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6762ORDINANCE NO. 6Z6• AN ORDINANCE PROVIDING FOR THE ISSUANCE OF BONDS FOR THE PURPOSE OF REFUNDING OUTSTANDING BONDS OF THE CITY OF LITTLE ROCS WHICH WERE ISSUED FOR THE PURPOSE OF THE IMPROVEMENT OF THE CITY AIR- PORT- AND LEVYING A PAX TO PAY TBE SAME. WHEREAS, of the issue of $377,000 principal amount of 2J% Airport improvement Bonds of the City, dated October 11 19,40, authorized by Ordinance No. 5999, passed and approved on the „25t]l,.. day of September, 19140, there are now outstanding $325,000 principal amount, numbered 21 to 3.45, inclusive, and maturing serially on March 1 in the years 19146 to 1968, inclusive, but subject to call for redemption September 1 and March 1 in any year; and the interest thereon has been paid in full to March 1, 19145; and WHEREAS, the Council finds that under the authority of Act Re. 103 of the Accts of the General Assembly of_ Arkansas for the year 19145, the City can refund the said $325oOOO Of out - standing bonds into bondw of_a like principal amount bearing interest at the rate of 2% per annum, converted to an issue of the principal amount of $3,44,5003, bearing interest at the rate of 11% per annum, by the terms of which conversion the Council finds that the City will receive no less and pay no more in principal and interest combined substantially than it would receive or pay if the bonds were not converted; and that by such refunding the City will save a large amount of interest; and WHEREAS, the Council finds that some of said outstanding bonds may be exchanged for a proportionate amount of the converted refunding bonds bearing interest at the rate of 11% per annum; and A- WHEREAS, the Council has decided to call for payment on September 19 19/+5 such of the outstanding bonds as are not sur- rendered for exchange and to sell at public sale the converted refunding bonds not exchanged in order to raise the funds to pay the called bonds; NOW.. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF LITTLE ROCK, ARKANSAS: Section 1. That the City proceed with the refunding of its said outstanding bonds and that the refunding bonds in the principal amount of $31+0,500, more fully described hereafter, be prepared and executed and delivered to W. B. Worthen Company, Bankers, of Little Rock, Arkansas, to be held in trust and de- livered on the terms and conditions as hereinafter directed and authorized in Section's, Section 2. The Mayor and the City Clerk are hereby authorized and directed to execute the bonds of the City in the principal amount of $340,500, bearing interest at the rate of 11% per annum, dated March 1, 191+5, their numbers and maturities to be as follows, but subject to redemption before maturity on the terms and conditions hereinafter set out: V BOND NOS. DENOMINATION AMOUNT YEAR. 1 500 $ 500 1946 2 to 17, inclusive 1000 16,000 1946 18 to 34 " 1000 17,000 1947 35 to 51, " 1000 17,000 1948 52 500 500 1949 53 to 69, " 1000 17,000 1949 70 500 500 1950 71 to 87, " 1000 17,000 1950 88 to 105, " 1000 18,000 1951 106 to 123, " 1000 18,000 1952 124 500 500 1953 125 to 142, " 1000 18,000 1953 143 500 500 1954 144 to 161, " 1000 182000 1954 162 to 180, " 1000 15000 1955 181 to 199, " 1000 19,000 1956 200 500 500 1957 201 to 219, " 1000 192000 1957 220 to 239, " 1000 20,000 / 1958 240 500 500 1959 241 to 2600 " 1000 20,000 1959 261 500 500 1960 262 to 281, " 1000 20,000 1960 282 to 302, " 1000 212000 1961 303 to 3232 " 1000 21,000 1962 324 500 500 1963 325 to 3452 " 1000 21,E --r y- = 1963 -3 - Section 3. Said bonds shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PJLASKI 1 CITY OF LITTLE ROCK AIRPORT REFUNDING BOND No. KNOW ALL MEN BY THESE PRESENTS: U That the City of Little Rock, in the County of Pulaski, State of Arkansas, acknowledges itself to owe and for value received promises to pay to bearer the sum of DOLLARS in lawful money of the United States of America, on the lst day of larch, 19 "... with interest thereon from the lst day of March, 191+5, at the rate of one and one -half (ice) per centax per annum, payable on the lst day of September, 191.5, and semi- annually thereafter on the lst day of March and September of each year, on presentation and surrender of the annexed interest coupons as they severally mature. Both principal and interest of this bond are hereby made payable at the office of W. B. Worthen Company, Bankers, of Little Rock, Arkansas. This is one of a series of 345 bonds, aggregating Three Hundred Forty Thousand Five Hundred Dollars ($340,500), all of like tenor and effect, except as to maturities and denominations, and numbered from 1 to 315, inclusive, issued for the purpose of refunding the prin- cipal. of legally binding outstanding bonds of the City, which were issued for the purpose of the improvement of the City Airport, and the City of Little Rock hereby covenants that in the issuing of this V- 0 bond it has proceeded in accordance with the provisions of the Amendment which was adopted as Amendment No. 15 to the Constitution of the State of Arkansas, now Amendment No. 13, and in accordance with the laws of said State, particularly Act No. 93 of the Acts of the General Assembly of the State of Arkansas of the year 1927, and Act No. 103 of the Acts of said General Assembly of the year 1945, under ordinances of the City Council of said City, duly passed, and in pursuance of an election duly held at which the majority of the legal voters of said City voting at said election voted in favor of the issue of the bonds refunded by this issue; that all things necessary to the validity of this bond under the laws of the State of Arkansas, and particularly under said Amend- ment to its Constitution and said Acts, have existed, have happened and have been performed as required by law; that a tax sufficient to pay the bonds aforesaid has been duly levied in accordance with said Constitutional Amendment and made payable annually until the principal and interest of said bonds have been fully paid and discharged; and that the indebtedness represented by this bond and the issue of which it forms a part does not exceed any constitutional or statutory limitations. For the prompt payment of this bond and all others of this issue and the interest thereon, the said City of Little Rock hereby pledges its full faith, credit and taxing power, including the ,tax authorized to be levied by said Amendment to the Constitution, and levied by Ordinance No. of the City of Little Rock, passed and approved on the day of , 19 The bonds of this issue are subject to redemption at the option of the City in lawful money of the United States of America, from time to time, in inverse numerical 5• order, on any interest payment date, at par and accrued interest, from surplus revenues received from tax collections, and after January 1, 1949 out of money from any other source. In case the City shall desire to exercise such right of redemption, notice of the call for redemption shall be published by the City Clerk once a week for two Reeks before 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, and after the redemption date mentioned in said notice, the bond or bonds so called will cease to bear interest; provided funds for their payment are on deposit at that time, This bond shall not be valid until authenticated by the certificate hereof of W. Be . Worthen Company, Hankers, of Little Rock, Arkansas. IN WITNESS WHEREOF, the City of Little Rock has executed this bond by the hands of its Mayor and City Clerk, and attested It with its corporate seal, and has caused the coupons hereto attached to be authenticated by the facsimile signature of its Mayor, as of the lot day of March, 1945, ATTEST: CITY OF LITTLE ROCK By May or City Clerk 6. To each of said bonds are attached coupons for the semi - annual interest in the following form: No. March On the 1st day of September, 19___ —, the City of Little Rock, Arkansas, promises to pay to bearer Dollars, in lawful money of the United States of America, at the office of W. B. Worthen Company, Bankers, of Little Rock, Arkansas, being six monthst interest then due on its 12% Airport Refunding Bond dated March 11 1945! I and numbered -„- ,,,, unless the bond to which this coupon appertains is sooner called for payment. Mayor (The signature of the Mayor to the cou ns attached to said bonds may be lithographed or engraved (The number of this ordinance and the date of its passage and approval shall be filled in the blanks in the bond form). On the back of each bond shall appear the following: 'CERTIFICATE This is to certify that this is one of the 345 bonds of the issue mentioned and described herein. Little Rock, Arkansas 1945 W. B. WORTHEN COMPANY, BANKERS By 1, :. Section 4. The bonds of this issue shall be subject to redemption at the option of the City, in lawful money of the United States of America, from time to time, in inverse numerical order, on any interest payment date, at par and accrued interest, from surplus revenues received from tax collections, and after .January 1, 1948 out of money from any other source. In case the City shall desire to exercise such right of redemption, notice of the Gall for redemption shall be published by the City Clerk once a week for two weeks before the date of such redemption In a newspaper of general circulation published in the City of Little -Rook, Arkansas, and having a general circulation through- out the State of Arkansas, and after the redemption date mentioned in said notice, the bond or bonds so called will cease to bear interest; provided funds for their payment are on deposit at that time. Section 5. If default is made for thirty days in the payment of any interest coupon, the holder of the bond to which It is attached may declare the same immediately due and payable. Section 6. In order to pay the bonds as they mature, with interest thereon, there is hereby levied upon all real and personal property within the City of Little Rock, Arkansas, a tax of six- tenths (.6) of a sill for each of the years 1945 to 1962, Inclusive, being a sum sufficient to meet said bonds and interest as they mature, with five per cent (5 %) added for unforseen coo-. tingencies; and the City Clerk is directed to transmit a certified copy of this section of this ordinance to the County Clerk of ' Pulaski County, to the end that said taxes may be extended on the tax books of said county and collected annually along with the ether taxes until the said bonds and interest thereon are paid in full. 8. Section 7, In order to pay said bonds as they mature, there is hereby appropriated out of the proceeds of the tax hereby levied, and if such proceeds be not sufficient, then out of the general revenues of the City, the following sums to pay the principal and interest of said bonds as they mature: YEAR �MATRITY) BOND PRINCIPAL BOND INTEREST TOTAL, 1945 Sept. 1 $ 21553.75 $ 21553.75 19146 $ 162500 March 1 2,553.75 Sept. 1 211430.00 2121483.75 19147 17.1000 March 1 201430.00 Sept. 1 2,302.50 21,732.50 1948 17,000 March 1 21302.50 Sept. 1 2,175.00 - 21,1477.50 19149 17,500 March 1 2,175.00 Sept. 1 2,043.75 21,718.75 1950 179500 March 1 2,0143.75 ` Sept. 1 11912.50 21,1456.25 1951 18,000 March 1 11912.50 Sept. 1 1,777.50 ' 212690.00 1952 18,000 March 1 1, 777.50 Sept. 1 11642-50 - 21,1420.00 1953 18000 March 1 1,642-50 ` Sept. 1 11503.75 21,6146.25 1954 18,500 March 1 11503.75 ' Sept. 1 1,365.00 21,368.75 1955 19,000 March 1 1,365.00 " Sept. 1 10222.50 21,587.50 1956 19,000 March 1 1,222.50 Sept. 1 10080.00 " 21,302.50 1957 19,500 March 1 1,080.00 -' Sept. 1 933.75 21,513.75 1958 20,000 March 1 933.75 Sept. 1 783.75 21,717.50 1959 20000 March 1 783.75 Sept. 1 630.00 — 21,913.75 YEAR ( ATtTR ITY) 1960 1961 1962 1963 BOLD PRINCIPAL 20,500 21,000 21,000 21,500 BOND INTEREST TOTAL March 1 $ 630.00 - Sept. 1 476.25 ` $ 21,606.25 March 1 476.25 " Sept. 1 318.75 ' 21,795.00 March 1 318.75 ` Sept. 1 161.25 211480.00 March 1 161.25 21,661.25 -to - Section ff.. The Mayor and City Clerk are hereby authorized and directed promptly after the passage of this ordinance to execute and deliver the $31.0,500 principal amount of refunding bonds to W. B. Worthen Company, Bankers, Little Rock, Arkansas, which will hold them in escrow for the following purpose: (a) To authenticate and exchange them, from time to time, for such of said 22% airport improvement bonds of the City dated October 1, 1910, with all interest coupons maturing September 1, 1945, and subsequently attached, as are presented to it for exchange by the City's refunding agents. The refunding bonds shall be de- livered in numerical order and the principal amount of such refund- ing bonds exchanged shall be in the same proportion of the $310,500 principal amount of refunding bonds that the principal amount of outstanding bonds exchanged bears to the $325,000 principal amount of the outstanding bonds. At the time of the exchange the said bank shall pay the holders of the outstanding bonds exchanged the amount of accrued interest due thereon to the date of exchange less the accrued interest on the refunding bonds. (Such amount will be deposited with the bank by the City Treasurer, as hereinafter directed in Section 9.) (b) In the event that some of the refunding bonds are not exchanged for outstanding bonds, as provided in subsection (a) above, and must be sold, as hereinafter provided for in Section 11, to authenticate and deliver to the purchaser not later than the 25th day of August, 1945, such refunding bonds as are sold on the payment by the purchaser to the said bank of the purchase price in full and accrued interest in cash. The proceeds of said sale and the additional amount necessary to pay interest to September 1, 1945, on the outstanding bonds to be called, as hereinafter provided - it- for,shall be held by the bank in trust, secured as its other trust funds are secured, and remitted to the Chase National Bank of New York, New York, the paying agent of the outstanding bonds, in time for their payment, principal and interest, on September 1, 1945, their call date. (The City Clerk will advise the bank in writing the name of the purchaser and the purchase price and the City Treasurer will deposit with it the said additional amount necessary to pay interest, as hereinafter directed in Section 9.) The said bank shall cause to be marked wRefunded and Cancelled" the outstanding bonds that may be exchanged and deliver them to the City Clerk to be held by him subject to further orders of the Council. Section 9. The City Treasurer is hereby authorized and directed to ascertain the amount of interest to be paid by the City to the holders of the outstanding bonds exchanged and to . the holders of the bonds called and to pay said amounts out of the bond account pledged for the payment of the -outstanding bonds to W. B. Worthen Company, Bankers, for use in paying the said interest. Section 10. All of said outstanding bonds shall be called for payment at par and accrued interest on September 1, 1945. The City Clerk is hereby authorized and directed to publish on August 1, 1945, and on such other dates prior thereto as requested by W. B. Worthen Company, Bankers, in a newspaper published in the City of Little Rock, Arkansas, and of general circulation in the State of Arkansas, and a financial journal published in the Borough of Manhattan, City of New York, New York, a notice of call in substantially the following form: NOTICE OF CALL OF THE OUTSTANDING AND UNMATURED 21% AIRPORT IMPROVEMENT BONDS OF THE CITY OF LITTLE ROCK, ARKANSAS, DATED OCTOBER 11 1940. Notice is hereby given that the City of Little Rock, Arkansas, proceeding under provisions of the ordinance authorizing their issuance and under provisions of the bonds, does hereby call for payment on September 1, 1945, at par and accrued interest all of its 2 *% airport improvement bonds dated October 1, 191.0. The holders of said bonds are hereby directed to present them for payment on or after September 1, 1945, at the office of the Chase National Bank, Borough of Manhattan, City of New York and State of New York, the paying agent; and are further advised that said bonds shall cease to bear interest on and after September 1, 1945. GIVEN this day of , 1945. CITY OF LITTLE ROCK, ARKANSAS By CITY CLERK Section 11.,, In order to raise the funds to pay the principal of the outstanding bonds to be called, the refunding bonds not ex- changed for outstanding bonds shall be sold on the terms and in the manner set out in the following notice which the City Clerk is au- thorized and directed to publish on August 2, 9 and 16, 1945, in a newspaper of general circulation in the City of Little Rock, Arkansas, the City Clerk to ascertain the amount of bonds to be sold and to fill in the proper blanks. /3. .NOTICE OF BOND SALE Notice is hereby given that the City of Little Rock, Arkansas, will offer for sale for cash to the highest bidder at public auction at a meeting of the City Council to be held -in the Council Chamber in Little Rock on the 24th day of AMP Bt s 1945, at 9;00 o` clock , l,M. , $. principal amount of refunding bonds, bearing interest at the rate of 2% per annum, dated as of March 1, 1945, and maturing serially on March 1 in the amounts and years, respectively, as follows; in 19— in 19 in 19� in 19_ in 19 In 19_,_,_ Said bonds will be sold for the purpose of - refunding a like principal` amount of outstanding bonds. The City may retire'" some of the outstanding bonds by exchange and reserves the right to sell all or any part of the bonds here being offered. For the purpose of making the exchange the A in 2% bonds have been converted to bonds bearing interest at the rate of 1*% per annum of a principal amount equivalent to the principal amount of the 2% bonds and maturing in the same years, and any part of the bonds sold will be sold in the converted form. The City reserves the right to reject any and.,all bids;. The bonds will be subject to redemption at the option of the City in inverse numerical order on any interest payment date at par and accrued interest from surplus revenues received from tax collections, ••14�• and after January 1, 1948 out of money from any ether source. The bonds will not be sold for less than par on the basis of bonds bearing 2$ interest per annum. W. B. Worthen Company, Bankers, of Little Rock, Arkansas, will certify the bonds and will be the paying agent. The City will furnish the printed bends and the opinion of Xessrs. Rose, Loughborough, Dobyns do House, Attorneys, of Little Roc3k, Arkansas, approving their legality and pay the expense of certifying the bonds. GIVEN at Little Rock, Arkansas, this day of 1945- CITY OF LITTLE ROCK, ARKANSAS By City Clerk Section 12. The holders of the refunding bends herein authorized to be issued shall be subrogated to all the rights, title and interest of the holders of the bonds refunded. Section 13. The Treasurer of the City of Little Rook is hereby authorized and instructed t© include a fee of twelve and one -half cents (12 *¢) for each $100 par value of coupons to be paid with each remittance to the paying agent, W. B. Worthen Company, Bankers, of Little Rook, Arkansas, for principal or interest of the said $340600 of refunding bonds of said City. Section 14. It is found and declared by the City Council of the City of Little Rock, Arkansas, that unprecedently low Interest rates now prevail which have created a market advantageous 15. h �•n y% to the issuance of bonds by the City; that the Congress of the United States may shortly enact a statute taxing interest upon future issues of city bonds which would prevent the refunding at a lower rate of interest of the said airport bonds; that the City sho4d take advantage of the present favorable market, and that its failure to do so would result in financial detriment to the City; that a delay in the taking effect of this ordinance might prevent the City from refunding the bonds; that for said reasons' it is hereby declared necessary for the preservation of the public peace, health and safety that this ordinance shall become effective without delay. An emergency therefore exists, and this ordinance shall take effect and be in force from and after its adoption. PASSED May 7 -, 1945- ...: E Mir ®R i,A ATTEST: City Clerk j —lb-