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ORDINANCE NO. 11,513
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
CITY OF LITTLE ROCK, ARKANSAS GENERAL OBLI-
GATION BONDS, SERIES 1964, UNDER THE PRO-
VISIONS OF AMENDMENT NO. 49 TO THE CONSTITUTION
OF THE STATE OF ARKANSAS; AUTHORIZING THE AC-
QUIRING, CONSTRUCTING AND EQUIPPING OF IMPROVE-
MENTS DESCRIBED IN THE ORDINANCE; LEVYING A TAX
AND PROVIDING FOR THE PAYMENT OF THE BONDS;
PRESCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY .
WHEREAS the Board of Directors of the City of Little
Rock, Arkansas (called "City ") by Ordinance No. 11,474, adopted and
approved on the 16th day of March, 1964, called a special election
to be held on the 12th day of May, 1964, for the electors to vote
upon the question of issuing bonds under the provisions of Amend-
ment No. 49 to the Constitution of the State of Arkansas in the
principal amount of $4,300,000 for-the purpose of securing and
developing industry consisting of the acquisition of lands; the
development of said lands by installing necessary utility lines
and services, roads, streets, railways, and other necessary facili-
ties for the utilization of said lands in the securing and developing
.
of industry; the constructing and equipping of necessary port or
marine terminal facilities; and other improvements, facilities and
expenditures necessary or incidental to the full utilization, develop-
ment and use of said lands, improvements, facilities, developments and
port or marine terminal facilities for the securing and developing
of industry (called the "improvements "); and
WHEREAS due notice of the election was given as required
by law, and at said special election the electors approved the
issuance of bonds in the principal amount of $4,300,000; and
WHEREAS the results of the election were proclaimed by
the Mayor in a proclamation duly published on May 23 ,
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1964; and
Pa ge 2
WHEREAS the Board of Directors has determined to issue
initially bonds in the principal amount of $3,150,000 with a
reservation of the right to issue subsequently the remaining bonds
of said total authorized principal amount with said remaining bonds
to rank on a parity of security with the bonds now being issued; and
WHEREAS after due advertisement for the time and in the
manner provided by law, bonds in the principal amount of $3,150,000
were offered for public sale, and at said sale Halsey, Stuart &
Company, Inc., Dabbs Sullivan Company, Inc. and E.L. Villareal &
Company, Inc. and Associates bid and offered the price of par and
accrued interest plus a premium of $560.70 for bonds bearing interest
at the rates of 12 %, 3-127., 3.80% and 4% per annum, and this being the best
bid, said bonds were sold to said purchasers at said price;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors
of the City of Little Rock, Arkansas:
Page 3
Section 1. That the sale of the $3,150,000 in principal
amount of bonds to the purchasers for the price set forth above,
be,and the same is hereby,approved and confirmed.
Section 2. That the acquisition, construction and equip
ping of the improvements be, and the same are hereby, authorized,
directed, approved and confirmed.
Section 3. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly Amendment
No. 49 to the Constitution of the State of Arkansas, City of Little
Rock, Arkansas General Obligation Bonds, Series 1964, are hereby
authorized and ordered issued in the principal amount of $3,150,000
for the purpose of financing the cost of acquiring, constructing
and equipping the improvements (with the improvements having been
heretofore referred to in the Whereas clauses of this Ordinance and
having been heretofore authorized in Section 2 of this Ordinance).
The bonds now being issued are part of a total authorized issue in
the principal amount of $4,300,0001 with, as hereafter set forth
in detail, the remaining bonds of said total authorized issue to be
subsequently sold and delivered and to rank on a parity of security
with the Series 1964 Bonds now being delivered pursuant to the pro-
visions of this Ordinance. References herein to the unqualified
word "bonds" shall mean the bonds of said total authorized issue,
regardless of series, unless the context clearly indicates another
meaning and, references herein to the bonds now being issued will be
to the "Series 1964 Bonds ". The Series 1964 Bonds will be dated
July 1, 1964, interest thereon will be payable semiannually on
January 1 and July 1 of each year, commencing July 1, 1965 (the
first interest coupon will be for twelve months) and the Series 1964
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Bonds will mature annually on July 1 of each of the years 1967 to
19942 inclusive, as set forth in the schedule appearing in Section
7 of this Ordinance but the principal thereof will be callable for
payment prior to maturity as hereafter set forth in the bond form
appearing in Section 5 of this Ordinance. The Series 1964 Bonds
shall be numbered consecutively from one (1) to six hundred seventy-
four (674), inclusive, and shall be in the denomination of $5,000
each except Bonds Nos. 15, 16, 17, 48, 49, 50, 83, 84, 85, 120,
121, 122, 159, 160, 161, 181, 201, 202, 203, 204, 225, 226, 269,
270, 271, 294, 317, 318, 319, 320, 344, 345, 346, 371, 422, 423, 424,
451, 452, 480, 509, 568, 569, 570, 571, 602, 603, 604, 605, 637, 638,
639, 672, 673 and 674 shall be in the denomination of $1,000 each.
The Series 1964 Bonds shall bear interest as follows: Bonds Nos. 1
through 140, inclusive, being the bonds maturing in the years 1967
to 1974, inclusive, bear interest at the rate of 4% per annum; Bonds
Nos. 141 through 161, inclusive, being the bonds maturing in the year
1975 bear interest at the rate of 3.80% per annum; Bonds Nos. 162
through 605, inclusive, being the bonds maturing in the years 1976
to 1992, inclusive, bear interest at the rate of 3 1/2% per annum; and
Bonds Nos. 606 to 674, inclusive, being the bonds maturing in the years
1993 and 1994, bear interest at the rate of 1 1/2% per annum. The
principal of and interest on the Series 1964 Bonds shall be payable
in lawful money of the United States of America upon presentation of
the bond or proper coupon at the office of Union National Bank of
Little Rock,,Little Rock, Arkansas (the "Paying Agent ").
Section 4. That the Series 1964 Bonds shall be executed
on behalf of the City by the Mayor and City Clerk and shall have im-
Pa ge 5
pressed thereon the seal of the City, and the interest coupons shall
be executed on behalf of the City by the Mayor. The Series 1964
Bonds and the interest coupons may have the facsimile signature of
the Mayor lithographed or printed thereon, which signature shall
have the same force and effect as if he had personally signed each
of said bonds and each of said coupons, but the Series 1964 Bonds
must be signed by the manual signature of the City Clerk.
Section 5. That the Series 1964 Bonds and the coupons
attached thereto (which coupons evidence the interest on the bonds)
shall be in substantially the following form:
Pa ge 6
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
% GENERAL OBLIGATION BOND, SERIES 1964
No.
KNOW ALL MEN BY THESE PRESENTS:
That the City of Little Rock, County of Pulaski, State
of Arkansas, acknowledges itself to owe and, for value received,
promises to pay to bearer the sum of
DOLLARS
in lawful money of the United States of America on the first day
of July, 19 and to pay interest hereon at the rate of
per cent ( %) per annum from date semiannually on January 1 and
July 1 of each year, commencing July 1, 1965 (the first interest
coupon shall be for twelve months) upon presentation and surrender
of the annexed coupons as they severally become due. Both the princi-
pal of and interest on this bond are hereby made payable at Union
National Bank of Little Rock, Little Rock, Arkansas.
This is one of a series of ( ) bonds aggregating
Three Million One Hundred Fifty Thousand Dollars ($3,150,000) dated
July 1, 1964 and numbered from one (1) to six hundred seventy -four
(674), inclusive, all of like tenor and effect except as to number,
rate of interest, denomination, maturity, and right of prior
redemption (called "Series 1964 Bonds ") being-part of a total
authorized issue in the principal amount of $4,300,000 (leaving un-
issued as of the date of delivery of these Series 1964 Bonds
$1,150,000 in principal amount which may be subsequently sold and
Pa ge 7
delivered and which, when delivered, will rank on a parity of
security with these Series 1964 Bonds). References herein to the
unqualified word "bonds" shall mean the bonds of said total authorized
issue regardless of series and regardless of when sold and delivered.
The bonds are being issued for the purpose of financing the cost of
securing and developing industry consisting of the acquisition of
lands; the development of said lands by installing necessary utility
lines and services, roads, streets, railways, and other necessary
facilities for the utilization of said lands in the securing and develop-
ing of industry; the constructing and equipping of necessary port or
marine terminal facilities; and other improvements, facilities and
expenditures necessary or incidental to the full utilization, develop-
ment and use of said lands, improvements, facilities, developments and
port or marine terminal facilities for the securing and developing
of industry (called "improvements ").
The bonds are issued pursuant to and in full compliance
with the Constitution and laws of the State of Arkansas, particularly
Amendment No. 49 to the Constitution of the State of Arkansas, and
pursuant to Ordinances of the Board of Directors of the City and an
election duly held at which the majority of the legal voters of the
City voting on the question voted in favor of the issuance of the
bonds. The bonds are general obligations of the City, payable from
the proceeds of a special 1.35 mill special tax on the dollar of the
assessed valuation of all taxable real and personal property in the
City, levied under the authority of Amendment No. 49 to the Constitution
of the State.of Arkansas, and the City hereby pledges its full faith,
credit and taxing power, including the said 1.35 mill special tax
Pa ge 8
for the payment of the principal of and interest on the bonds. In
this regard, when additional series of bonds of said total authorized
issue, of which the Series 1964 Bonds are a part, are sold and delivered
the City covenants that it will levy an additional amount of millage
as a continuing annual tax which, with reference to the series then
being issued and the assessed valuation of the taxable real and personal
property in the City as of the date of said issuance (on the basis
of the latest assessment of record) will produce revenues in an amount
approximating insofar as practicable 1207. of the average annual
principal and interest requirements of the additional series being
issued, and, all of such taxes so levied are and shall be pledged
to the payment of the principal of and interest on all bonds of said
total authorized issue, regardless of series and regardless of when
sold and delivered. Said taxes shall be collected annually as long
as the bonds of any aeries of said total authorized issue are outstanding
and unpaid unless the collection thereof, in whole or in part, is sus-
pended as hereafter provided. With particular reference to the Series
1964 Bonds, provision has been made in Ordinance No. adopted
and approved on the day of August, 1964, for the suspension
and collection of all or a portion of the said special tax to the
extent of available revenues from the improvements and reference may
be had to the provisions of said Ordinance pertaining to said sus-
pension of collection and for the details concerning the nature and
extent of the security and the rights and obligations of the City
and the bondholders. The bonds are not secured by a lien on the
improvements and are not secured by a pledge of any revenues derived
Pa ge 9
from the improvements.
The City covenants that the entire proceeds derived from
the special tax or taxes at any time levied must be applied as and
when available to the payment of the principal of and interest on
the bonds and the City covenants that the entire amount of tax col-
lections over and above the amount necessary to insure the prompt
payment of the principal of and interest on all outstanding bonds
of all series must be applied on each interest paying date as and
when available proportionately to the redemption of the bonds of
each series prior to maturity (that is, that proportionate amount of
said surplus that the original principal amount of the bonds of each
series bears to the total original principal amount of all series
as to which any bonds are outstanding at the time, must be applied
to the redemption of the bonds of the particular series). And, it
is understood that this covenant to use surplus proceeds of the special
taxes for the redemption of bonds will apply to any revenues from the
improvements utilized for the payment of bonds and which form the
basis of the suspension of collection of a portion of said special
taxes.
The Series 1964 Bonds will not be callable for redemption
prior to maturity from surplus proceeds of the sale of the Series
1964 Bonds. The Series 1964 Bonds will be callable for payment prior
to maturity in inverse numerical order as follows: from surplus tax
collections or from any revenues from the improvements (excluding
therefrom, however, the proceeds of the sale of land) whether or
not such revenues from the improvements form the basis for the sus-
pension of the collection of a portion of said special taxes, at a
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price of the principal amount of the bonds being called plus accrued
interest to the date of redemption on any interest paying date;
from funds from any other source on any interest paying date on and
after July 1, 1970 at a price of the principal amount of the bonds
being called plus accrued interest to the date of redemption and
plus a premium as follows:
4% if redeemed on July 1, 1970 to January 1, 1973, inclusive;
3% if redeemed on July 1, 1973 to January 1, 1976, inclusive;
2% if redeemed on July 1, 1976 to January 1, 1979, inclusive;
1% if redeemed on July 1, 1979 to January 1, 1982, inclusive;
No premium if redeemed thereafter.
Notice of the call for redemption shall be published one
(1) time in a newspaper published in the City of Little Rock, Arkansas,
and having a general circulation throughout the State of Arkansas,
giving the number and maturity of each bond being called, with the
publication to be at least fifteen (15) days prior to the redemption
date, and after the date fixed for redemption each bond so called
shall cease to bear interest, providing funds for its payment are
on deposit with the Paying Agent at that time.
IT IS HEREBY CERTIFIED, RECITED AND DELCARED that all
acts, conditions and things required to exist, happen and be per-
formed under the Constitution and laws of the State of Arkansas,
particularly Amendment No. 49 to the Constitution of the State of
Arkansas, 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 limitations; and
that a tax sufficient to pay the principal of and interest on the
Page 11
bonds has been levied in accordance with the provisions of Amendment
No. 49 to the Constitution of the State of Arkansas and made payable
annually until all of the principal of and interest on the bonds are
fully paid and discharged, subject to the suspension of the collection
thereof referred to above.
This bond shall not be valid until it shall have been
authenticated by the Certificate hereon duly signed by Union National
Bank of Little Rock, Little Rock, Arkansas.
IN WITNESS WHEREOF, the City of Little Rock, Pulaski
County, Arkansas has caused the bonds and coupons to be executed
by the facsimile signature of the Mayor and has caused the bonds to
be executed by the manual signature of the City Clerk, and has caused
the seal of the City to be affixed to the bonds, all as of the first
day of July, 1964.
ATTEST:
City Clerk
(SEAL)
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
Page 12
(Form of Coupon)
No. $
January
On the first day of July 19 the City of Little
Rock, Pulaski County, Arkansas, unless the bond to which this coupon
is attached is paid prior thereto, hereby promisets to pay to bearer
DOLLARS
in lawful money of the United States of America at the office of
Union National Bank of Little Rock, Little Rock, Arkansas, being
six (6) months' interest then due on its General Obligation Bond
issued under Amendment No. 49 to the Constitution of the State of
Arkansas, dated July 1, 1964 and numbered
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
On each bond shall appear the following:
CERTIFICATE
This is to certify that this is one of the bonds of
the series mentioned and described within, designated Series 1964.
UNION NATIONAL BANK OF LITTLE ROCK
LITTLE ROCK, ARKANSAS
By
Authorized Signature)
Page 13
Section 6. That all bonds of this total authorized
issue, including without limitation, the Series 1964 Bonds
authorized hereby, shall constitute general obligations of the
City to the payment of the principal of and interest on which
the City hereby pledges its full faith, credit and taxing power,
including a 1.35 mill special tax on each dollar of the assessed
valuation of all taxable real and personal property within the
City, which special tax shall be collected with the taxes col-
lected in the year 1965 and annually thereafter until all of
the principal of and interest on the bonds are paid in full or
until adequate provision is made for their payment, unless the
collection thereof is suspended as hereafter set forth. In this
regard, as heretofore pointed out, the Series 1964 Bonds now
being issued are part of a total authorized issue in the aggregate
principal amount of $4,300,000, leaving unissued as of the date
hereof $1,150,000 in principal amount, which may be subsequently
issued from time to time on a parity of security with the Series
1964 Bonds. Subsequent series of bonds shall be appropriately
designated by the year of issuance, shall be authorized by ordi-
nance of the Board of Directors of the City, shall be dated
July 1, 1964, shall have interest payment dates on January 1 and
July 1 of each year (semiannually), and shall mature on July 1
in each of the years of the period commencing July 1, 1967 to
July 1, 1994, inclusive, or such portion of said period as shall
not have elapsed prior to the issuance of the particular subsequent
series. The bonds of subsequent series shall bear interest at the
rate or rates accepted by the City at the public sale of each such
Page 14
subsequent series but the principal maturities of the bonds of
each additional series must be arranged proportionately through-
out the maturity years of said period (1967 to 1994,inclusive) so
that when all series of said total authorized issue have been
delivered, the principal amounts for the applicable maturity years
will be as set forth in the schedule appearing in Ordinance No.
11,474 of the ordinances of the City adopted and approved on the
16th day of March, 1964, and being the ordinance calling the
special election at which the electors of the City approved the
issuance of the bonds. The City covenants that when additional
bonds of said total authorized issue are sold and delivered, it
will levy an additional amount of millage, which, with reference
to the bonds of the series then being issued and the assessed valua-
tion of the real and personal property in the City as of the date
of the issuance of said additional series (on the basis of the
latest assessment of record) will produce revenues in an amount
approximating insofar as practicable 120% of the average annual
principal and interest requirements of the particular series being
issued. All special taxes levied for the bonds of said total
authorized issue, regardless of when the levy is made, are and
shall be pledged to the payment of the principal of and interest
on all of the bonds of said total authorized issue, regardless of
the series and regardless of when sold and delivered. The bonds
are not secured by a lien on the improvements and are not secured
by a pledge of any revenues derived from the improvements. However,
Page 15
the City reserves the right, at its option, to use all or any
portion of available revenues derived from the improvements except
the proceeds of the sale of land for application to the payment of
the principal of and interest on the bonds, at maturity or at re-
demption prior to maturity (which will be herein referred to as
"available Project revenues" or "available revenues "), it being under-
stood that proceeds of the sale of land may be so used on and after
July 1, 1970, but such proceeds shall fall in the category of "funds
from any other source" as used in the redemption provisions with the
redemption premiums being applicable thereto in the amounts and for
the periods set forth in the redemption provisions. The said special
tax or taxes shall be collected in the year 1965 and shall be col-
lected each year thereafter unless suspended, in whole or in part,
as follows: The County Clerk is hereby directed to extend the said
tax or taxes for collection each year unless he receives, on or
before November 15 of the year immediately preceding the year in
which the said tax or taxes are to be collected, a certificate
signed by the Mayor of the City and an authorized officer of each
bank that is paying agent for any series of bonds of said total
authorized issue then outstanding, that the collection of all or a
specified portion of said special tax or taxes is to be suspended
for the next calendar year. In this regard, it is understood that
the Mayor and the authorized officer or officers of said paying
agent bank or banks, in determining the action to be taken by them
concerning said certificate, shall be guided solely by the amount
of available revenues actually on deposit in the Bond Fund (hereafter
identified) and the collection may be suspended, if requested by
Page 16
the City (evidenced by a resolution of the Board of Directors of
the City) only to the extent that there be available for the year
for which the suspension is applicable from tax proceeds to be
collected from any
available revenues
the average annual
of all series then
authorized officer
shall decide how m
unsuspended portion of the taxes and from the
on hand, as aforesaid, not less than 120% of
principal and interest requirements of all bonds
outstanding. Based thereon, the Mayor and the
or officers of the paying agent bank or banks
ach of the special tax is to be collected and shall
certify to the County Clerk whether the entire said special tax is
to be collected or, if not, the portion thereof that is to be
collected, or that no portion thereof is to be collected. The
County Clerk shall be entitled to rely upon said certificate and
shall act in accordance therewith. All proceeds derived from
collections of the special tax or taxes referred to above and all
available revenues which the City elects to apply to the payment
of the principal of and interest on the bonds shall be deposited,
as, if and when received, into a special fund in the name of the
City designated "Port Bond Retirement Fund" (sometimes called the
"Bond Fund "), which fund shall be maintained in a bank to be
selected from time to time by the City but which is a member
of the Federal Deposit Insurance Corporation, and all moneys
in the Bond Fund shall be used solely for the payment of the
principal of, interest on and paying agent's fees in connection
with the bonds at maturity and at redemption prior to maturity.
As set forth in the face of the bond form, the City covenants
that all moneys in the Bond Fund over and above the amount
necessary to insure the prompt payment of the principal of
and interest on all outstanding bonds of all series of said total
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authorized issue as the same become due will be applied on each
interest paying date as and when available proportionately to the
redemption of the bonds of each series prior to maturity (that is,
that proportionate amount of said surplus that the original principal
amount of the bonds of each series bears to the total original
principal amount of all series as to which any bonds are outstand-
ing at the time, must be applied to the redemption of the bonds of
the particular series).
Section 7. That the moneys on deposit in the Bond
Fund are hereby appropriated to pay the principal of and interest
on the bonds as they mature, and if said moneys be not sufficient
for that purpose, then there are hereby appropriated out of the
general revenues of the City the sums necessary to pay the prin-
cipal of and interest on the bonds as they mature, with the
amounts therein in excess of that necessary to insure the prompt
payment of the principal of and interest on the bonds as they
mature being hereby appropriated to the redemption of bonds prior
to maturity.
ing schedule:
The Series 1964 Bonds mature according to the follow-
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Page 18
YEAR BOND NOS. PRINCIPAL INTEREST TOTAL
JANUARY 1 JULY 1
1965
$
$
$107,369.00
1966
53,684.50
53,684.50
1967
1
- 17
73,000
53,684.50
53,684.50
1968
18
- 32
75,000
52,224.50
521224.50
1969
33
- 50
783,000
50,724.50
50,724.50
1970
51
- 66
802000
49,164.50
493,164.50
1971
67
- 85
832000
47,564.50
473,564.50
1972
86
- 102
85,000
45,904.50
453,904.50
1973
103
- 122
88,000
44,204.50
44,204.50
1974
123
- 140
902000
42,444.50
42,444.50
1975
141
- 161
93,000
40,644.50
402644.50
1976
162
- 181
96,000
382877.50
382877.50
1977
182 -
204
99,000
37,197.50
37,197.50
1978
205 -
226
102,000
35,465.00
35,465.00
1979
227 -
247
105,000
33,680.00
33,680.00
1980
248 -
271
108,000
31,842.50
31,842.50
1981
272 -
294
111,000
29,952.50
29,952.50
1982
295 -
320
1143,000
28,010.00
28,010.00
1983
321 -
346
118,000
26,015.00
263,015.00
1984
347 -
371
121,000
23,950.00
23,950.00
1985
372 -
396
125,000
21,832.50
213,832.50
1986
397 -
424
128,000
19,645.00
19,645.00
1987
425 -
452
132,000
17,405.00
17,405.00
1988
453
- 480
136,000
15,095.00
15,095.00
1989
481
- 509
141,000
12,715.00
122715.00
1990
510 -
538
1452000
10,247.50
101247.50
1991
539 -
571
149,000
7,710.00
72710.00
1992
572 -
605
1542000
5,102.50
5,102.50
1993
606 -
639
158,000
2,407.50
22407.50
1994
640 -
674
163,000
1,222.50
1,222.50
$107,369.00
107,369.00
180,369.00
179,449.00
179,449.00
178,329.00
178,129.00
176,809.00
176,409.00
174,889.00
174,289.00
173,755.00
173,395.00
172,930.00
172,360.00
171,685.00
170,905.00
170,020.00
170,030.00
168,900:00
168,665.00
167,290.00
166,810.00
166,190.00
166,430.00
165,495.00
164,420.00
164,205.00
162,815.00'
165,445.00
Page 19
Section 8. That the bonds of this issue shall be callable
for payment as set forth in the face of the bond form in Section 5.
The City covenants that the bonds of subsequent series shall be
callable for payment prior to maturity upon the same terms and pro-
visions and in the same manner as in the case of the Series 1964 Bonds.
Section 9. That the Treasurer of the City, or the chief
finance officer of the City having custody of the moneys in the Bond
Fund, shall withdraw from the Bond Fund and make available to the
Paying Agent a sufficient time prior to the maturity or redemption
date of any bonds or interest coupons an amount equal to the amount
necessary for the maturity or redemption of the bonds, principal
and interest, for the sole purpose of paying the same, together with
the amount necessary to provide for the Paying Agent's fees. This
instruction to the Treasurer or chief finance officer, as aforesaid,
is irrevocable and may be enforced by mandamus.
Section 10. That Union National Bank of Little Rock,
Little Rock, Arkansas is hereby designated as Paying Agent for the
Series 1964 Bonds. The holders of a majority in principal amount
of the outstanding Series 1964 Bonds at any time may by an instru-
ment duly executed and recorded in the office of the City Clerk
appoint a new Paying Agent who shall have all the powers of the
original Paying Agent, and the Paying Agent herein named may resign
at any time upon ten (10) days' notice in writing mailed to the
City Clerk. In the event of a vacancy in the office of Paying
Agent and the failure of the holders of a majority in principal
amount of the outstanding Series 1964 Bonds to take the necessary
f
Page 20
action to appoint a new Paying Agent within thirty (30) days after
such vacancy occurs, the City shall forthwith designate a new
Paying Agent. The City agrees to pay the Paying Agent's fees as
follows: For interest payments, $.05 per coupon on $1,000 denomination
bonds, and $.122 per coupon on $5,000 denomination bonds; for prin-
cipal, $.50 per bond for $1,000 denomination bonds, and $1.50 per
bond for $5,000 denomination bonds.
Section 11. That if default is made and continues for
thirty (30) days in the payment of any interest coupon, the holder
of the bond to which it is attached may declare the same immediately
due and payable, and the failure of the holder to exercise this
option upon any default shall not be a waiver of his right to
exercise the option upon any subsequent default.
Section 12. That when the Series 1964 Bonds have been
executed and sealed, they shall be delivered to Union National Bank
of Little Rock, Little Rock, Arkansas, which shall authenticate
them and deliver them to the purchasers upon receipt from the pur-
chasers of $3,150,560.70, plus accrued interest from July 1, 1964
to the date of delivery (called "total sale proceeds "). The total
sale proceeds shall be disbursed by said Bank as follows:
1. The amount of the accrued interest shall be deposited
into the Bond Fund, referred to in Section 6 hereof;
2. The balance of the total sale proceeds shall be
deposited into a special fund in the name of the City designated
"Port Bond Construction Fund" (sometimes called the "Construction
Fund "), which Construction Fund shall be maintained in a bank to
be selected from time to time by the City, but which is a member
Page 21
of the Federal Deposit Insurance Corporation, and all moneys in
the Construction Fund shall be used solely for the payment of the
cost of acquiring, constructing and equipping the improvements,
paying necessary expenses incidental thereto, and paying the ex-
penses of the issuance of bonds. The City may invest and reinvest
the moneys on deposit in the Construction Fund in any securities
constituting authorized investments for municipal funds under the
laws of the State of Arkansas having maturity dates, or subject to
redemption by the holder, on or before the dates the moneys so in-
vested will be needed for the purposes for which said moneys may
be expended.
Section 13. That the provisions of this Ordinance are
hereby declared to be separable, and in the event any action, pro-
vision or part thereof shall be held to be invalid, such invalidity
shall not affext the remainder of the Ordinance.
Section 14. That all Ordinances and parts thereof in
conflict herewith are hereby repealed to the extent of such conflict.
Section 15. That there is hereby found and declared to be
an immediate need for the improvements so that the welfare of the
City and its inhabitants be protected by receipt of the public
benefits to flow from the improvements and that the improvements
can be accomplished only by the issuance of the bonds authorized
hereby. It is, therefore, declared that an emergency exists and
this Ordinance being necessary for the preservation of the public
health, safety and welfare shall be in force and take effect
immediately upon and after its passage.
. wr
Page 22
PASSED :_ August 17 , 1964.
ATTEST:
City Clerk
(SEAL)
APPROVED:
Mayor