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12578ORDINANCE NO. 12,578 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF MUNICIPAL AIRPORT REVENUE BONDS, SERIES 1971 (SECOND), BY THE CITY OF LITTLE ROCK, ARKANSAS FOR THE PURPOSE OF FINANCING THE COST OF CONSTRUCTING IMPROVEMENTS TO THE AIRPORT FACILITIES; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the Little Rock Municipal Airport and its related properties and facilities are being operated, managed and maintained by the Little Rock Municipal Airport Commission (the "Airport Commission "), which was created and organized pursuant to Act No. 53 of the Acts of Arkansas of 1949, and Initiated Ordinance No. 8511 of the City of Little Rock, Arkansas (the "City "), adopted November 7, 1950; and WHEREAS, the City has outstanding at this time $168,000 in principal amount of Municipal Airport Revenue Bonds, dated May-1, 1961, issued under and secured by the provisions of Ordinance No. 11,190 of the Ordinances of the City, adopted and approved on the 19th day of June, 1961 (the "1961 Bonds "); and WHEREAS, the City has outstanding $1,337,000 in principal amount of Municipal Airport Revenue Bonds, Series 1966, dated May 1, 1966, issued under and secured by the provisions of Ordinance No. 11,745 of the Ordinances of the City, adopted and approved on the 16th day of May, 1966, and Ordinance No. 11,755, adopted and approved on the 20th day of June, 1966 (the 111966 Bonds "); and WHEREAS, the City has outstanding at this time $2,700,000 in principal amount of Municipal Airport Revenue Bonds, Series 1971, dated March 1, 1971, issued under and secured by the provisions of Ordinance No. 12,456 of the Ordinances of the City, adopted and approved on the 15th day of March, 1971 (the "1971 Bonds "); and d cce 7F Page 2 WHEREAS, the Airport Commission has underway an extensive improvement program which is nearing completion and, in addition to the facilities originally undertaken, an air cargo building has been included in the overall project; and WHEREAS, in order to obtain the additional funds for paying the City's portion of the costs, it is proposed that there should be authorized at this time Municipal Airport Revenue Bonds, Series 1971 (Second),in the principal amount of $203,000, which will be subordinate in security to the pledge and lien on airport revenues in favor of the 1961 Bonds, the 1966 Bonds and the 1971 Bonds and $797,000 in principal amount of Municipal Airport Revenue Bonds (Interim) (the "Interim Bonds "), which Interim Bonds will mature on March 1, 1975, and will be permanently financed on or before that date (the Interim Bonds may rank on a parity of security with the 1961 Bonds, the 1966 Bonds,and the 1971 Bonds (and prior to the security of these bonds) , if the Parity provisions of ordinances authorizing and securing such outstanding bonds are met at the time of the issuance of the permanent bonds; and WHEREAS, the Board hereby finds and declares that it would be in the best interests of the City and its inhabitants for the airport improvement program to be finished and that Municipal Airport Revenue Bonds, Series 1971 (Second),and Interim Bonds be issued pursuant to the request and recommendation of the Airport Commission; and WHEREAS, the City,has made arrangements to sell the Municipal Airport Revenue Bonds, Series 1971 (Second) , at a. price of par and accrued interest for bonds bearing interest at the rate of 6% per annum; NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. That the airport improvement program be completed. The authority conferred by this Ordinance shall be carried out under the control and supervision of, and all details in connection therewith shall be handled by, the Page 3 Airport Commission. In this regard, in addition to the powers and duties of the Airport Commission existing under and by virtue of the laws of the State of Arkansas and Initiated Ordinance No. 8511, there is hereby conferred upon the Airport Commission full and complete power to carry out and accomplish the authority specified in this Ordinance pertaining to accomplishing the improve- ments, the operation of the airport and the collection, handling and disbursement of revenues, including the execution and delivery of all contracts and instruments necessary or incidental thereto or to evidence the exercise of the authority herein conferred. Section 2. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Act No. 53 of the Acts of Arkansas of 1949, as amended, and Act No. 175 of the Acts of Arkansas of 1959, as amended, City of Little Rock, Arkansas Municipal Airport Revenue Bonds, Series 1971 (Second), are hereby authorized and ordered issued in the total principal amount of $203,000 for the purpose of paying a portion of the costs of com- pleting the airport improvement program (which will be herein referred to as the "bonds," "these bonds" or the "bonds of this issue"). The sale of the bonds to the purchasers for the purchase price set forth in the recitals of this Ordinance is hereby approved. The bonds shall be negotiable coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest, shall be dated December 1, 1971 and interest thereon shall be payable semiannually on March 1 and September 1 of .each year, commencing September 1, 1972, and shall bear interest at the rate of 6% per annum. The principal of the bonds shall mature annually on March 1 of each year as follows, but shall be subject to redemption prior to maturity as hereinafter set forth: Page 4 YEAR AMOUNT 1973 $ 3,000 1974 3,000 1975 4,000 1976 4,000 1977 5,000 1978 5,000 1979 5,000 1980 6,000 1981 6,000 1982 7,000 1983 7,000 1984 8,000 1985 8,000 1986 9,000 1987 9,000 1988 10,000 1989 10,000 1990 11,000 1991 12,000 1992 14,000 1993 18,000 1994 19,000 1995 20,000 The Airport Commission, in its discretion, may sell the bonds in one or more series, expressly reserving the right to issue the remainder of the total authorized issue at' a subsequent date, with all of the bonds, regardless of series, to rank on a parity of security. If the bonds are sold in series, the sale of the bonds shall be submitted to the Board for approval by Resolution. In its resolution, the Board shall set forth the details of the bonds as they are being issued, including number and a schedule reflecting the annual principal maturities, the semiannual interest requirements and the total requirements. • 11 Page 5 Section 3. That the 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 facsimile signature of the Mayor may be used upon compliance with the provisions of Act No. 69 of the Acts of Arkansas for the year 1959. Interest coupons attached to the bonds shall be executed by the facsimile signature of the Mayor. The Mayor's facsimile signature shall have the same force and effect as if he had personally signed the bonds and coupons. The bonds shall be executed by the manual signature of the City Clerk. The principal of and interest on the bonds shall be payable solely out of the 1971 (Second) Municipal Airport Revenue Bond Fund (hereinafter created) and shall be a valid claim of the bondholders only against that Bond Fund and the revenues pledged to that Bond Fund. The lien, pledge and security of the bonds are subordinate to the lien, pledge and security of the 1961 Bonds, the 1966 Bonds and the 1971 Bonds. Also, when the Interim Bonds are permanently financed, those permanent bonds may be issued on a parity of pledge and security with the 1961 Bonds, the 1966 Bonds and the 1971 Bonds, if the parity requirements of the ordinances authorizing the 1961 Bonds , ' the 1966 Bonds and the 1971 Bonds are met at the time of issuance of the permanent bonds, and, therefore, the permanent bonds may rank prior in security to these bonds. The bonds shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 4. That the bonds and coupons shall be in substantially the following form and the Mayor and City Clerk are hereby authorized and directed to make all recitals contained therein: Page 6 UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK 6% MUNICIPAL AIRPORT REVENUE BOND, SERIES 1971 (SECOND) No. KNOW ALL MEN BY THESE PRESENTS: $1,000 That the City of Little Rock, Pulaski County, Arkansas (the "City "), acknowledges itself to owe and, for value received, hereby promises to pay to bearer, or if this bond be registered, to the registered owner hereof, solely from the special fund provided as hereinafter set forth, the principal sum of ONE THOUSAND DOLLARS in lawful money of the United States of America on the first day of March, 19_ and to pay interest hereon at the rate of six (6 %) percent per annum from date hereof until paid. Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 1972. Payment of principal and payment of interest evidenced by coupons shall be made at the principal office of Worthen Bank & Trust Company, Little Rock, Arkansas (the "Trustee" and "Paying Agent ") . Payment of interest, when registered as to interest, shall be by check or draft mailed to the registered owner at his address reflected on the registration book of the City maintained by the Trustee. . This bond is one of an issue of two hundred three (203) bonds aggre- gating Two Hundred Three Thousand Dollars ($203,000), numbered consecutively from one (1) to two hundred three (203), inclusive (the "bonds "), all of like tenor and effect, except as to number, maturity and right of prior redemption, and are issued for the purpose of paying a portion of the costs of completing certain improvements to the Municipal Airport (described in the Authorizing "Ordinance) and paying the expenses of issuing the bonds. Page 7 The bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act No. 53 of the Acts of Arkansas for the year 1949, as amended, and Act No. 175 of the Acts of Arkansas for the year 1959, as amended, and pursuant to Ordinance No, of the City, adopted and approved on the day of , 1971 (the "Authorizing Ordinance ") and a resolution duly adopted by the Little Rock Municipal Airport Commission on the day of , 19 , and the bonds do not constitute an indebtedness of the City within any consti- tutional or statutory limitation. The bonds are not general obligations of the City, but are special obligations payable solely from revenues derived from the operation of the Municipal Airport. An amount of such revenues sufficient to pay the principal of and interest on the bonds is to be set aside in a special fund for that purpose identified as the 1971 (Second) Municipal Airport Revenue Bond Fund (created by the Authorizing Ordinance) . Reference is hereby made to the Authorizing Ordinance for a detailed statement_ of the nature and extent of the security, the rights and obligations of the City, the Trustee and the holders and registered owners of the bonds and the terms and conditions upon which the bonds are issued, including, without limitation, the covenant of the City to im- pose and collect such charges for the use of the Municipal Airport and its facilities as will always produce sufficient revenues to provide for the operation, maintenance and repair of the Municipal Airport, to provide for the payment of the principal of and interest on the 1961 Bonds, the 1966 Bonds, the 1971 Bonds, these bonds, the Interim Bonds (interest only) and the permanent bonds replacing the Interim Bonds, paying agent's fees, make the required deposits into the Depreciation Fund and maintain all funds at the levels required by the ordinances and resolutions authorizing and securing all bonds to which airport revenues are pledged. The lien, pledge and security of the bonds are subordinate to the Page 8 lien, pledge and security of the 1961 Bonds, the 1966 Bonds and the 1971 Bonds and may be subordinate to the Interim Bonds, all as specified in detail in the Authorizing Ordinance. The City is issuing simultaneously herewith $797,000 in principal amount of Municipal Airport Revenue Bonds (Interim) , dated December 1, 1971 and maturing March 1, 1975 (the "Interim Bonds"). When the Interim Bonds are permanently financed, those permanent bonds may be issued on a parity of pledge and security with the 1961 Bonds, the 1966 Bonds and the 1971 Bonds, if the parity requirements of the ordinances authorizing the 1961 Bonds, the 1966 Bonds and the 1971 Bonds are met at the time of issuance of the permanent bonds, and, therefore, the permanent bonds may rank prior in security to these bonds. The bonds will be subject to redemption prior to maturity, in whole or in part, at the option of the City, in inverse numerical order, on any interest payment date on and after March 1, 1975, from funds from any source., at a price of the principal amount of the bonds being redeemed plus accrued interest to the date of redemption and plus a premium of the principal amount being re- deemed as follows: 2% if redeemed March 1, 1975 or September 1,' 1975; 1 -1/2% if redeemed March 1, 1976 or September 1, 1976; 1% if redeemed March 1, 1977 or September 1, 1977; No premium thereafter. Notice of the call for redemption shall be published one time in a newspaper published in the City and having a general circulation throughout the State of Arkansas. The notice shall give the number and maturity of each bond being called, and shall be published at least fifteen (15) days prior to the redemption date. In addition , notice by first class mail shall be mailed, at least fifteen (15) days prior to the redemption date, to the registered owner of each bond registered as to principal or as to principal and interest at the address of such owner reflected on the bond registration book of the Bond Page 9 Registrar and if all outstanding bonds shall be registered as to principal and interest, then notice by first class mail to the registered owners thereof shall be sufficient, and it shall not be necessary to publish notice of the call. This bond may be registered as to principal or as to principal and interest and may be discharged from such registration in the manner, with the effect and subject to the terms and conditions endorsed hereon. Subject to the provisions for registration endorsed hereon, nothing contained in this bond or in the Authorizing Ordinance shall affect or impair the negotiability of this bond and this bond shall be deemed a negotiable instrument under the laws of the State of Arkansas and is issued with the intent that the laws of the State of Arkansas will govern its construction. 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; that the in- debtedness represented by the bonds does not exceed any constitutional or statutory limitation; and that sufficient revenues have been pledged to and will be set aside into the 1971 (Second) Municipal Airport Revenue Bond Fund, referred to above, for the payment of the principal of and interest on the bonds. 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 facsimile signature of the Mayor and the manual signature of the City Clerk, and its seal to be affixed, and has a M k Page 10 caused the interest coupons hereto attached to be executed by the facsimile signature of its Mayor, all as of the first day of December, 1971. CITY OF LITTLE ROCK, ARKANSAS ATTEST: By (Facsimile Si nature) Mayor City Clerk (SEAL) Page 11 (Form of Coupon) No. E, March, On the first day of September, 19_, the City of Little Rock, Pulaski County, Arkansas, unless the bond to which this coupon is attached is paid prior thereto, hereby promises to pay to bearer, solely out of the special fund specified in the bond to which this coupon is attached, DOLLARS in such coin or currency as shall be legal tender for the payment of debts due the United States of America at the principal office of Worthen Bank & Trust Company, Little Rock, Arkansas, being six (6) months interest then due on its Municipal Airport Revenue Bond, Series 19 71 (Second) , dated December 1, 1971, and numbered CITY OF LITTLE ROCK, ARKANSAS By (Facsimile Signature) Mayor On each bond shall appear the following; CERTIFICATE OF AUTHENTICATION This is one of the bonds of the issue of Municipal Airport Revenue Bonds, Series 1971 (Second), of the City of Little Rock, Arkansas, dated December 1, 1971, and aggregating $203,000 in principal amount described in the bond to which this Certificate is attached. WORTHEN BANK & TRUST COMPANY Little Rock, Arkansas By Authorized Signature Page 12 1'ItUVJ::IC)1�;, 1'U1t 1'1;(:,);,7'1;11'I'.1C)J\� AND This bond 111t:y ),c I ctistr.r(:d ci:; to ) >rinr.ii�<<J. olono on the ).)oo),s of the City, l:cpt by fl-ic Trustee as bond fegistror, upon 1wescntation hereof to the bond registrar, \•ahicli Shull mention of such registration in the rcc)istrati.oll blank belo \; =, and this bond thereafter be only Upon an assignment duly executed by the rc:gisiered owner or ])is attorney or legal rcprescntai:ive in such form as shall be satisfactory to the bond registrar, such transfer to be made on Such books and enclorscd Hereon by the bond registrar. Such transfer may be to bearer, and thereafter trans. er- ability by delivery shall be restored, but this bond shall again be subject to -s uccessivc registrations and transfers as before. The principal of this bond, if registered, unless registered to bearer, shall be payable only to or upon the order of the registered owner or his legal. representative . Interest ,accruing on this bond will be paid only on presentation and surrender of the attached interest coupons as they respectively become due, and notwithstand- ing the registration of this bond as to principal, the appurtentant interest .._coupons shall remain payable to bearer and shall continue to be transferable by delivery; provided, that if upon registration of this bond, or at any time thoreaft:er xvhile this bond is registered in the name of the m.,ner, the unrn<:turcd - coupons attached evidencing interest to bc= thereafter paid hereon shall be surrendered to said bond registrar, a statement to that effect will be endorsed hereon by the bond registrar and there=after interest evidenced by such surrcnderc�: coupons will be paid by check or draft of the bond registrar at the times provi& :, -6 herein to-the registered owner of this boild by mail to the address shown on the . re Ji:,tre�ti -on boots This bond ;;;lncr; :.O cor, \,crtcd info a bond registered <:s to both principal and ititere st nay be rC(-gn%'c! "ted into a coupon bond at thu \'11'lttC ;n s -• Page 13 acetic: :;t. of the )cc)i :;iciccl cn;'nv.r ci))cl lip())) piv.,.;(•W'ilion ut ihc office of ';'iicl tec)i:;tr�ar• Upon such rc(;onver i()n i))(' c ;ouPons Iepl-ese),Ung the anl.crr. :;1- to become due i))c�reEifter to the elute of maturity �',�ill �icltain );e �attuc :h ^d io il)i'. cited �a stiAement v,,i11 be enclorsed hereon by the bond rcgi.slrar in the rcgjsj.rcati(:)) b1mi): ))Clow vActher it is then rc9ist(-'1-Ccl E's to ),rinc;i.Pal or P,ty�tble to )_,Carcr. Nam, of Rfanncr of Sian:ature of. Date of ReCTist)'ati0y, l2ec)istereci C��' );cr Rois;tri,tion : )iO..CI °— -- — - -- ,� c . i Page 14 Section 5. That the City and the Airport Commission hereby covenant with the holders and registered owners of the bonds that there will be imposed and collected such charges for the use of the Municipal Airport and its facilities as will at all times produce sufficient revenues to provide for the operation, maintenance and repair of the Municipal Airport, to provide for the payment of the principal of and interest on all outstanding bonds to which airport revenues are pledged, including the 1961 Bonds, the 1966 Bonds, the 1971 Bonds, these bonds, the Interim Bonds (interest only) and the permanent bonds replacing the Interim Bonds, as the same become due, to provide for paying agent's fees, make required deposits into the depreciation Fund and to maintain all funds pro- vided for in ordinances and resolutions authorizing and securing all such bonds at required levels. The above covenant shall include the agreement and obli- gation to increase the charges from time to time as and to the extent necessary to produce sufficient revenues to meet the above requirements. Section 6. That the provisions, covenants, undertakings, stipulations and obligations of the Airport Commission and the City set forth in Ordinances No. 11,190, No. 11, 745,. No. _11,755 and No. 12,456, pursuant to which the 1961 Bonds, the 1966 Bonds and the 1971 Bonds were issued and secured and are presently outstanding, as such Ordinances may, at any time, be amended, shall inure and appertain to the bonds of this issue to the same extent and with like force and effect as if set forth herein in full, except only insofar as the same may be expressly inconsistent with the provisions of this Ordinance, including among other things, and without limitation, the provisions of Ordinance No. 11,190 whereby there has been created and is being maintained (1) a "Municipal Airport Fund" and for the payment into that fund of all the income and revenue derived from the operation of the Municipal Airport, disbursements therefrom and the permitted use of surplus at any time remaining therein, (2) a "Municipal Airport Operation and Maintenance Fund" and for the payment into that fund of the required amounts and permitted disbursements therefrom, and (3) a "Municipal Airport Depreciation Fund" and for the payment into that fund of the required amounts Page 1 5 and disbursements therefrom, all as specified in the applicable sections of Ordinance No. 11,190 , are hereby continued, ratified and confirmed. Section 7. 1971 (Second) Municipal Airport Revenue Bond Fund. (a) There is hereby established with a bank or banks, holding membership in the Federal Deposit Insurance Corporation, to be designated by the Airport Commission from time to time, a special trust fund in the name of the City designated 111971 (Second) Municipal Airport Revenue Bond Fund" (the "Bond Fund ") which shall be maintained as long as the bonds are outstanding and unpaid, and into which there shall be paid the sums in the amounts and at the times hereinafter set forth in subparagraph (b) for the purpose of providing funds for the payment of the principal of, interest on and Paying Agent's fees in connection with the bonds. (b) There shall be paid from the Municipal Airport Fund (created by Ordinance No. 11 ,190) , into the Bond Fund, beginning on the first- business day of the month immediately following the month in which the bonds are delivered, and continuing on the first business day of each month thereafter until all outstanding bonds of this issue with interest thereon -have been paid in full, or provisions made for such payment, a sum equal to 1/5 of the next installment of interest and 1 /10 of the next installment of principal, plus the Paying Agent's fees, until a debt service reserve has been accumulated in the amount of one year's average annual principal and interest requirements. When the debt service reserve has been so established, the monthly deposits may be reduced to 1/6 of the next installment of interest and 1/12 of the next installment of principal, respectively, and an amount sufficient to provide for the Paying Agent's fees, but if the debt service reserve becomes impaired, the payments of 1/5 and 1 /10, respectively, and an amount sufficient to provide for the Paying Agent's fees, shall be resumed until the impairment is cured. Page 16 (c) If the revenues of the Municipal Airport are insufficient to make the required payment on the first business day of the following month into the Bond Fund, then the amount of any such deficiency in the payment made shall be added to the amount otherwise required to be paid into the Bond Fund on the first business day of the next month. (d) If for any reason the Treasurer shall fail at any time to make any of the required payments into the Bond Fund, any sums then held as a debt service reserve shall be used to the extent necessary in the payment of the principal of and interest on the bonds. (e) When the moneys held in the Bond Fund, including the debt service reserve shall be made and remain sufficient to pay the principal of and interest on all bonds then outstanding, and the Paying Agent's fees, the Treasurer shall not be obliged to make any further payments into the Bond Fund. _ (f) All moneys in the Bond Fund shall be used solely for the purpose of paying the principal of and interest on the bonds and the Paying Agent's fees, except as herein specifically provided. If a surplus shall exist in the Bond Fund over and above the amount required for making all principal and interest payments during the succeeding twelve months on all outstanding bonds, and the Paying Agent's fees, and over and above the debt service reserve, such surplus may be applied to the payment of the principal of and interest on any bonds that may be called for redemption prior to maturity. (g) It shall be the duty of the Treasurer to withdraw from the Bond Fund at least ten (10) days before the maturity date of any bond or interest coupon issued hereunder and to deposit with the Paying Agent an amount equal to the amount of such bond or coupon for the sole purpose of paying the Page 17 same, together with the customary Paying Agent's fees, and no withdrawal of funds from the Bond Fund shall be made for any other purpose except as other- wise authorized in this Ordinance. Such deposit shall be at the sole risk of the City and shall not operate as a payment of the bonds or coupons until so applied. (h) The bonds shall be specifically secured by a pledge of all the revenues required to be placed into the Bond Fund. This pledge in favor of the bonds is hereby irrevocably made according to the terms of this Ordinance, and the City and its officers and employees shall execute, perform and carry out the terms thereof in strict conformity with the provisions of this Ordinance. Section 8. That the bonds of this issue shall be subject to redemption prior to maturity in accordance with the provisions in the bond form appearing in Section 4 hereof. Section 9. That 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 notified in writing and shall have been indemnified to its satisfaction against any loss, damage, or expense on account of the taking of such action. The Trustee may resign at any time by ten (10) days' notice in writing to the Secretary of the Airport Commission, and the majority in value of the holders of the outstanding bonds of this issue at any time may, with or without cause, remove the Trustee. Upon the resignation or removal of a Trustee, the majority in value of the holders _ ---- outstanding bcnds of this issue may name a new Trustee, but if such holders do not name a new Trustee within thirty (30) days after a vacancy occurs, the Airport Commission shall forthwith name a new Trustee. The appointment of a new Trustee shall be evidenced by a writing duly acknowledged and recorded in the office of the Circuit Clerk and Ex Officio Recorder for Pulaski County, Arkansas. Any successor Trustee shall have all the powers herein granted to the original Page 18 Trustee. In the event of a change in the office of Trustee the old Trustee which has resigned or been removed shall cease to be paying agent and the successor Trustee shall become the paying agent. Section 10. That after the bonds have been executed by the Mayor and City Clerk and the seal of the City impressed as herein provided, they shall be delivered to the Trustee which shall authenticate them and deliver them to the purchaser upon receipt from the purchaser of the purchase price plus accrued interest ( "total sale proceeds ") . The total sale proceeds shall be disbursed as follows: (1) The Trustee shall deposit the accrued interest in the Bond Fund. (2) The Trustee shall deposit the balance of the proceeds in a special account in the name of the Airport Commission designated "Little Rock Municipal Airport Commission 1971 (Second) Construction Fund" in a Bank that is a member of the Federal Deposit Insurance Corporation with all moneys therein, unless invested as hereinafter provided, to be secured by bonds or other direct or fully guaranteed obligations of the United States of America. The moneys in the Construction Fund shall be disbursed solely for paying the cost of accomplishing the improvements and paying expenses incurred in connection with the authorization and issuance of the bonds. If any moneys remain in the Construction Fund after the improvements are accomplished and the expenses of authorizing and issuing the bonds are paid, the remaining moneys shall be deposited into the Bond Fund. Moneys held in the Construction Fund may, at the option of and pursuant to the direction of the Airport Commission, be invested and reinvested in direct obligations of, or obligations of - principal of and interest on which are unconditionally guaranteed by the United States of America, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of the holder, not later than the date or dates when the moneys held for the credit of the Construction Fund will be required for accom- plishing the improvements or paying the expenses of authorizing and issuing the bonds, as determined by the Airport Commission in its discretion. Page 19 Section 11. It is understood and agreed that the Airport Commission, acting for and on behalf of the City, has custody of and control over the airport, operates, maintains and repairs the Municipal Airport and collects and handles Airport revenues. Therefore, it is understood and agreed that all references herein to the City shall, when appropriate in view of the authority and responsibility of the Airport Commission, be construed to include the Airport Commission. To this end, the Airport Commission, by resolution, will expressly adopt and approve this Ordinance the the provisions hereof and thereby agree to perform all covenants and obligations with reference to the Municipal Airport and Airport revenues, set forth herein, the performance of which are within its authority and jurisdiction. It is understood and intended that the registered owners of the bonds have relied on, and are beneficiaries of, such commitments of the Airport Commission. Section 12. That this Ordinance shall not create any right of any kind, and no right of any kind shall arise hereunder pursuant to it until the bonds authorized by -this Ordinance shall be issued and delivered. Section 13. That the provisions of this Ordinance are hereby declared to be separable and if any provisions shall for any reason be held illegal or in- valid, such holding shall not affect the validity of the remainder of the Ordinance. Section 14. That all ordinances, resolutions and parts thereof in con- flict herewith are hereby repealed to the extent of such conflict. Section 15. That it is hereby ascertained and declared that the present Little Rock Municipal Airport facilities are inadequate and by reason thereof there exists a hazard to the life, property and welfare of the inhabitants of the City. The herein authorized improvements are immediately necessary to alleviate the hazard and can be accomplished only by the issuance of the bonds herein authorized. It is, therefore, declared that an emergency exists, and this Ordinance t + r • r Page 20 being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage. PASSED: December 1 , 1971. APPROVED: ATTEST: Mayor City Cl rk (SEAL)