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
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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
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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
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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
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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
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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
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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
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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.
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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
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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 .