HomeMy WebLinkAbout13884ORDINANCE NO. 13,884
AN ORDINANCE AUTHORIZING THE SALE AND ISSUANCE
OF AIRPORT REVENUE BONDS FOR THE PURPOSE OF
FINANCING IMPROVEMENTS TO THE LITTLE ROCK
MUNICIPAL AIRPORT; PROVIDING FOR THE PAYMENT
OF THE PRINCIPAL OF AND INTEREST ON THE BONDS;
PRESCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS, the Little Rock Municipal Airport and its
related properties and facilities are being operated, managed and
maintained by the Little Rock Municipal Airport Commission (the
"Airport Commission "), which was created and organized pursuant to
Act No. 53 of the Acts of Arkansas of 1949, and Initiated Ordinance
No. 8511 of the City of Little Rock, Arkansas (the "City "), adopted
November 7, 1950; and
WHEREAS, the Airport Commission has determined that air-
port improvements, consisting of reroofing of the Timex building, re-
roofing of the old airport terminal, expanding of the Air Cargo
building and constructing a vehicle maintenance and storage facility
(the "Project ") should be accomplished, and has requested that the
Board of Directors of the City ( "Board ") take the necessary steps
to sell and issue Airport Revenue Bonds in the principal amount
of $1,500,000, to provide the necessary financing of the costs
of the Project, expenses incidental thereto and expenses of
issuing bonds; and
WHEREAS, the City has outstanding an issue of Municipal
Airport Revenue Bonds, Series 1966, dated May 1, 1966 (the "Series
1966 Bonds "), of which $943,000 are outstanding, issued under and
secured by the provisions of Ordinance No. 11,745 of the Ordinances
of the City, adopted on the 16th day of May, 1966, and Ordinance
No. 11,755, adopted on the 20th day of June, 1966 (collectively
"Ordinance No. 11,745 "); and
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WHEREAS, the City has outstanding an issue of Municipal
Airport Revenue Bonds, Series 1971, dated March 1, 1971 (the
"Series 1971 Bonds "), in the original principal amount of $2,700,000
of which $2,134,000 in principal amount are outstanding, issued
under and secured by the provisions of Ordinance No. 12,456 of
the Ordinances of the City, adopted on the 15th day of March, 1971
( "Ordinance No. 12,456 "); and
WHEREAS, the City has outstanding an issue of Municipal
Airport Revenue Refunding Bonds, dated March 1, 1975 (the "Series
1975 Bonds "), in the original principal amount of $900,000 of which
$685,000 in principal amount are outstanding, issued under and
secured by the provisions of Ordinance No. 13,008 of the Ordinances
of the City, adopted on the 21st day of January, 1975, and Resolution
No. 5336 of the City, adopted on the 13th day of February, 1975
(collectively "Ordinance No. 13,008 "); and
WHEREAS, the City has outstanding an issue of Municipal
Airport Revenue Bonds, Series 1976, dated March 1, 1976 (the
"Series 1976 Bonds "), in the original principal amount of $600,000
of which $450,000 in principal amount are outstanding, issued
under and secured by the provisions of Ordinance No. 13,145 of the
Ordinances of the City, adopted on the 18th day of March, 1976
( "Ordinance No. 13, 145 "); and
WHEREAS, the City has outstanding an issue of Municipal
Airport Revenue Bonds, Series 1977, dated November 1, 1977 (the
"Series 1977 Bonds "), in the original principal amount of $500,000
of which $375,000 in principal amount are outstanding, issued under
and secured by the provisions of Ordinance No. 13,361 of the
Ordinances of the City, adopted on the 26th day of October, 1977
( "Ordinance No. 13,361 ") ; and
WHEREAS, the Board has determined that the conditions
set forth in Section 8 of Ordinance No. 11,745, Section 8 of
Ordinance No 12,456, Section 8 of Ordinance No. 13,008, Section 8
of Ordinance No. 13,145, and Section 8 of Ordinance No. 13,361, for
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the issuance of bonds ranking on a parity with the outstanding
bonds can be complied with and that, therefore, the bonds autho-
rized by this Ordinance will be issued on a.parity of security with
the Series 1966 Bonds, the Series 1971 Bonds, the Series 1975 Bonds,
the Series 1976 Bonds and the Series 1977 Bonds;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of
the City of Little Rock, Arkansas:
Section 1. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly Act No.
53 of the Acts of Arkansas of 1949, as amended, and Act No. 175
of the Acts of Arkansas of 1959, as amended, City of Little Rock,
Arkansas Airport Revenue Bonds, Series 1980 (the "Series 1980 Bonds "),
are hereby authorized and ordered issued in the total principal
amount of $1,500,000 to finance the cost of the Project, costs
incidental thereto, and the costs of issuing the Bonds. The
Series 1980 Bonds shall be dated October 1, 1980, interest shall
be payable April 1, 1981, and semiannually thereafter on each
October 1 and April 1, and the Series 1980 Bonds shall mature
annually (on October 1) and be numbered as follows:
Maturity
Principal Amount
Bond Nos.
1981
$ 10,000
1 -2
1982
10,000
3 -4
1983
15,000
5 -7
1984
15,000
8 -10
1985
20,000
11 -14
1986
20,000
15 -18
1987
25,000
19 -23
1988
85,000
24 -40
1989
95,000
41 -59
1990
105,000
60 -80
1991
110,000
81 -102
1992
235,000
103 -149
1993
295,000
150 -208
1994
320,000
209 -272
1995
140,000
273 -300
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All Series 1980 Bonds shall be in the denomination of
$5,000 each.
The Bonds shall be negotiable coupon bonds payable to bearer
but subject to registration as to principal or as to principal
and interest. Payment of principal and interest coupons shall be
made at the principal office of the Paying Agent. Payment of inter-
est when registered as to interest may be by check or draft mailed to
the registered owner at the address shown on the registration books
of the City maintained by the Trustee as bond registrar.
The Series 1980 Bonds shall be offered for public sale upon
sealed bids, which will be received until 10:30 a.m., local time,
on October 29, 1980. The bids will be opened and considered at an
Agenda Meeting of the Board to be held at that time.
The Director of Finance & Administration of the City shall
give notice of the public sale of the Series 1980 Bonds by such
publication and other means as he deems appropriate to market the
Series 1980 Bonds on the most favorable terms. He shall prepare
and distribute to prospective purchasers an official statement
descriptive of the Series 1980 Bonds, the City and the Little Rock
Municipal Airport. No bid of less than 100% of the principal amount
of the Series 1980 Bonds plus accrued interest from the date of the
Series 1980 Bonds to the date of delivery shall be considered. The
purchaser shall be permitted to name the Trustee and the Paying
Agent for the Series 1980 Bonds
The sale of the Series 1980 Bonds shall be authorized by
resolution of the Board, which resolution (the "Sale Resolution ")
shall specify the purchaser, the interest rates, the purchase
price and the Trustee and Paying Agent.
Section 2. The authority conferred by this Ordinance shall
be carried out under the control and supervision of, and all details
in connection therewith shall be handled by, the Airport Commission.
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In this regard, in addition to the powers and duties of the Airport
Commission existing under and by virtue of the laws of the State of
Arkansas and Initiated Ordinance No. 8511, there is hereby conferred
upon the Airport Commission full and complete power to carry out and
accomplish the authority specified in this Ordinance pertaining to
accomplishing the Project, the operation of the airport and the
collection, handling and disbursement of revenues, including the
execution and delivery of all contracts and instruments necessary
or incidental thereto or to evidence the exercise of the authority
herein conferred.
Section 3. That the Bonds issued under this Ordinance shall
be executed on behalf of the City by the Mayor and City Clerk and
shall have impressed thereon the seal of the City. The facsimile
signature of the Mayor may be used upon compliance with the pro-
visions of Act No. 69 of the Acts of Arkansas for the year 1959.
Interest coupons attached to the Bonds shall be executed by the fac-
simile signature of the Mayor. The Mayor's facsimile signature shall
have the same force and effect as if he had personally signed the
Bonds and coupons. The Bonds shall be executed by the manual signa-
ture of the City Clerk. The principal of and interest on the Series
1980 Bonds shall be payable solely out of the Municipal Airport Revenue
Bond Fund ( "Bond Fund "). The Bond Fund was created pursuant to the
provisions of Section 11 of Ordinance No. 11,190 of the Ordinances
of the City, adopted June 19, 1961 ( "Ordinance No. 11,190 "), under
which Municipal Airport Revenue Bonds, dated May 1, 1961 (now
retired) were issued, and is presently being maintained. Payment
of principal and interest on the Series 1980 Bonds shall be a valid
claim of the Bondholders only against the Bond Fund and the revenues
pledged to the Bond Fund, which revenues (being revenues kledged
and mortgaged for the equal and ratable payment of the principal
of and interest on the Series 1966 Bonds, the Series 1971 Bonds,
the Series 1975 Bonds, the Series 1976 Bonds, the Series 1977 Bonds
and the Series 1980 Bonds, all of which rank on a parity of security
and shall be used for no other purpose except in Ordinances
No. 11,190, No. 11,745, No. 12,456, No. 13,008, No. 13,345 and
No. 13,361 and in this Ordinance specifically provided. The princi-
pal of and interest on the Series 1980 Bonds shall not constitute
an indebtedness of the City within any constitutional or statutory
limitation.
Section 4. That the Series 1980 Bonds and coupons shall be
in substantially the following form and the Mayor and City Clerk are
hereby authorized and directed to make all recitals contained therein:
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UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
% AIRPORT REVENUE BOND, SERIES 1980
No.
KNOW ALL MEN BY THESE PRESENTS:
$5,000
That the City of Little Rock, County of Pulaski, and State
of Arkansas (the "City "), acknowledges itself to owe and, for value
received, hereby promises to pay to bearer, or if this Bond be
registered, to the registered owner hereof, solely from the special
fund provided as hereinafter set forth, the principal sum of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America on the first day
of October, 19 , and to pay solely from the special fund interest
hereon at the rate of
percent
( %) per annum from the date until paid. Interest is payable
on April 1, 1981, and semiannually thereafter on each October 1 and
April 1. Principal and interest are payable at the principal office
of
(the "Trustee"
and "Paying Agent "). Payment of interest, when registered as to
interest, may be by check or draft mailed to the registered owner at
his address reflected on the registration book of the City maintained
by the Trustee as bond registrar.
This Bond is part of an issue of Three Hundred (300) bonds
aggregating One Million Five Hundred Thousand Dollars ($1,500,000),
numbered consecutively from One (1) to Three Hundred (300), inclusive,
(the "Series 1980 Bonds "), all of like tenor and effect, except as
to number, rate of interest, maturity and right of prior redemption,
and are issued for the purpose of financing improvements to the Little
Rock Municipal Airport.
The Series 1980 Bonds are issued pursuant to and in full
compliance with the Constitution and laws of the State of Arkansas,
including particularly Act No. 53 of the Acts of Arkansas for the
year 1949, as amended, and Act No. 175 of the Acts of Arkansas for the
we
year 1959, as amended, and pursuant to Ordinance No. of the
City, adopted on October 7, 1980 (the "Authorizing Ordinance ") and
resolutions duly adopted by the City and the. Little Rock Municipal
Airport Commission, and do not constitute an indebtedness of the
City within any constitutional or statutory limitation. The Series
1980 Bonds are not general obligations of the City, but are special
obligations payable solely from revenues derived from the operation
of the Municipal Airport. The Series 1980 Bonds are issued on a
parity of pledge and security as to airport revenues with an issue of
Municipal Airport Revenue Bonds dated May 1, 1966 (the "Series 1966
Bonds "), an issue of Municipal Airport Revenue Bonds, dated March 1,
1971 (the "Series 1971 Bonds "), an issue of Municipal Airport Revenue
Refunding Bonds, dated March 1, 1975 (the "Series 1975 Bonds "), an
issue of Municipal Airport Revenue Bonds, dated March 1, 1976 (the
"Series 1976 Bonds ") and an issue of Municipal Airport Revenue Bonds,
dated November 1, 1977 (the "Series 1977 Bonds "). An amount of
such revenues sufficient to pay the principal of and interest on
the Series 1966 Bonds, the Series 1971 Bonds, the Series 1975.Bonds,
the Series 1976 Bonds, the Series 1977 Bonds and the Series 1980
Bonds, and to establish and maintain a reserve for contingencies, is
set aside in a special fund for that purpose identified as the Munici-
pal Airport Revenue Bond Fund (created by Ordinance No. 11,190 duly
adopted on the 19th day of June, 1961 and presently being maintained).
Reference is hereby made to the Authorizing Ordinance for a detailed
statement of the nature and extent of the security, the rights and
obligations of the City, the Trustee, and the holders and registered
owners of the Series 1980 Bonds and the terms and conditions upon
which the Series 1980 Bonds are issued, including, without limitation,
the covenant of the City to impose and collect such charges for the
use of the Municipal Airport and its facilities as will always produce
sufficient revenues to provide for the operation, maintenance and
repair of the Municipal Airport, to provide for the payment of the
principal of and interest on all bonds payable from Municipal Airport
revenues, pay Trustee's and Paying Agent's fees, and to make the
required deposit into the Depreciation Fund.
ELIE
The Series 1980 Bonds maturing on and after October 1,
1991, are subject to redemption prior to maturity, on any interest
payment date on or after October 1, 1990, at the option of the City,
in whole or in part, in inverse order of maturity (and by lot within
a maturity), at a redemption price equal to 1000 of the principal
amount being redeemed together with accrued interest to the date
of redemption.
The Trustee, at the expense of the City, shall publish
notice one time of the call for redemption in a newspaper published
in the City of Little Rock, Arkansas, and having a general circulation
throughout the State of Arkansas, which publication shall not be less
than thirty (30) days prior to the date of redemption. If, because
of temporary or permanent suspension of the publication or general
circulation of any newspaper or for any other reason, it is impossible
or impractical to publish such notice in the manner herein provided,
such publication in lieu thereof as shall be made with approval of
the Trustee shall be sufficient publication of notice. In addition,
the Trustee, at the expense of the City, shall mail notice of the call
for redemption by registered or certified mail placed in the mails
not less than thirty (30) days prior to the date fixed for redemption
to the registered owner of any Bond called for redemption that is
registered as to principal, or as to principal and interest, addressed
to such regisrered owner's registered address. In the event that all
of the Bonds called for redemption are registered as to principal,
or as to principal and interest, notice in writing by registered or
certified mail to the owner or owners thereof not less than thirty
(30) days prior to the date fixed for redemption shall be sufficient,
and published notice of the call for redemption need not be given.
Each notice shall specify the numbers and the maturities of the
Bonds being called, and the date on which they shall be presented
for payment. Failure or defects in respect of the aforementioned
notifications by mail shall not affect the validity of such redemp-
tion. After the date specified in such call, the Bond or Bonds so
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called will cease to bear interest provided funds for their payment
have been deposited with the Trustee, and, except for the purpose
of payment, shall no longer be protected by the Authorizing Ordinance
and shall not be deemed to be outstanding under the provisions of
the Authorizing Ordinance.
This Bond may be registered as to principal or as to
principal and interest and may be discharged from such registration
in the manner, with the effect and subject to the terms and conditions
endorsed hereon. Subject to the provisions for registration endorsed
hereon, nothing contained in this Bond or in the Authorizing Ordinance
shall affect or impair the negotiability of this Bond and this Bond
shall be deemed a negotiable instrument under the laws of the State
of Arkansas and is issued with the intent that the laws of the State
of Arkansas will govern its construction.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and to be performed
precedent to and in the issuance of the Series 1980 Bonds, have
existed, have happened and have been performed in due time, form
and manner, as required by law; that the indebtedness represented
by the Series 1980 Bonds does not exceed any constitutional or
statutory limitation; and that sufficient revenues have been pledged
to and will be set aside into the Municipal Airport Revenue Bond
Fund, referred to above, for the payment of the principal of and
interest on the Series 1980 Bonds.
This Bond shall not be valid until the Certificate of
Authentication hereon shall have been signed by the Trustee.
IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by
its Board of Directors, has caused this bond to be signed by the
Mayor and City Clerk thereof (with the facsimile signature of the
Mayor and the manual signature of the City Clerk) and sealed with
the seal of the City, and has caused the interest coupons attached
to be signed by the facsimile signature of the Mayor, all as of
October 1, 1980.
ATTEST:
City Clerk
(SEAL)
CITY OF LITTLE ROCK, ARKANSAS
By (facsimile signature)
Mayor
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(Form of Coupon)
$ No.
On the first day of (April)(October), 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 special fund specified in the
Bond to which this coupon is attached
DOLLARS
in such coin or currency as shall be legal tender for the payment of
debts due the United States of America at the principal office of
, being six (6)
months interest then due on its Airport Revenue Bond, Series
1980, dated October 1, 1980, and numbered
CITY OF LITTLE ROCK, ARKANSAS
By (facsimile signature)
Mayor
On each bond shall appear the following:
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds of the issue of Airport
Revenue Bonds, Series 1980, of the City of Little Rock, Arkansas,
dated October 1, 1980, and aggregating $1,500,000 in principal amount
described in the Bond to which this certificate is attached.
Trustee
By
(Authorized Signature)
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PROVISIONS FOR REGISTRATION AND RECONVERSION
This Bond may be registered as to principal alone on books,
of the City, kept by the Trustee as bond registrar, upon presentation
hereof to the bond registrar, which shall make mention of such reg4s-
tration in the registration blank below, and this Bond may thereafter
by transferred only upon an assignment duly executed by the registered
owner or his attorney or legal representative in such form as shall
be satisfactory to the bond registrar, such transfer to be made on
such books and endorsed hereon by the bond registrar. Such transfer
may be to bearer, and thereafter transferability by delivery shall
be restored, but this Bond shall again be subject to successive reg-
istrations and transfers as before. The principal of this Bond, if
registered, unless registered to bearer, shall be payable only to or
upon the order of the registered owner or his legal representative.
Interest accruing on this Bond will be paid only on presentation and
surrender of that attached interest coupons as they respectively become
due, and notwithstanding the registration of this Bond as to principal,
the appurtenant interest coupons shall remain payable to bearer and
shall continue to be transferable by delivery; provided, that if upon
registration of this Bond, or at any time thereafter while this Bond
is registered in the name of the owner, the unmatured coupons attached
evidencing interest to be thereafter paid hereon shall be surrendered
to said bond registrar, a statement to that effect will be endorsed
hereon by the bond registrar and thereafter interest evidenced by
such surrendered coupons may be paid by check or draft of the bond
registrar at the times provided herein to the registered owner of
this Bond by mail to the address shown on the registration books.
This Bond when so converted into a bond registered as to both principal
and interest may be reconverted into a coupon bond at the written
request of the registered owner and upon presentation at the office of
said bond registrar. Upon such reconversion the coupons representing
the interest to become due thereafter to the date of maturity will
again be attached to this Bond and a statement will be endorsed hereon
by the bond registrar in the registration blank below whether it is
then registered as to principal or payable to bearer.
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:Manner of :Signature of
Date of Registration: Name of Registered Owner:Registration:Bond Registrar
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Section 5. That the City and the Airport Commission hereby
covenant with the holders and registered owners of the Series 1980
Bonds that there will be imposed and collected such charges for the
use of the Municipal Airport and its facilities as will at all times
produce sufficient revenues to provide for the operation, maintenance
and repair of the Municipal Airport, to provide for the payment of
the principal of and interest on all of the outstanding bonds to
which Municipal Airport revenues are pledged, as the same become due,
to provide for Trustee's and Paying Agent's fees, and to make the
required deposit into the Depreciation Fund, and to maintain all
funds provided for in Ordinances No. 11,190, No. 11,745, No. 12,456,
No. 13,008, No. 13,145, and No. 13,361, and in this Ordinance
at the required levels. The above covenant shall include the agree-
ment and obligation to increase the charges from time to time as and
to the extent necessary to produce sufficient revenues to meet the
above requirements.
Section 6. That it is hereby expressly found and declared
that the provisions of Section 8 of Ordinance No. 11,745, Section 8
of Ordinance No. 12,456, Section 8 of Ordinance No. 13,008, Section
8 of Ordinance No. 13,145 and Section 8 of Ordinance No. 13,361,
pertaining to the issuance of parity bonds, have been fully met and
complied with and that, therefore, the Bonds of this issue shall
rank on a parity of security with the Series 1966 Bonds, the Series
1971 Bonds, the Series 1975 Bonds, the Series 1976 Bonds and the
Series 1977 Bonds. In this regard, the required certificate of
the certified public accountant referred to in Section 14 of
Ordinance No. 11,190 will be filed with the Trustee, the Airport
Commission and in the office of the City Clerk prior to the delivery
of the Series 1980 Bonds.
Section 7. That the provisions, covenants, undertakings,
stipulations and obligations of the Airport Commission and the City
set forth in the Ordinances pursuant to which the Series 1966 Bonds,
the Series 1971 Bonds, the Series 1975 Bonds, the Series 1976 Bonds
and the Series 1977 Bonds were issued and secured and are presently
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outstanding, as such Ordinances may, at any time, be amended
shall inure and appertain to the Series 1980 Bonds to the
same extent and with like force and effect as if set forth
herein in full, except only insofar as the same may be expressly
inconsistent with the provisions of this Ordinance, including
among other things, and without limitation, the provisions of
Ordinance No. 11,190 whereby there has been created and is being
maintained (1) a "Municipal Airport Fund" and for the payment into
that fund of all the income and revenue derived from the operation
of the Municipal Airport, disbursements therefrom and the permitted
use of surplus at any time remaining therein, (2) a "Municipal Air-
port Operation and Maintenance Fund" and for the payment into that
fund of the required amounts and permitted disbursements therefrom,
(3) a "Municipal Airport Revenue Bond Fund" and for the payment
into that fund of the required amounts and disbursements therefrom,
and (4) a "Municipal Airport Depreciation Fund" and for the payment
into that fund of the required amounts and disbursements therefrom,
all as specified in the applicable sections of Ordinance No. 11,190,
are hereby continued, ratified and confirmed.
Inasmuch as the Bonds of this issue rank on a parity with
the other outstanding Municipal Airport Revenue Bonds of the
City (described above) the required monthly deposits into the
Municipal Airport Revenue Bond Fund shall be increased by the amounts
necessary to provide for the payment of the principal of and interest
on the Series 1980 Bonds, and Trustee's and Paying Agent's fees,
as the same become due and to increase the reserve for contingencies
(over a period of not to exceed ten years) to the maximum amount
that will become due in any year for principal and interest on all
outstanding Municipal Airport Revenue Bonds. In this regard the
monthly deposits into the Municipal Airport Revenue Bond Fund shall
be increased by a sum equal to one -sixth of the next installment
of interest and one - twelfth of the next installment of principal
on the Series 1980 Bonds.
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In addition, there shall be paid into the Municipal Airport
Revenue Bond Fund each year not less than 10% of the amount by which
the reserve for contingencies is required to be increased, to be
payable in equal monthly installment insofar as practicable, to the
end that the required increase in the reserve for contingencies be
accomplished within a ten year period. The intended effect of
incorporating the provisions of Ordinances No. 11,190, No. 11,745,
No. 12,456, No. 13,008, No. 13,145 and No. 13,361 herein, as above
provided, shall be to make those provisions fully applicable to the
Series 1980 Bonds and the language of such Ordinances shall be
construed and interpreted to accomplish that intended effect (for
instance, reference in Ordinance No. 11,190 to "bonds" or to "bonds
of this issue ", or words of similar import, shall be construed to
include the Series 1980 Bonds.
Section 8. That the provisions of Section 14 of Ordinance
No. 11,190, as amended by Section 8 of Ordinance No. 11,745, Section
8 of Ordinance No. 12,456, Section 8 of Ordinance No. 13,008, Section
8 of Ordinance No. 13,145 and Section 8 of Ordinance No. 13,361, deal-
ing with the issuance of additional bonds, shall be applicable to
the Series 1980 Bonds, with the result that the Series 1980 Bonds will
be included with other outstanding parity bonds and any bonds proposed
to be issued at any particular time insofar as the 140% coverage
requirement for parity bonds is concerned; provided, however, that
upon retirement of all Series 1966 Bonds, Series 1971 Bonds, Series
1975 Bonds, Series 1976 Bonds and Series 1977 Bonds, the coverage
requirement for parity bonds shall be reduced from 140% to 125 %.
Section 9. That the Series 1980 Bonds shall be subject to
redemption prior to maturity as provided in the Series 1980 Bond Form.
Section 10. That the recitals in this Ordinance and in the
face of the Bonds are the recitals of the City and not of the Trustee.
The Trustee shall not be required to take any action as Trustee
unless it shall have been notified in writing and shall have been
indemnified to its satisfaction against any loss, damage, or
expense on account of the taking of such action. The Trustee may
resign at any time by ten (10) days' notice in writing to the
Secretary of the Airport Commission, and the majority in value of
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the holders of the outstanding Series 1980 Bonds of this issue
at any time may, with or without cause, remove the Trustee. Upon
the resignation or removal of a Trustee, the majority in value
of the holders of the outstanding Series 1980 Bonds may name a new
Trustee, but if such holders do not name a new Trustee within thirty
(30) days after a vacancy occurs, the Airport Commission shall forth-
with name a new Trustee. The appointment of a new Trustee shall be
evidenced by a writing duly acknowledged and filed in the office of
the City Clerk. Any successor Trustee shall have all the powers
herein granted to the original Trustee. In the event of a change
in the office of Trustee the old Trustee which has resigned or been
removed shall cease to be Paying Agent and the successor Trustee
shall become the Paying Agent.
Section 11. That after the Series 1980 Bonds have been executed
by the Mayor and the City Clerk and the seal of the City impressed
as herein provided, they shall be delivered to the Trustee which
shall authenticate them and deliver them to the Purchasers upon
receipt from the Purchasers of the purchase price plus accrued
interest ( "total sale proceeds "). The Trustee shall remit the
total sale proceeds to the Treasurer of the Airport Commission.
The Treasurer shall deposit the accrued interest in the Bond
Fund and shall deposit the balance in a special account in the
name of the Airport Commission designated "Little Rock Municipal
Airport Commission 1980 Construction Fund" (the "Construction Fund ")
in a Bank that is a member of the Federal Deposit Insurance Corp-
oration with all moneys therein, unless invested as hereinafter
provided, to be secured by bonds or other direct or fully guaranteed
obligations of the United States of America. The moneys in the
Construction Fund shall be disbursed solely for paying the cost of
accomplishing the Project and paying expenses incurred in connection
with the authorization and issuance of the Series 1980 Bonds. If
any moneys remain in the Construction Fund after the Project is
completed and the expenses of authorizing and issuing the Series 1980
Bonds are paid, the remaining moneys shall be deposited into the
i
Municipal Airport Revenue Bond Fund. Moneys held in the
Construction fund may, at the option of and pursuant to the
direction of the Airport Commission, be invested and reinvested
in direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by the United
States of America, which shall mature, or which shall be subject
to redemption by the holder thereof, at the option of the holder,
not later than the date or dates when the moneys held for the credit
of the Construction Fund will be required for accomplishing the
Project or paying the expenses of authorizing and issuing the Series
1980 Bonds, as determined by the Airport Commission in its discretion.
Section 12. If the City shall pay or cause to be paid to the
holders and owners of the Series 1980 Bonds and coupons the principal
and interest to become due thereon at the times and in the manner
stipulated therein, and if the City shall keep, perform and observe
all and singular the covenants and promises in the Series 1980 Bonds
and in this Ordinance expressed as to be kept, performed and observed
by it on its part, then all rights hereby granted shall cease, deter-
mine and be void, and thereupon the Trustee shall execute and deliver
to the City such instruments in writing as shall be requisite to evi-
dence the same and assign and deliver to the City any property at the
time held pursuant to this Ordinance which may then be in its possess-
ion except cash or Government Securities (hereinafter defined) held by
it for the payment of the principal of and interest on the Series
1980 Bonds.
Series 1980 Bonds and coupons for the payment or redemption
of which moneys or noncallable Government Securities (defined
as direct obligations of, or obligations the principal of and
interest on which are fully guaranteed by, the United States of
America) maturing on or prior to the maturity or redemption
date of the Series 1980 Bonds shall have been deposited in trust
with the Trustee or some other Bank or trust company (either of
which is for purposes of this Section identified as the "Escrow
Trustee ") pursuant to an irrevocable agreement requiring such
moneys and the proceeds of such Government Securities to be applied
solely to the payment of such Bonds (whether such deposit is upon
or prior to the maturity or the redemption date of such Bonds)
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shall be deemed to be paid within the meaning of this Ordinance;
provided however, that if such Bonds are to be redeemed prior to
the maturity thereof, notice of such redemption shall have been duly
given. In determining the sufficiency of the deposit there shall
be considered the principal amount of such Government Securities and
interest to be earned thereon until maturity.
The City may at any time surrender to the Trustee for
cancellation by it any Series 1980 Bonds previously authenticated
and delivered hereunder, together with any unpaid coupons thereto
belonging, which the City may have acquired in any manner whatsoever,
and such Series 1980 Bonds and coupons, upon such surrender and
cancellation, shall be deemed to be paid and retired.
Section 13. That this Ordinance shall not create any right
of any kind, and no right of any kind shall arise hereunder pursuant
to it until the Series 1980 Bonds authorized by this Ordinance shall
be issued and delivered.
Section 14. That the provisions of this Ordinance are
hereby declared to be separable and if any provision shall for any
reason be held illegal or invalid, such holding shall not affect
the validity of the remainder of the Ordinance.
Section 15. That all ordinances, resolutions and parts thereof
in conflict herewith are hereby repealed to the extent of such
conflict.
Section 16. That there is hereby ascertained and declared
that an immediate need exists for the Project to be financed from
the proceeds of the Series 1980 Bonds, in order to have adequate
facilities at the Municipal Airport. It is, therefore, declared
that an emergency exists, and this Ordinance being necessary
for the immediate preservation of the public peace, health and
safety, shall take effect and be in force from and after its
passage.
PASSED: October 7 , 1980.
ATTEST:
APPROVED:
f
(In-JL Mayor
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