to all of the security and benE!fits hE!reof to the
same extent as the Bonds surrendered.
The City, Bond Registrar and Paying Agent may deem and
treat thE! person in lAlhose name any Bond is r'E!gistered as the
absolute owner thereof, l.IJhether such Bond shall be oVE!rdue or
not, for the purpos~~ of receiving payment of, or on account of,
the principal of, redEHnption premium, if any, and interest on
said Bond and for all other purposes, and all such payment so
made to any such Registered Owner or upon the Registered
Owner1s order shall be valid and effectual to the extent of the
sum or sums so paid, and nei ther the Ci, ty, Bond Regi s t.rar and
Paying Agent shall be affected by any not.ice to the contrary.
Section 207. Surrender and Cancellation of Bonds.
W hen eVE! ran yOu t s t a-n'(f:Cn g'''-80 1'1 ds'''- s ~ia~fJ:""'-'b"e''''''-deTTv'e-r e d'''''t''o''-'''f"i1e'''-''Bo'n d
Registrar for cancellation pursuant to t.he Ordinance, upon
payment of the principal amount thereof and interest thereon or
replacement pursuant to the Ordinance, such Bond shall be
canCelE!d by the Bond RE!gistrar and the cancelE!d Bond shall be
returned to the City Clerk.
S e c t ion 2 0 8 . M l!.tt!..~...t e g..L.-1..Q.~J:;..L__..~..t 01.~.r.l......,g_r._.......p...f~~..t.r.:Qy"q._c;!...........~Q!J.9._~_ '
In the event any Bond "is muti.lat:ed, lost, stoh~n or' destroyed,
the City may execute and the Bond Registrar may authenticate a
new Bond of like date, maturity, denominat"ion and interest
rate, as that mutilated, lost, stolen or destroyed; provided,
t:hat in the case of any mutilated Bond, such muti.lat:(~d Bond
shall first be surr'endered to the City or UlE! Bond Registrar,
and, in the caSE! of i:ilny lost, stolen or destroYE.d Bond t:here
shall be first furnished to the Bond Registrar and the City
evidence of such loss, thE!ft or destruction satisfactory to
them, together lAJi.th 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 RegistE!red Owner of such
Bond their reasonable fees and expenses in connection with
replacing any Bond or Bonds muU.lated, stolE!n, lost or
destroyed.
~..~!_<;:..tj_~.~.Q..~.. . IS~r.r.!.P..9.r.:..~.r.:.lL...~.9._,IJ.Q..~. . U 1'1 t"i 1 d E! fin i t i v e Bon d s are
prepared, the City may execute, in the same manner as is
provided in the Ord"inance 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 condit"ions as the definitive Bonds, one or more
tE!mpOrary Bonds substant:i.al.ly of the tenor of the defi.nitive
Bonds in lieu of which such temporary Bond or Bonds are issued,
in denominaU.ons aut.hor'ized her'ein, author'izE!d by the City and
with such omissions, insertions and variations as may be
-10.....
86468
appropriate to temporary Bonds,
shall prepare and execute and,
temporary Bonds for exchange and
surrendered temporary Bonds,
authenticate and, wi thout charge
in exchange therefor definitive
principal amount and maturity
surrendered.
ThE:1 City at its olAm expense
upon the surrender of such
upon the cancellation of such
the Bond Registrar shall
to the OWnE!r thereof , deliver
Bonds of t:he same aggregate
as the temporary Bonds
If the City shall authorize the issuance of temporary Bonds
in more than one denomination, the RE!gisterE!d OIJJner of any
temporary Bond or Bonds may, at such Registered Owner's option,
surrender the same to the Bond Registrar in exchange for
another temporary Bond or Bonds of like aggregate principal
amount and maturi ty of any other authorized denomination or
dE!\1orrdnations, 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 rnaturi ty
in such other authorized denomination or denominations as shall
be requested by such Owner.
All temporary Bonds surrendered in exchange either for
another temporary Bond or Bonds or for a defini t:ive Bond or
Bonds shall be forthwith canceled by the Bond Registrar.
.? e c t ton 2 1 0 . ..~~~...~..~.tiQlL.._..~.EL9-.~1..i~gJ.:Y.._Q..t~..t h ~:........-1!.9 n 92 . 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 register'ed in the
officE!s of the Ci ty ClE!rk and the State TrE!aSUrE!r as providE!d
by law, and, when duly executed and rE!gistered, to deliver the
Bond s to the Or'igi na 1 Purc ha s er , upon r(~ c eipt by the Ci ty of
the Purchase Price,
Se ~...tion ----.?::JJ... Offi cial Sta tement . The Ci ty hereby
ra ti fies and confir'ms''''''''''''''rt~s--priora"j:)p''roval of the form and
content of the Official Statement prepared in the initial
offering and sale of the Bonds and hereby approves the form and
cont:E!nt of any addE:1I1da, supplement, or amE!ndment thereto. The
use of such Official ~3t:atli:1mE!nt in the reoffE!ring of the Bonds
by the Original Purchi:~ser is hereby approvE!d and authorized.
The proper officials of the City are hereby authorized to
E:1Xecut:E! i:"nd delivE:1r a cE!r'tificatE! pertaining to such Official
Statement as prescribed therein, dated as of the date of
payment for and delivery of the Bonds.
-11-
8646B
.~B.I.J....~J::J~.......I tI
REDEMPTION OF THE BONDS
~..~~~:..t...:!..9D_.?..Q1.. . QE..t.j.:g.,r.!..~]~._..Ii~s!_~JnE.t. i.g..n.. . Bon d sma t u r i n gin the
years 1989 to 1994, inclusive, shall bE!comE! due lAdthout opt:ion
of prior payment. At the option of the Ci t.y, Bonds maturing in
t.he years 1995 and t.hereafter may be called for redemption and
paymE!nt prior to maturity in lA/hole or in part. (selection of
Bonds to bE! designated by the City in such equitable manner as
it may deterrn:i.ne) on September I, 1994, or on any Interest
Payment Date thereafter at the redemption price of 100%
(expressed as a percentage of the princ:i.pal amount), plus
accrued interest thereon to the date of redemption,
Sect:i.on 302. Selection of Bonds to be Redeemed. The
Bon d s-s"i1aTl be red e ernE! a......c;..j, fy- i I')'-''''i;h e --""p'r~:rn-cTp a I . a mo u 1'1 t 0 ( $ 5 , 000
or any integral rnul tiple thE!rE!of. When Ies s than all of the
Bonds are to be rE!deE!med and paid prJor to maturity, such Bonds
shall bE:1 redeem~~d in such mann~~r as the City shall determinE!,
Bonds of less than a full matur'ity to be selected by lot in
units of $5,000.
In thE! case of a partial redemption of Bonds by lot when
Bonds of denominations greater than $5,000 are then
Outstanding, thE!n for all purposes in connection with such
redemption each $5,000 of face value shall be treated as though
it lA/ere a SE!parate Bond of t.he denominat.ion of $5,000, If it.
is dE!t.ermined that one or' more, but: ned'.: all, of the $5,000
unit.:s of face value r€:!presentE!d by any Bond is select.ed for
redemption, then upon notice of intention to redeem such $5,000
u I'd tor' u 1'1 its , the OlAJI'l e r 0 r the OlAm e r 's d u 1 y aut h 0 r i zed age 1'1 t
shall forthwJth prE!SE!)'lt: and SUrrE!)'lder such Bond t:o l::he Bond
RE!gistr'ar: (i) for payment of the r'eclempt.ion price (including
the redEHnption, if any, and inter'est to the datE! fixE'd for
rE!dE:Hnpt.~i.on) of the $5,000 unit. or' units of face value caIled
for redemption; and (".ii) for exchange, IAdthout charge to t:he
OIAmer' thereof, for a new Bond(s) of thE:1 aggrE!gate principal
amount: of the unrE!dE!~Hned port.ton of the pr'inC"ipal amount of
such Bond, If the OlAJI'ler of any Bond of a denorrril1i.'ltion great.er
than $5,000 shall fail to present such Bond as aforesaid, such
Bond sha~1.1, nevert.heless, become due and payable on the
redemption date to the extent of the amount called for
rE:1dempt.ion,
~..~!..~.:..tt9.n.._...iLQJ.. ' ~g..t7.t..~..~~......9...L....!Lq..g...~.!~!E.t.J.9..n. . U n 1 e s s lA/a i v E! d by
any OIAJI'l E! r' 0 f Bon d s to b 0 rod E! em E! d , if thE! C i t Y s haIl c a 11 any
Bonds for redemption and payment prior to t.he maturity t.hereof,
the City shall give writton notice of its intention to call and
pay said Bonds on a spocified date, the same being described by
rnat:uri.ty, said not:icE! to be rnailE!d by Unit.ed ~3ti"t:E!S certified
mail addressed to the Owners of said Bonds, to the State
Treasurer of Kansas, to the Original Purchaser of the Bonds and
-.12-..
86468
to the Paying Agent, each of said notices to be mailed not less
than 30 days prior to the date fixed for redemption. The City
shall also give such additional notice as may be required by
Kansas law in effect as of the date of such notice.
All official notices of redemption shall be dated and shall
state (1) the redemption date, (2) the rE!demption price, (3) if
less than all Outstanding Bonds are to be redeemed, the
idE!ntification (and, ':in the case of partial redemption, the
respective principal amounts) of the Bonds to be redeemed, (4)
that on the red~~mption date the redemption price tAdl1 become
due and payable upon each such Bond or portion thereof called
for redemption, and that interest thereon shall cease to accrue
from and after said date, and (5) the place lA/herE! such Bonds
are to be surrendered for payment of the redemption price,
which place of payment shall be the principal office of the
Paying Agent.
Prior to any redemption date, the City shall deposit with
the Paying Agent an amount of money sufficient to pay the
redemption price of all the Bonds or portions of Bonds which
are to be redeemed on that date. Upon surrender of such Bonds
for redemption in accordance with said notice, such Bonds shall
be paid by the Paying Agent at the redemption price.
Installments of interest due on or prior to the redemption date
shall bE! payablE! as herein provided for payment of interest,
Upon surrender for any partial redemption of any Bond, there
shall be prepared for the RegisterE!d Owner a new Bond or Bonds
of the same maturity in t.he amount of the unpaid principal.
All Bonds which have been redeemed shall be cancelled and
destroyed by the Paying Agent and shall not be reissued.
9.,~fl..:;!,..Q..r.LJ Q.1 . J~.f..f...~..f..t.-2.L~ a 11..-f.QL-R~9..~.!!!PJ 1. 0 n , W hE! n eve r' c~ n y
Bond is caLled for redemption and paymE!nt as provided in this
Article, all tnterE!st 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 prtce hereinbefore specified.
A RT I C.1-~_) V
FORM OF THE BONDS
9..g..~...t.tQ.!L_4QJ.. . L~~}=.IT.!......_...9.X_._.t h €'~__....Q..Q!J.9._~ . The Bon d s s haIl be
pr'inted in accordi:il.nce IAdth the for'mat requir'ed by thE! AttornE'y
Gener'al of the State of Kansas and shall contain information
substantially in the form submitted to the governing body
concurr'E'ntly with the passage of the Ordinance or as may bE!
required by the Attorney General pursuant to the Notice of
Systerns of RE!gish'ation for Kansas Municipal Bonds, 2 Kan. RE!g.
921 (1983),Jn accordanCE! IAJith the Kansas Bond I~E'gish'ation
Law, K,~). A. 10.....620 to 10...632, inclus:ive,
.....13-.
86468
ft.R.Lt<;J:J~....Jt
ESTABLISHMENT OF FUNDS AND ACCOUNTS
?~..f.J::i.Q..!l._?Ol... Creation of Funds and Accounts.
S i mu 1 t: a n e 0 u sly wi t h t h e.....-:cs-s..u';i-ii.c-e--of-...The-.....E3""oi,.cfs..:--'FFi.E~r'e -s.h'a 11-5" e
created within the Treasury of the City the following funds and
accounts:
(a) Improvement Fund for the City of Bel Aire,
Kansas, General Obligation Bonds, Series 1988;
(b) Principal and Interest Account for the City of
Bel Aire, Kansas, General Obligation Bonds, Series 1988; and
(c) Costs of Issuance Account for the City of Bel
Aire, Kansas, General Obligation Bonds, Series 1988.
?~..f t ion _5 q.2. . Ad mi r.Lt~Lt r:.~.t.:..~_9..!!._ 0 f __L.!.-!.n9 s ._.__~.!lg__~.f..~.9...u n t s . The
funds and accounts established hE!rein shall be administered in
accordance with the provisions of the Ordinance so long as the
Bonds are outstanding,
fl.!F I ~b.E;_.'y..!"
APPLICATION OF BOND PROCEEDS
~.~.~..t.i_<?.lL..2.Q'!" . Q i ~E o..~.ttt 0 11_,_9.J:~._.!!.9.l!.9_J~'!:Q_<2..~S=! d_~. . The pro c e E! d s
of the Bonds, upon issuance and delivE!ry thereof, shaI1 be
deposited as follows:
(a) In the Principal and Interest Account, a sum
E!qual to the accruE!d intE!r'est and any premium paid on the
Bonds. Moneys in the Principal and Interest Account. shall
b(~ used exclusively for thE! payment of the principal of,
pr'EHnium, if any, (HId interest on t:he Bonds and for the
payment of Paying Agent fees,
(b) In the Cost of IssuanCE! Account, the sum of
$11,190.89. Moneys in the Cost of Issuance Account shall
be used to pay the Costs of IssuancE~, Any funds r'ema:ining
in the Cost of Issuance Account 30 days prior to the first
Pr':inctpal PaYnlE!nt DatE:1 sha11 bE:! transfE!rr'ed to the
Principal and Int:erE!st Account 17.0 pay a port.ion of the
ftrst principal due on the Bonds.
(c) The balance of the proceeds of the Bonds shall be
de pas t t B d by thE! C it Y , i mm e d i. ate 1 '1 up on r 0.1 c e:i p t , in tot h e
Improvement Fund i:'lnd shall be US0.1d solely for UlE~ pur'pose
of paying the costs of the Improvements, inclUding the
rEd:.irement of the pr'incipal of and any interest on
temporary financin~l therefor', The City COVBnant.:s that. in
the const::ruct:.ion of l:.he IrnprOVemE!I'lts, it IAd.11 p(~rform all
-- 14-
864.6 B
duties and obligations relative to such Improvements as are
now or may be hereafter imposed by the Act and the
provisions of the Ordinance.
1i~..c tion .2..92. WJ t hdrawal s from i;b_~_..l.m..E.!:.9_~_~t:neQ.t Fu !J..Q . The
City Treasurer shall make withdrawals from the Improvement Fund
solely for the purpos(~ of constructing the Improvements. Such
withdrawals shall be made only on duly authorized and executed
lA/arrant accompanied by a statem(~nt of the City Administrator,
approved by the Ci ty Cou nci I, that sue h payment is being made
for a purpose within the scope of constructing the
ImprovE!ments, and that the amount of such payment represents
only t:he contract price or reasonable value of the property,
labor, materials, service or obligation being paid for, or if
such payment is not being made pursuant to an express contract,
that such payment is not in excess of the reasonable value
thereof.
Section 603. Surplus in the Improvemen'L_Lund. All moneys
remain:Cng in the Improvement Fund after the completion of the
Improvements, as certified to by the City's engineers, shall be
transferred immediately to the Principal and Interest Account
and applied to the next installment of principal due on the
Bonds.
ARTICLE VII
PAYMENT OF THE BONDS
Section 701. Levy and CollectiQ..!J.._.9L-B.!l!!.\d.al Tax. The
govern1. ng body of the Ci ty shall annually ma k e provision for
the payment of principal of, premium, if any, and interest on
the Bonds as the same become due by levying and collecting the
necessary taxes and/or assessments upon all of the taxable
tangible property within the City in the manner provided by law.
ThE! taxE:~s and/or assessments above referrE:~d to shall be
extended upon the tax rolls in each of the several years,
rE!spE!ctively, 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 deposit:ed in t:he
Principal and Interest Account,
If at any time said taxes and/or assessments are not
collect:ed in t.imE! to pay the prJ.nd.pal of or inter'est on the
Bonds lA/hen due, the City Treasurer' is h(~r~~by authorized and
directed to pay said principal or interE!st 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,
.-15.-
8646 B
~~!sJ i_ 0 n.._.l,Q_?,. ' fl.E..eI.~.:.f.~_t1..Q..!l......9.f_._~ q.!J..~~Y...~.._iD._...~h e _.EX'.. i r.l.~.1.E..a 1.__..E...!1 d
Jnter:..~!...~J;._...._~..fCOl!D..t. All amoun'l:s pi:dd and creditE!d to the
Principal and Interest Account shall be expended and used by
the City for the sole purpose of paying the principal of,
premium, if any, and interest on the Bonds as and when the same
become due and paying the usual and customary fees and expenses
of the Paying Agent.
~g..~...ti9n 70~... Tra..rJ.~f€'~-'=-...9...:L FUIJ9s to Payin..9..._.fl.gen,t. The Ci ty
Treasurer is hereby au1:horizE!d and directed to wi thdraw from
the Principal and IntE!rest Account and forward to the Paying
Agent sums sufficient 1:0 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
the Bonds, and said charges shall be forwarded to 1:he Paying
Agent over and above the. amount of the principa1 of, premium,
if any, and intE!rE:~st on the Bonds. If, through the lapse of
time, or otherwise, the Owners of Bonds shall no 10nger be
entitled to enforce paymE!n1: of their obligations, it shall be
the duty of the Paying Agent forthwith to return said funds to
the City. All monE!YS deposited with the Paying Agent shall be
deemed to be deposited in accordance with and subject to all of
the provisions contained in the Ordinance.
S e c t ion 704 . ~h'-!:.EJ u_~_.:t!L.....P r i n c i E. a 1-E_!1 d _JD t ere ~.L..J~ c c .2..l:!..IJ.,t. .
Any moneys or investments remaining in the Principal and
I nterE! s t A c count. after the ret.i. rement of t.he i ndebt.ed ne s s for
which the Bonds tAlere iSSUE!d and all other ind(~btE:~dness of the
City shaI1 be transferred and paid into the gE!I1E!ral revenue
fund of the City.
ft ~.LL~.bJ~_...~~ I I
DEPOSITS AND INVESTMENT OF FUNDS
Section 801. Q..g.E.5L~...'Lt~. Cash moneys in E~ach of the funds
and accounts her'Edn cr'eated and established shall bE! deposi'\:(.~d
in a bank or banks or fE!deral or state chartE!red savings and
loan association(s) with home offices Iocated in the City,
which are mE!mbers of the Federal Deposit Insurance Corporat.ion
or the FedE!ral Savings and Loan Insur'ance Corporation, and all
such deposit.s shall be adequately secured by the bank or banks
or savings and loan associations holding such deposits in
accordance wit.h Kansas law.
Section 802. I.IJ..':!...~.~_~...t.!:r.!..~.!J..t~... MonE!YS he1d in thE! funds and
accoull..Cs...-....iier.e-in creab;!(j or est.ablished 'in conjunction lArith the
issuance of t.he Bonds may be invested by the Cit.y in Authorized
InvestmE!l1t.s, or in o1:hE!r tnv(~st.ments al10lAJed by Kansas 1 at", in
such amounts and rnat.ur'ing at such timE:!s as shaI1 reasonably
provide for moneys t.o be available when required in said
account.s or funds; provided, hOlA/E!ver, thclt. no such i.nvestment
..-16-
8646 B
shall be made for a period extE!nding longer than to the date
when the moneys investE!d may be needE!d for i:he purpose for
which such fund or account was created. All interest on any
Authorized Investment held in any fund or account shall accrue
to and become a part of such fund or account. In determining
the amount held in any fund or account under the provisions of
the Ordinance, Authorized Investments shall be valued at their
principal par value or at their then redemption value,
whichever is lower.
ARTICLE IX
DEFAULT AND REMEDIES
Section 90!.. ..Remedies. The provisions of the Ordinance,
including the covenants and agreements herein contained, shall
constitute a contract behveen the City and the Owners of the
Bonds. The Owner or Owners of any of the Bonds at the time
Outstanding shall have the right for the equal benefit and
protection of all Owners of Bonds similarly situated:
(a) by mandamus or other sui t, ac tion or proceedi ng s
at law or in equity to enforce the rights of such Owner or
Owners against the City and its officers, agents and
employees, and to require and compel duties and obligations
required by the provisions of the Ordinance or by the
Constitution and laws of the State of Kansas;
(b) by suit, action
at law to require the
employees to account as
express trust; and
or other proceedings in equity or
City, its officers, agents and
if they were the trustees of an
(c) by suit, action or other proceedings in equity or
at law to enjoin any acts or things which may be unlawful
or in violation of the rights of the Owners of the Bonds.
S f?~ c t i o.ll-292 . ..!:.:..t.!!!.t.t~J :L,<?J.1_ 0 L...-'.t!:-9.. h ~L...Qf....._...~9.. n 9 ow n e r:.~ . The
covenants and agreemE!nts of the Ci ty contained herein and in
the Bonds shall be for the equal benefit, protection, and
security of the Owners of any or all of the Bonds, all of which
Bonds shall be of equal rank and without preference or priority
of one Bond over any other Bond in the application of the funds
herein pledged to the payment of the principal of and the
in t ere s ton t h c::1 Bon d s ,or 0 the rlAJi s e , ex c e p t as tor ate 0 f
interest, date of maturity and right. of prior r(~demption as
provided in thE! Or'dinance. No one or morE! Bondowner's securE!d
herE!by shall haVE! any right7. in any mannE!r what(~v(~r by his or
their action to affE!ct, disturb or prE!judiCE! the security
grantE!d and provided for hE!rE!in, or to enforCE! any right
hereunder, E!XCE!pt in thE! manner hE!rein providE!d, and all
proceE!dings at 1 alA! or in E!quity shall be instituted, had and
maintainE!d for thE! equal benE!fit of all Owners of such
Outstanding Bonds.
-17-
864.6B
SE!ction 903. RemE!diE!s Cumulative, No remedy conferred
her e iI1._.....l:ij:>on-rfl.e. B 0 I";CfOI~'i1.(~ rs""- i -s-T"i1t e n <:ie-a' to bee xcI u s i v e 0 fan y
other remE:1dy, but each such remE!dy shall be cumulative and in
addition to every oth(~r' remedy and may be exercised lAJithout
exhaus ting and lAJ:ithout regard to any other remedy conferred
herein. No waiver of any default or breach of duty or contract
by the Owner of any Bond shall extend to or affect any
subsequent default or breach of duty or contract or shall
impair any rights or remedies thereon. No delay or omission of
any Bondowner to exercise any right or power accruing upon any
default shall impair any such right or power or shall be
constr'ued to be a lJ.laiver of any such default or acquiescence
therein. Every substantive right and every remE!dy conferred
upon the Owners of the Bonds by the Ordinance may be E!l1forCE!d
and eXE!rcised from timE! to time and as often as may be deemE:1d
expedient. In case any suit, action or proceedings taken by
any Bondowner on account of any default or to enforce any right
or (~xE!rcise any remedy shall have been discontinued or
abandoned for any reason, or shall have been determined
adversely to such Bondowner, then, and in every such case, the
City and the OWnE!rS of the Bonds shall be restored to their
former posi tions and rights hereunder, respectively, and all
rights, remedies, powers and duties of the Bondowners shall
continue as if no such suit, action or other proceedings had
been brought or taken.
ARTICLE X
-..-.........--.-..-
AMENDMENTS
?.~..~.J: i g_I.l._..lQ.Q.l. A rl"!.~~..!1 d.!!l e I!.!:~.. . E x c e p t ass e t for t h her e in,
the provisions of the Bonds authorized by the Ordinance and the
provisions of thE! Ordinance may be modified or amended at any
time by the City with the written consent of the Owners of not
less than seventy-fivE! per cent (75%) in aggregate principal
amount of the Bonds herein authorized at the time Outstanding;
providE:!d, howevE!r, that no such modification or amendmE!nt shall
permit or be construed as permitting: (a) the extension of the
maturity of the principal of any of the Bonds, or the extension
of the maturity of any interE!st: on any of the Bonds, or (b) a
rE!duction in the prind.pal amount of any of the Bonds or the
r'ate of interE!st t:hereon, or (c) a reduction in the aggr'E!gat:e
principal amount of the Bonds; the consent of 100% of the
Ow n e r s 0 f IJJ h i chi s r E! qui red for any s u c h a rn E! n d m E! n tor
modification. 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 cur'E! any ambiguity or formal defect or omission
in the Ordinance or to make any other change not prejudicial to
the OIAlI'lE:1rS;
-18-..
8646B
(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 provide for the issuance of coupon bonds and the
exchange of fully registE!red 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 opinion of Bond
CounsE!l 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 CaUS(1 the
interest on the Bonds to be includible in the gross income of
the recipients thereof under the provisions of applicable
federal law; or
(e) To conform the Ordinance to the Code or future
applicable federal law concerning tax-exempt obligations.
~~~~iQn 1002. Written Evidence of Amendments. Every
amendment or mOdificatfon-Of-a-provis'ion of the Bonds or of the
Ordinance to which the written consent of the Owners is given
as above provided shall be expressed in an ordinance of the
City amending or supplementing the provisions of the Ordinance
and shall be deElfned to be a part of the Ordinance. It shall
not bE! nE!CeSsary 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 the Ordinance shall
albJaYs be kept on file in the Office of the City Clerk and
s hall bE! made avai labl e for ins pe c tion by the Owners of any
Bond or prospective purchaser or Owners of any Bond authorized
by the Ordinance, and upon payment of t:he reasonable cost of
preparing the SalTJE:1, a certified copy of any such amendatory or
supplemental ordinance or of the Ordinance will be sent by the
City Clerk to any such Owner or prospective Owner.
.8..KII.~ L J~._.._X.:!
DEFEASANCE
S e c t: ion 1 10 1 . g_~~..fg? ~.a lJ.f..~ . W hen all 0 ran y par t 0 f the
Bond.s.........i:;"ri.d--fnt-E;..r::-e-st thE!r'eon shall haVE! bElen paid and discharged,
then the requirements contained herein and the pledge of
rE:WerllH!S made her'E!UndE!r and all other' rights gr'antE!d herE!by
shall CEli~se and dE!ter'rrrine. Bonds shall be deemed to hi."lVE! belen
paid and discharged within the meaning of the 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 mat:ur'ity or redE!rnption date of the Bonds, in
trust for and ir'rE:1vocably appr'opriated t.herE!to, moneys and/or
.-19.-
8646B
direct obligations of, or obligations the principal of and
interest on which are guaranteed by, the United States of
America, or other investments allowed by Kansas law which.
together l"lith the interE!st to be earned on such investment:s.
will bE! sufficient for the payment of the principal of the
Bonds. the rE!demption premium thereon. if any there be, and
interest accrued to the date of maturity or redemption. as the
case may be. or if dE:~faul.t 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 E!lected to redeem
such Bonds and notice of such redemption shall have been
given. Any moneys l;.lhich at any time shall be deposit.ed with
the Pay i ng Agent. or said Kans as ban k by or on be hal f of the
City, foy' t.he purpose of paying and discharging any of the
Bonds shall be and are hereby assigned, transferred and set
over t.o t.he Paying Agent or such Kansas bank in t.rust for the
respect:ive Owners of the Bonds, and such moneys shall be and
are hE!reby irrE!vocably appropriat.ed 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 the Ordinance,
ARTICLE XII
MISCELLANEOUS PROVISIONS
S E!..~..t i.2..!l._..1..g,Q.1. .s~J.::...e p t i Qil_._..ff c~. R e Q~!; e _.B..€':.9. u i r.Q!!!..~~f.I t .~. . The
City makes the following representations in connection with the
exception for small governmental units from the arbitrage
rebate requirements under Sect.ion 148(f)(4)(c) of the Code:
(a) 95 perCE!rlt
Bonds are t.O be used
the City; and
or morE! of the net proceE!ds of the
for local government.al. activities of
(b) the aggregate face amount of all t.ax-exempt bonds
(other than private activity bonds) issued by the City
dur"ing thE:1 calendar year that the Bonds arE! "issued "is not
reasonably expected to exceed $5.000,000.
~.~.~..~_.ti..9._rL..1.? Q.? ' Q..€'~.~..j.:.9..!!.~..!;.i9...D..__9..LJlg.n.Q1>_...._~Q.!:!J:lJ~.tLt...g.g.......I.~.x -=f.~25.g!.!1.E..t
.9.t.?.:!j.g..i.~..!;..t..2.n.~. rhe CJty hE:~reby designat:E!s the Bonds to be
IIqualified tax.'.E!Xernpt ob1.igationsll as such tE!rm is dE:1fined in
Section 265(b)(3) of t:he Code. In addit"ion, thE! C"ity hE!rE!by
rE!prE!Sents that:
(a) the rE!asonably anticipated amount of tax-.exempt
obligaU.ons (othE:~r than pr"ivi~lt:e activH:y bonds) IJJh':Lch ("d.11
be "issUE!d by the City during calenday' year that the Bonds
are "issued does not exceed $10,000.000; and
-.20-.
8646B
(b) the aggregate principal
dE!signated by the Ci ty to be
obligab.ons II during calendar year
issued, including the Bonds, does not
amount of obligations
IIqualified tax-exempt
that the Bonds are
exceed $10,000,000,
~e~tion_L?_9l. I_~..?L_.. Covenants. The Ci ty covenants and
agrees that it will not take any action, or fail to take any
action, if any such action or failure to take action would
adversely affect the exclusion from gross income of the
interest on the Bonds under Section 103 of the Code. The City
covenants and agrees that it will use the proceeds of the Bonds
as soon as practicable and with all reasonable dispatch for the
purpose for which the Bonds are issued as hereinbefore set
forth, and that it. will not directly or indirE!ctly use or
permit the use of any proceeds of the Bonds or any other funds
of the City, or take or omit to take any action that would
cause the Bonds to be lIarbitrage bondsll within the meaning of
Section 14.8(a) of the Code. To that end, the City will comply
with all requirements of Section 148 of the Code to the extent
applicable to the Bonds. In the event that at any time the
City is of the opinion that for purposes of this Section it is
necessary to restrict or limit the yield on the investment of
any moneys held by the City under the Ordinance, the City shall
take such action as may be necessary.
Si?.f..t:iQXL_J2Q..1. .?e~~~!.:.~bilitl.l. In case anyone or more of
the provisions of the Ordinance or of the Bonds issued
hereunder shall for any reason be held to be illegal or
inva1id, such illega1it.y or invalidity shall not affect any
other provision of the Ordinance, or of the Bonds appertaining
thereto, but thE:1 Ordinance and the Bonds sha11 be construed and
enforced as if such i.llegal or invalid provision had not been
contained herein. In case any covenant, stipulation,
obligat.ion or agreement contained in the Bonds or in the
Ordi nance s hal1 for any reas on be held to be i n violation of
lat."J, thc::~n such covenant, stipulation, obligation or agreern(~nt
sha1I bE! deernE!d to be the covenant, stipulation, obligation or
agreement of the City to the full extent permitted by law.
~_.~~..~...t i 9 rL.12 Q.2.. . f...!:!...r_.t. her n._ A !:!..t!J.Qr i.iY.. . The May 0 r , C i t Y C I e r k
and other City officials are hereby further authorized and
directed to execute any and all documents and take such actions
as they may dE!em necc::~ssary or advisable in order to carry out
and perform the purposes of the Ordinance to make alterations,
changE!S or addit:tons in thc::~ foregoing agreements, s{:a{:ements,
instruments and ot.her documents herein approved, authorized and
confirmed which t.hey may approve and the execution or taking of
such action sha1I be conc1usive E!vi.dence of such necessity or
advisabi.lity.
Se c t.ion 1.206, ~?g.Y...~..:..r.::..!J.1:.!lg..._._.U~.\.AL.. The Ordi nan c e and the Bond s
s halr......b-;;;;...--.g.o..v.e-y::..j:;-ed (.~x c Iu s iv e ly by and cons trued in ac cordan eEl
with t.he app1icable laws of the State of Kansas.
.-21-
86468
Section 1207.
effect and be in
governing body of
newspaper.
. .ft.AS6E,o,.. by the
/~~J\~h~;er~'~ _ (1;? a. 8 .
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, ",:::""111:""" .."' -f. - . \., 1
r:.;~7 ~~>; / ~) r J.;~ \ 'c \
: '-'(' '.<~~ 1/) . /~( ~Z'\" ) !::J
~'f,\ . ~.. I'JIL' . '^..."
, ,,' , .'./ . . . \- ( -
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J'?J' i:cr,':. >., ~,I
A., *""....,.'.. ......'" .'(
.i ..'.' '.",-" ~;-'/'
i../ . 14 n~ .\"
Effective Date. This Or'dinancE! shall tak(,!
fuIr-nforce'--fr:-om'--and after' it:s passage by the
the City and publication in the official City
governing body of t.he Cit.y t.his 20th day of
\/.AP~ / &v7@
ity Clerk
__Al~~
Mayor
-.22-.
864.6 B