9152ORDINANCE NO. 9152
AN ORDINANCE AUTHORIZING THE ISSUA 'CE OF MUNICIPAL
AIRPORT REVENUE BONDS BY THE CITY OF LITTLE ROCK,
ARKANSAS, FOR THE PURPOSE OF REFUNDING CERTAIN
OUTSTA`_ DING INPUNICIPAL AIRPORT RE`TE 1UE BONDS AND
IMPROVING THE LITTLE ROCK 'MU'NICIPAL AIRPORT; MAKING
PLEDGES AND COVENANTS TO INSURE THE PAY1021T OF SAID
BONDS; PRESCRIBING OT%IER EATTE'RS RELATING THERETO;
AND DECLARING AN EIERGENCY
WHEREAS, the Little Rock Municipal Airport, its related
properties and facilities, is being operated, managed and main-
tained by the Little Rock Municipal Airport Commission (hereinafter
sometimes called the Airport Commission), which was created and
organized pursuant to Act 53 of the Acts of Arkansas, 1949, and
Initiated Ordinance No. 8511 of the City of Little Rock, Arkansas,
adopted November 7, 1950; and
WHEREAS, the City Council of the City of Little Rock,
Arkansas, pursuant to the request of the Airport Commission,
authorized by Ordinance No. 8675, adopted May 21, 1951, the
issuance of "City of Little Rock Municipal Airport Revenue 22%
Bonds", dated June 1, 1951, in the principal amount of $100,000.00
and maturing June 1, 1954, of which issue there are.now outstand-
ing bonds in the principal amount of $80,000.00; and
WHEREAS, the Airport Commission has determined that
additional improvements and extensions to the present Little Rock
Municipal Airport are badly needed, and has caused plans and es-
timates to be made of the improvements and extensions and cost
thereof, a brief general description of which are: resurfacing
taxi -ways; paving parking areas; remodeling office building; con-
struction of additions to Administration Building; and the ac-
quisition of land for an instrument landing system, all at an
estimated cost of X140,000.00; and
WHEREAS, the Civil Aeronautics Administration of the
Federal Government will match all funds expended by the Airport
Commission in the construction of said improvements and extensions,
and the Airport Commission needs $70,000.00 in order to undertake
said improvements and extensions; and
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WHEREAS, the Airport Commission does not have sufficient
funds to undertake said improvements and extensions and to retire
the outstanding bonds when they mature; and
WHEREAS, on the 2 7th day of 1!arch, 1953, the Airport
Commission, by unanimous action, passed a resolution declaring
that it would be to the best interest of the City of Little Rock
and the inhabitants thereof if the said improvements and exten-
sions be made immediately and authorizing its Chairman to make
these facts known to the City Council with the request that the
City Council take the necessary steps to issue and sell Municipal
Airport Revenue Bonds to finance the refunding of the outstanding
bonds and the making of the said improvements and extensions; and
WHEREAS, the City Council finds and determines that it
would be to the best interest of the City of Little Rock, Arkansas,
and the inhabitants thereof, that the said improvements and ex-
tensions be made as soon as reasonably may be done and that Revenue
Bonds be issued to finance the same and the refunding of the out-
standing bonds.
NOW, T17,REFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. That the improvements and extensions to
the Little Rock Municipal Airport be made in accordance with the
above mentioned plans and estimates.
SECTION 2. That under the authority of the constitution
and laws of the State of Arkansas, Little Rock 1,11ur_icipal Airport
Refunding and Improvements Revenue Bonds are hereby authorized and
ordered issued in the total amount of One Hundred Fifty Thousand
Dollars ($150,000.00) for the purpose of refunding the 44800000.00
in outstanding bonds of the said June 1, 1951 issue of Little
Rock Municipal Airport 21 Revenue Bonds, and for the purpose of
financing the above set forth improvements and extensions to the
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Municipal Airport. Said bonds shall be sold at public sale and
shall bear interest at such rate as is fixed in the bid accepted
by the Airport Commission. The interest shall be payable semi-
annually on the first day of June and December in each year, with
the first interest payment due on December 1, 1953, such interest
to be evidenced by interest coupons, and the principal and in-
terest shall be payable in lawful money of the United States upon
presentation of the bond or proper coupon at the office of the pay-
ing agent designated by the purchaser. The bonds shall be in
the denomination of $1,000.00 each, shall be numbered consecutively
from 1 to 150, inclusive, shall be dated Apr13 1, 1953, and shall
mature on June 1, 1958, but are callable as hereinafter set forth.
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 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. The bonds and the 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, and the time,
place and terms of the sale shall be as set forth in the following
form of notice, which notice shall be given by the Secretary of
the Airport Commission by publishing the same, in substantially
the form as hereinafter set forth, in a daily paper published and
having a general circulation in the City of Little Rock, Arkansas.
NOTICE OF BOND SALE
$150,000.00 Little Rock Municipal Airport Refunding
and Improvement Revenue Bonds of 1953
Notice is hereby given that there will be sold to the
highest bidder for cash on sealed bids 4150,000.00 Little Rock
Municipal Airport Refunding and Improvement Revenue Bonds. The
bonds will be dated April. 1, 1953, will be in the denomination of
$1,000 each, and the interest will be payable semi - annually on the
first day of June and December in each year, with the first interest
payment due on December 1, 1953. The bonds will mature on June 1,
19,,; 8.
The bonds are being issued for the purpose of refunding
$80,000.00 in outstanding Little Rock Municipal Airport Revenue Bonds,
dated June 1, 1951, and for the purpose of financing certain im-
provements and extensions to the Little Rock ii-Iunicipal Airport.
Said bonds will not be general obligations of the City of Little
Rock, but will be payable solely from and secured by a pledge of
revenues of the Little Rock Iunicipal Airport.
Each bidder shall specify the interest rate or rates upon
which his bid is based, and no bid of less than par and accrued
interest based upon the rate or rates submitted by the bidder will
be entertained. The bonds will not be subject to conversion and
the award, if made, will be to the responsible bidder whose bid re-
sults in the lowest net interest cost, such cost to be determined by
deducting the amount of any premium bid from the aggregate amount of
interest upon all of the bonds from date to maturity.
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The bonds will be subject to redemption prior to maturity
in inverse numerical order at par and accrued interest on any
interest paying date on and after December 12 19540with funds
derived from any source. Notice of the call will be published
once a week for two weeks before the date of such redemption in a
newspaper of general circulation published in the City of Little
Pock, Arkansas, the first of such publications to be at least thirty
days prior to the redemption date.
The purchaser may name the paying agent and Trustee. All
expenses of the issue, including the printing of the bonds, the
Trustee's fee, the publication expense, and the fee of Mehaffy,
Smith & Williams, upon whose approving opinion the bonds will be
issued, must be paid by the purchaser.
Each bid shall be enclosed in a sealed envelope marked
on the outside "Proposal for Little Rock Eunicipal Airport Revenue
Bonds" and addressed to Floyd Sharp, Secretary, Little Rock
Municipal Airport Commission, municipal Airport, Little Rock,
Arkansas. Each bidder will be required to file a certified check
in the amount of $1500.00 on a bank that is a member of the
Federal Deposit Insurance Corporation, payable to Little Rock
Municipal Airport Commission, to be kept as liquidated damages if
the bidder is awarded the sale of the bonds and fails to complete
the purchase. Checks of unsuccessful bidders will be promptly re-
turned. The bids will be publicly opened and read at a meeting
of the Little Rock municipal Airport Commission to be held at
otclock M. on the day of , 1953,
in the office of the Commission at the IA-unicipal Airport, Little
Rock, Arkansas.
The right to reject any and all bids is reserved.
For further information, address the undersigned.
Given this day of , 1953.
LITTLE ROCK MUNICIPAL AIRPORT CO MISSION
By: Floyd Sharp, Secretary
SECTION 5. The bonds and coupons shall be in sub-
stantially the following form, and the I4ayor and City Clerk are
hereby expressly authorized and directed to make all recitals con-
tained therein:
U11ITED STATES OF Ait7,RICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
% Municipal Airport Revenue Bond
No.
KNOW ALL IraN BY THESE PRESENTS:
w
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
ONE THOUSAND DOLLARS
in lawful money of the United States of America on the first day
of June, 1958, and to pay, solely from said special fund, interest
hereon at the rate of per centum ( o) per
annum from date, semi- annually on the first days of June and Decem-
ber in each year, commencing December 1, 1953, 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 One Hundred Fifty (150)
revenue bonds, aggregating One Hundred Fifty Thousand Dollars
($1500000.00) dated April 1, 1953, numbered from one (1) to one
hundred fifty (150), inclusive, all of like tenor and effect
except as to number, and are issued for the purpose of refunding
legally binding outsten ding Little Rock Municipal Airport Revenue
Bonds and for the purpose of financing improvements and extensions
to the Little Rock Iviunicipal Airport.
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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, 1949, and pursuant to an ordinance duly
adopted by the City Council 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 payable solely from a fixed amount of the gross revenues
from the P:Iunicipal 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 purpose and identified as the Iunicipal Airport Revenue
Bond Fund, created by Ordinance 11o. duly passed by the City
Council of the City of Little Rock on the day of ,
1953, under which this bond is authorized to be is -sued, 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, main-
tenance, and repair of the Municipal Airport and to provide for
the payment of the principal of and interest on the bonds as the
same become due and payable.
The bonds of this issue shall be callable for payment
prior to maturity in inverse numerical order at par and accrued
interest on any interest paying date on and after December 1, 1954,
with funds derived from any source. Notice of the call for re-
demption shall be published once a week for two weeks in a news-
paper 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 publication
we
to be at least thirty (30) 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 de-
posit 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 re-
ceived for this revenue bond and that there is no defense, offset,
or counterclaim against this bond or the pledge of revenues herein -
above made to secure its payment.
This bond shall not be valid until it shallhave been
authenticated by the certificate hereon, duly signed by
IT IS HEREBY CERTIFIED, RECITED, AND DECD RED that all
acts, conditions, and things required to exist, happen, and be
performed pursuant 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 ex-
ceed any constitutional or statutory limitation; and that sufficient
of the income and revenue which is deemed to be derived from the
operation of the Little Rock 1.1unicipal Airport has been pledged
to and mill be set aside into said special fund for the payment
of the principal of and interest on said bonds.
IN WITNESS HEREOF, the City of Little Rack, Arkansas,
by its City Council, 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 Apr.: , 1953.
CITY OF LITTLE ROCK, ARKANSAS
0
City Clerk
(Seal)
Mayor
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( Form of Coupon)
No. $
June
On the first day of December, 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 dated April 1, 1953, 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 $150,000.00, numbered from 1 to 150, inclusive,
all of like tenor and effect except as to number.
Little Rock, Arkansas By
, 1953
SECTION 6. 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
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revenues to provide for the.operation, maintenance and repair of
the Municipal Airport and to provide for the payment of the princi-
pal of and interest on the bonds as the same become due and payable.
SECTION 7. 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 acid
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 8. MUNICIPAL AIRPORT FUND. From and after
the delivery of any bonds issued under the provisions of this
ordinance, the Little Rock Municipal Airport shall be continuously
operated as a revenue - producing undertaking, and the income and
revenues from such operation shall be set aside as and when col-
lected into a separate fund which is hereby created and designated
Municipal Airport Fund. Such revenues so deposited in the Municipal
Airport Fund are hereby pledged and shall be applied and apportioned
in the manner hereinafter provided.
SECTION 9. MUNICIPAL AIRPORT OPERATION AND MAINTENANCE
There is hereby created a special fund designated Municipal
Airport Operation and Maintenance Fund, into which there shall be
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transferred and paid from the iunicipal Airport Fund on the first
business day of each month after the bonds are delivered and con-
tinuing on the first business day of each month there& ter while
any of the bonds issued under this ordinance shall be outstanding,
an amount sufficient to pay all reasonable and proper expenses of
operation, repair and maintenance of the unicipal Airport for
such month and from which disbursements 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
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 annul basis and one - twelfth (112) of
the amount thereof may be paid into said Operation and IYlaintenance
Fund each month.
If any surplus shall be accumulated in the Municipal Air-
port Operation and Maintenance Fund over and above the amount nec-
essary to meet the requirements thereof during the remainder of the
then current fiscal year and the next ensuing fiscal gear, such
surplus may be transferred to the Municipal Airport Revenue Bond
Fund (hereinafter created); provided, however, that such transfer
shall be in addition to all other payments required to be made into
said I,Iunicipal Airport Revenue Bond Fund.
SECTION 10. DIUN IC I PAL AIRPORT REVENUE BOND FUND. (1)
After-making the monthly deposit in the ,d=icipal Airport Operation
and iaiaintenance Fund, the Treasurer of the Little Rock I,Iunicipal
Airport Commission shall transfer and pay from the Municipal Air-
port Fund into a special fund which is hereby created and desig-
nated Municipal Airport Revenue Bond Fund the sums in the amounts
and at the times hereinafter stated in sub - section (2) for the pur-
pose of providing funds for the Aayment of the principal of and
interest on the bonds at maturity and the paying agent's fees.
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(2) Until June 1, 1954,, there shall be paid by the
said Treasurer from the Municipal Airport Fund into the Municipal
Airport Revenue Bond Fund, beginning on the first business day of
the month after the delivery of the bonds and continuing on the
first business day of each month thereafter, a sum equal to one-
sixth (1/6) of the next installment of interest on all issued and
outstanding bonds. Beginning on the first business day of the
month after June 1, 1954, and continuing on the first business day
of each month thereafter until the amount in said Iunicipal Air-
port Revenue Bond Fund is sufficient to pay all outstanding bonds,
interest thereon, and the paying agent's fees, there shall be
paid by the said Treasurer from the municipal Airport Fund into
the 1viunicipal Airport Revenue Bond Fund all moneys remaining in
the Municipal Airport Fund.
(3) When the moneys held in the lunicipal Airport
Revenue Bond Fund shall be and remain sufficient to pay the prin-
cipal of and interest on all of the bonds then outstanding, the
said Treasurer shall not be obligated to make any further payments
into the municipal Airport Revenue Bond Fund.
(4) All moneys in the Municipal Airport Revenue Bond
Fund shall be used solely for the purpose of paying the principal
of and interest on the bonds issued under this Ordinance, and the
paying agent's fees.
SECTION 11. Three days prior to the maturity date of my
interest coupon or bond issued hereunder the Treasurer of the Air-
port Commission shall withdraw from the Municipal Airport Revenue
Bond Fund and deposit with ,
the paying agent, an amount equal to the amount of said maturing
coupon or bond, together with an amount equal to the paying agent's
fee of 122W for each $100.00 par value of bonds and 25� for each
$100.00 par value of coupons, which the City and the Airport Com-
mission hereby agree to pay. No withdrawal shall be made from
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the Municipal Airport Revenue Bond Fund for any other purpose,
except as otherwise authorized in this Ordinance. Such deposit
shall be at the sole risk of the City and shall not operate as a
payment of the bonds or coupons until so applied.
SECTION 12. Any surplus in the ;Municipal Airport Fund
after making full provision for the other funds hereinbefore pro-
vided for may be used to call the bonds of this issue for payment
prior to maturity as herein provided, or for making additional im-
provements and extensions to the I:Iunicipal Airport, or for any other
lawful Municipal Airport purpose.
SECTI0N 13. The bonds authorized hereby and issued here-
under shall be callable for payment prior to maturity in ac-
cordance with the terms set out in the bond form.
SECTION 14. So long as any of the bonds authorized
hereby and issued hereunder shall be and remain outstanding and
unpaid the City of Little Rock and the Airport Commission covenant
and agree that they will not issue additional bonds payable from
the revenues specifically pledged to the payment of the principal
of and interest on the said bonds authorized hereby and issued
hereunder.
SECTION 15. 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 interest cou-
pons maturing on or prior to the date of such payment shall con-
tinue to be payable to the respective bearers thereof.
SECTION 16. 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 Muunicipal Airport required by
the constitution and statutes of the State of Arkansas, including
making and collecting of reasonable and sufficient rates and charges
for the use of the Municipal Airport and its facilities, segre-
gating the revenue of the Municipal Airport and applying it to
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the respective funds herein created.
SECTION 17. The Airport Commission will keep proper books
of accounts and records (separate from all other records and accounts)
in which complete and correct entries shall be made of all trans-
actions relating to the operation 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,
and a copy of the audit shall be delivered to the Trustee and to
the original purchaser of the bonds and made available to interested
bondholders. 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. 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 tornado insurance will be maintained on the Ad-
ministration 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 ap-
proved 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 loss, the proceeds of such
insurance shall be applied solely toward the reconstruction, re-
placement, or repair of the property. In such event, the Airport
Commission will, with reasonable promptness, cause to be com-
menced and completed the reconstruction, replacement and repair.
Nothing herein shall be construed as requiring the City to expend
any funds for operation and maintenance of the Municipal Airport
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or for premiums on the insurance which are derived from sources
other than the operation of the Iiunicipal Airport, but nothing
herein shall be construed as preventing the City from doing so.
SECTION 19. So long as any of these bonds are outstand-
ing, the City and the Airport Commission covenant and agree that
they will not mortgage, pledge, or otherwise encumber the Municipal
Airport or azy part thereof, including any and all improvements
and extensions thereto, or any revenues therefrom, except as
herein provided, and will not sell or otherwise dispose of any
substantial portion of the same.
SECTION 2D. The Municipal Airport shall be operated
on a calendar year basis beginning Jxuary 1 and ending December 31.
SECTION 21. The City and the Airport Commission cove-
nant and agree that if default is made in the payment of any bond
or coupon, or if there is a failure to meet any TJunicipal Airport
Revenue Bond Fund requirement, the holder of such bond may de-
clare that bond immediately due and payable, and such bond shall
thereupon be immediately due and payable, and in default; pro-
vided, that the failure to exercise this option upon any default
shall not be a waiver of the right to execute it upon a subse-
quent default.
SECTION 22. 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 Chancery Court of Pulaski
County, Arkansas, shall upon application of the holder or holders
of any revenue bond or interest coupon in default appoint a re-
ceiver for the properties and revenues covered by the pledge, with
power to operate said properties and to charge and collect rates
sufficient to provide revenues for the payment of said revenue
bonds and interest thereon, and for the operating and maintenance
expenses and costs of the receiver, until.all delinquent principal
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and interest are paid in full, whereupon the management and con-
trol of the properties shall revert to the City and 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. The City and the Airport Commission cove-
nant that in the issuance of these revenue bonds, all acts, con-
ditions and things required to be done precedent to and in the
issuance thereof have been properly done and performed and have
happened in regular and due time, form and manner as required by
law; and that the revenue bonds are within every debt limit, tax
limit, or other limits prescribed by law. And, the City and the
Airport Commission covenant that full payment has been received
for said revenue bonds and that they have no defense, offset, or
counterclaim against said bonds or the pledge of revenues herein-
above made to secure their payment.
SECTION 24, The Trustee shall be designated by the
purchaser and shall be responsible only for wilful wrong in the
execution of its trust. 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 dayst notice in writing to the
Secretary of the Airport Commission. The majority in value of the
holders of the outstaz ding bonds at any time may, with or without
cause, remove the Trustee and appoint a new Trustee, providedp
that such removal and appointment 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 of the powers herein granted to the original
Trustee.
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SECTION 25. 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 delivery to said Trustee
of all the outstanding Little Rock Municipal Airport 2 ?f Revenue
Bonds, dated June 1, 1951, with all interest coupons appertaining
thereto attached maturing on and after June 1, 1953, or upon the
making by the purchaser of an escrow deposit with the Trustee for
the redemption of all of said outstanding bonds on June 1, 19532
and upon the payment by the purchaser to the Trustee of the balance
of the purchase price, plus accrued interest. When said outstand-
ing bonds of the June 1, 1951 issue are delivered to the Trustee,
or obtained by redemption under the said escrow deposit, the
Trustee shall Nark said bonds and the coupons thereto attached
"Refunded and Cancelled" and forward the same to the Secretary
of the Airport Commission to be held by him.
The Trustee shall remit the proceeds of the sale of the
bonds and the accrued interest to the Treasurer of the Airport
Commission.
SECTION 26. The Treasurer of the Airport Commission
shall, from the proceeds of the sale of the bonds, deposit the
accrued interest and a sum equal to six months' interest on the
bonds in the Municipal :airport Revenue Bond Fund.
The said Treasurer shall deposit the entire balance
of said proceeds in trust with a bank that is a member of the
Federal Deposit Insurance Corporation, said deposit to be secured
by bonds of the United States or bonds of the State of Arkansas,
or a political subdivision thereof, eligible under Arkansas
Statutes for such trust deposit, and said deposit shall be dis -
bursed solely in payment of the cost of the construction of the
improvements and extensions to the Municipal Airport, including
engineering, legal and other expenses incidental thereto, but
,F . 'p-
SA
only on warrants, checks or vouchers signed by the Treasurer of
the Airport Commission, briefly specifying the disbursement or
expenditure, and accompanied by a certificate signed by the
engineer for such construction that an obligation in a stated
amount has been incurred on account of the cost of construction
and to vh om such obligation is owed, except that no such cer-
tificate shall be required before payment of engineering or legal
fees.
SECTION 27, 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 2B. 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 29. All Ordinances or parts of Ordinances in
conflict herewith are hereby repealed.
SECTION 30. It is hereby ascertained and declared that
the present Little Rock Municipal Airport facilities are inadequate
in size and modern equipment and in their present condition con-
stitute a hazard to the life and property of the inhabitants of
the City of Little Rock, and that the herein authorized improve-
ments and extensions are immediately necessary for the proper pro-
tection of the life and property of said inhabitants. It is,
therefore, declared that an emergency exists, that this Ordinance
is necessary for the.immediate preservation of the public peace,
health and safety, and that this Ordinance shall take effect and
be in force from and after its passage.
Passed: March 30, , 1953.
APPROVED:
I I
ATTES :
City Clerk