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14093ORDINANCE NO. 14,093 AN ORDINANCE AUTHORIZING THE ISSUANCE OF TEMPORARY TOURISM REVENUE REFUNDING BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the City of Little Rock, Arkansas (the "City ") is authorized, pursuant to Act No. 380 of the Acts of Arkansas of 1971, as amended, (the "Act ") to own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain, sell, lease, contract concerning, or otherwise deal in or dispose of any lands, buildings, improvements or facilities of any and every nature whatever necessary or desirable for the securing and developing of tourism; and WHEREAS, in 1977 the City Advertising and Promotion Commission of the City of Little Rock, Arkansas (the "Commission "), has, in cooperation with the Board of Directors (the "Board ") of the City, formulated plans for a proposed convention /meeting hall and sports arena (the "Megaplex Project ") to be located in the downtown area of the City; and WHEREAS, to finance the acquisition of a portion of the site for the Megaplex Project, being the real property formerly owned by Commonwealth Federal Savings & Loan Association and located at Fourth and Spring Streets in the City ( the "Property ") , the City issued and sold its $1,100,000 City of Little Rock, Arkansas Tourism Revenue Bonds (Megaplex Project), dated August 1, 1977 (the "1977 Bonds "); and WHEREAS, the 1977 Bonds matured August 1, 1979, and were refinanced by the issuance of the City's $1,100,000 City of Little Rock, Arkansas Tourism Revenue Refunding Bonds (Series 1979), dated August 1, 1979, and maturing August 1, 1981 (the "1979 Bonds "); and WHEREAS, after acquisition of the Property it was determined by the Board and the Commission not to go forward with the Megaplex Project, and that the Property was surplus to the City' s needs and should be sold; and WHEREAS, the City has undertaken the construction and acquisition of a convention center project, which is being financed from the proceeds of the City's $27,375,000 Hotel and Restaurant Gross Receipts Tax Bonds (Little Rock Convention Center Project) Series 1980 (the "Convention Center Bonds "); and WHEREAS, upon issuance of the Convention Center Bonds $200, 000 of the proceeds thereof were used to pay a portion of the principal of the 1979 Bonds, with the expectation that the City would sell the Property prior to maturity of the 1979 Bonds for a price sufficient to retire the remaining 1979 Bonds, but no sale of the property has yet been consummated; and WHEREAS, the owners of the 1979 Bonds are Union National Bank of Little Rock, Metropolitan National Bank, The Twin City Bank, The First National Bank in Little Rock, First American National Bank, Pulaski Bank & Trust Company, and Worthen Bank & Trust Company, N.A.; and WHEREAS, the necessary arrangements have been made with the owners of the 1979 Bonds and with Commercial National Bank of Little rock (collectively the "Banks ") for the issuance by the City of its $900,000 City of Little Rock, Arkansas Tourism Revenue Refunding Bonds (Commonwealth Project), Series 1981, dated August 1, 1981 (the "1981 Bonds ") and the exchange of the 1981 Bonds for the 1979 Bonds; NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. That the issuance of the 1981 Bonds and the exchange of the 1981 Bonds for the 1979 Bonds in accordance with the terms of a Bond Purchase Agreement dated as of August 1, 1981, among the City, the Commission and the Banks (the "Bond Purchase Agreement ") is hereby authorized and directed. The Bond Purchase Agreement is approved in substantially the form presented to this meeting and a copy thereof shall be included in the minutes of this meeting. The City Manager, Mayor and City Clerk are hereby authorized to take all action and to execute all instruments necessary or desirable in connection with the issuance of the 1981 Bonds and their exchange for the 1979 Bonds. Section 2. That under the authority of the Constitution and laws of the State of Arkansas, including particularly the Act, the 1981 Bonds are hereby authorized and ordered issued. The 1981 Bonds shall mature August 1, 1983, and bear interest at the rate of 8% per annum for the first year and at the rate of 9% per annum for the second year. Interest shall be payable February 1, 1982, and semiannually thereafter on each August 1 and February 1. The 1981 Bonds shall be issued as fully registered bonds (registered as to principal and interest), and principal and interest shall be paid by check mailed by first class mail to the registered owner at the address reflected on the registration books of the City maintained by the Trustee. They shall be in any denomination which is a multiple of $5,000 and shall be numbered consequentively from R -1 upwards. The 1981 Bonds shall be in 2 typewritten form and any 1981 Bond may be ec a re 981 at any time days upon not less than thirty (30) y smaller denominations (which must be in multiples of $5,000) such any expenses necessarily the uregasterconnection owner requesting the exchange to be paid by exchange. Section 3. The 1981 Bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City. The interest on the 1981 Bonds shall be payable solely out of the Tourism Revenue Refunding Bond Fund, Series 1981 (hereinafter created) and shall be a valid claim of the 1981 Bondholders only against that such Fund and the revenues pledged to such Fund. The 1981 Bonds shall be additionally secured by a mortgage lien on the Property and the Mayor and City Clerk are authorized and directed to execute and deliver to Union National Bank of Little Rock (the "Trustee "), as trustee for the holders of the 1981 Bonds, an appropriate instrument to create the lien. The City covenants (i) to pursue diligently the sale of the Property and to apply the sale proceeds to the payment of the 1981 Bonds, and (ii) if the Property is not sold prior to maturity, to the extent feasible to issue bonds on or before the maturity date to provide for the refunding of the 1981 Bonds. The 1981 Bonds and the interest thereon shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 4. The 1981 Bonds shall be in substantially the following form todm ke Mallr re and City citals and lerk authorized contained and direct therein: 3 UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK, ARKANSAS TOURISM REVENUE REFUNDING BOND (COMMONWEALTH PROJECT) SERIES 1981 No. R- KNOW ALL MEN BY THESE PRESENTS: That the City of Little Rock, County of Pulaski, and State of Arkansas (the "City "), acknowledges itself to owe and, for value received, hereby promises to pay to or assigns (the "registered owner ") on the first day of August, 1983, the principal sum of DOLLARS in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America, and to pay interest on the principal sum hereof outstanding, from time to time, in like coin or currency, at the rate of eight percent (8%) per annum from the date hereof until August 1, 1982, and thereafter until paid at the rate of nine percent (9%) per annum. Interest is payable on February 1, 1982, and semiannually thereafter on each August 1 and February 1. Payments of principal and interest, including redemption of principal as hereinafter provided, shall be made by check mailed by first class mail to the registered owner hereof at his address on the registration book of the City maintained by the Trustee. Each payment shall be noted on a Payment Record maintained by the Trustee, and all such payments shall fully discharge the obligation of the City hereon to the extent of the payments so made. The registered owner may present this bond to the Trustee at any time for verification and completion of the Payment Record attached hereto. Upon final payment of principal and interest, this bond shall be submitted to the Trustee for cancellation and surrender to the City. The Trustee of this bond is Union National Bank of Little Rock, Little Rock, Arkansas. This bond is one of an issue of bonds authorized in the aggregate principal amount of $900,000 (the "Bonds ") being issued for the purpose of financing the costs of refunding the City's Tourism Revenue Refunding Bonds, Series 1979, dated August 1, 1979 ( the "Prior Issue ") . The bonds of the Prior Issue were issued to refinance the costs of acquiring certain real property in the City (the "Property "). The Bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act No. 380 of the Acts of Arkansas of 1971, as amended, and pursuant to Ordinance No. of the City, adopted and approved on the day of 1 1981 (the "Authorizing Ordinance "), and the Bonds do not constitute an indebtedness of the City within any constitutional or statutory limitation. The Bonds are not general obligations of the City, but are special obligations the interest on wich is derived payable solely from revenues derived from a pledge of (1) revenues of revenues from the operation of the Property and (2) amount derived from the City's 2% gross receipts tax on hotel and motel accommodations and on restaurants, cafes, cafeterias and other establishments levied pursuant to the authority of Act No. 185 of the Acts of Arkansas of of revenues from such gross subordinate to the pledge receipts tax delivered under a trust indenture Commercial National Natdional Bank of Little Rock, as trustee by the City to Comm for the holders of the City's $27,375,000 City of Little Rock, Arkansas Hotel and Restaurant Gross Series 1980tsdatedB Tax September le Rock Convention Center Project) 1980, necessary, together with revenues derived from the Property, to insure the prompt payment of the interest on the Bonds in accordance with the provisions such r enue specified sufficient tto Authorizing Ordinance. An am pay the interest on the Bonds is to be set aside in a sp ecial fund Bond for that purpose identified as the Tou trim Re Revenue Refunding Bo Boe) Fund, Series 1981 Bonds (created by "Bond The City covenants that sell the Property for (the Bond maturity date of the Bonds ii will le sale proceeds to the retirement a sufficient price and apply issue additional bonds to of the Bonds, or (ii) if feasible, The Bonds are further provide for the refunding of the Bonds. secured by a mortgag e lien on the Property. Reference is hereby made to the Authorizing Ordinance for a detailed statement oft e nature and extent of the security, the rights and obligations of the City, the Trustee and the r igh the the are if ssuedbonds, an the terms and conditions upon wh of the Bonds shall be subject to The P rincipal at the option of the City, in any redemption prior to maturity, rice of par and accrued interest, amount without penalty, at a pat at any time. Moneys to ilable the from funds from any lied proportionately redemption shall be applied redemption, the outstanding Bonds. In the event of a p holder shall surrender this Bond to the Trustee for notrinci al the Payment Record attached hereto of the amount of p P redeemed. 1.1 IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and to be performed precedent to and in the issuance of the Bonds, have existed, have happened and have been performed in due time, form and manner, as required by law; and that the indebtedness represented by the Bonds does not exceed any constitutional or statutory limitation. This Bond shall not be valid until the Certificate of Authentication hereon shall have been signed by the Trustee. IN WITNESS WHEREOF, the City of Little Rock, Arkansas, has caused this Bond to be executed in its name by the Mayor and City Clerk, and its seal to be affixed, all as of the first day of August, 1981. ATTEST: City Clerk (SEAL) CITY OF LITTLE ROCK, ARKANSAS By Mayor 1.1 TRUSTEE'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Ordinance. ASSIGNMENT For value received, below sells, conveys, transfers, the assignee last listed below. REGISTERED OWNER UNION NATIONAL BANK OF LITTLE ROCK Little Rock, Arkansas By Authorized Signature the registered owner last listed assigns and delivers this Bond to ASSIGNEE iA Payment Date February 1, 1982 August 1, 1982 February 1, 1983 August 1, 1983 PAYMENT RECORD Principal Principal Balance Interest Signature of Pavment Due Pavment Trustee 8 Section 5. From and after delivery of the 1981 Bonds the Property shall be continuously operated as a revenue producing undertaking. Section 6. Commonwealth Revenue Fund. All revenues derived from the operation of the Property shall be paid into a special fund, which is hereby created and designated "Commonwealth Revenue Fund" (the "Revenue Fund "), in such depository or depositories for the City as may be lawfully designated from time to time by the Commission, provided that such depository or depositories shall hold membership in the Federal Deposit Insurance corporation. Such revenues shall be used to the extent necessary to pay any required monthly operation and maintenance expenses of the Property and the remainder is hereby pledged and shall be applied as hereinafter set forth. Section 7. Tourism Revenue Refunding Bond Fund, Series 1981 Bonds. (a) There shall be deposited from the Revenue Fund into a special fund of the City in the Trustee which is hereby created and designated "Tourism Revenue Refunding Bond Fund, Series 1981 Bonds" (the "Bond Fund "), the sums in the amounts and at the times hereafter stated in subsection (b) for the purpose of providing funds for the payment of interest on the 1981 Bonds as they mature, and the Trustee's and Paying Agent's fees. (b) There shall be paid from the Revenue Fund into the Bond Fund on or before January 31, 1982, and on or before each July 31 and January 31 thereafter until the interest on all outstanding 1981 Bonds has been paid, or adequate provision made for such payment, a sum equal to the next installment of interest, plus an amount sufficient to provide for the Trustee's and Paying Agent's fees as the same become due. (c) All moneys in the "Tourism Revenue Fund, Series 1979 Bonds" and the "Tourism Revenue Refunding Bond Fund, Series 1979 Bonds ", both created by and existing pursuant to the Ordinance authorizing the 1979 Bonds, shall be transferred into the Bond Fund for use in accordance with this Ordinance. (d) All moneys in the Bond Fund shall be used by the Trustee solely for the purpose of paying the principal of and interest on the 1981 Bonds and Trustee's and Paying Agent's fees, as the same become due, except that if at any time there shall be accumulated in the Bond Fund a surplus in excess of the amount necessary to insure the prompt payment of the interest on, and Trustee's and Paying Agent's fees in connection with the 1981 Bonds as the same become due, such surplus may be used as the Commission shall determine, to redeem 1981 Bonds prior to maturity in the manner provided herein for redemption prior to maturity or may be transferred to the Revenue Fund. 9 (e) The 1981 Bonds shall be specifically secured by a pledge of all revenues required by this Ordinance to be placed into the Bond Fund. The pledge in favor of the 1981 Bonds is hereby irrevocably made according to the terms of this Ordinance, and the City, the Commission, and the officers and employees of the City and the Commission shall execute, perform and carry out the terms thereof in strict conformity with the provisions of this Ordinance. Section 8. Any moneys remaining in the Revenue Fund after the required deposits into the Bond Fund and payment of any required monthly operation and maintenance expenses of the Property in accordance with the provisions pertaining thereto hereinabove set forth, may be used, as determined by the Commission, for either or both of the following purposes: (1) Redemption of 1981 Bonds prior to maturity; or (2) For any lawful purpose. Section 9. Subject to the prior pledge described hereinafter, the City hereby expressly pledges, and covenants to use, revenues derived from the City gross receipts tax levied pursuant to the authority of Act No. 185 of the Acts of Arkansas of 1965, as amended, to the extent, and only to the extent, that such revenues maybe required, together with revenues derived from the Property, to pay the interest on the 1981 Bonds in accordance with the provisions of this Ordinance. The above pledge of revenues from the City gross receipts tax is hereby expressly made subject to and subordinate to the pledge of the revenues from the City gross receipts tax under the Trust Indenture dated as of September 1, 1980, delivered by the City to Commercial National Bank of Little Rock, as trustee for the holders of the City's Convention Center Bonds. All revenues derived from the City gross receipts tax not required for the purposes aforesaid shall be released from this pledge (subject to the subsequent provisions hereof) and may be used by the City for any lawful purpose. In this regard, the Commission is hereby authorized, after complying with the requirements of the Trust Indenture securing the Convention Center Bonds and the provisions of this Ordinance, to use from time to time all of the revenues derived from the City gross receipts tax for any purpose authorized by Act No. 185 of the Acts of Arkansas of 1965, as amended, or as authorized from time to time by any applicable law or ordinance. If, at any time, it appears that revenues derived from the City gross receipts tax will be needed, as reasonably determined by the Trustee on the basis of projected revenues from the Property and expenditures thereof required by the provisions of this Ordinance, the Trustee shall notify the Commission of such need and of the amount determined by the Trustee that will be needed. Thereafter and 10 until notified by the Trustee to the contrary, the Commission shall deposit in the Bond Fund the amounts from the City gross receipts tax so specified in the notice from the Trustee to the Commission. The City and the Commission covenant and agree that they will at all times while any of the 1981 Bonds are outstanding, continue to collect the City gross receipts tax in at least the amount necessary to enable the City to discharge its obligations set forth in this Ordinance. For all purposes hereunder the required amount of revenues derived from the City gross receipts tax to satisfy the pledge in favor of the interest on the 1981 Bonds shall be considered part of "pledged revenues ", or revenues pledged to the interest on the 1981 Bonds, for purposes of Section 10 and all other sections and provisions of this Ordinance. All reference herein to "City" in connection with the City gross receipts tax, or in connection with the functions of the Commission, shall, where applicable, be deemed to mean or include the Commission. Section 10. The City covenants that it will not issue any bonds, or incur any obligation, secured by a prior lien on or prior pledge of the revenues pledged to the interest on the 1981 Bonds, or ranking on a parity of lien or pledge with the lien and pledge in favor of the interest on the 1981 Bonds on the pledged revenues. Nothing herein, however, shall prohibit the City from issuing obligations, secured by a subordinate lien on, or subordinate pledge of, the revenues pledged to the interest on the 1981 Bonds. Section 11. That it is hereby covenanted and agreed by the City with the holders of the 1981 Bonds that the City and the Commission will faithfully and punctually perform all duties with reference to the Property and the 1981 Bonds, required by the Constitution and laws of the State of Arkansas and by this Ordinance, including the charging and collecting of rates and charges for the use of the Property and the collection of the City gross receipts tax, as herein specified and covenanted, the segregating of the revenues pledged hereby and the applying of the pledged revenues to the respective funds created hereby. Section 12. That the 1981 Bonds shall be subject to redemption prior to maturity in the manner and in accordance with the terms set out in the 1981 Bond form. Section 13. That the City will keep or cause to be kept proper books of accounts and records (separate from all other accounts and records) in which complete and correct entries shall be made of all transactions relating to the Property and the 11 operation thereof, and such books shall be available for inspection by the holder of any of the 1981 Bonds at reasonable times and under reasonable circumstances. The City agrees to have these records audited by an independent public accountant at least once each year, and a copy of the audit shall be delivered to the Trustee. In the event the City fails or refuses to make the audit, the Trustee may have the audit made and the cost thereof shall be charged against the Revenue Fund. Section 14. That the City covenants and agrees that the Property will be maintained in good condition and that the Property will be operated in an efficient manner and at reasonable cost. While any of the 1981 Bonds are outstanding, the City agrees that it will insure or cause to be insured, and at all times keep insured or cause to be kept insured, with fire and extended coverage insurance, in the amount of the full insurable value, in responsible insurance companies authorized and qualified under the laws of the State of Arkansas to assume the risks, the Property at least to the extent that similar properties would be covered by insurance by private companies engaged in similar types of operations, as reasonably determined by the City. The insurance policies are to carry a clause making them payable to the Trustee as its interest may appear, and either the policies or an appropriate certificate shall be placed in the custody of the Trustee. In the event of loss, the proceeds of such insurance shall be deposited to the credit of the Bond Fund. Nothing herein shall be construed as requiring the City to expend any funds for operation and maintenance of the Property or for premiums on insurance other than the pledged revenues, but nothing herein shall be construed as preventing the City from doing so. Section 15. That the City covenants and agrees that so long as any of the 1981 Bonds authorized hereby are outstanding, it will not, except as otherwise provided herein, mortgage or otherwise encumber the Property, or any part thereof, and will not sell, lease or otherwise dispose of any substantial portion of the same without the prior written approval of the Trustee. Section 16. (a) That if there be any default in the payment of the principal of and interest on any of the 1981 Bonds, or if the City defaults in the performance of any covenant contained in this Ordinance, the Trustee may, and upon the written request of the holders of note less than ten percent (10 %) in principal amount of the 1981 Bonds then outstanding shall, by proper suit compel the performance of the duties of the officials of the City and the Commission under the Constitution and laws of the State of Arkansas and under this Ordinance, and to take any action or obtain any proper relief in law or equity available under the Constitution and laws of the State of Arkansas. 12 (b) No holder of any 1981 Bond shall have any right to institute any suit, action, mandamus or other proceeding in equity or in law for the protection or enforcement of any right under this Ordinance or under the Constitution and laws of the State of Arkansas unless such holder previously shall have given to the Trustee written notice of the default on account of which such suit, action or proceeding is to be taken, and unless the holders of not less than ten percent (10 %) in principal amount of the 1981 Bonds of this issue then outstanding shall have made written request of the Trustee after the right to exercise such powers or right of action, as the case may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers herein granted or granted by the Constitution and laws of the State of Arkansas, or to institute such action, suit or proceeding in its name, and unless, also, there shall have been offered to the Trustee reasonable security and indemnity against the cost, expense and liabilities to be incurred therein or thereby and the Trustee shall have refused or neglected to comply with such request within a reasonable time, and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers and trust of this Ordinance or to any other remedy hereunder. It is understood and intended that no one or more holders of the 1981 Bonds hereby secured shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Ordinance, or to enforce any right hereunder except in the manner herein provided, that all proceedings at law or in equity shall be instituted, had and maintained in the manner herein provided and for the benefit of all holders of the outstanding 1981 Bonds and coupons, and that any individual rights of action or other right given to one or more of such holders by law are restricted by this Ordinance to the rights and remedies herein provided. (c) That all rights of action under this Ordinance or under any of the 1981 Bonds secured hereby, enforceable by the Trustee, may be enforced by it without the possession of any of the 1981 Bonds or coupons appertaining thereto, and any such suit, action or proceeding instituted by the Trustee shall be brought in its name and for the benefit of all the holders of the 1981 Bonds and coupons, subject to the provisions of this Ordinance. (d) That no remedy herein conferred upon or reserved to the Trustee or to the holders of the 1981 Bonds is intended to be exclusive of any other remedy or remedies herein provided, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or given by any law or by the Constitution of the State of Arkansas. 13 (e) No delay or omission of the Trustee or of any holders of the 1981 Bonds to exercise any right or power accrued upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every power and remedy given by this Ordinance to the Trustee and to the holders of the 1981 Bonds, respectively, may be exercised from time to time and as often as may be deemed expedient. (f) That the Trustee may, and upon the written request of the holders of not less than ten percent (10 %) in principal amount of the 1981 Bonds then outstanding shall waive any default which shall have been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted under the provisions of this Ordinance or before the completion of the enforcement of any other remedy, but no such waiver shall extend to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. Section 17. Moneys held for the credit of any fund may, at the option of the City, be invested and reinvested pursuant to the direction of the City in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, in bank certificates of deposit, or any lawful investment, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates when the moneys held for the credit of the particular fund will be required for the purposes intended as specified by the City. Section 18. That in the event the office of Mayor, City Clerk, Commission, or Board of Directors shall be abolished or any two or more of such offices shall be merged or consolidated or in the event the duties of a particular office shall be transferred to another office or officer, or in the event of a vacancy in any such office by reason of death, resignation, removal from office or otherwise, or in the event any such officer shall become incapable of performing the duties of his office by reason of sickness, absence from the City or otherwise, all powers conferred and all obligations and duties imposed upon such office or officer shall be performed by the office or officer succeeding to the principal functions thereof, or by the office or officer upon whom such powers, obligations and duties shall be imposed by law. Section 19. That the provisions of this Ordinance shall constitute a binding contract between the City and the holders of the outstanding 1981 Bonds issued hereunder and the City will at all times strictly adhere to the terms and provisions hereof and fully discharge all of its obligations hereunder. Subject to the terms and provisions contained in this section and 14 not otherwise, the holders of not less than seventy -five percent (75 %) in aggregate principal amount of the 1981 Bonds then outstanding shall have the right, from time to time, anything contained in this Ordinance to the contrary notwithstanding, to consent to and approve the adoption by the City of such ordinance supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any 1981 Bond issued hereunder, or (b) a reduction in the principal amount of any 1981 Bond or the rate of interest thereon, or (c) the creation of a lien upon or a pledge of revenues other than as expressly authorized by the appropriate provisions of this Ordinance as now adopted, or (d) the creation of a privilege of priority of any 1981 Bond or 1981 Bonds over any other 1981 Bond or 1981 Bonds, or ( e ) a reduction in the aggregate principal amount of the 1981 Bonds required for consent to such supplemental ordinance. Section 20. The Trustee shall be responsible for the exercise of good faith and reasonable prudence in the execution of its trusts. The recitals in this Ordinance and in the face of the 1981 Bonds are the recitals of the City and not of the Trustee. The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders of not less than ten percent (10 %) in principal amount of 1981 Bonds then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses -and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10 ) days' notice in writing to the City Clerk, and the majority in value of the holders of the outstanding 1981 Bonds at any time, with or without cause, may remove the Trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in value of the holders of the outstanding 1981 Bonds may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. If the majority in value of the holders of the outstanding 1981 Bonds shall fail to fill a vacancy within thirty (30) days after the same shall occur, then the City shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. Any successor Trustee shall file a written acceptance and agreement to execute the trusts imposed upon it by this Ordinance, but only upon the terms and conditions set forth in this Ordinance and subject to the provisions of this Ordinance, to all of which the respective holders of the 1981 Bonds agree. Such written acceptance shall be filed with the City Clerk, and a copy thereof shall be placed in the 1981 Bond transcript. Any successor Trustee shall have all 15 the powers herein granted to the original Trustee. In the event of a change in the office of Trustee, the old Trustee shall cease to be Paying Agent, and the successor Trustee shall be and become the Paying Agent. Section 21. That when the 1981 Bonds have been executed and the seal of the City impressed as herein provided, they shall be delivered to the Trustee, and the Trustee shall authenticate them and deliver them to the holders of the 1981 Bonds upon exchange by such holders of their 1981 Bonds as provided in the Bond Purchase Agreement. Section 22. Since all the 1981 Bonds mature August 1, 1983, the City covenants with the Trustee and with the registered owners of the 1981 Bonds that it will, on or prior to the maturity date of the 1981 Bonds, either (i) sell the Property for a sufficient price and apply the sale proceeds to the retirement of all 1981 Bonds, or (ii) issue bonds in at least the principal amount sufficient to pay, principal and interest, on or prior to maturity, all the 1981 Bonds then outstanding. Section 23. Upon the delivery of the 1981 Bonds to the Trustee and exchange of the 1981 Bonds for the 1979 Bonds from the holders thereof, the City's pledge made by the Ordinance authorizing the 1979 Bonds is hereby discharged and cancelled. Section 24. The City covenants that it shall not take any action or suffer or permit any action to be taken or condition to exist which causes or may cause the interest payable on the 1981 Bonds to be treated as "arbitrage bonds" within the meaning of Section 103 (c ) of the Internal Revenue Code of 1954, as amended. Section 25. The provisions of this Ordinance are hereby declared to be separable, and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of the Ordinance. Section 26. All ordinances and parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 27. This Ordinance shall not create any right of any character and no right of any character shall arise under or pursuant to it until the 1981 Bonds authorized by this Ordinance shall be issued and delivered. 16 Section 28. It is hereby ascertained and declared that the issuance of the 1981 Bonds should be accomplished as soon as possible as the issuance of the 1981 Bonds is hereby declared to be necessary for the safety and welfare of the citizens of the City. Such cannot be accomplished without the issuance of the 1981 Bonds authorized by this Ordinance, and therefore an emergency is hereby declared to exist, and this Ordinance being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passge. PASSED: August 4 , 1981. ATTEST: (SEAL) CITY OF LITTLE ROCK, ARKANSAS Acting Mayor 17