11745ORDINANCE NO. 11, 745
lor
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
MUNICIPAL AIRPORT REVENUE BONDS BY THE CITY
OF LITTLE ROCK, ARKANSAS FOR THE PURPOSE OF
FINANCING THE COST OF ACQUIRING LANDS AND
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 (called "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 (called "City "),
adopted November 7, 1950; and
WHEREAS the Airport Commission has determined that additional
lands must be acquired and improvements must be constructed, a brief general
description of which are: extending and strengthening runways, constructing aprons,
acquiring and installing electrical and lighting facilities, relocating navigation
aids and relocating roads and streets affected by the above work, together with
necessary incidental expenses and expenses pertaining thereto and to the issuance
of bonds, (herein referred to as the "improvements "), all at an estimated cost of
Two Million Eight Hundred Thousand Dollars ($2,800,000.00) of which the amount
to be furnished by the City will be One Million Four Hundred Thousand Dollars
($1,400,000.00) (it being contemplated that the additional amount will be obtained
from an agency of the United States of America); and
WHEREAS neither the Airport Commission nor the City has sufficient
funds to accomplish the improvements and it has been determined that the only
feasible way to obtain the funds needed will be by the issuance of Municipal Air-
port Rsvenue Bonds; and
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WHEREAS the Airport Commission has unanimously passed a
Resolution declaring that it would be in the best interest of the City and the in-
habitants thereof if the improvements be accomplished and has authorized its
Chairman to make these facts known to the Board of Directors of the City (called
"Board ") with the request that the Board take the necessary steps to issue and
sell Municipal Airport Revenue Bonds in the principal amount of $1,400,000.00;
and
VVHEREAS the Board hereby finds and declares that it would be in
the best interest of the City and its inhabitants for the improvements to be ac-
complished and that Municipal Airport Revenue Bonds be issued as requested by
the Airport Commission; and
'dVHEREAS the City has outstanding at this time Two Hundred and
Ten Thousand Dollars ($210,000.00) 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 (called "outstanding bonds "); and
WHEREAS additional Municipal Airport Revenue Bonds can be issued
on a parity of security with the outstanding bonds provided the conditions set forth
in Section 14 of Ordinance No. 11,190 have been complied with and, in this re-
Bard, the Board has determined that the conditions set forth in Section 14 can be
complied with and that, therefore, the Municipal Airport Revenue Bonds authorized
by this Ordinance can be issued on a parity of security with the outstanding bonds;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of
the City of Little Rock, Arkansas:
Section 1. That the improvements be accomplished. 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 Airport Com-
mission. In this regard, in addition to the powers and duties of the Airport Com-
mission 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 Com-
mission full and complete power to carry out and accomplish the authority speci-
fied in this Ordinance pertaining to accomplishing the improvements, 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
for the year 1949, City of Little Rock, Arkansas Municipal Airport Revenue Bonds,
Series 1966, are hereby authorized and ordered issued in the total principal amount
of $1,400,000 for financing the cost of accomplishing the improvements (which
bonds will be herein referred to as the "bonds" or the "Airport Revenue Bonds ").
The bonds shall be negotiable coupon bonds payable to bearer but subject to
registration as to principal only. Interest on the bonds shall be evidenced by
interest coupons. The principal and interest shall be payable at the principal
office of the Paying Agent or, if one is named, at the principal office of the
Alternate Paying Agent (the purchaser of the bonds is being granted the right to
designate the Trustee and the Paying Agent, with the City reserving the right, at
its option, to designate an Alternate Paying Agent, which designations shall be
set forth in a resolution of the Board of Directors of the City, hereafter referred
to) . The bonds shall be dated May 1, 1966, interest thereon shall be payable
semiannually on May 1 and November 1 of each year, commencing November 1,
1966, and the principal of the bonds shall mature annually on May 1 of each year
as follows, but shall be subject to redemption prior to maturity as hereafter set
forth:
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YEAR AMOUNT
1967 $
29,000
1968
30,000
1969
31,000
1970
32,000
1971
33,000
1972
35,000
1973
36,000
1974
38,000
1975
39,000
1976
40,000
1977
41,000
1978
42,000
1979
44,000
1980
46,000
1981
47,000
1982
70,000
1983
72,000
1984
75,000
1985
78,000
1986
82,000
1987
85,000
1988
88,000
1989
92,000
1990
96,000
1991
99,000
The Airport Commission is hereby authorized to sell, the bonds at public sale on
sealed bids in such manner and upon such terms as the Airport Commission shall
deem to be in the best interests of the City, which shall not be inconsistent
with the applicable provisions of this ordinance.
Section 3. That the action of the Airport ,Commission in accepting
a bid for the bonds at the public sale thereof, in approving the designation by the
purchaser of the Trustee and the Paying Agent and in approving the details of
the maturity schedule shall be submitted to the Board of Directors for approval
by resolution. In this regard, the bonds shall be numbered consecutively
beginning with Number One (1) and shall be in such denominations as shall be
requested by the purchaser and approved by the Airport Commission. The resolu-
tion of the Board of Directors, referred to above, shall set forth in detail a
maturity schedule reflecting the years, bonds numbers, the yearly principal
maturities, semiannual interest and total principal and interest requirements,
and the resolution shall specify the denominations of the bonds. Thereafter,
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 Municipal Airport Pond Fund (which bond fund was created pursuant to
the provisions of Section 11 of Ordinance No. 11,190 and is presently being main-
tained) and shall be a valid claim of the bondholders only against the ;Bond Fund
and the revenues pledged to the Bond Fund, which revenues (being revenues
derived from the operation of the Municipal Airport) are hereby pledged and mort-
gaged for the equal and ratable payment of the principal of and interest on the
bonds, and the outstanding bonds which rank on a parity with the bonds authorized
by this ordinance, and shall be used for no other purpose except as in Ordinance
No. 11,190 and in this ordinance specifically provided. The principal of and
interest on the bonds shall not constitute an indebtedness of the City within any
constitutional or statutory limitations.
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:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
°6 MUNICIPAL AIRPORT REVENUE BOND,
SERIES 1966
KNOW ALL MEN BY THESE- PRESENTS:
That the City of Little Rock, County of Pulaski, and State of Arkansas
(called "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 hereafter 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 May, 19 , and to pay solely from
the special fund interest hereon at the rate of
per cent
( %) per annum, from date, semiannually on May 1 and November 1 of each year,
commencing November 1, 1966, upon presentation and surrender of the annexed
coupons as they severally become due. Both principal and interest of this bond
are hereby made payable at the principal office of
(the "Trustee" and
the "Paying Agent ") .
This bond is part of an issue of ( ) bonds
aggregating One Million Four Hundred Thousand Dollars ($1,400,000), 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 acquiring
lands and constructing improvements to the Municipal Airport (described in the
Authorizing Ordinance, hereafter referred) .
The bonds are issued pursuant to and in full compliance with the Con-
stitution and laws of the State of Arkansas, including particularly Act No. 53
of the Acts of Arkansas for the year 1949, and pursuant to an ordinance and a
resolution duly adopted by the Board of Directors of the City, (meaning Ordinance
No. and $ppvved on the day of May;. 1966 and Resolution
No. -, adopted and approved on the -day of , 1966,
collectively referred to herein as the "Authorizing Ordinance") and a resolution
duly adopted by the Little Rock Municipal Airport Commission on the day
of May, 1966, and the bonds do not constitute an indebtedness of the City within
any constitutional or statutory limitation. The bonds are not general obligations
of the City, but are special obligations payable solely from revenues derived
from the operation of the Municipal Airport , an amount of which sufficient to
pay the principal of and interest on the bonds and on the Municipal Airport
Revenue Bonds dated May 1, 1961 ranking on a parity herewith is to be set aside
in a special fund for that purpose identified as the Municipal Airport Revenue
Bond Fund (created by Ordinance No. 11,190 duly adopted and approved on the
19th day of June, 1961 and presently being maintained) with reference being hereby
made to the "Authorizing Ordinance" for a detailed statement of the nature and
extent of the security (the flow of Airport Revenue Funds is first to an Operation
and Maintenance Fund, second to the Municipal Airport 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 bond and the terms and conditions
upon which the bonds are issued, including, without limitation, the covenant of
the City to impose 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 pay-
ment of the principal of and interest on the bonds, and the 1961 Bonds which rank
on a parity of security, as the same become due, paying agent's fees, and to
make the required deposit into the Depreciation Fund. In this regard, there are
presently outstanding Municipal Airport Revenue Bonds of an issue dated May 1,
1961 and issued under the authority of Ordinance No. 11,190 of the ordinances of
the City referred to above (herein called the "1961 Bonds ") . The bonds are
Issued on a parity of security with the 1961 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 pay-
ing date on and after May 1, 1971 as follows: (1) from surplus revenues derived
from the operation of the Municipal Airport at a price of the principal amount of the
bonds being redeemed plus accrued interest; and (2) from funds from any other
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 as follows:
2 -1/2%
2%
1 -1/2%
1%
1/2%
No prep
if redeemed May 1,
if redeemed May 1,
if redeemed May 1,
if redeemed May 1,
if redeemed May 1,
dum thereafter
1971 or November 1, 1971;
1972 or November 1, 1972;
1973 or November 1, 1973;
1974 or November 1, 1974;
1975 or November 1, 1975;
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, giving the number and maturity of each bond being called, the publica-
tion to be at least fifteen (15) days prior to the redemption date 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. In addi-
tion, notice shall be given by first class mail to the registered owner of any bond
registered as to 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 suf-
ficient and it shall not be necessary to publish notice of the call for redemption.
This bond may be registered as to principal alone and may be dis-
charged from such registration in the manner, with the effect and subject to the
terms and conditions endorsed hereon. Subject to the provisions of registration
andorsed 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 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 limita-
tions; and that sufficient revenues have been pledged to and will be set aside into
the Municipal Airport 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 or facsimile signature of the Mayor but with the
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 the first day of May, 1966.
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
ATTEST:
City Clerk
(SEAL)
(Form of Coupon)
No.
May
On the first day of November , 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
, being six (6) months' interest then due on its Municipal
Airport Revenue Bond, Series 1966, dated May 1, 1966, 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 1966, of the City of Little Rock, Arkansas, dated May 1, 1966, and
aggregating $1,400, 000.00 in principal amount described in the bond to which this
certificate is attached.
By
(Authorized Signature)
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 assignment duly
executed by the registered owner or his attorney or legal representative in such
form as shall be satisfactory to the bond registrar, such transfer to be made on such
books and endorsed hereon by 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. Not-
withstanding the registration of this bond as to principal, the coupons shall
remain payable to bearer and shall continue to be transferable by delivery. Pay-
ment to the bearer of the coupons shall fully discharge the City in respect to the
interest therein mentioned whether or not this bond be registered as to principal
and whether or not any such coupons be overdue.
Date of Name of Signature of
Registration Registered Owner Bond Registrar
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, mainte-
nance and repair of the Municipal Airport, to provide for the payment of the princi-
pal of and interest on all of the outstanding bonds, including the 1961 Bonds and
the bonds of this issue, as the same become due, to provide for paying agent's
fees, and to make the required deposit into the depreciation fund, and to maintain
all funds provided for in Ordinance No. 11,190 and in this ordinance at the required
levels. The above covenant shall include the agreement and obligation 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 it is hereby expressly found and declared that the
provisions of Section 14 of Ordinance No. 11,190 pertaining to the issuance of
parity bonds have been fully met and complied with and that, therefore, the bonds
of this issue shall rank on a parity of security with the 1961 Bonds. In this regard,
the required certificate of the certified public accountant referred to in Section 14
of Ordinance No. 11,190 will be filed with the Airport Commission and in the office
of the City Clerk prior to the delivery of the bonds.
Section 7. That the provisions, covenants, undertakings, stipula-
tions and obligations of the Airport Commission and the City set forth in Ordinance
No. 11,190, and pursuant to which the 1961 Bonds were issued and secured and
are presently outstanding, as Ordinance No. 11, 190 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, 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, (3) a "Municipal Airport Revenue Bond Fund" and for the
payment into that fund of the required amounts and disbursements therefrom, and
(4) a "Municipal Airport Depreciation Fund " and for the payment into that fund of
the required amounts and disbursements therefrom, all as specified in the applicable
sections of Ordinance No. 11,190, are hereby continued, ratified and confirmed.
In as much as the bonds of this issue rank on a parity with the 1961
Bonds, the required monthly deposits into the Municipal Airport Revenue Bond Fund
shall be increased by the amounts necessary to provide for the payment of the princi-
pal of and interest on the bonds of this issue, and paying agent's fees, as the same
become due and to increase the reserve for contingencies (over a period of not to
exceed ten years) to the maximum amount that will become due in any year for
principal and interest on the 1961 Bonds and on the bonds of this issue. In this re-
gard the monthly deposits into the Municipal Airport Revenue Bond Fund shall be in-
creased by a sum equal to one -sixth of the next installment of interest and one-
twelfth of the next installment of principal (as those installments are set forth on
the schedule which will appear in the resolution referred to in Section 2 of this
ordinance when the same shall have been adopted by the Board of Directors as in
Section 2 provided) . In addition, there shall be paid into the Municipal Airport
Revenue Bond Fund each year not less than 10°% of that sum which is the maximum
amount that will become due in any year for principal and interest on the bonds of
this issue, to be payable in equal monthly installments Insofar as practicable, to
the end that the required increase in the reserve for contingencies be accomplished
within a ten year period. The intended effect of incorporating the provisions of
Ordinance No. 11,190 herein, as above provided,, shall be to make those pro-
visions fully applicable to the bonds of this issue and the language of Ordinance
No. 11,190 shall be construed and interpreted to accomplish that intended effect
(for instance, references in Ordinance No. 11,190 to "bonds" or to "bonds of this
issue ", or words of similar import, shall be construed to include both the 1961
Bonds and the bonds now being issued on a parity therewith under the provisions
of this ordinance) .
Section 8. That, without limitation as to the intended applicability
of all other provisions of Ordinance IN o. 11,190, the provisions of Section 14 of
Ordinance No. 11,190 dealing with the issuance of additional bonds shall be appli-
cable to the bonds of this issue, with the result that the bonds of this issue will
be included with the 1961 Bonds and with any bonds proposed to be issued at any
particular time insofar as the 150% coverage requirement for parity bonds as set
forth in said Section 14 is concerned; provided, however, after the 1961 Bonds are
paid or provision made therefor, the coverage requirement for parity bonds shall
be 140% of the maximum amount that will become due in any year thereafter for
principal and interest payments on all bonds then outstanding and on the bonds
then proposed to be issued.
Section 9. That the bonds of this issue shall be callable for payment
prior to maturity in accordance with the terms set out in the bond form appearing in
Section 4 hereof. In addition, it is covenanted that in the event of the redemption
of any outstanding bonds from surplus moneys derived from the operation of the
Municipal Airport, the outstanding 1961 Bonds and the bonds of this issue shall be
redeemed on a pro rata basis; that is, that proportion of each issue shall be re-
deemed that the original principal amount of each issue bears to the total original
principal amounts of the two issues. In case of redemption of all outstanding bonds
of either issue from funds from any source other than surplus revenues derived from
the operation of the Municipal Airport including, without limitation, refunding, it
shall not be necessary to redeem the bonds of the two issues on a pro rata basis
and, in that event, the bonds of one issue may be redeemed without any redemption
of the bonds of the other issue.
I � �
Section 10. 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, dam-
age, 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 S3cretary of the Airport Com-
mission, and the majority in value of the holders of the outstanding bonds 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 of the outstanding bonds
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 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 11. That after the bonds hhave b- e A-., ex3cuted 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 pruchase price plus accrued
interest. The Trustee shall remit the proceeds of the sale of the bonds and the
accrued interest to.theTreasurer of the Airport Commission and the Treasurer shall
deposit the accrued interest in the Municipal Airport Revenue Bond Fund and shall
deposit the balance of the proceeds in a special account in the name of the Airport
Commission designated "Little Rock Municipal Airport Commission 1966 Construc-
tion Fund" in a Bank that is a member of the Federal Deposit Insurance Corporation
with all moneys therein , unless invested as hereafter provided, to be secured by
J � �
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 con-
nection 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 deposit-
ed into the Municipal Airport Revenue 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 accomplish-
ing the improvements or paying the expenses of authorizing and issuing the bonds,
as determined by the Airport Commission in its discretion. Obligations so pur-
chased as an investment shall be deemed at all times to be part of the Construction
Fund and the interest accruing thereon and any profit realized therefrom shall be
credited to the Construction Fund and any losses resulting from investments shall
be charged to the Construction Fund.
Section 12. Title to any bond unless such bond is registered in the
manner herein provided and to any interest coupon shall pass by delivery in the
same manner as a negotiable instrument payable to bearer. The City shall cause
books for the registration and for the transfer of the bonds as provided in this Ordi-
nance to be kept by the Trustee as Bond Registrar. At the option of the bearer, any
bond may be registered as to principal alone on such books, upon presentation there-
of to the Bond Registrar, which shall make notation of such registration thereon. Any
bond registered as to principal may thereafter be transferred only upon an assign-
ment duly executed by the registered owner or his attorney or legal representative
in such form as shall be satisfactory to the Bond Registrar, such transfer to be
made on such books and endorsed on the bond by the Bond Registrar. Such trans-
fer may be to bearer and thereafter transferability by delivery shall be restored,
subject, however, to successive registrations and transfers as before. The princi-
pal of any bond registered as to principal alone, unless registered to bearer, shall
be payable only to or upon the order of the registered owner or his legal representa-
tive, but the coupons appertaining to any bond registered as to principal shall re-
main payable to bearer notwithstanding such registration. No charge shall be made
to any bond holder for the privilege of registration and transfer hereinabove
granted, but any bond holder requesting any such registration or transfer shall pay
any tax or other governmental charge required to be paid with respect thereto, if
any be applicable under governing laws to the particular registration or transfer.
As to any bond registered as to principal, the person in whose name the same shall
be registered shall be deemed and regarded as the absolute owner thereof for all
purposes, and payment of or on account of the principal of any such bond shall be
made only to or upon the order of the registered owner thereof, or his legal re-
presentative, and neither the City, the Trustee nor the Bond Registrar shall be
affected by any notice to the contrary, but such registration may be changed as
herein provided. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such bond to the extent of the sum or sums so paid.
The City, the Trustee, the Bond Registrar and the paying agent may deem and treat
the bearer of any bond which shall not at the time be registered as to principal, and
the bearer of any coupon appertaining to any bond, whether such bond be registered
as to principal or not, as the absolute owner of such bond or coupon, as the case
may be, whether such bond or coupon shall be overdue or not, for the purpose of
receiving payment thereof and for all other purposes whatsoever, and neither the
City, the Trustee, the Bond Registrar nor the paying agent shall be affected by any
notice to the contrary.
r
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Section 13. 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 14. That if any provision of this ordinance shall for any
reason be held illegal or invalid, such holdings shall not affect the validity of
the remainder of the provisions of the ordinance,
Section 15. That all ordinances, resolutions and parts thereof in
conflict herewith are hereby repealed to the extent of such conflict.
Section 16. That it is hereby ascertained and declared that the
present Little Rock Municipal Airport facilities are inadequate and by reason there-
of there exist 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
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: May 16 1966.
APPROVED:
ATTEST:
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City Clerk
(SEAL)
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