HomeMy WebLinkAbout13361ORDINANCE NO. 13,361
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
MUNICIPAL AIRPORT REVENUE BONDS BY THE CITY
OF LITTLE ROCK, ARKANSAS FOR THE PURPOSE OF
FINANCING I14PROVEMENTS TO THE AIRPORT FACILTIES;
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 Com-
mission"), 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 airport
improvements, consisting of passenger loading bridges for use by
four (4) major airlines ( "Improvements ") should be purchased and
installed, and has requested that the Board of Directors of the
City ( "Board ") take the necessary steps to sell and issue Municipal
Airport Revenue Bonds in the principal amount of $500,000, to provide
the necessary financing of the costs of the Improvements, expenses
incidental thereto and expenses of issuing bonds; and
WHEREAS, the City offered for public sale Municipal Airport
Revenue Bonds, Series 1977, dated November 1, 1977, in the principal
amount of $500,000 (the "1977 Bonds" or the "Bonds "), and at the
public sale held October 26, 1977, the following bids were received:
T. J. Raney & Sons, Inc. 5.1462%
Reynolds Securities, Inc.
Hill, Crawford & Lanford, Inc. 5.1613%
Parham and Company, Inc. 5.238983%
Powell & Satterfield, Inc. 5.30593%
Jon R. Brittenum & Associates, Inc. 5.32881%
Stephens Inc. 5.36229%
Page 2
WHEREAS, the City has outstanding an issue of Municipal
Airport Revenue Bonds, Series 1966, dated May 1, 1966 (the "1966
Bonds "), in the original principal amount of $1,337,000 of which
$1,075,000 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
WHEREAS, the City has outstanding an issue of Municipal
Airport Revenue Bonds, Series 1971, dated March 1, 1971 (the "1971
Bonds "), in the original principal amount of $2,700,000 of which
$2,356,000 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 "1975
Bonds "), in the original principal amount of $900,000 of which
$821,000 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 "1976
Bonds "), in the original principal amount of $600,000 of which
Page 3
$567,000 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 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, and Section 8 of
Ordinance No. 13,145, for the issuance of bonds ranking on a parity
with the outstanding bonds can be complied with and that, therefore,
the bonds authorized by this Ordinance will be issued on a parity
of security with the 1966 Bonds, the 1971 Bonds, the 1975 Bonds
and the 1976 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 Arkasas, 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
Municipal Airport Revenue Bonds, Series 1977, are hereby authorized
and ordered issued in the total principal amount of $500,000 to
finance the cost of Improvements, costs incidental thereto, and
the costs of issuing the Bonds. That the bid of T. J. Raney & Sons,
Inc., Little Rock, Arkansas (the "Purchasers ") for the Bonds is
determined to be the best bid and the bid is accepted and the Bonds
sold to the Purchasers in accordance with the bid. The Bonds shall
be dated November 1, 1977, interest shall be payable may 1, 1978,
and semiannually thereafter on each November 1 and May 1, and the
Bonds shall mature annually (on November 1), bear interest and be
numbered as follows:
Maturity
Principal Amount
Bond Nos.
Interest Rate
1978
$40,000
1- 8
6.00%
1979
40,000
9- 16
6.00%
1980
45,000
17- 25
6.00%
1981
45,000
26- 34
5.50%
1982
50,000
35- 44
5.25%
1983
50,000
45- 54
5.25%
1984
55,000
55- 65
5.25%
1985
55,000
66- 76
5.00%
1986
60,000
77- 88
5.00%
1987
60,000
89 -100
5.00%
V 11
Page 4
All Bonds shall be in the denomination of $5,000 each.
Worthen Bank & Trust Company, N.A., Little Rock, Arkansas
is designated as Trustee and Paying Agent for the Bonds.
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 interest
when registered as to interest may be by check or draft mailed to the
registered owner at the address shown on the registration book of the
City maintained by the Trustee as bond registrar.
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.
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 Improvements, 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 provisions
of Act No. 69 of the Acts of Arkansas for the year 1959. Interest
coupons attached to the Bonds shall be executed by the facsimile
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 signature
Page 5
of the City Clerk. The principal of and interest on the Bonds shall
be payable solely out of the Municipal Airport 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 Bonds
shall be a valid claim of the Bondholders only aginst the Bond Fund
and the revenues pledged to the Bond Fund, which revenues (being
revenues derived from the operation of the Municipal Airport) are
hereby pledged and mortgaged for the equal and ratable payment of
the principal of and interest on the 1966 Bonds, the 1971 Bonds,
the 1975 Bonds, the 1976 Bonds and the 1977 Bonds, all of which rank
on a parity of security, and shall be used for no other purpose except
as in Ordinances No. 11,190, No. 11,745, No. 12,456, No. 13,008, No.
13,145 and in this Ordinance specifically provided. The principal of
and interest on the Bonds shall not constitute an indebtedness of
the City within any constitutional or statutory limitation.
Section 4. That the 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:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
% MUNICIPAL AIRPORT REVENUE BOND, SERIES 1977
R"
KNOW ALL MEN BY THESE PRESENTS:
$5,000
That the City of Litle 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 November, 19 , and to pay solely from the special fund interest
hereon at the rate of
percent
( %) per annum from date until paid. Interest is payable
semiannually on May 1 and November 1 of each year, commencing May 1,
1978. Principal and interest are payable at the principal office of
Worthen Bank & Trust Company, N.A., Little Rock, Arkansas (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 One Hundred (100) bonds
aggregating Five Hundred Thousand Dollars ($500,000), numbered
consecutively from One (1) to One Hundred (100), inclusive (the
"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 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 year
1959, as amended, and pursuant to Ordinance No. 13,361 of the City,
Page 7
adopted and approved on the 26th day of October, 1977 (the
"Authorizing Ordinance ") and a resolution duly adopted by the Little
Rock Municipal Airport Commission, and the bonds do not constitute
an indebtedness of the City within any constitutional or statutory
limitation. The 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 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 "1966 Bonds "),
an issue of Municipal Airport Revenue Bonds, dated March 1, 1971
(the "1971 Bonds "), an issue of Municipal Airport Revenue Refunding
Bonds, dated March 1, 1975 (the "1975 Bonds "), and an issue of
Municipal Airport Revenue Bonds dated March 1, 1976 (the "1976 Bonds ").
An amount of such revenues sufficient to pay the principal of and
interest on the 1966 Bonds, the 1971 Bonds, the 1975 Bonds, the 1976
Bonds, and these Bonds and to establish and maintain a reserve for
contingencies, is set aside in a special fund for that purpose
identified as the Municipal 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 Bonds and the terms and
conditions upon which the 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 the 1966 Bonds, the 1971
Bonds, the 1975 Bonds, the 1976 Bonds and these Bonds, pay Trustee's
and Paying Agent's fees, and to make the required deposit into the
Depreciation Fund.
The Bonds are not subject to redemption prior to maturity.
Page 8
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
Oridnance 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 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 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 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 the first
day of November, 1977.
ATTEST:
City Clerk
(SEAL)
CITY OF LITTLE ROCK, ARKANSAS
By (facsimile signature)
Mayor
Page 9
(Form of Coupon)
$ No.
On the first day of (May) (November), 19 , the City of
Little Rock, Pulaski County, Arkansas, unless the Bonds 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
Worthen Bank & Trust Company, N.A., Little Rock, Arkansas, being six
(6) months interest then due on its Municipal Airport Revenue Bond,
Series 1977, dated November 1, 1977, 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 Municipal Airport
Revenue Bonds, Series 1977, of the City of Little Rock, Arkansas,
dated November 1, 1977, and aggregating $500,000 in principal amount
described in the Bond to which this certificate is attached.
WORTHEN BANK & TRUST COMPANY, N.A.
Little Rock, Arkansas
By
(Authorized Signature)
Page 10
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 regis-
tration in the registration blank below, and this Bond may thereafter
be 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 the 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 re-
quest 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.
Page 11
: Manner of : Signature of
Date of Registration: Name of Registered Owner:Registration:Bond Registrar
Page 12
Section 5. That the City and the Airport Commission hereby
covenant with the holders and registered owners of the 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, including
the 1966 Bonds, the 1971 Bonds, the 1975 Bonds, the 1976 Bonds and
the Bonds of this issue, 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 in this Ordinance at the required levels. The above
covenant shall include the agreement 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, and Section
8 of Ordinance No. 13,145, 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 1966 Bonds,
the 1971 Bonds, the 1975 Bonds, and the 1976 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 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 1966 Bonds, the 1971
Bonds, the 1975 Bonds and the 1976 Bonds were issued and secured and
are presently outstanding, as such Ordinances may, at any time, be
amended, shall inure and appertain to the Bonds of this issue to the
Page 13
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 suprlus at any time remaining
therein, (2) a "Municipal Airport 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 1966 Bonds, the 1971 Bonds, the 1975 Bonds and the 1976 Bonds,
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 Bonds of this issue,
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 the 1966 Bonds, the 1971 Bonds,
the 1975 Bonds, the 1976 Bonds and on the Bonds of this issue. In - -
this regard the monthly deposits into the Municpal 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 1977 Bonds, as follows:
Page 14
Principal Maturity Interest
Year (November 1) May 1 November 1 Total
1978
$40,000
$13,431.25
$13,431.25
$66,862.50
1979
40,000
12,231.25
12,231.25
64,462.50
1980,
45,000
11,031.25
11,031.25
67,062.50
1981
45,000
9,681.25
9,681.25
64,362.50
1982
50,000
8,443.75
8,443.75
66,887.50
1983
50,000
7,131.25
7,131.25
64,262.50
1984
55,000
5,818.75
5,818.75
66,637.50
1985
55,000
4,375.00
4,375.00
63,750.00
1986
60,000
3,000.00
3,000.00
66,000.00
1987
60,000
1,500.00
1,500.00
63,000.00
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 installments 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 and No. 13,145 herein, as above provided,
shall be to make those provisions fully applicable to the Bonds of
this issue 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 1966 Bonds, the 1971 Bonds, the 1975 Bonds, the 1976 Bonds and
the Bonds now being issued on a parity therewith under the provisions
of this Ordinance).
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 and -
Section 8 of Ordinance No. 13,145, dealing with the issuance of
additional bonds, shall be applicable to the Bonds of this issue,
with the result that the Bonds of this issue will be included with
the 1966 Bonds, the 1971 Bonds, the 1975 Bonds, the 1976 Bonds, and
any bonds proposed to be issued at any particular time insofar as
the 140% coverage requirement for parity bonds is concerned.
Page 15
Section 9. That the bonds of this issue shall not be
subject to redemption prior to maturity.
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 the holders
of the outstanding 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
Bonds of this issue 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 forthwith name a new Trustee. The
appointment of a new Trustee shall be evidenced by a writing duly
acknowledged and recorded in the office of the Circuit Clerk and
Ex Officio Recorder for Pulaski County, Arkansas. Any successor
Trustee shall have all 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 Bonds have been executed by
the Mayor and City Clerk and the seal of the City impressed as herein
provided, they shall be delivered to the Trustee 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 1977 Construction
Fund" (the "Construction Fund ") in a Bank that is a member of the
Page 16
Federal Deposit Insurance Corporation 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 improvements and paying
expenses incurred in connection with the authorization and issuance
of the Bonds. If any moneys remain in the Construction Fund after
the Improvements are accomplished and the expenses of authorizing
and issuing the Bonds are paid, the remaining moneys shall be deposited
into the 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 of 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 improvements or paying the expenses
of authorizing and issuing the Bonds, as determined by the Airport
Commission in its discretion.
Section 12. 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 Bonds authorized by this Ordinance shall be issued
and delivered.
Section 13.
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 nbt affect the
validity of the remainder of the Ordinance.
Section 14.
That all ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent of
such conflict.
Section 15. That it is hereby ascertained and declared
that an immediate need exists for the Improvements to be financed
from the proceeds of the Bonds, in order to have adequate facilities
,•, r
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 26 1977.
ATTEST:
(SEAL)
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City Cle k
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