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11190r 4 s.� ORDINANCE Vii, 11,190 4 1 l AN ORDINANCE AUTHORIZING THE ISSUANCE OF MUNICIPAL AIRPORT REVENUE BONDS BY THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE PURPOSE OF FINANCING IMPROVE- MENTS TO THE MUNICIPAL AIRPORT FACILITIES AND THE ACQUISITION OF LAND; MAKING PLEDGES AND COVENANTS TO INSURE THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS the Little Rock Municipal Airport and its related property and facilities are being operated, managed and maintained by the Little Rock Municipal Airport Commission (hereinafter some- times called the "Airport Commission "), which was created and organized pursuant to Act 53 of the Acts of Arkansas of 1949, and Initiated Ordinance No. 8511 of the City of Little Rock, Arkansas, adopted November 7, 1950; and WHEREAS the Airport Commission has determined that there should be constructed additional improvements to the Municipal Airport facilities and that there should be acquired additional land; a brief general description of said proposal being: taxi- way construction, taxiway lighting, ramp paving, land acquisition, storm sewer construction, and other related and incidental improve- ments to the airport facility, including, but not limited to,, the construction of buildings for various purposes, such as aircraft and cargo storage, garages and shops, all at an estimated cost to the City cE $250,000 (which will be combined with federal funds); and WHEREAS the Airport Commission does not have sufficient funds to make said improvements and acquire said land; and WHEREAS the Airport Commission has unanimously passed a resolution declaring that it would be to the best interests of the City of Little Rock and the inhabitants thereof if the airport tr facilities be improved and additional land be acquired, and has authorized its Chairman to make these facts known to the Board of Directors with the request that the Board of Directors take the necessary steps to issue and sell Municipal Airport Revenue Bonds to finance the said improvements and acquisition; and WHEREAS the Board of Directors hereby finds and declares that it would be to the best interest of the City and its inhabi- tants for the airport facilities to be improved and for additional lands to be acquired and that revenue bonds be issued to finance the same; NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. That the Little Rock Municipal Airport facilities be improved in accordance with the plans of the Airport Commission, and that additional land be acquired in accordance with theplans of the Airport Commission. Section 2. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Act 53 of the Acts of Arkansas of 1949, Little Rock Municipal Airport Revenue Bonds are hereby authorized and ordered issued in the total principal amount of Two Hundred Fifty Thousand Dollars ($250,000) for the purpose of financing the cost of improving the Little Rock Municipal Airport facilities and acquiring additional lands. The bonds shall be sold at public sale with the bonds to bear interest at such rate as is fixed in the bid accepted by the Airport Commission. The Interest shall be payable semi- annually on May 1 and November 1 of each year commencing November 1, 1961 and all bonds shall mature on May 1 of each year as follows, but shall be callable as hereinafter set forth: 0 � r YEAR AMOUNT 1962 $ 72000 1963 7,000 1964 8,000 1965 9,000 1966 9,000 1967 10,000 1968 10,000 1969 11,000 1970 112000 1971 12,000 1972 122000 1973 13,000 1974 13,000 1975 14,000 1976 15,000 1977 16,000 1978 17,000 1979 18,000 1980 18,000 1981 20,000 � 4 s • r The interest shall be evidenced by interest coupons and the principal and interest shall be payable in lawful money of the United States of America upon presentation of the bond or proper coupon at the office of the paying agent designated by the purchaser. 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. Interest coupons attached to each of said bonds may have the facsimile signature of the Mayor of the City lithographed or printed thereon, which signature shall have the same force and effect as if he had personally signed each of said coupons. The bonds and coupons shall be payable in such funds as at the time of the respective payments are legal tender for the payment of debts due the United States of America at the office of the paying agent designated by the purchaser. The bonds, together with interest thereon, shall be payable solely out of the Municipal Airport Revenue Bond Fund, as hereinafter defined, and shall be a valid claim of the holders thereof only against such fund, and the amount of the revenues pledged to such � ! . a• • i • •. e ' e • t 7 v fund, which amount of said revenues is hereby pledged and mortgaged for the equal-and ratable payment of the bonds, and shall be used for no other purpose than to pay the prin- cipal of and interest on the bonds, except as may be herein- after specifically provided. The bonds and interest thereon shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 4. That the bonds herein authorized and ordered issued shall be sold at public sale on sealed bids. Notice shall be given by the Secretary of the Airport Commis- sion by publication in a daily newspaper published and having a general circulation in the City of Little Rock, Arkansas. The notice shall be published in the Little &rck paper at least once a week for two consecutive weeks and may be pub- lished in such additional publications as the Airport Commission may determine. In addition to the usual provisions, the notice shall provide that the purchaser may name the Trustee and paying Agent; that all expenses of the issue, including but not limited to, the printing of the bonds, the Trustee's fee and the fee of bond counsel, will be paid by the purchaser; that the purchaser will not have the privilege of converting the bonds and that the City reserves the right to reject any and all bids. 1 L l A � � • t i s � 1 A i i t • , ' e Y Section 5. After thebonds are sold, the Board of Directors of the City of Little Rock shall by resolution approve the sale and the Trustee and Paying Agent named by the purchaser. Thereafter the bonds of the issue as sold shall be numbered con- secutively beginning with No. 1 and after being printed shall be presented to the Mayor and City Clerk for execution. Section 6. That the bonds and coupons shall be in sub- stantially the following form and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: I NO. s UNITED SATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK % MUNICIPAL AIRPORT REVENUE BOND KNOW ALL MEN BY THESE PRESENTS: � � r k ■ That the City of Little Rock, in the County of Pulaski and State of Arkansas, acknowledges itself to owe and, for value received, promises to pay to bearer, solely from the special fund provided as hereinafter set forth, the principal sum of DOLLARS in lawful money of the United States of America on the first day of May, 19 , and to pay, solely from said special fund, interest hereon at the rate of per centum %) per annum from date, semi- annually on the first days of May and November in each year, commencing November 1, 1961, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this revenue bond are made payable at This bond is one of a series of + i ) revenue bonds, aggregating Dollars 0 ) ) dated May 1, 1961, numbered from one (1) to C ), inclusive, all of like tenor and effect except as to number, maturity, denomination, rate of interest, and right of prior redemption, and are issued for the purpose of financing the acquisition of land and the improvement of Little Rock Municipal Airport facilities. This bond and the series of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act 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 of Little Rock, Arkansas, and a resolution duly adopted by the Little Rock Municipal Airport Commission, and do not constitute an indebtedness of the City of Little Rock with- in any constitutional oe statutory limitation. Said bonds are not general obligations of the City, but are special obligations pay- able solely from a fixed amount of the net revenues from the �rMunicipal Airport, (net revenues being gross revenues less the reasonable expenses of operation, repair and maintenance of the Municipal Airport) which amount shall be sufficient to pay the principal of and interest on the bonds as they mature. Said amount has been duly set aside and pledged as a special fund for that pur- pose and identified as the Municipal Airport Revenue Bond Fund, created by Ordinance No. duly passed by the Board of Directors of the City of Little Rock on the day of , 1961, under which this bond is authorized to be issued, and in said ordinance the said City of Little Rock has covenanted and agreed to impose and collect such charges for the use of the Little Rock 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 bonds as the same become due and payable, together with paying agent's fees, andtD make the required deposit in the Municipal Airport Depreciation Fund. 4 • � � l 1 r r t 1 • ' r The bonds of this issue shall be callable at par and accrued interest in inverse numerical order on any interest paying date with funds from any source. Notice of the call for redemption shall be published once a week for two weeks 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 first publi- cation 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 pay- ment are on deposit with the paying agent at that time. The City of Little Rock and the Little Rock Municipal Airport Commission hereby covenant that full payment has been received for this revenue bond and that there is no defense, offset, or counterclaim against this bond or the pledge of revenues hereinabove made to secure its payment. This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly signed by It is hereby certified, recited and declared that all acts, conditions, and things required to exist, happen, and be performed precedent to and in the issuance of this bond have existed, have happened and have been performed in due time, form and manner, as required by law; that the indebtedness represented by this bond and the issue of which it forms a part does not exceed any constitutional or statutory limitation; and that sufficient of the income and revenue which is deemed to be derived from the opera- tion of the Little Rock Municipal Airport has been pledged to and will be set aside into said special fund for the payment of the i principal of and interest on said bonds. 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 and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be executed by the facsimile signature of said Mayor, all as of the first day of May, 1961. City Clerk (SEAL) CITY OF LITTLE ROCK, ARKANSAS By Mayor No. (Form of Coupon) 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 fund specified in the bond to which this coupon is attached, Dollars ($ ) in lawful money of the United States of America at the office of , being six months' interest then due on its Municipal Airport Revenue Bond, which is dated May 1, 1961, and numbered '41'., CITY OF LITTLE ROCK, ARKANSAS UZ Mayor On each bond shall appear the following: CERTIFICATE hereby certifies that this is one of a series of bonds, described herein, aggregating $ , numbered from 1 to , inclusive, all of like tenor and effect except as to number, maturity, denomination, rate of interest and right of prior redemption. Little Rock, Arkansas 1961 an 4 No. (Form of Coupon) 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 fund specified in the bond to which this coupon is attached, Dollars ($ ) in lawful money of the United States of America at the office of , being six months' interest then due on its Municipal Airport Revenue Bond, which is dated May 1, 1961, and numbered '41'., CITY OF LITTLE ROCK, ARKANSAS UZ Mayor On each bond shall appear the following: CERTIFICATE hereby certifies that this is one of a series of bonds, described herein, aggregating $ , numbered from 1 to , inclusive, all of like tenor and effect except as to number, maturity, denomination, rate of interest and right of prior redemption. Little Rock, Arkansas 1961 an Section 7. That the City of Little Rock, Arkansas, and the Little Rock Municipal Airport Commission hereby covenant and agree with the holders cE the bonds that there will be imposed and collected such charges for the use of the Little Rock 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 the bonds as the same become due and payable, together with paying agent's fees, and to make the required deposit in the Municipal Airport Depreciation Fund, hereinafter created. Section 8. That the Treasurer of the Little Rock Municipal Airport Commission shall be custodian of the revenues derived from the operation of the Little Rock Municipal Airport and shall give bond for the faithful discharge of all duties as such custodian. The amount of the bond shall be fixed by the Airport Commission and approved by the Trustee. All Municipal Airport revenues shall be kept separate and apart from the other funds of the City and shall be deposited in such depository or depositories as may be designated from time to time by the Airport Commission, subject, however, to the giving of security by such depository or depositories as now or as hereafter may be required by law. All deposits made by the Treasurer shall be in the name of the Airport Commission and shall be so designated as to indicate the particular fund to which the revenues belong. Section 9. Municipal Airport Fund. From and after the delivery of any bonds issued under the provisions of this ordi- nance, the Little Rock Municipal Airport shall be continuously operated as a revenue - producing undertaking, and the income and revenue from such operation shall be set aside as and when collected into a separate fund which is hereby created and desig- nated Municipal Airport Fund. Such revenues so deposited in.the Municipal Airport Fund are hereby pledged and shall be applied 1 r Section 7. That the City of Little Rock, Arkansas, and the Little Rock Municipal Airport Commission hereby covenant and agree with the holders cE the bonds that there will be imposed and collected such charges for the use of the Little Rock 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 the bonds as the same become due and payable, together with paying agent's fees, and to make the required deposit in the Municipal Airport Depreciation Fund, hereinafter created. Section 8. That the Treasurer of the Little Rock Municipal Airport Commission shall be custodian of the revenues derived from the operation of the Little Rock Municipal Airport and shall give bond for the faithful discharge of all duties as such custodian. The amount of the bond shall be fixed by the Airport Commission and approved by the Trustee. All Municipal Airport revenues shall be kept separate and apart from the other funds of the City and shall be deposited in such depository or depositories as may be designated from time to time by the Airport Commission, subject, however, to the giving of security by such depository or depositories as now or as hereafter may be required by law. All deposits made by the Treasurer shall be in the name of the Airport Commission and shall be so designated as to indicate the particular fund to which the revenues belong. Section 9. Municipal Airport Fund. From and after the delivery of any bonds issued under the provisions of this ordi- nance, the Little Rock Municipal Airport shall be continuously operated as a revenue - producing undertaking, and the income and revenue from such operation shall be set aside as and when collected into a separate fund which is hereby created and desig- nated Municipal Airport Fund. Such revenues so deposited in.the Municipal Airport Fund are hereby pledged and shall be applied i 1 a � and apportioned in the manner hereinafter provided. Provided, that nothing in this ordinance shall be con- strued so as to prohibit the financing of additional improve- ments on airport property by the issuance of revenue bonds payable solely from the income derived from the improvements acquired or constructed with such bonds, and the income from any such improvements may be segregated and applied to the payment of such bonds. That any surplus remaining in the Municipal Airport Fund after making full provision for the other funds herein- after provided for may be used, at the option of the Airport Commission, for the payment of the principal of and interest on any bonds of the issue herein authorized that may be called for redemption prior to maturity, for the construction of extensions, betterments and improvements to the Municipal Airport, or for any other lawful purpose. Section 10. Municipal Airport Operation and Maintenance Fund. That there is hereby created a special fund designated Municipal Airport Operation and Maintenance Fund, into which there shall be transferred and paid from the Municipal Airport Fund on the first business day of each month after the bonds are delivered and continuing on the first business day of each month thereafter while any of the bonds issued under this ordi- nance shall be outstanding, an amount sufficient to pay, with other available income, if any, all reasonable and proper i expenses of operation, repair and maintenance of the Munici- pal Airport for such month and from which disbursements shall be made only for that purpose. In addition to the customary expenses of operation, repair and maintenance, reasonable pay- ments to the City's General Fund in lieu of fees for services rendered, if any, and /or in lieu of taxes, if any, shall be deemed to be reasonable and proper expenses of operation, repair and maintenance. Provided, however, that no payment shall ever be made into the City's General Fund unless and until there are sufficient moneys in the Municipal Airport Fund to insure the payment of all other expenses of operation, repair and maintenance, as required, and to insure the payment of principal and interest on outstanding Airport Revenue Bonds, as the same mature, and the paying agent's fees. If in any month, for any reason, there shall be a failure to transfer and pay the required amount into said fund, then the amount of any deficiency shall be added to the amount otherwise required to be transferred and paid into said fund in the next succeeding month. Fixed annual charges, such as insurance premiums and the cost of major repairs and maintenance expenses, may be computed and set up on an annual basis and one- twelfth (1/12) of the amount thereof may be paid into said Operation and Maintenance Fund each month. r If any surplus shall be accumulated in the Municipal Air- port Operation and Maintenance Fund over and above the amount necessary to meet the requirements thereof during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred to the Municipal Airport Revenue Bond Fund or the Municipal Airport Depreciation Fund, as the Municipal Airport Commission may designate; provided, however, that any such transfer into the Airport Revenue Bond Fund shall be in addition to all other payments required to be made into said fund. Section 11. Municipal Airport Revenue Bond Fund. (1) That after making the monthly deposit in the Municipal Airport Operation and Maintenance Fund, the Treasurer of the Little Rock Municipal Airport Commission shall transfer and pay from the Municipal Airport Fund the sum in the amounts and at the times hereinafter stated in sub - section (2) for the purpose of providing funds for the payment of the principal of and interest on the bonds herein authorized, and the paying agent's fees as they mature according to a schedule to be set up and approved by the Board of Directors after the terms of the sale of the bonds shall have been approved by the Board of Direc- tors, and as a reserve for contingencies. (2) That there shall be paid from the Municipal Airport Fund into the Municipal Airport Revenue Bond Fund, beginning on the first business day of the first month after the delivery of the bonds, and continuing on the first business day of each month thereafter until the amount in said Municipal Airport Revenue Bond Fund is suf- ficient to pay all outstanding bonds, interest thereon, and the pay- ing agent's fees, a sum equal to one -fifth (1/5) of the next instal- lment of interest and one -tenth (1 /10) of the next installment of prin- cipal, and an amount sufficient to provide for the paying agent's fees, on all outstanding bonds of the issue herein authorized; provided, however 0 we after there shall have been accumulated in said Municipal Airport Revenue Bond Fund the sum as a reserve for contingencies equal to the maximum amount that will become due in any year there - auter for,principal and interest of the bonds herein authorized, the monthly payments may be reduced to one -sixth (1/6) of the next installment of interest and one - twelfth (1/12) of the next installment of principal, and a sum sufficient to provide for thepaying agent's fees. (3) That 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 Municipal Airport Revenue Bond Fund, then the amount of any such deficiency shall be added to the amount otherwise required to be paid into the Municipal Airport Revenue Bond Fund on the first business day of the next month. (4) That if for any reason the funds in the Municipal Airport Revenue Bond Fund shall at any time be insufficient to meet any interest and /or principal payments on the bonds of the issue herein authorized, the sums then held as a reserve for contingencies shall be used to the extent necessary to make said interest and /or principal payments, but such reserve shall be reimbursed from the Municipal Airport Fund before any of the moneys in the Municipal Airport Fund shall be used for any other purpose, except for making the required payments into the Municipal Airport Operation and Maintenance Fund and into the Munici- pal Airport Revenue Bond Fund. Said reserve for contingencies shall be continguously maintained in the amount above specified and shall be used solely as herein provided. IL after there shall have been accumulated in said Municipal Airport Revenue Bond Fund the sum as a reserve for contingencies equal to the maximum amount that will become due in any year there - auter for,principal and interest of the bonds herein authorized, the monthly payments may be reduced to one -sixth (1/6) of the next installment of interest and one - twelfth (1/12) of the next installment of principal, and a sum sufficient to provide for thepaying agent's fees. (3) That 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 Municipal Airport Revenue Bond Fund, then the amount of any such deficiency shall be added to the amount otherwise required to be paid into the Municipal Airport Revenue Bond Fund on the first business day of the next month. (4) That if for any reason the funds in the Municipal Airport Revenue Bond Fund shall at any time be insufficient to meet any interest and /or principal payments on the bonds of the issue herein authorized, the sums then held as a reserve for contingencies shall be used to the extent necessary to make said interest and /or principal payments, but such reserve shall be reimbursed from the Municipal Airport Fund before any of the moneys in the Municipal Airport Fund shall be used for any other purpose, except for making the required payments into the Municipal Airport Operation and Maintenance Fund and into the Munici- pal Airport Revenue Bond Fund. Said reserve for contingencies shall be continguously maintained in the amount above specified and shall be used solely as herein provided. (5) That when the moneys in the Municipal Airport Revenue Bond Fund, including the reserve for contingencies, shall be and remain sufficient to pay the principal of and interest on all outstanding bonds, and the paying agent's fees, thereshall be no obligation to make any further payments into the Municipal Airport Revenue Bond Fund. (6) That all moneys in the Municipal Airport Revenue Bond Fund shall be used solely for the payment of the principal of and interest on _the bonds herein authorized and the paying agent's fees, except as herein specifically provided. If a surplus shall exist in the Municipal Airport Revenue Bond Fund over and above the amount necessary to insure the prompt payment of the principal of and interest on the bonds as the same become due and the paying agent's fees and over and above the reserve for contingencies, such surplus may be used, at the option of the Municipal Airport Commission, for the payment of the principal of and interest on any bonds of the issue herein authorized that may be called for redemption prior to maturity. (7) That it shall be the duty of the Treasurer of the Municipal Airport Commission to withdraw from the Municipal Airport Revenue Bond Fund at least five (5) days beforethe maturity date of any bond or interest coupons 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 same, together with the paying agent's fees. 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. Section 12. Municipal Airport Depreciation Fund. That after the required payments into the Municipal Airport Operation and Maintenance Fund and the Municipal Airport Revenue Bond Fund have been made, there shall be paid from the Municipal. Airport Fund into a special fund designated 'Municipal Airport Depreciation Fund" on the first business day of the first month after the delivery of the bonds, and on the first business day of each month thereafter while any of Municipal Airport Revenue Bonds shall be outstanding, the sum of $2500. The moneys in the Municipal Airport Depreciation Fund shall be used solely for the purpose of paying the cost of replacements made necessary by the depreciation of the Municipal Airport; provided, however, that in the event no other funds are available therefoe the moneys in the Depreciation Fund may be used to the extent necessary to prevent a default in the payment of the principal of and interest on the bonds as they mature. If in any fiscal year a surplus shall be accumulated in the Municipal Airport Depreciation Fund over and above the amount necessary to defray the cost of proper replacements during the then current fiscal year and the next en- suing fiscal year, such surplus may be transferred and paid into the Municipal Airport Revenue Bond Fund; provided, however, that such payments into the Municipal Airport Revenue Bond Fund shall be in addition to all other payments hereinbefore required to be made into the said Municipal Airport Revenue Bond Fund. Section 13. That the bonds authorized hereby and issued hereunder shall be callable for payment prior to maturity in accordance with the terms set out in the bond form. Section 14. That so long as any of the bonds authorized hereby and issued hereunder shall be and remain outstanding and unpaid, the City of Little Rock, Arkansas and the Airport Commission covenant and agree that they will not issue additional bonds having or claiming to have a lien on the revenues of the Little Rock Municipal Airport superior to the lien of the bonds of this issue. However, nothing in this ordinance shall be construed to prevent the Little Rock Airport Commission from issuing additional bonds for the further improvement, extension and /or equipping of the Little Rock Municipal Airport facilities, but no such bonds shall be issued on a parity with the bonds of this issue, unless and until there shall have been filed with the Trustee a certificate of a certified public accountant not in the regular employ of the City, stating that gross revenues derived from the operation of the Little Rock Municipal Airport Commission for the preceding fiscal year were sufficient in amount to provide for the annual cost of operation, repair, maintenance and depreciation of the Municipal Airport and to leave a balance equal to 150% of the maximum amount that will become due in any year for principal and interest on the outstanding bonds of this issue and on the bonds of the issue then proposed. 1 Section 13. That the bonds authorized hereby and issued hereunder shall be callable for payment prior to maturity in accordance with the terms set out in the bond form. Section 14. That so long as any of the bonds authorized hereby and issued hereunder shall be and remain outstanding and unpaid, the City of Little Rock, Arkansas and the Airport Commission covenant and agree that they will not issue additional bonds having or claiming to have a lien on the revenues of the Little Rock Municipal Airport superior to the lien of the bonds of this issue. However, nothing in this ordinance shall be construed to prevent the Little Rock Airport Commission from issuing additional bonds for the further improvement, extension and /or equipping of the Little Rock Municipal Airport facilities, but no such bonds shall be issued on a parity with the bonds of this issue, unless and until there shall have been filed with the Trustee a certificate of a certified public accountant not in the regular employ of the City, stating that gross revenues derived from the operation of the Little Rock Municipal Airport Commission for the preceding fiscal year were sufficient in amount to provide for the annual cost of operation, repair, maintenance and depreciation of the Municipal Airport and to leave a balance equal to 150% of the maximum amount that will become due in any year for principal and interest on the outstanding bonds of this issue and on the bonds of the issue then proposed. Section 15. That all bonds paid, either at or before maturity, shall be cancelled when such payment is made, together with all unmatured coupons appertaining thereto. All unpaid in- terest coupons maturing on or prior to the date of such payment shall continue to be payable to the respective bearers thereof. Section 16. That it is covenanted and agreed by the City and the Airport Commission with the holder or holders of the bonds, or any of them, that they will faithfully and punctually perform all duties with reference to the Municipal Airport required by the Constitution and statutes of the State of Arkansas, includ- ing making and collecting of reasonable and sufficient rates and charges for the use of the Municipal Airport and its facilities, segregating the revenue of the Municipal Airport and applying it to the respective funds herein created. Section 17. That the Airport Commission will keep proper books of accounts and records in which complete and correct entries shall be made of all transactions relating to the opera- tion of the Municipal Airport, and such books shall be available for inspection by the holder of any of the bonds at reasonable times and under reasonable circumstances. The Airport Commission agrees to have these records audited by an independent certified public accountant at least once each year. A copy of the audit shall be delivered upon request to the Trustee and to the original purchasers of the bonds. In the event the Airport Commission and the City fail or refuse to make the audit, the Trustee, or any holder of the bonds, may have the audit made, and the cost thereof shall be charged against the Municipal Airport Operation and Maintenance Fund. Section 18. That the City and the Airport Commission covenant and agree that the Municipal Airport will be maintained in good condition and will be operated in an efficient manner and at a reasonable cost. While any of the bonds are outstanding, fire, lightning and extended coverage insurance will be maintained on all revenue producing buildings utilized by the Airport Com- mission, including the Administration Building, in an amount which normally would be carried by a private company engaged in a similar type of business. The insurance policy or policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, and are to be kept continually in force. In the event of a loss, the proceeds of such insurance shall be applied solely toward the reconstruction, replacement, or repair of the property. In such event, the Airport Commission will, with reasonable prompt- nesq, cause to be commenced and completed the reconstruction, replacement and repair. Nothing herein shall be construed as requiring the City to expend any funds for operation and mainten- ance of the Municipal Airport or for premiums on the insurance which are derived from sources other than the operation of the Municipal Airport, but nothing herein shall be construed as pre- venting the City from doing so. Section 19 (a) That moneys held for the credit of the Construction Fund, hereinafter referred to, may, as nearly as may be practicable, be continuously invested and reinvested by the Treasurer in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than six (6) months after the date of such investment. ( J • � Section 18. That the City and the Airport Commission covenant and agree that the Municipal Airport will be maintained in good condition and will be operated in an efficient manner and at a reasonable cost. While any of the bonds are outstanding, fire, lightning and extended coverage insurance will be maintained on all revenue producing buildings utilized by the Airport Com- mission, including the Administration Building, in an amount which normally would be carried by a private company engaged in a similar type of business. The insurance policy or policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, and are to be kept continually in force. In the event of a loss, the proceeds of such insurance shall be applied solely toward the reconstruction, replacement, or repair of the property. In such event, the Airport Commission will, with reasonable prompt- nesq, cause to be commenced and completed the reconstruction, replacement and repair. Nothing herein shall be construed as requiring the City to expend any funds for operation and mainten- ance of the Municipal Airport or for premiums on the insurance which are derived from sources other than the operation of the Municipal Airport, but nothing herein shall be construed as pre- venting the City from doing so. Section 19 (a) That moneys held for the credit of the Construction Fund, hereinafter referred to, may, as nearly as may be practicable, be continuously invested and reinvested by the Treasurer in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than six (6) months after the date of such investment. (b) Moneys held for the credit of the reserve for con- tingencies in the Municipal Airport Revenue Bond Fund may be continuously invested and reinvested bythe Treasurer in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than ten (10) years after the date of such investment. (c) Moneys held for the credit of any other Municipal Airport Fund may be invested and reinvested by the Treasurer in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates when the moneys held for the credit of the particular fund will be required for the purposes intended. Section 20. That the Municipal Airport shall be operated on a calendar year basis beginning January 1 and ending December 31. Section 21. That the City and the Airport Commission covenant and agree that if default is made in the payment of any bond or coupon, or if there is a failure to meet any Municipal Airport Revenue Bond Fund requirement, the holder of such bond may declare that bond immediately due and payable, and in default; provided, that the failure to exercise this option upon any default shall not be a waiver of the right to execut it upon a subsequent default. t C ! writing to the Secretary of the Airport Commission, and the ma- jority in value of the holders of the outstanding bonds at any time may, with or without cause, remove the Trustee. Upon the 1 resignation or removal of a Trustee, the majority in valued 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 forth- with 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 24. That after the bonds herein authorized to be issued 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 designated by the purchaser, which shall authenticate them and deliver them to the purchaser upon receipt from the purchaser of the purchase price of the bonds plus accrued interest. The Trustee shall remit the proceeds of the sale of the bonds and the accrued interest to the Treasurer of the Airport Commission and such Treasurer shall deposit the accrued interest in the Municipal Airport Revenue Bond Fund and shall deposit the entire balance of the proceeds in trust in a Construction Fund in a bank that is a member of the Federal Deposit Insurance Corpora- .. Section 22. That whenever there is a default that continues for thirty (30) days or more in the payment of any revenue bond or interest coupon of this issue, the holder or holders of any revenue bond or interest coupon in default, or the Trustee acting on behalf of such holders, may exercise any available remedy at law or in equity, including without limita- tion the right to apply to the Chancery Court of Pulaski County, Arkansas for the appointment of a receiver for the properties and revenues of the Little Rock Municipal Airport, with power to operate said properties and to charge and collect rates suf- ficient to provide revenues for the payment of said revenue bonds and interest thereon, and for the operation and maintenance ex- penses and costs of,the receiver, until all delinquent principal andinterest are paid in full, whereupon the management and control of the properties shall revert to the City and to the Airport Commission; provided, however, that a failure to exercise the right to apply for a receiver shall mt be a waiver of the right to make such application upon any subsequent default. Section 23. 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 tion, such deposit to be secured by bonds or other direct or fully guaranteed obligations of the United States of America. The moneys in the said Construction Fund shall be disbursed solely in payment of the cost of land acquisition and improving the Municipal Airport facilities, including necessary expenses incidental thereto, but only on warrants, checks or vouchers signed by the Treasurer of the Airport Commission briefly specifying the disbursement or expenditure. Section 25. That the provisions of this ordinance shall constitute a binding contract between the City and the holders of the outstanding bonds and coupons issued hereunder, and the City will at all times strictly adhere to the terms and provisions hereof and fully discharge all of its obligations here- under. Subject to the terms and provisions contained in this section and not otherwise, the holders of not less than seventy- five per cent (75 %) in aggregate principal amount of the bonds then outstanding shall have the right, from time to time, anything contained in this ordinance to the contrary notwithstanding, to consent to and approve the adoption by the City of such ordinance supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to or rescind- ing, in any particular, any of the terms or provisions contained in this ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any bond issued hereunder, or (b) a reduction in the principal amount of any bond or the rate of interest therein, or (c) the creation of a lien upon or a pledge of revenues other than the lien and pledge created by this ordinance, or (d) a privilege of priority of any bond or bonds over any other bond or � a . + r f • 1 a f s.• ,t a r• � r bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. Section 26. 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 27. That if any provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. Section 28. That all ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 29. 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 of Little Rock. The herein authorized improvements are immediately necessary to alleviate the hazard and can be accomplished only by the issu- ance 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: June 19 , 1961. APPROVED: /� /-- l_ Mayor ATTEST: City Clerk () C E R T I F I C A T E The undersigned, City Clerk of the City of Little Rock, Arkansas, hereby certifies that the foregoing pages, numbered 1 to 25 , inclusive, are a true and perfect copy of Ordinance No. 11,190 , passed at a regular session of the Board of Directors of Little Rock, Arkansas, held at the regular meeting place of the Board at 7:30 o'clock P. .m., on the 19th day of June 1961, and that said ordinance is of record in Ordinance Record Book No. . 20 , page 22 , now in my possession. Given under my hand and seal this day of , 1961. (SEAL) City Clerk EXCERPTS FROM MINUTES OF MEETING OF THE LITTLE ROCK MUNICIPAL AIRPORT COMMISSION HELD APRIL 17, 1961 The Little Rock Municipal Airport Commission met in session in the Board Room of the Commission, Little Rock, Arkansas, at 2:30 o'clock p.m., on the 17th day of April, 1961. The following members of the Commission were present: J. V. Satterfield, Frederick U. Andres and Jack East, Sr. The following were absent: Phil A. Dulin, Floyd Sharp. R E S O L U T I O N WHEREAS the Little Rock Municipal Airport Commission has determined that it would be in the best interests of the City of Little Rock and the inhabitants thereof if the Little Rock Municipal Airport facilities be improved by the making of necessary improvements and the acquisition of land, all at an estimated cost to the City of $250,000 (which will be combined in part with federal funds); and WHEREAS the Airport Commission has had prepared for submission to the Board of Directors of Little Rock, Arkansas, an ordinance authorizing the said improving and acquisition and authorizing the issuance of Municipal Airport Revenue Bonds to obtain the necessary funds for said improvements and acquisition, which ordinance is as follows: �_z ORDINANCE NO. AN ORDINANCE AUTHORIZING THE ISSUANCE OF MUNICIPAL AIRPORT REVENUE BONDS BY THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE PURPOSE OF FINANCING IMPROVE.-, MENTS TO THE MUNICIPAL AIRPORT FACILITIES AND THE ACQUISITION OF LAND; MAKING PLEDGES AND COVENANTS TO INSURE THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS the Little Rock Municipal Airport and its related property and facilities are being operated, managed and maintained by the Little Rock Municipal Airport Commission (hereinafter some- times called the "Airport Commission "), which was created and organized pursuant to Act 53 of the Acts of Arkansas of 1949, and Initiated Ordinance No. 8511 of the City of Little Rock, Arkansas, adopted November 7, 1950; and WHEREAS the Airport Commission has determined that there should be constructed additional improvements to the Municipal Airport facilities and that there should be acquired additional land; a brief general description of said proposal being: taxi- way construction, taxiway lighting, ramp paving, land acquisition, storm sewer construction, and other related and incidental improve- meets to the airport facility, including, but not limited to, the construction of buildings for various purposes, such as aircraft and cargo storage, garages and shops, all at an estimated cost to the City of $250,000 (which will be combined with federal funds); and WHEREAS the Airport Commission does not have sufficient funds to make said improvements and acquire said land; and WHEREAS the Airport Commission has unanimously passed a resolution declaring that it would be to the best interests of the City of Little Rock and the inhabitants thereof if the airport ` F 1 F a ' r facilities be improved and additional land be acquired, and has authorized its Chairman to make these facts known to the Board of Directors with the request that the Board of Directors take the necessary steps to issue and sell Municipal Airport Revenue Bonds to finance the said improvements and acquisition; and WHEREAS the Board of Directors hereby finds and declares that it would be to the best interest of the City and its inhabi- tants for the airport facilities to be improved and for additional lands to be acquired and that revenue bonds be issued to finance the same; NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. That the Little Rock Municipal Airport facilities be improved in accordance with the plans of the Airport Commission, and that additional land be acquired in accordance with the plans of the Airport Commission. Section 2. That under the authority of the Constitution and laws of theState of Arkansas, including particularly Act 53 of the Acts of Arkansas of 1949, Little Rock Municipal Airport Revenue Bonds are hereby authorized andordered issued in the total principal amount of Two Hundred Fifty Thousand Dollars ($250,000) for the purpose of financing the cost of improving the Little Rock Municipal Airport facilities and acquiring additional lands. The bonds shall be sold at public sale with the bonds to bear interest at such rate as is fixed in the bid accepted by the Airport Commission. The Interest shall be payable semi - annually on May 1 and November 1 of each year commencing November 1, 1961 and all bonds shall mature on May 1 of each year as follows, but shall be callable as hereinafter set forth: 1 YEAR AMOUNT 1962 $ 73,000 1963 7,000 1964 8,000 1965 9,000 1966 9,000 1967 103,000 1968 103,000 1969 113,000 1970 11,000 1971 123,000 1972 123,000 1973 133,000 1974 133,000 1975 143,000 1976 153,000 1977 163,000 1978 172000 1979 18,000 1980 182000 1981 201000 The interest shall be evidenced by interest coupons and the principal and interest shall be payable in lawful money of the United States of America upon presentation of the bond or proper coupon at the office of the paying agent designated by the purchaser. The bonds shall be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest, the conversion to be subject to the approval of the Airport Commission and counsel approving the bond issue. 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. Interest coupons attached to each of said bonds may have the facsimile signature of the Mayor of the City lithographed or printed thereon, which signature shall have the same force and effect as if he had personally signed each of said coupons. The bonds and coupons shall be payable in such funds as at the time of the respective payments are legal tender for the payment of debts due the United States of America at the Section 5. After the bonds are sold, the Board of Directors of the City of Little Rock shall by resolution approve the sale, the Trustee and Paying Agent named by the purchaser, and the conversion, if any, of the bonds. Thereafter the bonds of the issue as sold or as converted shall be numbered consecu- tively beginning with No. 1 and after being printed shall be presented to the Mayor and City Clerk for execution. Section 6. That the bonds and coupons shall be in substantially the following form and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: • • r I r r r t 1 office of the paying agent designated by the purchaser. The bonds, together with interest thereon, shall be payable solely out of the Municipal Airport Revenue Bond Fund, as hereinafter defined, and shall be a valid claim of the holders thereof only against such fund, and the amount of the revenues pledged to such fund, which amount of said revenues is hereby pledged and mortgaged for the equal and ratable payment of the bonds, and shall be used for no other purpose than to pay the principal of and interest on the bonds, except as may be hereinafter specifically provided. The bonds and interest thereon shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 4. That the bonds herein authorized and ordered issued shall be sold at public sale on sealed bids. Notice shall be given by the Secretary of the Airport Commission by publication in a daily newspaper published and having a general circulation in the City of Little Rock, Arkansas. The notice shall be published in the Little Rock paper at least once a week for two consecutive weeks and may be published in such additional publications as the Airport Commission may determine. In addition to the usual provisions, the notice shall provide that the purchaser may name the Trustee and Paying Agent; that all expenses of the issue, including but not limited to, the printing of the bonds, the Trustee's fee and the fee of bond counsel, will be paid by the purchaser; that the purchaser shall have the privilege of converting the bonds to an issue bearing a lower rate or rates of interest, with the conver- sion to be in accordance with the Universal Bond Values Tables and upon such terms that the City receive no less and pay no more than it would receive and pay if the bonds were not converted; that the conversion shall be subject to the approval of the City Council; and that the City reserves the right to reject any and all bids. f � • 5 UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK % MUNICIPAL AIRPORT REVENUE BOND NO. KNOW ALL MEN BY THESE PRESENTS: That the City of Little Rock, in the County of Pulaski and State of Arkansas, acknowledges itself to owe and, for value received, promises to pay to bearer, solely from the special fund provided as hereinafter set forth, the principal sum of in lawful money of the United States of America on the first day of May, 19 _, and to pay, solely from said special fund, interest hereon at the rate of per centum C %) per annum from date, semi - annually on the first days of May and November in each year, commencing November 1, 1961, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this revenue bond are made payable at This bond is one of a series of (, ) revenue bonds, aggregat- ing dated May 1, 1961, numbered from one (1) to Dollars ($_ ), ( ), inclusive, all of like tenor and effect except as to number, maturity, denomination, rate of interest, and right of prior redemption, and are issued for the purpose of financing the acquisition of land and the improvement of Little Rock Municipal Airport facilities. This bond and the series of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act 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 of Little Rock, Arkansas, and a resolution duly adopted by the Little Rock Municipal Airport Commission, and do not constitute an indebtedness of the City of Little Rock within any constitutional or statutory limitation. Said bonds are not general obligations of the City, but are special obligations pay- able solely from a fixed amount of the net revenues from the Municipal Airport, (net revenues being gross revenues less the reasonable expenses of operation, repair and maintenance of the Municipal Airport) which amount shall be sufficient to pay the principal of and interest on the bonds as they mature. Said amount has been duly set aside and pledged as a special fund for that pur- pose and identified as the Municipal Airport Revenue Bond Fund, created by Ordinance No. duly passed by the Board of Directors of the City of Little Rock on the _ _day of , 1961, under which this bond is authorized to be issued, and in said ordinance the said City of Little Rock has covenanted and agreed to impose and collect such charges for the use of the Little Rock 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 bonds as the same become due and payable, together with paying agent's fees, and to make the required deposit in the Municipal Airport Depreciation Fund. i' � • r 1 The bonds of this issue shall be callable at par and accrued interest in inverse numerical order on any interest paying date with funds from any source. Notice of the call for redemption shall be published once a week for two weeks 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 first publi- cation 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 pay- meet are on deposit with the paying agent at that time. The City of Little Rock and the Little Rock Municipal Airport Commission hereby covenant that full payment has been received for this revenue bond and that there is no defense, offset, or counterclaim against this bond or the pledge of revenues hereinabove made to secure its payment. This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly signed by It is hereby certified, recited and declared that all acts, conditions, and things required to exist, happen, and be performed precedent to and in the issuance of this bond have existed, have happened and have been performed in due time, form and manner, as required by law; that the indebtedness represented by this bond and the issue of which it forms a part does not exceed any constitutional or statutory limitation; and that sufficient of the income and revenue which is deemed to be derived from the opera- tion of the Little Rock Municipal Airport has been pledged to and will be set aside into said special fund for the payment of the principal of and interest on said bonds. 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 and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be executed by the facsimile signature of said Mayor, all as of the first day of May, 1961. CITY OF LITTLE ROCK, ARKANSAS By City Clerk (SEAL) Mayor (Form of Coupon) No. Y r 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 fund specified in the bond to which this coupon is attached, Dollars ($ ) in lawful money of the United States of America at the office of , being six months' interest then due on its Municipal Airport Revenue Bond, which is dated May 1, 1961, and numbered CITY OF LITTLE ROCK, ARKANSAS By Mayor On each bond shall appear the following: CERTIFICATE hereby certifies that this is one of a series of bonds, described herein, aggregating $ , numbered from 1 to , inclusive, all of like tenor and effect except as to number, maturity, denomination, rate of interest and right of prior redemption. Little Rock, Arkansas 2 1961 By. Section 7. That the City of Little Rock, Arkansas, and the Little Rock Municipal Airport Commission hereby covenant and agree with the holders of the bonds that there will be imposed and collected such charges for the use of the Little Rock 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 the bonds as the same become due and payable, together with paying agent's fees, and to make the required deposit in the Municipal Airport Depreciation Fund, hereinafter created. Section 8. That the -Treasurer of the Little Rock Municipal Airport Commission shall be custodian of the revenues derived from the operation of the Little Rock Municipal Airport and shall give bond for the faithful discharge of all duties as such custodian. The amount of the bond shall be fixed by the Airport Commission and approved by the Trustee. All Municipal Airport revenues shall be kept separate and apart from the other funds of the City and shall be deposited in such depository or depositories as may be designated from time to time by the Airport Commission, subject, however, to the giving of security by such depository or depositories as now or as hereafter may be required by law. All deposits made bythe Treasurer shall be in the name of the Airport Commission and shall be so designated as to indicate the particular fund to which the revenues belong. Section 9. Municipal Airport Fund. From and after the delivery of any bonds issued under the provisions of this ordi- nance, the Little Rock Municipal Airport shall be continuously operated as a revenue - producing undertaking, and the income and revenue from such operation shall be set aside as and when collected into a separate fund which-is hereby created and desig- nated Municipal Airport Fund. Such revenues so deposited in "'the Municipal Airport Fund are hereby pledged and shall be applied • 1 � and apportioned in the manner hereinafter provided. Provided, that nothing in this ordinance shall be construed so as to prohibit the financing of additional improvements on air- port property by the issuance of revenue bonds payable solely from the income derived from the improvements acquired or constructed with such bonds, and the income from any such improvements may be segregated and applied to the payment of such bonds. That any surplus remaining in the Municipal Airport Fund after making full provision for the other funds hereinafter provided for may be used, at the option of the Airport Commission, for the payment of the principal of and interest on any bonds of the issue herein authorized that may be called for redemption prior to maturity, for the construction of extensions, betterments and improvements to the Municipal Airport, or for any other lawful purpose. Section 10. Municipal Airport Operation and Maintenance Fund. That there is hereby created a special fund designated Municipal Airport Operation and Maintenance Fund, into which there shall be transferred and paid from the Municipal Airport Fund on the first business day of each month after the bonds are delivered and continuing on the first business day of each month thereafter while any of the bonds issued under this ordinance shall be outstanding, an amount sufficient to pay, with other available income, if any, all reasonable and proper expenses of operation, repair and mainte- nance of the Municipal Airport for such month and from which disbur- sements shall be made only for that purpose. If in any month, for any reason, there shall be a failure to transfer and pay the required amount into said fund, then the amount of any deficiency shall be added to the amount otherwise required to be transferred and paid into said fund in the next suc- ceeding month. Fixed annual charges, such as insurance premiums and the cost of major repairs and maintenance expenses, may be computed and set up on an annual basis and one - twelfth (1/12) of the amount thereof may be paid into said Operation and Maintenance Fund each mm n 1-h ' 1 If any surplus shall be accumulated in the Municipal Air- port Operation and Maintenance Fund over and above the amount necessary to meet the requirements thereof during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred to the Municipal Airport Revenue Bond Fund or the Municipal Airport Depreciation Fund, as the Municipal Airport Commission may designate; provided, however, that any such transfer into the Airport Revenue Bond Fund shall be in addition to all other payments required to be made into said fund. Section 11. Municipal Airport Revenue Bond Fund. (1) That after making the monthly deposit in the Municipal Airport Operation and Maintenance Fund, the Treasurer of the Little Rock Municipal Airport Commission shall transfer and pay from the Municipal Airport Fund the sum in the amounts and at the times hereinafter stated in sub - section (2) for the purpose of providing funds for the payment of the principal of and interest on the bonds herein authorized, and the paying agent's fees as they mature according to a schedule to be set up and approved by the Airport Commission after the terms of the sale of the bonds and the conversion thereof, if any, shall have been approved by the Airport Commission, and as a reserve for con- tingencies. (2) That there shall be paid from the Municipal Airport Fund into the Municipal Airport Revenue Bond Fund, beginning on the first business day of the first month after the delivery of the bonds, and continuing on the first business day of each month thereafter until the amount in said Municipal Airport Revenue Bond Fund is sufficient to pay all outstanding bonds, interest thereon, and the paying agent's fees, a sum equal to one -fifth (1/5) of the next installment of interest and one -tenth (1 /10) ofihe next installment of principal, and an amount sufficient to provide for the paying agent's fees, on all outstanding bonds of the issue herein authorized; provided, how- a ever, that after there shall have been accumulated in said Municipal Airport Revenue Bond Fund the sum as a reserve for contingencies equal to the maximum amount that will become due in any year thereafter for principal and interest of the bonds herein authorized, the monthly payments may be reduced to one- sixth (1/6) of the next installment of interest and one - twelfth (1/12) of the next installment of principal, and a sum sufficient to provide for the paying agent's fees. (3) That 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 Municipal Airport Revenue Bond Fund, then the amount of any such deficiency shall be added to the amount otherwise required to be paid into the Municipal Airport Revenue Bond Fund on the first business day of the next month. (4) That if for any reason the funds in the Municipal Airport Revenue Bond Fund shall at any time be insufficient to meet any interest and /or principal payments on the bonds of the issue herein authorized, the sums then held as a reserve for contingencies shall be used to the extent necessary to make said interest and /or principal payments, but such reserve shall be reimbursed from the Municipal Airport Fund before any of the moneys in the Municipal Airport Fund shall be used for any other purpose, except for making the required payments into the Municipal Airport Operation and Maintenance Fund and into the Municipal Air- port Revenue Bond Fund. Said reserve for contingencies shall be continuously maintained in the amount above specified and shall be used solely as herein provided. (5) That when the moneys in the Municipal Airport Revenue Bond Fund, including the reserve for contingencies, shall be and remain sufficient to pay the principal of and interest on all outstanding bonds, and the paying agent's fees, there shall be no obligation to make my further payments into the Municipal Airport Revenue Bond Fund. (6) That all moneys in the Municipal Airport Revenue Bond Fund shall be used solely for the payment of the principal of and interest on the bonds herein authorized and the paying agent's fees, except as herein specifically provided. If a surplus shall exist in the Municipal Airport Revenue Bond Fund over and above the amount necessary of the principal of and interest on due and the paying agent's fees and for contingencies, such surplus may Municipal Airport Commission, for t] of and interest on any bonds of the to insure the prompt payment the bonds as the same become over and above the reserve be used, at the option of the ie payment of the principal issue herein authorized that may be called for redemption prior to maturity. (7) That it shall be the duty of the Treasurer of the Municipal Airport Commission to withdraw from the Municipal Airport Revenue Bond Fund at least five (5) days before the maturity date of any bond or interest coupons 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 same, together with the paying agent's fees. 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. Section 12. Municipal Airport Depreciation Fund. That after the required payments into the Municipal Airport Operation and Maintenance Fund and the Municipal Airport Revenue Bond Fund have been made, there shall be paid from the Municipal Airport Fund into a special fund designated "Municipal Airport Depreciation Fund" on the first business day of the first month after the delivery of the bonds, and on' the first business day of each month thereafter while any of Municipal Airport Revenue Bonds shall be outstanding, the sum of $2500. The moneys in the Municipal Airport Depreciation Fund shall be used solely for the purpose of paying the cost of replacements made necessary by the depreciation of the Municipal Airport; provided, however, that in the event no other funds are available therefor the moneys in the Depreciation Fund may be used to the extent necessary to prevent a default in the payment of the principal of and interest on the bonds as they mature. If in any fiscal year a surplus shall be accumulated in the Municipal Airport Depreciation Fund over and above the amount necessary to defray the cost of proper replacements during the then current fiscal year and the next en- suing fiscal year, such surplus may be transferred and paid into the Municipal Airport Revenue Bond Fund; provided, however, that such payments into the Municipal Airport Revenue Bond Fund shall be in addition to all other payments hereinbefore required to be made into the said Municipal Airport Revenue Bond Fund. Section 13. That the bonds authorized hereby and issued hereunder shall be callable for payment prior to maturity in accordance with the terms set out in the bond form. Section 14. That so long as any of the bonds authorized hereby and issued hereunder shall be and remain outstanding and unpaid, the City of Little Rock, Arkansas and the Airport Commission covenant and agree that they will not issue additional bonds having or claiming to have a lien on the revenues of the Little Rock Municipal Airport superior to the lien of the bonds of this issue. However, nothing in this ordinance shall be construed to prevent the Little Rock Airport Commission from issuing additional bonds for the further improvement, extension and /or equipping of the Little Rock Municipal Airport facilities, but no such bonds shall be issued on a parity with the bonds of this issue, unless and until there shall have been filed with the Trustee a certificate of a certified public accountant not in the regular employ of the City, stating that gross revenues derived from the operation of the Little Rock Municipal Airport Commission for the preceding fiscal year were sufficient in amount to provide for the annual cost of operation, repair, maintenance and depreciation of the Municipal Airport and to leave a balance equal to 150% of the maximum amount that will become due in any year for principal and interest on the outstanding bonds of this issue and on the bonds of the issue then proposed. Section 15. That all bonds paid, either at or before maturity, shall be cancelled when such payment is made, together with all unmatured coupons appertaining thereto. All unpaid in- terest coupons maturing on or prior to the date of such payment shall continue to be payable to the respective bearers thereof. Section 16. That it is convenanted and agreed by the City and the Airport Commission with the holder or holders of the bonds, or any of them, that they will faithfully and punctually perform all duties with reference to the Municipal Airport required by the Constitution and statutes of the State of Arkansas, includ- ing making and collecting of reasonable and sufficient rates and charges for the use of the Municipal Airport and its facilities, segregating the revenue of the Municipal Airport and applying it tothe respective funds herein created. Section 17. That the Airport Commission will keep proper books of accounts and records in which complete and correct entries shall be made of all transactions relating to the opera- tion of the Municipal Airport, and such books shall be available for inspection by the holder of any of the bonds at reasonable times and under reasonable circumstances. The Airport Commission agrees to have these records audited by an independent certified public accountant at least once each year. A copy of the audit shall be delivered upon request to the Trustee and to the original purchasers of the bonds. In the event the Airport Commission and the City fail or refuse to make the audit, the Trustee, or any holder of the bonds, may have the audit made, and the cost thereof shall be charged against the Municipal Airport Operation and Maintenance Fund. Section 18. That the City and the Airport Commission covenant and agree that the Municipal Airport will be maintained in good condition and will be operated in an efficient manner and at a reasonable cost. While any of the bonds are outstanding, fire, lightning and extended coverage insurance will be maintained on all revenue producing buildings utilized by the Airport Com- mission, including the Administration Building, in an amount which normally would be carried by a private company engaged in a similar type of business. The insurance policy or policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, and are to be kept continually in force. In the event of a loss, the proceeds of such insurance shall be applied solely toward the reconstruction, replacement, or repair of the property. In such event, the Airport Commission will, with reasonable prompt- ness, cause to be commenced and completed the reconstruction, replacement and repair. Nothing herein shall be construed as requiring the City to expend any funds for operation and mainten- ance of the Municipal Airport or for premiums on the insurance which are derived from sources other than the operation of the Municipal Airport, but nothing herein shall be construed as pre- venting the City from doing so. Section 19. (a) That moneys held for the credit of the Construction Fund, hereinafter referred to, may, as nearly as may be practicable, be continuously invested and reinvested by the Treasurer in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than six (6) months after the date of such investment. (b) Moneys held for the credit of the reserve for con- tingencies in the Municipal Airport Revenue Bond Fund may be continuously invested and reinvested by the Treasurer in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than ten (10) years after the date of such investment. (c) Moneys held for the credit of any other Municipal i Airport Fund may be invested and reinvested by the Treasurer in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates when the moneys held for the credit of the particular fund will be required for the purposes intended. Section 20. That the Municipal Airport shall be operated on a calendar year basis beginning January 1 and ending December 31. Section 21. That the City and the Airport Commission covenant and agree that if default is made in the payment of any bond or coupon, or if there is a failure to meet any Municipal Airport Revenue Bond Fund requirement, the holder of such bond may declare that bond immediately due and payable, and in default; provided, that the failure to exercise this option upon any default shall not be a waiver of the right to execute it upon a subsequent default. . . L Section 22. That whenever there is a default that continues for thirty (30) days or more in the payment of any revenue bond or interest coupon of this issue, the holder or holders of any revenue bond or interest coupon in default, or the Trustee acting on behalf of such holders, may exercise any available remedy at law or in equity, including without limita- tion the right to apply to the Chancery Court of Pulaski County, Arkansas for the appointment of a receiver for the properties and revenues of the Little Rock Municipal Airport, with power to operate said properties and to charge and collect rates suf- ficient to provide revenues for the payment of said revenue bonds and interest thereon, and for the operation and maintenance ex- penses and costs of the receiver, until all delinquent principal and interest are paid in full, whereupon the management and control of the properties shall revert to the City and to the Airport Commission; provided, however, that a failure to exercise the right to apply for a receiver shall not be a waiver of the right to make such application upon any subsequent default. Section 23. 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 ma- jority 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 forth- with 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 inthe 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 24. That after the bonds herein authorized to be issued 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 designated by the purchaser, which shall authenticate them and deliver them to the purchaser upon receipt from the purchaser of the purchase price of the bonds plus accrued interest. The Trustee shall remit the proceeds of the sale of the bonds and the accrued interest to the Treasurer of the Airport Commission and such Treasurer shall deposit the accrued interest in the Municipal Airport Revenue Bond Fund and shall deposit the entire balance of the proceeds in trust in a Construction Fund in a bank that is a member of the Federal Deposit Insurance Corpora- • tion, such deposit to be secured by bonds or other direct or fully guaranteed obligations of the United States of America. The moneys in the said Construction Fund shall be disbursed solely in payment of the cost of land acquisitim and improving the Municipal Airport facilities, including necessary expenses incidental thereto, but only on warrants, checks or vouchers signed by the Treasurer of the Airport Commission briefly specifying the disbursement or expenditure. Section.25. That the provisions of this ordinance shall constitute a binding contract between the City and the holders of the outstanding bonds and coupons issued hereunder, and the City will at all times strictly adhere to the terms and provisions hereof and fully discharge all of its obligations here- under. Subject to the terms and provisions contained in this section and not otherwise, the holders of not less than seventy- five per cent (75°x) in aggregate principal amount of the bonds then outstanding shall have the right, from time to time, anything contained in this ordinance to the contrary notwithstanding, to consent to and approve the adoption by the City of such ordinance supplemental hereto as shall be necessary or desirable for the purpose of modifying altering, amending, adding to or rescind- ing, in any particular, any of the terms or provisions contained in this ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any bond issued hereunder, or (b) a reduction in the principal amount of any bond or the rate of interest therein, or (c) the creation of a lien upon or a pledge of revenues other than the lien and pledge created by this ordinance, or (d) a privilege of priority of any bond or bonds over any other bond or W bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. Section 26. 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 27. That if any provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. Section 28. That all ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 29. 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 of Little Rock. The herein authorized improvements are immediately necessary to alleviate the hazard and can be accomplished only by the issu- ance 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: June 19 , 1961. ATTEST: City Clerk (SEAL) APPROVED: &.4 . Mayor 1 bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. Section 26. 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 27. That if any provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. Section 28. That all ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 29. 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 of Little Rock. The herein authorized improvements are immediately necessary to alleviate the hazard and can be accomplished only by the issu- ance 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: June 19 , 1961. ATTEST: City Clerk (SEAL) APPROVED: &.4 . Mayor v C E R T I F I C A T E The undersigned, City Clerk of the City of Little Rock, Arkansas, hereby certifies that the foregoing pages, numbered 1 to , inclusive, are a true and perfect copy of Ordinance No. , passed at a session of the Board of Directors of Little Rock, Arkansas, held at the regular meeting place of the Board at o'clock p.m., on the day of , 19612 and that said ordinance is of record in Ordinance Record Book No. , page , now in my possession. Given under my hand and seal this day of 1961. City Clerk (SEAL) C E R T I F I C A T E The undersigned, City Clerk of the City of Little Rock, Arkansas, hereby certifies that the foregoing pages, numbered 1 to , inclusive, are a true and perfect copy of Ordinance No. , passed at a session of the Board of Directors of Little Rock, Arkansas, held at the regular meeting place of the Board at o'clock p.m., on the day of , 19612 and that said ordinance is of record in Ordinance Record Book No. , page , now in my possession. Given under my hand and seal this day of 1961. City Clerk (SEAL) NOW, THEREFORE, BE IT RESOLVED by the Little Rock Municipal Airport Commission in a duly called and constituted meeting: Section 1. That the ordinance hereinabove set out be, and the same hereby is, in all particulars, approved, all covenants to be made by the Airport Commission are hereby accepted, and the Chairman be, and he hereby is, directed to present the ordinance to the Board of Directors of Little Rock, Arkansas with the recommendation that said ordinance be enacted by the Board of Directors of Little Rock, Arkansas. Section 2. That the Chairman be, and he is hereby, authorized and directed to request the City of Little Rock, Arkansas to take all steps necessary to the issuance of said Municipal Airport Revenue Bonds, authorized and described in detail in said ordinance. Section 3. That this Resolution shall be in full force and effect immediately upon its adoption and shall super- sede and control with respect to the issuance of said revenue bonds, notwithstanding the provisions of any other resolution heretofore adopted. Passed and unanimously adopted this day of , 1961. Secretary a NOW, THEREFORE, BE IT RESOLVED by the Little Rock Municipal Airport Commission in a duly called and constituted meeting: Section 1. That the ordinance hereinabove set out be, and the same hereby is, in all particulars, approved, all covenants to be made by the Airport Commission are hereby accepted, and the Chairman be, and he hereby is, directed to present the ordinance to the Board of Directors of Little Rock, Arkansas with the recommendation that said ordinance be enacted by the Board of Directors of Little Rock, Arkansas. Section 2. That the Chairman be, and he is hereby, authorized and directed to request the City of Little Rock, Arkansas to take all steps necessary to the issuance of said Municipal Airport Revenue Bonds, authorized and described in detail in said ordinance. Section 3. That this Resolution shall be in full force and effect immediately upon its adoption and shall super- sede and control with respect to the issuance of said revenue bonds, notwithstanding the provisions of any other resolution heretofore adopted. Passed and unanimously adopted this day of , 1961. Secretary x r, C E R T I F I C A T E I, the undersigned, Secretary of the Little Rock Municipal Airport Commission, certify that I, as such Secretary, have custody of the minutes and records of the Little Rock Municipal Airport Commission and that the fore- going are true, correct and compared excerpts from the minutes of a meeting of the Commission held at 2:30 o'clock P m., on the 17th day of April , 1961, and that the resolution set forththerein is a true, correct and compared copy of a resolution unanimously adopted at said meeting. WITNESS my hand as such Secretary this day of , 1961. Secretary