13323r r�
ORDINANCE NO. 13,323
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION REFUNDING AND CAPITAL IMPROVEMENTS
BONDS; PLEDGING TAX REVENUES SUFFICIENT TO PAY
THE PRINCIPAL OF AND INTEREST ON THE BONDS; PRE-
SCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS, THE City of Little Rock, Arkansas is a City of
the first class; and
WHEREAS, by Ordinance Nor'. 13,185 duly passed by the
Board of Directors and approved on the 17th day of August,
1976, there was submitted to the qualified electors of the
City of Little Rock, Arkansas, the question of the issuance
of bonds in the following amounts for the following purposes:
(A) $9,404,000 for the purpose of financing the
cost to the City of purchasing rights of way for
and constructing, widening and straightening
streets within the City and the construction of
traffic signal systems, including without
limitation surfacing and drainage (with the
balance of such cost to be paid from grants
received from the United States of America and
from other available funds, including funds of the
State of Arkansas and Pulaski County, Arkansas);
(B) $3,521,000 for the purpose of financing the cost
to the City of purchasing, developing and im-
proving public parks within or without the cor-
porate limits of the City (with the balance of
such cost to be paid from grants received from the
United States of America and from other available
funds) ;
(C) $1,540,000 for the construction and equipment of
an administration facility to supplement the City
Hall of the City of Little Rock (to include
facilities for municipal offices and the repair
and maintenance of motor vehicles of the City);
(D) $77,000 for renovating and equipping a building
for the housing of fire fighting apparatus;
(E) $308,000 for purchasing a site for and con-
structing and equipping a library.
with the provision that in the event that bonds were approved
for all of said purposes, all of the said bonds, together
with bonds in the principal amount of $150,000 for the
purpose of refunding the outstanding General Obligation
Improvement Bonds of the City of Little Rock, Arkansas,
dated August 1, 1965, would be combined into a single issue;
and
WHEREAS, due notice of the election was given as required
by law and the election was duly held on the 21st day of
eptember, 1976, at which election the electors approved the
�./ issuance of bonds for each of said purposes; and
WHEREAS, the results of the election were announced by
the Mayor by a Proclamation duly published as required by
law in a newspaper of bona fide circulation in the City of
Little Rock, Arkansas; and
WHEREAS, pursuant to Ordinance No. 13,211 approved and
adopted October 19, 1976, the City has fixed, established
and levied a tax of 3.75 mills on the dollar of assessed
valuation (the "Special Tax ") which will constitute a con-
tinuing annual tax to be collected in 1977 and each year
thereafter so long as necessary to pay the principal of,
interest on, and Trustee's and Paying Agent's fees in
connection with the bonds herein authorized; and
WHEREAS, bonds in the aggregate principal amount of
$15,000,000 for said purposes above set forth were duly
advertised for sale, the said bonds to be dated February 1,
1977, the interest thereon to be payable semi - annually on
February 1 and August 1 of each year and with the bonds
maturing on February 1 in each of the years 1980 to 2000,
inclusive, all as specified in the Notice of Sale; and
WHEREAS, said sale was duly held pursuant to advertisement
on the 27th day of July, 1977, and at said sale Stephens, Inc.,
T. J. Raney & Sons, Inc., Hill, Crawford & Lanford, Inc. and
The First National Bank in Little Rock (the "purchasers ")
bid and.offered the price of par and accrued interest for bonds
3 .
5
bearing interest at the rates of 4.00 %, 4.50 %, 4.70 %, 5.10 %,
5.15 %, 5.20 %, 5.25 %, 5.40% and 5.50% per annum, and this
being the best bid for said bonds, the bonds were sold to
the purchasers for said price; and
WHEREAS, the said Notice of Sale permitted the purchasers
to designate an unlimited number of interest rates with the
provision that the bonds of each maturity must bear interest
from date to maturity at the same rate and that the difference
between the highest and lowest rate must not exceed 1 -1/2 %;
and
WHEREAS, pursuant to the said provisions set forth in
the Notice of Sale, the purchasers have designated a rate of
5.50% for the bonds maturing in 1980 to 1981; 5.40% for the
bonds maturing in 1982; 5.25% for the bonds maturing in 1983;
5.15% for the bonds maturing in 1984; 5.10% for the bonds maturing
in 1985 to 1988, inclusive; 5.20% for the bonds maturing in
1989 to 1990; 4.70 for the bonds maturing in 1991 to 1997,
inclusive; 4.50% for the bonds maturing in 1998; and 4.00% for
the bonds maturing in 1999 and 2000; and
WHEREAS, the Board of Directors has examined the maturity
schedule of the bonds and finds that the purchasers have
fully complied with the terms of the Notice of Sale;
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
OF THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1. That the sale of $15,000,000 of bonds to the
purchasers, at a price of par and accrued interest and the
designations by said purchasers of interest rates of 4.00 %,
4.50 %, 4.70 %, 5.10 %, 5.15 %, 5.20 %, 5.25 %, 5.40% and 5.50% for
the years set forth above be, and the same are hereby,
approved and confirmed.
Section 2. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly
Amendment No. 13 to the Constitution of the State of Arkansas,
and Act No. 103 of the regular session of the General Assembly
of the year 1945, City of Little Rock General Obligation
Improvement Bonds are hereby authorized and ordered issued
in the total principal amount of $15,000,000, for the
following purposes:
(A) $9,404,000 for the purpose of financing the
cost to the City of purchasing rights of way for
and constructing, widening and straightening
streets within the City and the construction of
traffic signal systems, including without
limitation surfacing and drainage (with the
balance of such cost to be paid from grants
received from the United States of America and
from other available funds, including funds of the
State of Arkansas and Pulaski County, Arkansas);
(B) $3,521,000 for the purpose of financing the cost
to the City of purchasing, developing and im-
proving public parks within or without the cor-
porate limits of the City (with the balance of
such cost to be paid from grants received from the
United States of America and from other available
funds) ;
(C) $1,540,000 for the construction and equipment of
an administration facility to supplement the City
Hall of the City of Little Rock (to include
facilities for municipal offices and the repair
and maintenance of motor vehicles of the City);
(D) $77,000 for renovating and equipping a building
for the housing of fire fighting apparatus;
(E) $308,000 for purchasing a site for and con-
structing and equipping a library;
(F) $150,000 for the purpose of refunding the out-
standing General Obligation Improvement Bonds
dated August 1, 1965; and
the principal amount of the bond issue includes necessary
expenses incidental to the completion of the authorized
purposes and to the issuance of bonds. As provided in the
official ballot and as authorized under the Constitution and
laws of the State of Arkansas, the City has elected to
combine bonds for the various purposes into one issue. The
bonds shall be dated February 1, 1977 and the interest
thereon shall be payable semi - annually on February 1 and
August 1 of each year commencing August 1, 1977 (the first
coupon printed is coupon No. 2 due February 1, 1978). The
bonds shall be in the denominations, numbered, and mature on
February 1 in each of the years 1980 to 2000, inclusive, as
follows:
INTEREST
BOND
NUMBERS
DENOMINATION
RATE
AMOUNT
MATURITY
$
February 1
1
- 150
$5,000
5.50%
750,000
1980
151
- 228
51000
5.50%
390,000
1981
229
- 311
51000
5.40%
415,000
1982
312
- 399
5,000
5.25%
440,000
1983
400
- 492
5,000
5.15%
465,000
1984
493
- 591
5,000
5.10%
495,000
1985
592
- 696
5,000
5.10%
525,000
1986
697
- 807
5,000
5.10%
555,000
1987
808
- 924
5,000
5.10%
585,000
1988
925
- 1048
5,000
5.20%
620,000
1989
1049
- 1180
5,000
5.20%
660,000
1990
1181
- 1319
5,000
4.70%
695,000
1991
1320
- 1467
5,000
4.70%
740,000
1992
1468
- 1623
5,000
4.70%
780,000
1993
1624
- 1789
5,000
4.70%
830,000
1994
1790
- 1965
5,000
4.70%
880,000
1995
1966
- 2151
5,000
4.70%
930,000
1996
2152
- 2348
5,000
4.70%
985,000
1997
2349
- 2557
5,000
4.50%
1,045,000
1998
2558
- 2778
5,000
4.00%
1,105,000
1999
2779
- 3000
5,000
4.00%
1,110,000
2000
The principal of and interest on the bonds shall be
payable in lawful money of the United States of America upon
presentation of the bond or proper coupon at the office of
Mercantile Bank, Jonesboro, Arkansas (the "Paying Agent ") or,
at the option of the holder, at the office of The First National
Bank in Little Rock , Little Rock, Arkansas (the "Alternate
Paying Agent "). Reference herein to the term "Paying Agent"
shall include the "Alternate Paying Agent ", unless the context
clearly indicates a contrary meaning.
Section 3. That the bonds shall be executed on behalf
of the City by the Mayor by his facsimile signature and by
the City Clerk by her manual signature, as provided in Act
No. 69 of the Acts of the General Assembly of the State of
Arkansas of the year 1959, and shall have impressed thereon
the seal of the City. Interest coupons attached to each of
the bonds may have the facsimile signature of the Mayor of
the City lithographed or printed thereon which signature
shall have the same force and effect as if he had personally
signed each of said coupons.
Section 4. That the bonds and coupons shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
% GENERAL OBLIGATION IMPROVEMENT BOND
No.
KNOW ALL MEN BY THESE PRESENTS:
That the City of Little Rock, in the County of Pulaski
and State of Arkansas, acknowledges itself to owe and for
value received hereby promises to pay to bearer the sum of
THOUSAND DOLLARS
in lawful money of the United States of America on the first
day of February, 19_, and to pay interest hereon at the
rate of percent ( %) per annum from
date, semiannually on February 1 and August 1 of each year,
commencing August 1, 1977 (the first coupon being printed is
coupon No. 2 due February 1, 1978) upon presentation and
surrender of the annexed coupons as they severally become
due.
Both principal of and interest on this bond are hereby
made payable at Mercantile Bank, Jonesboro, Arkansas (the
"Trustee" and the "Paying Agent) or, at the option of the
holder, at The First National Bank in Little Rock,
Little Rock, Arkansas (the "Alternate Paying Agent ").
This is one of a issue of three thousand (3,000)
bonds, aggregating Fifteen Million Dollars ($15,000,000.00),
dated February 1, 1977, and numbered from one (1) to three
thousand (3,000), inclusive, all of like tenor and effect
except as to number, rate of interest, right of prior
redemption, and maturity, and the bonds are issued for the
following purposes:
r
For the purpose of financing the cost to the
City of purchasing rights of way for and
constructing, widening and straightening
streets within the City and the construction of
traffic signal systems, including without limitation
surfacing and drainage (with the balnce of such
cost to be paid from grants received from the
United States of America and from other available
funds, including funds of the State of Arkansas
and Pulaski County, Arkansas);
For the purpose of financing the cost to the City
of purchasing, developing and improving public
parks within or without the corporate limits of
the City (with the balance of such cost to be paid
from grants received from the United States of
America and from other available funds);
For the construction and equipment of an admin-
istration facility to supplement the City Hall
of the City of Little Rock (to include facilities
for municipal offices and the repair and maintenance
of motor vehicles of the City);
For renovating and equipping a building for the
housing of fire fighting apparatus;
For purchasing a site for and constructing and
equipping a library;
For the purpose of refunding the outstanding
General Obligation Improvement Bonds of the
City of Little Rock, Arkansas, dated August 1,
1965.
This bond and the issue of which it forms a part are
issued pursuant to and in full compliance with the Constitution
and laws of the State of Arkansas particularly Amendment
No. 13 to the Constitution of the State of Arkansas, and Act
No. 103 of the regular session of the General Assembly of
the State of Arkansas for the year 1945, and pursuant to
ordinances and resolutions of the Board of Directors of the
City of Little Rock and an election duly held, at which a
majority of the legal voters of said City voting on the
question voted in favor of the issuance of the bonds. This
bond and the issue of which it forms a part are general
obligations of the City of Little Rock, Arkansas, payable
from the proceeds of a continuing annual tax of 3.75 mills
on the dollar of the assessed valuation of the taxable real
and personal property in the City of Little Rock, Arkansas
(the "Special Tax ") levied by the Board of Directors under
the authority of Amendment No. 13 to the Constitution of the
State of Arkansas. The City of Little Rock, Arkansas hereby
pledges its full faith, credit and taxing power, including
the said Special Tax, for the payment of this bond and the
issue of which it forms a part. The Special Tax shall be
collected with the property taxes payable in 1977 and con-
tinuing annually thereafter until all of the bonds and
interest thereon have been paid in full.
The City has covenanted and agreed that all revenues
derived from said Special Tax in excess of the amount necessary
to insure the prompt payment of the principal of and interest
on the bonds as they mature and Trustee's and Paying Agent's
fees will be used to call the bonds for payment prior to
maturity at the times and in the manner provided herein for
call and payment prior to maturity.
The bonds will not be callable prior to maturity prior
to February 1, 1988.
On February 1, 1988 and any interest paying date there-
after, the bonds shall be subject to mandatory redemption in
inverse numerical order from surplus collections of the
Special Tax (being collections over and above the amount
necessary to insure the prompt payment of principal of,
interest on and Trustee's and Paying Agent's fees in connection
with the bonds, and to establish and maintain a debt service
reserve equal to the maximum annual principal and interest
requirements on the bonds), at a redemption price equal to
the principal amount of the Bonds being redeemed plus accrued
interest to date of redemption. The City covenants to apply
all surplus collections of the Special Tax, as and to the
extent available, to such mandatory redemption on each
interest paying date on and after February 1, 1988.
On February 1, 1988 and any interest paying date there-
after, the bonds may be redeemed in inverse numerical order
from funds from any other source, at the option of the City,
at a redemption price equal to the principal amount of the
bonds being redeemed plus accrued interest to date of
redemption plus a premium of the principal amount being
redeemed, as follows:
2%
if redeemed on February
1,
1988 or August
1,
1988,
inclusive;
1 -1/2%
if redeemed on February
1,
1989 or August
1,
1989,
inclusive;
1%
if redeemed on February
1,
1990 or August
1,
1990,
inclusive;
1/2%
if redeemed on February
1,
1991 or August
1,
1991,
inclusive;
No Premium if redeemed thereafter.
Notice of the call for redemption shall be published by the
City Clerk or Finance Officer by one insertion not less than
fifteen (15) days before the date of such redemption in a
daily newspaper published in the City of Little Rock, Arkansas
and having a general circulation throughout the State of
Arkansas, which notice shall give the number and maturity of
each bond being called, and after the date fixed for redemption
each bond so called shall cease to bear interest provided
funds for its payment are on deposit with the Paying Agent
at that time.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all
acts conditions and things required to exist, happen and be
performed precedent to and in the issuance of this bond have
existed, have happened and have been performed in due time,
form and manner as required by law; that the indebtedness
represented by this bond and the issue of which it forms a
part, does not exceed any constitutional or statutory
limitation; and that a tax sufficient to pay the bond has
been duly levied in accordance with said Amendment No. 13 to
the Constitution of the State of Arkansas and made payable
annually until all of the bonds and interest thereon have
been fully paid and discharged.
This bond shall not be valid until it shall have been
authenticated by the certificate hereon duly signed by
Mercantile Bank, Jonesboro, Arkansas, the Trustee.
IN WITNESS WHEREOF, the City of Little Rock, Arkansas
has caused this bond to be executed by the facsimile signature
of its Mayor and to be signed by the City Clerk and attested
with its corporate seal, and has caused the coupons hereto
attached to be authenticated by the facsimile signature of
its Mayor, all as of the first day of February, 1977.
ATTEST:
City Clerk
(SEAL)
CITY OF LITTLE ROCK, ARKANSAS
By:
Mayor
(FORM OF COUPON)
No.
February,
On the first day of 19_, the City of Little
August,
Rock, Pulaski County, Arkansas, unless the bond to which
this coupon is attached is paid prior thereto, hereby promises
to pay to bearer
DOLLARS
in lawful money of the United States of America at the
office of Mercantile Bank, Jonesboro, Arkansas, or at the
option of the holder at The First National Bank in Little Rock,
Little Rock, Arkansas, being six (6) months' interest then
due on its General Obligation Improvement Bond, dated
February 1, 1977, and numbered
CITY OF LITTLE ROCK, ARKANSAS
By:
Mayor
On each bond shall appear the following:
C E R T I F I C A T E
This is to certify that this is one of the three
thousand (3,000) bonds of the issue mentioned and described
within.
MERCANTILE BANK
JONESBORO, ARKANSAS
By:
Authorized Signature
Section 5: That in order to pay the bonds as they
mature with interest thereon, there is hereby pledged all of
the proceeds derived from the Special Tax levied pursuant to
Ordinance No. 13,211, passed and adopted October 19, 1976 of
3.75 mills on each dollar of assessed valuation to be collected
with the taxes in the year 1977, which Special Tax shall
continue annually thereafter until all of the bonds authorized
hereby and interest thereon have been paid in full, which
Special Tax will be sufficient to pay the principal of and
interest on said bonds as they mature, together with a
reserve equal to the maximum annual principal and interest
requirements on the bonds. The City covenants and agrees
that all revenues from said Special Tax shall be deposited
when received in a special fund which is hereby created and
designated "1977 Bond Retirement Fund" (hereinafter called
"Bond Fund ") to be carried in such depository or depositories
as may be designated from time to time by the board of
directors, and shall be used solely for the payment of the
principal of and interest on the bonds, Trustee and Paying
Agent's fees, and cost of redemption either at maturity or
at redemption prior to maturity, and that all revenues
derived from said Special tax in excess of that amount
sufficient to insure the prompt payment of the principal of
and interest on the bonds and to maintain the debt service
reserve at the required level must be used to call the bonds
for payment prior to maturity at the times and in the manner
provided herein for call and payment prior to maturity.
Section 6. That for the prompt payment of the bonds of
this issue with interest, the City of Little Rock, Arkansas
pledges its full faith, credit and taxing power, including
the tax described in Section 5.
r
Section 7. That in order to pay the principal of and
interest on the bonds as they mature, there are hereby
appropriated out of the proceeds of the above referred to
Special Tax, and if said proceeds be not sufficient, then
out of the general revenues of the City, the sums necessary
to promptly pay the principal of and interest on the bonds
as they mature according to the following schedule:
YEAR
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
750,000
390,000
415,000
440,000
465,000
495,000
525,000
555,000
585,000
620,000
660,000
695,000
740,000
780,000
830,000
880,000
930,000
985,000
1,045,000
1,105,000
1,110,000
RATE
5.50%
5.50%
5.40%
5.250
5.15%
5.10%
5.10%
5.10%
5.10%
5.20%
5.20%
4.70%
4.70%
4.70%
4.70%
4.70%
4.70%
4.70%
4.50%
4.00%
4.00%
INTEREST
FEBRUARY 1 AUGUST 1
$359,491.25
359,491.25
359,491.25
338,566.25
328,141.25
316,936.25
305,386.25
293,412.50
280,790.00
267,402.50
253,250.00
238,332.50
222,212.50
205,052.50
188,720.00
171,330.00
153,000.00
133,495.00
112,815.00
90,960.00
67,812.50
44,300.00
22,200.00
$359,491.25
359,491.25
338,866.25
328,141.25
316,936.25
305,386.25
293,412.50
280,790.00
267,402.50
253,250.00
238,332.50
222,212.50
205,052.50
188,720.00
171,330.00
153,000.00
133,495.00
112,815.00
90,960.00
67,812.50
44,300.00
22,200.00
TOTAL
$718,982.50
718,982.50
1,448,357.50
1,057.007.50
1,060,077.50
1,062,322.50
1,063,798.75
1,069,202.50
1,073,192.50
1,075,652.50
1,076,582.50
1,080,545.00
1,087,265.00
1,088,772.50
1,100,050.00
1,104,330.00
1,116,495.00
1,126,310.00
1,133,775.00
1,143,772.50
1,157,112.50
1,171,500.00
1,132,200.00
Section 8. That the bonds of this issue shall be
callable for payment prior to maturity in accordance with
the terms set out in the face of the bond form in Section 4
of this Ordinance.
Section 9. That the Treasurer or Finance Officer of
the City of Little Rock, Arkansas is hereby ordered and
directed to place on deposit with the Paying Agent or the
Alternate Paying Agent, at least five (5) days before the
maturity date of any bond or interest coupon issued here-
under, an amount from the funds herein appropriated equal to
the amount of such bonds or coupons, for the sole purpose of
paying the same, together with the customary Paying Agent's
fee. This instruction to the Treasurer and Finance Officer
is irrevocable and may be enforced by mandamus.
Section 10. (a) If there be any default in the
payment of the principal of and interest on any of the bonds
or if the City defaults in the performance of any other
covenant contained in this Ordinance, the Trustee may, and
upon the written request of the holders of not less than ten
percent (10 %) in principal amount of bonds then outstanding,
shall by proper suit, compel performance of the duties of
the officials of the City under the Constitution and laws of
the State of Arkansas and under this Ordinance and protect
and enforce the rights of the bondholders by acceleration,
instituting appropriate proceedings in law or equity or
other action deemed necessary or desirable by the Trustee.
(b) No holder of any bonds shall have any right
to institute a suit, action, mandamus or other proceeding in
equity or at 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 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 %) of principal amount of the bonds then outstanding
shall have written to 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, expenses and liabilities to
be incurred thereon or thereby and the Trustee shall have
refused and 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 conditioned precedent to the
execution of the powers and trusts of this Ordinance or to
any other remedy hereunder. It is understood and intended
that no one or more holders of the 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, and 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 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. Nothing in this Ordinance
shall, however, affect or impair the right of any bondholder
to enforce the payment of the principal of and interest on
any bond at and after the maturity thereof, or the obligation
of the City to pay the principal of and interest on each of
the bonds issued hereunder to the respective holders thereof
at the time and place specified in the bonds and coupons.
(c) All rights of action under this Ordinance or
under any of the bonds secured hereby, enforceable by the
Trustee, may be enforced by it without the possession of any
of the 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 bonds and coupons, subject to the provisions of this
Ordinance.
(d) No remedy herein conferred upon or reserved
to the Trustee or to the holders of the 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.
(e) No delay or admission of the Trustee or of
any holders of the bonds to exercise any right or power
accrued upon any default shall impair any such right or
power as 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 bonds, respectively, may be exercised from
time to time, and as often as may be deemed expedient.
(f) The Trustee may, and upon the written request
of the holders of not less than fifty percent (50 %) in
principal amount of 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 11. The Trustee shall only be responsible for
the exercise and good faith and reasonable prudence in the
execution of its trust. The recitals in this Ordinance and
in the face of the 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 the bonds then outstanding and
shall have been offered reasonable security and indemnity
against the cost, expenses and liabilities to be incurred
therein or thereby. The Trustee may resign at any time by
giving ten (10) days notice in writing to the City Clerk,
and the majority in principal amount of the holders of the
outstanding 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 principal amount of the holders of the outstanding bonds
may appoint a new Trustee, such appointment to be filed with
the City Clerk. If the majority in principal amount of the
holders of the outstanding bonds shall fail to fill a vacancy
within thirty (30) days after the same shall occur, the City
shall forthwith designate a new Trustee by written instrument
filed with the City Clerk. The original Trustee and any
successor Trustee shall file a written acceptance and
agreement to execute the trust imposed upon it or them 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 bonds agree. Such written acceptance shall be filed
with the City Clerk and a copy therein shall be placed in
the bond transcript. Any successor Trustee shall have all
the powers herein granted to the original Trustee.
Section 12. That Mercantile Bank, Jonesboro, Arkansas,
is designated Paying Agent, and The First National Bank in Little Rock,
Little Rock, Arkansas is designated Alternate Paying Agent.
The holders of a majority in value of the outstanding bonds
at any time may by an instrument duly executed and recorded
in the office of the City Clerk appoint a new Paying Agent,
or Alternate Paying Agent, who shall have all of the powers
of the Paying Agent or Alternate Paying Agent originally
named, and the Paying Agent or Alternate Paying Agent herein
named may resign at any time upon ten (10) days' notice in
writing mailed to the City Clerk. In the event of a vacancy
in the office of Paying Agent or Alternate Paying Agent and the
failure of the holders of a majority in value of the outstanding
bonds to take the necessary action to appoint a new Paying
Agent or Alternate Paying Agent within thirty (30) days
after such vacancy occurs, the City shall forthwith designate
a new Paying Agent or Alternate Paying Agent. The original
Paying Agent, Alternate Paying Agent and any successor
Paying Agent or Alternate Paying Agent shall file a written
acceptance and agreement to carry out the duties imposed
upon either of them by this Ordinance, but only upon the
terms and conditions set forth in this Ordinance and subject
to the provisions of this Ordinance.
Section 13. That when the bonds herein authorized have
been executed by the City Clerk and the seal of the City
impressed as herein provided, they shall be delivered to
Mercantile Bank, Jonesboro, Arkansas, the Trustee, which
shall authenticate and deliver them to the said purchasers,
or order, upon payment in cash of the purchase price of
$15,000,000.00 and accrued interest from August 1, 1977 to
date of delivery.
(1) From the proceeds of the sale of the bonds,
there shall be deposited in the Bond Fund the accrued interest.
(2) Sufficient of the proceeds of the purchase
price shall be deposited with Worthen Bank & Trust Company,
N.A., in trust, secured as its other trust funds are secured,
and used by it solely for the payment in full of principal
of and interest on the said $150,000 of General Obligation
Improvement Bonds of the City dated August 1, 1965, or the
remaining unpaid balance thereof, together with all costs in
calling the said bonds and all Paying Agent's charges in
connection therewith, said bonds to be called for prior
payment on the first available date after the delivery of
the bonds herein authorized to be issued.
(3) The balance of the proceeds shall be de-
posited in an account designated "1977 Capital Improvement
Fund" (hereinafter called "Improvement Fund ") and shall be
used solely for the purposes hereinabove specified, for
necessary expenses incidental thereto, and for the expenses
of the issuance of the bonds. Moneys held for the credit of
the Improvement Fund not invested and not immediately needed
for construction purposes shall be deposited in a depository
or depositories selected by the City and secured as required
by law.
Section 14.
Moneys held for the credit of the Bond
Fund shall, as nearly as may be practicable, be continuously
invested and re- invested by the City in direct obligations
of, or obligations the principal of and interest on which
are unconditionally guaranteed by, the United States govern-
ment, which shall mature or which shall be subject to
redemption by the holder thereof at the option of the holder
not later than the time the funds will be needed as determined
by the City, and in any event in not more than ten (10)
years after the date of acquisition. Moneys held for the
credit of the Improvement Fund may,-:be invested and re-
invested by the City in direct obligations of, or obligations
the principal of and interest on which are unconditionally
guaranteed by, the United States government, having maturity
dates or subject to redemption by the holder on or prior to
the date the funds will be needed as determined by the City.
Interest earned by investments of either the Bond Fund or
the Improvement Fund may be used by the City for any municipal
purpose.
Section 15. That the terms of this ordinance shall
constitute a contract between the City of Little Rock,
Arkansas and the holder or holders of the bonds and no
variation or change in the undertakings herein set forth
shall be made while any of these bonds are outstanding and
the holder of any bonds may at any time for and on his own
behalf or for and on behalf of all bondholders enforce the
obligations of the City by a proper suit for that purpose.
Section 16. The City covenants that it shall not take
any action or suffer any action to be taken or condition to
exist which causes or may cause the interest payable on the
Bonds secured by this Ordinance to be subject to Federal
income taxation. Without limiting the generality of the
foregoing, the City covenants that the proceeds of the sale
of the Bonds will not be used directly or indirectly in such
manner as to cause the Bonds to be treated as "Arbitrage
Bonds" within the meaning of §103(c) of the Internal Revenue
Code of 1954, as amended.
Section 17. That the provisions of this ordinance are
separable and in the event that any section or part hereof
shall be held to be invalid, such invalidity shall not
affect the remainder of this ordinance.
Section 18. That all ordinances and resolutions and
parts thereof in conflict herewith are hereby repealed to
the extent of such conflict.
Section 19. That this ordinance shall not create any
right of any character and no right of any character shall
shall arise under or pursuant to it until the bonds
authorized by this ordinance shall be issued and delivered.
Section 20. That it is hereby ascertained and declared
that there is an immediate and urgent need for the con-
struction or acquisition of the various municipal projects
to be financed by the issuance of the bonds above referred
to in order to protect the health, lives and property of the
inhabitants of the City of Little Rock, Arkansas. It is,
therefore, declared that an emergency exists and this
ordinance, being necessary for the preservation of public
peace, health and safety, shall take effect and be in force
immediately upon and after its adoption.
ADOPTED: August 2 , 1977.
ATTEST:
APPROVED:
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