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HomeMy WebLinkAbout12456ORDINANCE NO. 12,456 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; 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 (called "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 (called "City "), adopted November 7, 1950; and WHEREAS the Airport Commission has determined that airport improve- ments must be constructed, a brief general description of which are: constructing and equipping a new terminal building, ramp construction and lighting, runway and taxiway construction and lighting, relocation of some existing facilities, 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 costs 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 City has issued and there is presently outstanding $1,600,000 in principal amount of Municipal Airport Revenue Bonds dated November 1, 1970, maturing November 1, 1972, issued to provide interim financing of a portion of the improvements (the "interim bonds "); and 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 (called "Board ") with the request that the CC, 12 `­7If A -17 Page 2 Board take the necessary steps to issue and sell at this time Municipal Airport Revenue Bonds in the principal amount of $2,700,000.00; and 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 ac- complished 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 Sixty- Eight Thousand Dollars ($168, 000.00) 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 (called "1961 bonds "); and WHEREAS the City has outstanding One Million Three Hundred Thirty Seven Thousand Dollars, ($1,337,000.00) 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 (called "1966 bonds "); and WHEREAS additional Municipal Airport Revenue Bonds in the aggregate principal amount of Two Million Seven Hundred Thousand Dollars ($2,700,000.00) 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 and Section 8 of Ordinance No. 11,745, have been complied with and, in this regard, the Board has determined that the conditions set forth in Section 14 and Section 8 can be complied with and that, therefore, the Municipal Airport Revenue Bonds authorized by this Ordinance can be issued on a parity of security with the outstanding bonds; WHEREAS the City offered for public sale Municipal Airport Revenue Bonds dated March 1, 1971, in the aggregate principal amount of $2,700,000.00, and at the public sale held March 10, 1971, the best bid obtained was that of an account managed by UMIC, Inc. (the "purchasers ") in the amount of principal plus accrued interest plus a premium of $1, 000 for bonds bearing interest at the rates of 6 -1/2 %, 5-3/4%,5%, 6% and 6.20% as hereinafter set forth; Page 3 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 super- vision 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 improve- ments, the operation of the airport and the collection, handling and disburse- ment 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 1971, are hereby authorized and ordered issued in the total principal amount of $2,700,000 for permanently financing a portion of the costs 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 purchasers for the purchase price set forth in the recitals of this Ordinance is 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, 1971, interest thereon shall be payable semiannually on March 1 and September 1 of each year, commencing September 1, 1971. Page 4 The bonds shall be numbered consecutively from 1 to 580. Bonds numbered 10, 11, 12, 13, 24, 25, 37, 49, 50, 51, 52, 65, 66, 80, 109, 110, 111, 112, 128, 129, 130, 147, 148, 149, 167, 168, 169, 170, 189, 190, 191, 192, 256, 280, 281, 282, 308, 335, 336, 337, 366, 396, 397, 398, 399, 439, 491, 492, 493, and 494 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 1972 to 1995, 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 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 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, and the 1961 bonds and 1966 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 and No. 11, 755 and in this ordinance specifically Page 5 provided. The principal of and interest on the bonds shall not constitute an indebtedness of the City within any constitutional or statutory limitations. 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: Page 6 UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK MUNICIPAL AIRPORT REVENUE BOND, SERIES 1971 NO. KNOW ALL MEN BY THESE PRESENTS: That the City of Little Rock, County of Pulaski, and State of Arkansas (called "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 such coin or currency as shall be legal tender for the payment of debts due the United States of America on the first day of March, 19 , and to pay solely from the special fund interest hereon from date until paid at the rate of per cent ( %) per annum, semiannually on March 1 and September 1 of each year, commencing September 1, 1971. The principal, if payable to bearer, and interest, when evidenced by coupons, shall be payable upon presentation at the principal office of The First National Bank in Little Rock, Little Rock, Arkansas (the "Trustee" and the "Paying Agent ") . Payment of principal, when registered as to principal, and payment of interest when registered as to interest, shall be by check or draft payable to the regis- tered owner on the bond registration book maintained by the Trustee. This bond is part of an issue of Five Hundred Eighty (580) bonds aggregating Two Million Seven Hundred Thousand Dollars ($2,700,000), numbered consecutively from One (1) to Five Hundred Eighty (580) , inclusive (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) . Page 7 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. 12,456 of the City, adopted and approved on the 15th day of March, 1971 (the "Authorizing Ordinance ".) and a resolution duly adopted by the Little Rock Municipal Airport Commission on the day of 19 , and the bonds do not constitute an indebtedness of the City within any consti- tutional 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. An amount of such revenues sufficient to pay the principal of and interest on the bonds (and on the 1961 Bonds and the 1966 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 flow of Airport Revenue Funds is first to an Operation and Maintenance Fund, second to the Municipal Airport Revenue Bond Fund and third to a Depreciation Fund) , 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 bonds, the 1961 Bonds and the 1966 Bonds, paying agent's fees, and to make the required deposit into the Depreciation Fund. In this regard, there are presently outstanding Municipal Airport Revenue Bonds of an issue dated May 1, 1961, issued under •.. S the authority of Ordinance No. 11, 190 of the ordinances of the City referred to above (the "1961 Bonds ") and of an issue dated May 1, 1966, issued under the authority of Ordinance No. 11, 745, duly adopted and approved on the 16th day of May, 1966, and Ordinance No. 11,755, duly adopted and approved on the 20th clay of June, 1966 (the "1966 Bonds "). The bonds are issued on a parity of security with the 1961 Bonds and the 1966 Bonds. The bonds will be subject to redemption prior to maturity, in whole or in part, at the option of the City, in inverse numerical order, on any interest paying date on and after March 1, 1981, from funds from any source, at a price of the principal amount of the bonds being redeemed plus accrued interest to the elate of redemption and plus a premium of the principal amount being redeemed as follows: 3% if redeemed March 1, 1981 or September 1, 1981; 2 -1/2% if redeemed March 1, 1982 or September 1, 1982; 2% if redeemed March 1, 1983 or September 1, 1983; 1 -1/2% if redeemed March 1, 1984 or September 1, 1984; 1% if redeemed March 1, 1985 or September 1, 1985; 1/2% if redeemed March 1, 1986 or September 1, 1986; No premium thereafter Nc)tice of the call for redemption shall be 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 publica- tion 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. Ire 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 i Page 9 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 orimpair 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 limita- tion; 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 7,777 77 ..a ��i: =w' M'C4. ,•'tea ',..'�. • •r Page 10 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 March, 1971, ATTEST: City Clerk (SEAL) CITY OF LITTLE ROCK, ARKANSAS By (facsimile signature) Mayor Page 11 (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, 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 The First National Bank in Little Rock, Little Rock, Arkansas, being six (6) months' interest then due on its Municipal Airport Revenue Bond, Series 1971, dated March 1, 1971, 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 1971, of the City of Little Rock, Arkansas, dated March 1, 1971, and aggregating $2,700, 000.00 in principal amount described in the bond to which this certificate is attached. THE FIRST NATIONAL BANK IN LITTLE ROCK LITTLE ROCK, ARKANSAS (Authorized Signature) PROV)S)ON'S 1'01' 1ti,G)ST1�l'►'1'l0N AND REGON \�L'1Z 3) This bond may be 1-ogistered a to princi.p�tl alonZ on the books of the City, kept by the Trustee as bond registrar, upon presentation hereof to the bond registrar, which shall make mention of such registration in the j. registration blank below, and this bond may thereafter be transferred only upon an assignment duly executed b y the registered owner or his attorney Y ) g Y 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 transfer -- ability 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 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 notwithstalld- ing the registration of this bond as to principal, the appurtentant interest _coupons shall remain payahl.e 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 unr;latured -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 surrenccrcc coupons will 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 v, hen 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 ;•�Iid l)onci registrar. Upon such reconversion the coupons representing the interest to become clue thereafter to the (late of maturity will. again be attached to this bor.ci and a statement will be c"idorscd hercon by the bond registrar in the rcgi.stratio>> blank below N17hcther it is then registered as to principal or payable to bearer. Name of : Manner of : Signature of Tate of Registration Registered Owner • Registration : Bond Registrar Page 14 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 1961 Bonds, the 1966 Bonds and the bonds of this issue, as the same become due, to provide for 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 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 and Section 8 of Ordinance No. 11,745 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 1961 Bonds and the 1966 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. (a) That the provisions, covenants, undertakings, stipulations and obligations of the Airport Commission and the City set forth in Ordinances No. 11,190, No. 11, 745 and No. 11, 755, and pursuant to which the 1961 Bonds and the 1966 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 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 Page 15 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 there- from, (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. In as much as the bonds of this issue rank on a parity with the 1961 Bonds and the 1966 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 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 1961 Bonds, on the 1966 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 are 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 that sum which is the maximum amount that will become due in any year for principal and interest on the bonds of this issue, 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 and No. 11,755 herein, as above provided, shall be to make those provisions fully applicable to the bonds of this issue and Page 16 the language of such Ordinances shall be construed and interpreted to accomplish that intended effect (for instance, references in Ordinance 1o. 11, 190 to "bonds" or to "bonds of this issue ", or words of similar import, shall be construed to include the 1961 Bonds, the 1966 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: INTEREST INTEREST YEAR BOND NOS. RATI: PRINCIPAL N` I;. ZCH 1 SEPTEMBER_ 1 TOTAL 1971 - $ 81,206.25 $ 811206.25 1972 1 -13 6 -1/20/. $ 49,000 $ 81,206.25 79,613.75 209,820.00 1973 14 -25 6 -1/2% 52,000 79,613.75 77,923.75 209,537.50 1974 26 -37 6 -1/2% 56,000 77,923.75 76,103.75 210,027.50 1975 38 -52 6 -1/2% 59,000 76,103.75 74,186.25 209,290.00 1976 53 -66 6 -1/2% 62,000 74,186.25 72,171.25 208,357.50 1977 67 -80 6 -1/2% 66,000 72,171.25 70,026.25 208,197.50 1978 81 -94 6 -1/2% 70,000 70,026.25 67,751.25 207,777.50 1979 95 -112 6 -1/2% 74,000 67,751.25 65,346.25 207,097.50 1980 113 -130 5 -3/40/. 78,000 65,346.25 63,103.75 206,450.00 1981 131 -149 5 --3/4% 83,000 63,103.75 60,717.50 206,821.25 1982 150 -170 5 -3/4% 89,000 60,717.50 58,158.75 207,876.25 1983 171 -192 5 -3/4% 94,000 58,158.75 55,456.25 207,615.00 1984 193 -212 5% 100,000 55,456.25 52,956.25 208,412.50 1985 213 -233 5% 105,000 52,956.25 50,331.25 208,287.50 1986 234 -256 5 -3/4% 111,000 50,331.25 47,140.00 208,471.25 1987 257 -282 5 -3/4% 118,000 47,140.00 43,747.50 208,887.50 1988 283 -308 5 -3/4% 126,000 43,747.50 40,125.00 209,872.50 1989 309 -337 6% 133,000 40,125.00 36,135.00 209,260.00 1990 338 -366 6% 141,000 36,135.00 31,905.00 209,040.00 1991 367 -399 6% 149,000 31,905.00 27,435.00 208,340.00 1992 400 -439 6.20% 196,000 27,435.00 21,359.00 244,794.00 1993 440 -494 6.20% 259,000 21,359.00 13,330.00 293,689.00 1994 495 -549 6.20% 275,000 13,330.00 4,805.00 293,135.00 1995 550 -580 6.20% 155,000 4,805.00 - 159,805.00 Page 17 Section 8. That the provisions of Section 14 of Ordinance No. 11, 190 and Section 8 of Ordinance No. 11,745, 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 1961 Bonds, the 1966 Bonds and any bonds proposed to be issued at any particular time insofar as the 150% coverage requirement for parity bonds as set forth in said Section 14 is cpn- cerned; provided, however, after the 1961 Bonds are paid or provision made therefor, the coverage requirement for parity bonds shall be 140% of the maxi- mum amount that will become due in any year thereafter for principal and interest payments on all bonds then outstanding and on the bonds then proposed to be issued. 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 arty 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, Page 18 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 purchaser upon receipt from the purchaser of the purchase price plus accrued interest, The Trustee shall deposit into the 1970 Municipal Airport Revenue Bond Fund created by Ordinance No. 12,385, adopted and approved September 21, 1970, an amount sufficient to refund the interim bonds of the City dated November 1, 1970, on November 1, 1971, or to purchase such interim bonds prior to that date, as specified in a letter of instructions to be signed by the Mayor and City Clerk, The Trustee shall remit the balance of 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 Revenue 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 1971 Construction Fund" in a Bank that is a member of the 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 Page 19 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 State of America, which shall mature, or which shall be sulject 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 not affect the validity of the remainder of the 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 Page 20 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 15 , 1971. ATTEST: iity Clerk 'd7 —.. '# j (,*;* -0.5 'ff A (SEAL) APPROVED: