12400r
ORDINANCE NO. 12,400
AN ORDINANCE PROVIDING FOR THE REPLACEMENT OF
MISSING SMVER REVENUE BONDS OF THE CITY; PRO -
VIDING FOR THE PROTECTION OF THE CITY AND THE
TRUSTEE AND PAYING AGENT OF THE BONDS; AND PRE -
` SCRIBING OTHER MATTERS PERTAINING THERETO.
WHEREAS, the City of Little Rock, Arkansas (the "City ") has out-
standing an issue of sewer revenue bonds dated February 1, 1966,
authorized by Ordinance No. 11,695 adopted and approved December 20, 1965
and Resolution No. 3,526, adopted and approved March 7, 1966 issued in the
total principal amount of $8,280,000 (the "bonds"); and
WHEREAS, it has been reported.to the Board of Directors of the City ,
(the'$oard "), and the Board upon due investigation has determined, that one
of the bonds (the "lost bond ") was lost from the possession of the lawful
holder thereof, specifically: Bond No. 1102, in the denominat7.on of $5,000,
maturing February 1, 1983, and bearing interest at 3.90% per annum; and
WHEREAS, it is appropriate that the City issue and deliver to the
lawful holder of the lost bond a bond replacing the lost bond (the "replacement
bond "); and
WHEREAS, Arkansas law, in particular Act No. 350 of 1941 ( "Act
No. 350 ") authorizes and provides a procedure for the issuance and delivery
of replacement bonds; and
WHEREAS, the lawful holder of the lost bond has•, in accordance with
Act No. 350, submitted to the Board an affidavit describing the lost bond and
the circumstances of its loss and a surety bond in double the amount of -a
replacement bond`, plus interest; and
WHEREAS, all requirements precedent to authorization of the replace-
ment bond have been completed and the Board is now authorized to issue and
deliver the replacement bond.
.a. NOW, THEREFORE, BE IT - ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
Page 2
Section 1. The replacement bond is hereby authorized and ordered
issued. The Mayor and City Clerk are authorized and directed to execute
and deliver the replacement' bond and to execute and deliver such instru-
ments and agreements and to take such other action as may be appropriate
to carry out the purpose of this Ordinance.
Section 2. The replacement bond shall be dated February 1, 1966,
shall be in the denomination of $5,000, shall be numbered 1102, shall bear
interest at 3.90% per annum, payable semiannually on February 1 and August
1 of each year commencing August 1, 1966.
The interest shall be evidenced by coupons affixed to the replacement
bond. The coupons shall be numbered consecutively commencing with number
1, due August 1, 1966.
The replacement bond shall mature on February 1, 1983 (subject to the
provisions for redemption prior to maturity set forth in the replacement bond
form contained in Section 3 hereof) .
Section 3. The replacement bond, and the affixed coupons, shall be
in substantially the following form, and the Mayor and City Clerk are hereby
authorized to make the recitals contained therein:
u
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
SEWER REVENUE BOND
No.
KNOW ALL MEN BY THESE PRESENTS:
That the City of Little Rock, County of Pulaski, and State of Ark-
ansas (called "City "), acknowledges itself to owe and, for value received,
hereby promises to pay to bearer, or if this bond registered, to the registered
owner hereof, solely from the special fund provided as hereater set forth, the
principal sum of
DOLLARS
In such coin or currency as shall be legal tender for the payment of debts due
the United States of America on the first day of February, 19 , and to pay
solely from said special fund interest hereon at the rate of per cent
%) per annum, from date, semiannually on February 1 and August 1 of
each year, commencing August 1, 1966, upon presentation and surrender of the
annexed coupons as they severally become due. Payment of principal, when regis-
tered as to principal, and payment of interest, when registered as to interest,
shall be by check or draft mailed to the registered owner at his address re-
flected on the registration book of the City, maintained by the Trustee. Pay-
ment of principal, when payable to bearer, and payment of interest evidenced
by coupons shall be at the principal office of the Franklin National Bank, New
York, New York (the "Paying Agent "), or at the principal office of the Worthen
Bank and Trust Company, Little Rock, Arkansas (the "Trustee" and "Alternate
Paying Agent").
This bond is part of an issue of
bonds aggregating
Eight Million Two Hundred Eighty Thousand Dollars ($8,280,000), numbered
consecutively from one (1) to
( ), inclusive,
all of like tenor and effect, except as to number, denomination, rate of interest,
maturity and right of prior redemption, and are issued for the purpose of refund-
ing the outstanding Sewer Revenue Bonds of the City, being an issue of Sewer
Revenue Bonds dated December 1, 1956 and an issue of Sewer Revenue Bonds
Pa ge 4
dated April 1, 1960, and financing the cost to the City of constructing extensions,
betterments and improvements to the Sewer System of the City.
The bonds of this issue are issued pursuant to and in full com-
pliance with the Constitution and laws of the State of Arkansas, particularly
Act 132 of the Acts of Arkansas of 1933, as amended, and Act 297 of the Acts
of Arkansas for the year 1937, as amended, and pursuant to an ordinance of
the Board of Directors of the City, duly adopted and approved, as supplemented
by a resolution of the Board of Directors of the City, duly adopted and approved,
(being Ordinance No. adopted and approved on the day of
, 196 , and Resolution No.
approved on the day of
, adopted and
1966, (collectively
referred to herein as the "authorizing ordinance ")) and do not constitute an
indebtedness of the City within any constitutional or statutory limitation. The
bonds are not general obligations of the City, but are special obligations pay-
able solely from revenues derived from the operation of the Sewer System,
sufficient amount of which is to be set aside in a special fund for that purpose
identified as the "Sewer Revenue Bond Fund", created by the authorizing
ordinance, and reference is hereby made to the authorizing ordinance for a
detailed statement of the nature and extent of the security (the flow of Sewer
Revenue Funds is first to an operation and maintenance fund, second to the
Sewer Revenue Bond Fund and third to a depreciation fund) , 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, in-
eluding, without limitation, the covenant of the City to maintain rates for sewer
service which shall be sufficient at all times to produce revenues adequate for
the payment of the expenses of operation and maintenance of the sewer system,
for the payment for the principal of and interest on the bonds , including paying
agent's fees, and to make the required deposit into the depreciation fund. Under
the provisions of Act 132 of the Acts of Arkansas for the year 1933, as amended,
a lien is fixed upon the land for any unpaid sewer charge, even though the use
Page 5
of the sewer system is by a tenant or lessee instead of the owner, and pursuant
thereto the Board of Directors has directed that suit will be brought to enforce
the lien and collect unpaid sewer charges.
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 as follows: (1)
From the unexpended proceeds of the sale of the bonds not needed for accom-
plishing the refunding and the cost to the City of the construction work at a
price of the principal amount of the bonds being redeemed plus accrued interest
to the date of redemption on any interest payment date on and after February 1, 1969;
(2) From surplus revenues derived from the operation of the sewer system at a
price of the principal amount of the bonds being redeemed plus accrued interest
on any interest payment date on and after February 1, 1974; and (3) from funds
from any other source on any interest payment date on and after February 1, 1974
at a price of the principal amount of the bonds being redeemed plus accrued in-
terest to the date of redemption and plus a premium as follows:
4% if redeemed February 1 ,
3 -1/2% if redeemed February 1 ,
3% if redeemed February 1 ,
2 -1/2% if redeemed February 1 ,
2% if redeemed February 1 ,
1 -1/2% if redeemed February 1,
1% if redeemed February 1,
1/2% if redeemed February 1,
No premium thereafter.
1 974
or August
1 ,
1974;
1975
or August
1 ,
1975;
1976
or August
1 ,
1976;
1977
or August
1 ,
1977;
1978
or August
1 ,
1978;
1979
or August
1 ,
1979;
1980
or August
1 ,
1980;
1981
or August
1 ,
1981;
Notice of the call for redemption shall be published one time in a newspaper
published in the City of Little Rock, Arkansas and having a general circulation
throughout the State of Arkansas, giving the number and maturity of each bond
being called, the publication to be at least fifteen (15) days prior to the re-
demption date and after the date fixed for redemption each bond so called shall
cease to bear interest, providing funds for its payment are on deposit with the
paying agent at that time. In addition, notice shall be given by first class mail
to the registered owner of any bond registered as to the principal at the address
of such owner reflected on the books of the Bond Registrar and if all outstanding
bonds shall be registered as to principal, then notice by first class mail to the
registered owners thereof as aforesaid shall be sufficient and it shall not be
4
Page 6
necessary to publish notice of the redemption.
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 of 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 prece-
dent 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 the bonds of this issue does not exceed any
constitutional or statutory limitations; and that sufficient revenues have been
pledged to and will be set aside into the Sewer Revenue Bond Fund, referred
to above, for the payment of the principal of and interest on the bonds of this
issue.
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, by its
Board of Directors, has caused this bond to be signed by the Mayor and City
Clerk thereof (with either the manual of facsimile signature of the Mayor but
withthe manual signature of the City Clerk) and sealed with the seal of the
City, and has caused the interest coupons attached to be signed by the
facsimile signature of the Mayor, all as of the first day of February, 1966.
ATTEST:
City Clerk
(S EAL)
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
Page 7
(Form of Coupon)
No.
February
On the first day of August , 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
or, at the option of the holder, at the principal office of
, being six (6) months' interest then due
on its Sewer Revenue Bond, dated February 1, 1966, and numbered
CITY OF LITTLE ROCK, ARKANSAS
0
Mayor
On each bond shall appear the following:
CERTIFICATE OF AUTHENTICATION
This is one of the bonds of the issue of Sewer Revenue Bonds of the
City of Little Rock, Arkansas, dated February 1, 1966, and aggregating
$8,280,000 in principal amount described in the bond to which this certificate
is attached.
go
(Authorized Signature)
Page 8
PROVISIONS FOR REGISTRATION AND RECONVERSION
This bond may be registered as to principal alone on books of the City,
kept by the Trustee as bond registrar, upon presentation hereof to the bond
registrar, which shall make mention of such registration in the registration
blank below, and this bond may thereafter be transferred only upon an assign-
ment duly executed by theregistered owner or his attorney or legal representa-
tive in such form as shall be satisfactory to the bond registrar. Such transfer
may be to bearer, and thereafter transferability by delivery shall be restored,
but this bond shall again be subject to successive 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 notwithstanding the registration of this bond as to principal,
the appurtenant interest coupons shall remain payable to bearer and shall con-
tinue to be transferable by delivery; provided that if upon registration of this
bond, or at any time thereafter while this bond is registered in the name of the
owner, the unmatured coupons attached evidencing interest to be thereafter paid
hereon shall be surrendered to said bond registrar, a statement to that effect
will be endorsed hereon by the bond registrar and thereafter interest evidenced
by such surrendered coupons will be paid by check or draft of the bond registrar a.
_ the times provided herein to the registered owner of this bond by mail to the
address shown on the registration books. This bond when so converted into a
bond registered as to both principal and interest may be reconverted into a
coupon bond at the written request of the registered owner and upon presenta-
tion at the office of said bond registrar. Upon such reconversion the coupons
Page 9
representing the interest to become due thereafter to the date of maturity will
again be attached to this bond and a statement will be endorsed hereon by the
bond registrar in the registration blank below whether it is then registered as
to principal or payable to bearer.
: Manner of :Signature of
Date of Registration : Name of Registered Owner: Registration • Bond Registrar
Page 10
Section 4. The lost bond, and the issue of which it was a part,
were authorized by Ordinance No. 11,695 of the City, adopted and ap-
proved December 20, 1965, and Resolution No. 3,526, adopted and ap-
proved March 7, 1966 (called collectively the "Authorizing Ordinance").
The Authorizing Ordinance is hereby ratified and confirmed, and the .pro-
visions of the Authorizing Ordinance, shall, except as modified herein or
inconsistent with the provisions hereof, apply to and govern the replace-
ment bond. The replacement bond shall be fully secured by and shall be
entitled to all the protection and rights granted by the Authorizing Ordin-
ance.
The lost bond is hereby declared not to be an obligation of the
City and is declared to be void. No holder of the lost bond shall ever
be entitled to payment thereon, either of principal or interest, and the
lost bond is no longer secured by or entitled to the protection and rights
granted by the Authorizing Ordinance.
Section 5. When the replacement bond has been executed by the
Mayor and City Clerk it shall be delivered to the Trustee who shall cer-
tify and deliver the replacement bond to the lawful holder of the lost bond.
The Board upon due investigation has found, and hereby declares, that the
lawful holder of the lost bond is Joseph J. Schmelzer.
Section 6. All ordinances and resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
-- Section 7. It has been found and it is hereby declared that the law-
ful holder of the lost bond is entitled to prompt delivery of a replacement
bond and that delivery of the replacement bond is essential to the City's
compliance with its obligations under the applicable Arkansas Statutes.
'r
Page 11
Therefore, an emergency is declared to exist, and this Ordinance, being
necessary to the preservation of the health, welfare and safety of the City
and its inhabitants, shall take effect immediately.
PASSED: October 19, 1970
ATTEST:
y Clerk