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HomeMy WebLinkAbout13145ORDINANCE NO. 13,145 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF MUNICIPAL AIRPORT REVENUE BONDS BY THE CITY OF LITTLE ROCK, ARKANSAS, FOR THE PURPOSE OF FINANCING THE COST OF CONSTRUCTING IMPROVE- MENTS TO THE AIRPORT FACILITIES; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; DESCRIBING 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 main- tained 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 airport improvements must be constructed, a brief general description of which are: Renovation and repairs to the primary air carrier runway and improvements and additions to airfield lighting, aircraft aprons, taxiways, airport security fencing, and necessary incidental work and expenses pertaining thereto and to the issuance of bonds, (herein referred to as the "improvements "), and it is proposed to permanently finance the estimated cost by the proceeds of Airport Revenue Bonds, grant funds from an agency of the United States of America, and funds from other sources; WHEREAS, the Airport Commission has found and declared that it would be in the best interest of the City and the inhabitants thereof if the improvements be accomplished and has authorized its Chairman to make these facts known to the Board of Directors of the City (the "Board ") with the request that the Board take the necessary action to issue and sell at this time Municipal Airport Revenue Bonds in the principal amount of $600,000; and �oo-9z WHEREAS, the Board hereby finds and declares that it would be in the best interest of the City and its inhabitants for the improvements to be accomplished and that Municipal Airport Revenue Bonds be issued as requested by the Airport Commission; and' . WHEREAS, the City has outstanding at this time One Hundred Four Thousand Dollars ($104,000) in principal amount of Municipal Airport Revenue Bonds dated May 1, 1961, issued under and secured by the provisions of Ordinance No. 11,190 of the ordinances of the City, adopted and approved on the 19th day of June, 1961 (the "1961 Bonds" and Ordinance No. 11,190); and WHEREAS, the City has outstanding One Million One Hundred Fifty -Six Thousand Dollars ($1,156,000) in principal amount of Municipal Airport Revenue Bonds dated May 1, 1966, issued under and secured by the provisions of Ordinance No. 11,745 of the Ordinances of the City, adopted and approved on the 16th day of May, 1966, and Ordinance No. 11,755, adopted and approved on the 20th day of June, 1966 (the "1966 Bonds" and "Ordinance No. 11,745 and Ordinance No. 11,755 "); and WHEREAS, the City has outstanding Two Million Four Hundred Twenty -Two Thousand Dollars ($2,422,000) in principal amount of Municipal Airport Revenue Bonds, Series 1971, dated March 1, 1971 (the "1971 Bonds "), issued under and secured by the provisions of Ordinance No. 12,456 of the Ordinances of the City, adopted and approved on the 15th day of March, 1971 (the "1971 Bonds" and "Ordinance No. 12,456 "); and WHEREAS, the City has outstanding Eight Hundred Sixty - Two Thousand Dollars ($862,000) in principal amount of Municipal Airport Revenue Refunding Bonds, Series 1975, f dated March 1, 1975, issued under and secured by the provisions i i of Ordinance No. 13,008 of the Ordinances of the City, adopted and approved on the 21st day of January, 1975 (the "1975 Bonds" and "Ordinance No. 13,008 "); and WHEREAS, the City has determined and shall prior to the issuance of any additional bonds, including the bonds of this issue, place in escrow funds sufficient to retire the $104,000 principal amount of 1961 Bonds together with interest thereon and paying agent's charges, as the 1961 Bonds mature; and WHEREAS, additional Municipal Airport Revenue Bonds in the aggregate principal amount of $600,000 can be issued on a parity of security with the outstanding bonds provided the conditions set forth in Section 14 of Ordinance No. 11,190, Section 8 of Ordinance No. 11,745, Section 8 of Ordinance No. 12,456, and Section 8 of Ordinance No. 13,008 have been complied with, and, in this regard, the Board has determined that the conditions set forth in said sections and ordinances can be complied with, and further finds that by the placing in escrow of funds sufficient to retire the 1961 Bonds, interest thereon, and paying agent's charges, that in making these provisions for their payment, the said 1961 Bonds are not. deemed outstanding, and that, therefore, the Municipal Airport Revenue Bonds authorized by this Ordinance can be issued on a parity of security with the outstanding bonds; and WHEREAS, the City offered for public sale Municipal Airport Revenue Bonds, Series 1976, dated March 1, 1976, in the aggregate principal amount of $600,000, and at the public sale held March 11, 1976, the best bid obtained was that of Jon R. Brittenum & Associates, Inc. (the "Purchaser ") in the amount of principal plus accrued interest for bonds bearing interest at the rates of 6.10 %, 5.65 %, 5.75 %, and 5.80% as hereinafter set forth, which bid of the Purchaser was accepted by the City in Resolution No. 5,503 adopted and approved on the 11th day of March, 1976; NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. That the improvements be accomplished. 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 2. 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 Municipal Airport Revenue Bonds, Series 1976, are hereby authorized and ordered issued in the total principal amount of $600,000 for permanently financing a portion of the cost of accomplishing the improvements (which bonds will be herein referred to as "the bonds" or the "bonds of this issue ". The sale of the bonds to the purchaser for the purchase price set forth and the recitals of this Ordinance are hereby approved. The bonds shall be negotiable coupon bonds payable to bearer but subject to registration as to principal only or as to principal and interest. The bonds shall be dated March 1, 1976, interest thereon shall be payable semiannually on March 1 and September 1 of each year, commencing September 1, 1976. The bonds shall be numbered from 1 to 148. The bonds numbered 7, 8, 9, 17, 25, 26, 27, 28, 37, 38, 47, 48, 49, 54, 55, 56, 67, 73, 74, 80, 81, 82, 88, 89, 90, 91, 104, 111, 112, 138, 139, 140, 146, 147 and 148 shall be in the denomination of $1,000 each. All other bonds shall be in the denomination of $5,000 each. The principal. of the bonds shall mature annually on March 1 in each of the years 1977 to 1992, inclusive, as in the schedule set forth in Section 7(b) hereof (but shall be subject to redemption prior to maturity as hereinafter set forth), which schedule also sets forth -the bond numbers and interest rates applicable to the bonds of the respective maturities. Section 3. That the bonds 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 shall 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 of the City Clerk. The principal of and interest on the bonds shall be payable solely out of the Municipal Airport Bond Fund (which bond fund was created pursuant to the provisions of Section 11 of Ordinance No. 11,190 and is presently being maintained) and 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 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 bonds as the 1966 Bonds, the 1971 Bonds, and the 1975 Bonds which rank on a parity with the bonds authorized by this Ordinance, and shall be used for no other purpose except as in Ordinances No. 11,190, No. 11,745, No.-11,755, No. 12,456 and No. 13,008 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.. The the bonds and coupons shall be in sub- stantially 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 1976 NO. KNOW ALL MEN BY THESE PRESENTS: 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 DOLLARS in lawful money of the United States of America on the first day of March, 19 , and to pay solely from the special fund interest hereon at the rate of percent ( o) per annum from date until paid. Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 1976. Principal and interest are payable at the principal office of (the "Trustee" and "Paying Agent "). Payment of principal, when registered as to principal, and 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 forty -eight (148) bonds aggregating Six Hundred Thousand Dollars ($600,000), numbered consecutively from one (1) to one hundred forty -eight (148), inclu- sive (the "bonds "), all of like tenor and effect, except as to number, denomination, rate of interest, maturity and right of prior redemption, and are issued for the purpose of paying a portion of the costs of constructing improvements to the Municipal Airport (described in the Authorizing Ordinance). 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. of the City, adopted and approved on the day of March, 1976, (the "Authorizing Ordinance ") and a resolution duly adopted by the Little Rock Municipal Airport Commission on the 12th day of April, 1976, 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, Series 1971, dated March 1, 1971 (the "1971 Bonds "), and an issue of Municipal Airport Revenue Refunding Bonds, Series 1975, dated March 1, 1975 (the 111975 Bonds "). An amount of such revenues sufficient to pay the principal of and interest on the 1966 Bonds, the 1971 Bonds, the 1975 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 and approved 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 obliga- tions 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 bonds, the 1966 Bonds, the 1971 Bonds, the 1975 Bonds, and these bonds, pay Trustee's and Paying Agent's fees, and to make the required deposit into the Depreciation Fund. The bonds will be subject to redemption prior to maturity, in whole or in part, at the option of the City, numerical order, on any interest paying date on March 1, 1985, from funds from any source, at a principal amount of the bonds being redeemed pl- to the date of redemption. Notice of the call for redemption shall be in inverse and after price of the as accrued interest published one time in a newspaper published in the City and having a general circulation throughout the State of Arkansas, giving the number and maturity of each bond being called, the publication to be at least thirty (30) days prior to the redemption date and after the date fixed for redemption each bond so called shall cease to-bear interest, provided funds for its payment are on deposit with the Trustee and Paying Agent at that time. In addition, such notice shall be given by first class mail to the registered owner of any bond registered as to principal or as to principal and interest at the address of such owner reflected on the books of the bond registrar and placed in the mails not less than thirty (30) days prior to the date fixed for redemption. If all outstanding bonds shall be registered as to principal and interest, then notice by first class mail to the registered owners thereof as aforesaid shall be sufficient and it shall not be necessary to publish notice of the call for redemption. 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 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 signa- ture of the Mayor, all as of the first day of March, 1976. CITY OF LITTLE ROCK, ARKANSAS By (facsimile signature) Mayor ATTEST: City Clerk (SEAL) 4� (Form of Coupon) $ No. March, On the first day of September, 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, • � Biel aWVZR". 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 , Arkansas, being six (6), month' interest then due on its Municipal Airport Revenue Bond, dated March 1, 1976, 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, of the City of Little Rock, Arkansas, Series 1976, dated March 1, 1976, and aggregating $600,000 in principal amount described in the bond to which this certificate is attached. By (Authorized Signature) 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 presenta- tion hereof to the bond registrar, which shall make mention of such registration 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 representa- tive 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 therafter transferability by delivery shall be restored, but this bond shall again be subject to successive registrations and transfers as before. The principal of this bond, if registered, unless registered to bearer, shall be payable only to or upon the 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 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. Date of Registration Name of Registered Ownex Manner of Registration Signature of Bond Re istra 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 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. 11,755, No. 12,456, No. 13,008 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 14 of Ordinance No. 11,190, Section 8 of Ordinance No. 11,745, Section 8 of Ordinance No. 12,456, and Section 8 of Ordinance No. 13,008 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, and the 1975 Bonds. Funds sufficient to pay the $104,000 1961 Bonds, interest thereon and paying agent's charges prior to the issuance of these bonds shall be placed in escrow, therefore, these 1961 Bonds are not deemed to be outstanding. 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. (a) That the provisions, covenants, under- takings, stipulations and obligations of the Airport Commission and the City set forth in Ordinances No. 11,190, No. 11,745, No. 11,755, No. 12,456, and No. 13,008, and pursuant to which the 1961 Bonds, the 1966 Bonds, the 1971 Bonds, and the 1975 Bonds were issued and secured and (excluding the 1961 Bonds) are presently outstanding, as such Ordinances may, at any time, be amended, shall inure and appertain to the bonds of this issue 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 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 Bond" 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, and the 1975 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, and on the bonds of this issue. 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 (as those installments will be set forth on the schedule which appears in Section 7(b) of this Ordinance). 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 con- tingencies 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. 11,755, No. 12,456 and No. 13,008 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, references 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, and the bonds now being issued on a parity therewith under the provisions of this Ordinance). (b) That the principal of and interest on the bonds mature in accordance with the following schedule: i BOND INTEREST INTEREST YEAR NOS. RATE PRINCIPAL MARCH 1 SEPTEMBER 1 TOTAL $17,714.25 $17,714.25 1977 1- 9 6.10% $ 33,000 $17,714.25 16,707.75 34,422.00 1978 10- 17 6.10% 36,000 16,707.75 15,609.75 32,317.50 1979 18- 28 6.10% 39,000 15,609.75 14,420.25 30,030.00 1980 29- 38 6.10% 42,000 14,420.25 13,139.25 27,559.50 1981 39- 49 6.10% 43,000 13,139.25 11,827.75 24,967.00 1982 50- 56 6.10% 23,000 11,827.75 11,126.25 22,954'.00 1983 57- 61 6.10% 25,000 11,126.25 10,363.75 21,490.00 1984 62- 67 6.10% 26,000 10,363.75 9,570.75 19,934.50 1985 68- 74 5.65% 27,000 9,570.75 8,808.00 18,378.75 1986 75- 82 5.65% 28,000 8,808.00 8,017.00 16,825.00 1987 83- 91 5.65% 29,000 8,017.00 7,197.75 15,214.75 1988 92- 97 5.75% 30,000 7,197.75 6,335.25 13,533.00 1989 98 -104 5.75% 31,000 6,335.25 5,444.00 11,779.25 1990 105 -112 5.75% 32,000 5,444.00 4,524.00 9,968.00 1991 113 -140 5.80% 128,000 4,524.00 812.00 5,336.00 1992 141 -148 5.80% 28,000 812.00 -0- 812.00 i Section 8. Since provision has been made for the payment of the 1961 Bonds, the requirements of Section 14 of Ordinance No. 11,190 concerning parity bonds is no longer applicable to these bonds or any additional bonds proposed to be issued. However, the provisions of Section 8 of Ordinance No. 11,745, Section 8 of Ordinance No. 12,456, and Section 8 of Ordinance No. 13,008 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 A included with the 1966 Bonds, the 1971 Bonds, the 1975 Bonds, and any bonds proposed to be issued, and the coverage requirement for parity bonds is 140% of the maximum amount that will become due in any year thereafter for principal and interest payments on all bonds then outstanding and on all the bonds then proposed to be issued, as required by said Section 8 in each of the Ordinances No. 11,745, No. 12,456, and No. 13,008. Section 9. That the bonds of this issue shall be subject to redemption prior to maturity in accordance with the provisions in the bond form appearing in Section 4 hereof. 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 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 who shall authenticate them and deliver them to the purchaser upon receipt from the purchaser of the purchase price plus accrued interest. The Trustee shall remit the proceeds of the sale of the bonds and the accrued interest to the Treasurer of the Airport Commission and the Treasurer shall deposit the accrued interest in the Municipal Airport Bond Fund and shall deposit the balance of the proceeds in a special account in the name of the Airport Commission designated "Little Rock Municipal Airport Commission 1976 Construction Fund" in a bank that is a member of the Federal Deposit Insurance Corporation with all monies therein, unless invested as hereinafter provided, to be secured by bonds or other direct or general guaranteed obligations of the United States of America. The bonds 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 monies remain in the Construction Fund after the improvements are accomplished and expenses of authorizing the issuance of the bonds are paid, the remaining monies shall be deposited into the Municipal Airport Revenue Bond Fund (created by Ordinance No. 11,190). Monies 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 monies held for the credit of 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 not 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 the present Little Rock Municipal Airport facilities are inadequate and by reason thereof, there exists a hazard to the life, property and welfare of the inhabitants of the City. The herein authorized improvements are immediately necessary to alleviate the hazard and can be accomplished only by the issuance of the bonds herein authorized. 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: March 18 , 1976. ATTEST: City C1 (SEAL) APPROVED: m � 1