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)