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8675ORDINANCE NO. 8675 AN ORDINANCE AUTHORIZING THE ISSUANCE OF "CITY OF LITTLE ROCK MUNICIPAL AIRPORT REVENUE 2j%. BONDS".IN THE AMOUNT OF $100,000 FOR THE PURPOSE OF'EXTENDING AND IMPROVING THE LITTLE.ROCK MUNICIPAL AIRPORT; MAKING PLEDGES. AND COVENANTS TO INSURE THE PAYMENT OF PRINCIPAL -AND INTMWT ON SAID BONDS, AND PRESCRIBING.OTHER MATTERS RELATING THERETO. WHEREAS the Little Rock Municipal Airport Commission (hereinafter sometimes called the Airport Commission) was created and organized pur- suant 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 Airport Commission has heretofore determined that it is to the best interest of the City of Little Rock to extend and im- prove the Little Rock Municipal Airport by the acquisition of addi- tional land, the improvement and extension of runways, ramps, parking and service areas and the improvement of the Administration Building and the installation of modern lighting equipment; and WHEREASTthe Airport Commission has employed the services of L. A. Henry, Planning Engineer, as well as an architect, and has agreed on plans necessary to make said extensions and improvements; and WHEREAS,the said Airport Commission has on hand in excess of $109,000, and in addition thereto the Civil Aeronautics Administra- tion of the Federal Government will match all funds expended by the Airport Commission in said extension and improvement program; and WHEREASrsaid program is estimated to cost in excess of *400,000 and said Airport Commission is unable to make said extensions and improvements with funds in its hands and those available from the Federal Government; and WHEREAS%on the 10th day of May, 1951, the Airport Commission, by unanimous action, passed a resolution authorizing its Chairman to make these facts known to the Couao�l of the City of Little Rock, Arkansas (hereinafter sometimes called "Council "), with the Airport ommission's recommendation and request that the City take the �n • l i -2- necessary steps to issue and sell $100,000 of 20 Revenue Bonds to secure part of the funds necessary for the Commission to enable it to make the proposed extension and improvements; and WHEREAS the Council determines that it is to the best interest of the City of Little Rock, Arkansas, to extend and improve the Little Rock Municipal Airport as proposed by the Airport Commission and to issue said bonds to provide a part of the funds necessary to carry out this projecti NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LITTLE ROCK, ARKANSAS: Section 1. That the extension and improvement of the Little Rock Municipal Airport be made in accordance with the plans of the Airport Commission heretofore referred to. Section 2. That to provide funds for partial payment of the ex- tension and improvement of the Little Rock Municipal Airport there are hereby authorized and ordered issued bonds of the City of Little Rock, Arkansas, to be known as "Little Rock Municipal Airport 2J% Revenue Bonds" in the aggregate principal amount of $100,000. Said bonds shall be numbered consecutively from 1 to 1.00 and shall be in the denomination of $1,000 each, shall be dated June 1, 1951, and shall bear interest from their date until paid at the rate of 2J% per annum, interest payable December 1, 1951, and semi - annually thereafter on June 1 and December 1 of each year, such interest to be evidenced by interest coupons, and the bonds themselves and the interest shall be payable in lawful money of the United States of America upon presen- tation of the bond or proper coupon at The Commercial National Bank of Little Rock, Arkansas. Section 3. That said bonds shall mature on June 1, 1954, pro- vided that said bonds shall be subject to call for redemption before maturity from time to time at the option of the City or the Airport Commission at par and accrued interest in inverse numerical order on any interest paying date with funds derived from any source. Notice of the call for redemption shall be published by the Secretary of the Airport Commission once a week for two weeks 1 s -3- before the date of such redemption in a newspaper of general eiraula- tion published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, the first of such publications to be made at least thirty days prior to the redemp- tion date, and after the date for such redemption mentioned in the call the bonds so called shall cease to bear interest provided funds for their payment are at that time on deposit with the paying agent. Section 4. That said bonds shall be executed on behalf of the City by the Mayor and Clerk of said City 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. Section 5. That said bonds and coupons shall be in substan- tially the following form: UNITED STATES OF AMERICA STATE OF ARKANSAS CITY OF LITTLE ROCK MUNICIPAL AIRPORT REVENUE 22,E BOND No. KNOW ALL MEN BY THESE PRESENTS: $1,000 That the City of Little Rock in the County of Pulaski, State of Arkansas, for value received, hereby promises to pay to bearer, solely from the special fund provided, the sum of ONE THOUSAND DOLLARS on the first day of June, 195+, and to pay solely from said special fund interest thereon at the rate of 21% per annum from the date here- of until paid, interest payable December 1, 1951, and semi - annually thereafter on the first day of June and December in each year upon presentation and surrender of the annexed interest coupon as the same severally mature, except as the provisions hereafter set forth with respect to redemption of bonds prior to maturity may be and become applicable hereto. Both principal and interest of this bond are pay- able in lawful money of the United States of America at the office of The Commercial National Bank in Little Rock, Arkansas. This bond is one of a series of 100 bonds numbered consecutively from 1 to 100, inclusive, aggregating $100,000, dated as of June 1, 1951, and all of like tenor and effect as to number, authorized pur- suant to an ordinance duly adopted by the Council of the City of Little Rock, Arkansas, and a resolution duly adopted by the Little Rock Municipal Airport Commission and issued pursuant to the Con- stitution and laws of the State of Arkansas, including particularly Act S3 of the Acts of the General Assembly of the State of Arkansas, 1949, for the purpose of financing in part an extension and improve- ments to the Little Rock Municipal Airport. Any or all of the bonds of this issue are subject to call for redemption before maturity from time to time at the option of the City or the Airport Commission at par and accrued interest in inverse numerical order on any interest paying date with funds derived from -5- any source. Notice of the call for redemption shall be published by the Secretary of the Airport Commission once a week for two weeks be- fore the date of such redemption in a newspaper of general circulation published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, the first of such pub- lications to be made at least thirty days prior to the redemption date, and after the date for redemption mentioned in the call the bonds so called shall cease to bear interest provided funds for their payment are at that time on deposit with the paying agent. This bond shall not constitute an indebtedness of the City of Little Rock, Arkansas, within any constitutional or statutory limi- tation. The series of bonds of which this bond is one is specifically secured by a specific pledge of all revenues derived from the opera- tion of the Little Rock Municipal Airport after paying reasonable operating expenses and maintenance, all as more specifically provided in the Ordinance. For the payment of the principal and interest of this bond and the series of which it is one when due a special fund has been created and will be maintained, to be known as the "1951 Airport Bond Fund," into which shall be deposited all of the revenue derived from the operation of the Little Rock Municipal Airport after paying reasonable operating and maintenance expenses, all as provided in the Ordinance authorizing the issuance of this bond and the series of which it is one. This bond shall be a negotiable instrument for all purposes and shall be transferable by delivery. This bond shall not be valid until authenticated by The Commercial National Bank of Little Rock, Arkansas. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the issuance of the series of which this bond is one were and have been properly done and performed and happened in regular and due time, form and manner as required by law; that the above described revenues have been irrevocably specifically pledged to the payment of principal of and interest on the series of bonds of which this bond is one and that the amount of this bond, together with all obligations of said City, does not exceed any M limit prescribed by the Constitution and laws of the State of Arkansas. IN TESTIMONY WHEREOF the City of Little Rock, Arkansas, by its City Council, has caused this bond to be executed by the Mayor and City Clerk thereof and its corporate seal to be affixed and the in- terest coupons hereto attached to be executed by the facsimile signa- ture of its Mayor, all as of the first day of June, 1951. Mayor of the City of LittleRock, Arkansas Clerk of the City of Little Rock, Arkansas (SEAL) The following certificate shall appear on the back of each bond: CERTIFICATE The Commercial National Bank of Little Rock, Arkansas, hereby certifies that this is one of a series of bonds described herein, aggregating $100,000, numbered from 1 to 100, inclusive, all of like tenor and effect except as to number. THE COMMERCIAL NATIONAL BANK OF LITTLE ROCK, ARKANSAS, Little Rock, Arkansas By No. , 1951 FORM OF COUPON $12.50 On the first day of December 19 , the City of Little Rock, Pulaski County, Arkansas, promises to pay to bearer, out of the funds specified in the bond to which this coupon appertains, at the office of The Commercial National Bank in the City of Little Rock, Arkansas, the sum of TWELVE AND 50100 DOLLARS -7- in lawful money of the United States of America, being interest then due on its Airport Revenue 2T'% Bond dated June 1, 1951, and numbered unless the bond to which this coupon appertains is sooner called for payment and payment provided therefor. Mayor Me Section 6. That it is hereby declared that the bonds hereby authorized shall not constitute an indebtedness of the City of Little Rock, Arkansas, within any constitutional or statutory limitation. These bonds shall be specifically secured by a specific pledge of all revenues derived from the operation of the Little Rock Municipal Airport after paying reasonable operating expenses and main- tenance of said Airport. The Airport Commission and the City of Little Rock, Arkansas, hereby covenant and agree with the holders of the bonds.that it will impose and collect such charges for the use of the Little Rock Municipal Airport and its facilities as will always produce a minimum income sufficient to pay reasonable operating and maintenance costs and the interest and principal charges of these bonds. Said pledge in favor of the bonds hereby authorized is here- by irrevocably made according to the terms of this Ordinance and said City and Airport Commission, their officers and employees, shall exe- cute, perform and carry out the terms thereof in strict conformity with the provisions of this Ordinance. So long as any of these bonds remain outstanding and unpaid the City and the Airport Commission covenant that they will not issue additional bonds payable from the revenues specifically pledged to this series of bonds. None of the bonds herein authorized shall be entitled to priority one over the other in the application of the revenues herein pledged to the payment of principal and interest.7 In any event, while any of these bonds remain outstanding, neither the City nor the Airport Commission will encumber any of the revenues of the Airport remaining after the payment of reasonable operating ex- penses and maintenance. These bonds shall constitute fully negotiable instruments for all purposes and shall be transferable by delivery. Section 7. The Airport Commission shall immediately create and es- tablish a special separate fund to be known as the "1951 Airport Bond Fund" into which there shall be paid immediately from the proceeds of the sale of these bonds a sum equal to six months interest on the bonds sold and delivered, which shall be used only to pay interest on these bonds as the same becomes due. The Treasurer 0 WE of the Airport Commission shall monthly promptly pay into said fund all of the revenues of said Airport after deducting from said revenues reasonable expense for operation and maintenance of said Airport. Sums to the credit of the "1951 Airport Bond Fund" shall be used only to pay the principal of and interest on these bonds at maturity and the paying agent's fees and for no other purpose. The Treasurer of the Airport Commission shall be custodian of all revenues herein pledged and of the "1951 Airport Bond Fund" and he shall give good and sufficient bond for the faithful discharge of his duties as such custodian (such bond to be fixed and approved by the Airport Commission). All revenues herein pledged shall be deposited by said Treasurer in an approved depository for City funds as may be lawfully designated from time to time by the Airport Com- mission, subject, however, to the giving of security as may now or hereafter be required by law. All deposits shall be in the name of the Airport Commission. When sufficient moneys are at hand to pay the principal of and interest to maturity of all of these bonds and the paying agent's fee no further sums shall be paid into the "1951 Airport Bond Fund." Section 8. It is hereby covenanted and agreed by the City and the Airport Commission that so long as any of these bonds are out- standing the Little Rock Municipal Airport will be operated and charges and fees for use of its facilities will be so fixed and re- vised from time to time that the proceeds thereof will be fully sufficient to pay the cost of operating and maintaining the airport and to fully pay the interest and principal charges on these bonds during the life of this bond issue. Section 9. The Treasurer of the Airport Commission shall keep proper books of account and records (separate from all other records and accounts) in which complete and correct entries shall be made of all transactions relating to the operation of the airport and the revenues derived therefrom, and such books shall be available for inspection by the holder of any of the bonds at reasonable times and under reasonable conditions. The Airport Commission shall furnish -10- to the original purchasers, so long as such purchasers hold any of the bonds, and to the holders of any of the bonds, at the written request of such holder, not more than six months after the close of the fiscal year, complete operating and income statements of the Little Rock Airport, certified by public accountants. Section 10. Three days prior to the maturity date of any in- terest coupon or bond issued hereunder the Treasurer of the Airport Commission shall withdraw from the "1951 Airport Bond Fund" and de- posit with The Commercial National Bank of Little Rock, Arkansas, the paying agent, an amount equal to the amount of said maturing coupon or bonds, together with an amount equal to the paying agent's fee. No withdrawal shall be made from the "1951 Airport Bond Fund" for any other purpose. Such deposit shall be at the sole risk of the City and Airport Commission and such deposit shall not constitute payment of the coupons or bonds until so applied. Section 11. The Airport Commission shall operate the Little mock Municipal Airport in a good and businesslike manner and maintain the airport in good condition. It shall keep the Administration Building insured in a manner and in an amount such as would ordinarily be carried by a private concern on such a building. In case of loss the proceeds of the insurance shall be applied wholly to the repair, reconstruction and replacement of the Administration Building. Section 12. So long as any of these bonds remain outstanding neither the City nor the Airport Commission will sell, mortgage or dispose of any substantial part of the airport or its facilities and will not in any manner pledge or encumber the revenues therefrom. Section 13. The bonds hereby authorized shall be executed as herein provided and deposited with The Commercial National Bank of Little Rock, Arkansas, the Trustee, for authentication and with appropriate instructions from the Secretary of the Airport Commission to deliver them to the purchaser upon payment in cash of the purchase price plus accrued interest and to simultaneously remit the full amount of the proceeds thereof to the Treasurer of the Airport Com- mission. -11- Section 14. The Treasurer of the Airport Commission shall, from the proceeds of the sale of the bonds, deposit a sum equal to six months interest on the bonds sold and delivered in the "1951 Airport Bond Fund" and deposit the entire balance of said proceeds in trust and secured as other trust funds are secured with an approved deposi- tory for City funds, to be designated by the Airport Commission, for the sole purpose of paying for extension and improvement of the Little Rock Municipal Airport, including architectural, engineering, legal and other incidental expenses thereto upon checks of the Treasurer only when accompanied by certificate of the engineer in charge of said extension and improvements reflecting that ar obligation in a stated amount has been incurred on account of the extension and improvement of the Airport and to whom such obligation is owed. Section 15. It is further covenanted and agreed by the City and the Airport Commission that if default is made in the payment of any coupons or any of the other covenants contained in this Ordinance the holder of such bond may declare such bond immediately due and payable. Section 16. The Airport Commission may sell and deliver the bonds in installments as funds will be needed. The Secretary of the Airport Commission shall instruct the Treasurer to authenticate only the bonds as are sold and to hold the remainder unauthenticated subject to fur- ther instructions from the Airport Commission. If it is ultimately found unnecessary to sell and deliver all of said bonds, the Treasurer shall be so notified and the unsold bonds returned unauthenticated to the Airport Commission for cancellation. The Secretary of the Airport Commission shall advertise the sale of these bonds to the highest bidder at public sale, the adver- tisement thereof to be published in a newspaper published in Little Rock, Arkansas, such publication to be weekly, the first publication to be at least twenty days before the date of sale. The Airport Com- mission shall have the right to reject any and all bids and readvertise the sale of the bonds if it thinks advisable. Section 17. If any section or provision of this Ordinance shall . r -12- be declared invalid, it shall not affect the validity of the remainder of the Ordinance. Section 18. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 19. It is hereby ascertained to be a fact by the Council of the City of Little Rock, Arkansas, that the present Little Rock Municipal Airport facilities are inadequate in size and modern equip- ment and that in their present condition constitute a hazard to the life and property of the residents of the City of Little Rock and an emergency is hereby declared to exist and this Ordinance is necessary for the preservation of the public health, peace and safety of the people of Little Rock, Arkansas, and it shall take effect and be in force immediately from and after its passage. PASSED: May 21, 1951. ATTEST: ity Clerk APPROVED: Iti2ayor .