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HomeMy WebLinkAbout10367ORDINANCE NO. La4362_ AN ORDINANCE AUTHORIZING THE ISSUANCE OF MUNICIPAL AIRPORT REFUNDING AND IMPROVEMENT REVENUE BONDS BY THE CITY OF LITTLE ROCK, ARKANSAS FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING MUNICIPAL AIRPORT REVENUE BONDS AND FINANCING IMPROVEMENTS TO AND EQUIPMENT FOR THE LITTLE ROCK MUNICIPAL AIRPORT FACILITIES; MAKING PLEDGES AND COVENANTS TO INSURE THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS the Little Rock Municipal Airport and its related property and facilities are being operated, managed and maintained by the Little Rock Municipal Airport Commission (hereinafter some- times called the "Airport Commission "), which was created and organized pursuant to Act 53 of the Acts of Arkansas of 1949, and Initiated Ordinance No. 8511 of the City of Little Rock, Arkansas, adopted November 7, 1950; and WHEREAS the City of Little Rock, Arkansas, pursuant to the request of the Airport Commission, authorized by Ordinance No. 9152, passed and approved on March 30, 1953, the issuance of $150,000 Municipal Airport 3% Refunding and Improvement Revenue Bonds, dated April 1, 1953 with interest payable semi - annually on June 1 and Decem- ber 1 of each year and maturing June 1, 1958, of which issue there are now outstanding $117,000; and WHEREAS the Airport Commission has determined that there should be constructed additional improvements to and equipment of the Little Rock Municipal Airport facilities, a brief general des- cription of said proposal being: Necessary improvements to the Air- port and Administration Building and the purchase of furniture and airport equipment for the Administration Building, all at an estimated cost of $83,000; and WHEREAS the Airport Commission does not have sufficient funds to make said improvements and purchase said equipment and to retire the outstanding Revenue Bonds as they mature; and WHEREAS the Airport Commission has unanimously passed a resolution declaring that it would be to the best interests of the 1 ORDINANCE NO. La4362_ AN ORDINANCE AUTHORIZING THE ISSUANCE OF MUNICIPAL AIRPORT REFUNDING AND IMPROVEMENT REVENUE BONDS BY THE CITY OF LITTLE ROCK, ARKANSAS FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING MUNICIPAL AIRPORT REVENUE BONDS AND FINANCING IMPROVEMENTS TO AND EQUIPMENT FOR THE LITTLE ROCK MUNICIPAL AIRPORT FACILITIES; MAKING PLEDGES AND COVENANTS TO INSURE THE PAYMENT OF THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS the Little Rock Municipal Airport and its related property and facilities are being operated, managed and maintained by the Little Rock Municipal Airport Commission (hereinafter some- times called the "Airport Commission "), which was created and organized pursuant to Act 53 of the Acts of Arkansas of 1949, and Initiated Ordinance No. 8511 of the City of Little Rock, Arkansas, adopted November 7, 1950; and WHEREAS the City of Little Rock, Arkansas, pursuant to the request of the Airport Commission, authorized by Ordinance No. 9152, passed and approved on March 30, 1953, the issuance of $150,000 Municipal Airport 3% Refunding and Improvement Revenue Bonds, dated April 1, 1953 with interest payable semi - annually on June 1 and Decem- ber 1 of each year and maturing June 1, 1958, of which issue there are now outstanding $117,000; and WHEREAS the Airport Commission has determined that there should be constructed additional improvements to and equipment of the Little Rock Municipal Airport facilities, a brief general des- cription of said proposal being: Necessary improvements to the Air- port and Administration Building and the purchase of furniture and airport equipment for the Administration Building, all at an estimated cost of $83,000; and WHEREAS the Airport Commission does not have sufficient funds to make said improvements and purchase said equipment and to retire the outstanding Revenue Bonds as they mature; and WHEREAS the Airport Commission has unanimously passed a resolution declaring that it would be to the best interests of the City of Little Rock and the inhabitants thereof if the airport facili- ties.be improved and equipped as proposed, and has authorized its Chairman to make these facts known to the City Council with the re- quest that the City Council take the necessary steps to issue and sell Municipal Airport Revenue Bonds to finance the said improvements and equipment and to refund the above described outstanding bonds; and WHEREAS the City Council hereby finds and declares that it would be to the best interest of the City and its inhabitants for the airport facilities to be improved and equipped immediately and that revenue bonds be issued to finance the same and to refund the out- standing bonds; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Little Rock, Arkansas: Section 1. That the Little Rock Municipal Airport facili- ties be improved and equipped in accordance with the plans of the Airport Commission. Section 2. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Act 53 of the Acts of Arkansas of 1949, Little Rock Municipal Airport Refunding and Improvement Revenue Bonds are hereby authorized and ordered issued in the total principal amount of Two Hundred Thousand Dollars ($200,000) for the purpose of refunding One Hundred Seventeen Thousand Dollars ($117,000) of outstanding bonds of the April 1, 1953 issue of Little Rock Municipal Airport 3% Refunding and Improvement Revenue Bonds, and for the purpose of financing the cost of improving and equipping the Little Rock Municipal Airport facilities. The bonds shall be sold at public sale with One Hundred Seventeen Thousand Dollars ($117,000) in principal amount of said total authorized issue to bear interest at the rate of three per cent (3 %), and the balance of the principal amount of the bonds to bear interest at such rate as is fixed in the bid accepted by the Airport Commission. The interest shall be pay- able semi - annually on June 1 and December 1 of each year commencing June 1, 1957 and all bonds shall mature on December 1, 1966, but shall be callable as hereinafter set forth. The interest shall be evidenced by interest coupons and the principal and interest shall be payable in lawful money of the United States of America upon presenta- tion of the bond or proper coupon at the office of the Paying Agent designated by the purchaser. The bonds shall be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest, the conversion to be subject to the approval of the Air- port Commission and counsel approving the bond issue. Section 3. That the bonds shall be executed on behalf of the City by the Mayor and City Clerk (or the officers then in office under the form of government in effect at the time the bonds are executed who are performing the duties of or substantially equivalent to those performed by a mayor and city clerk under the mayor and city council form of government) and shall have impressed thereon the seal of the City. Interest coupons attached to each of said bonds may have the facsimile signature of the Mayor of the City (or equivalent officer) lithographed or printed thereon, which signature shall have the same force and effect as if he had personally signed each of said coupons. The bonds and coupons shall be payable in such funds as at the time of the respective payments are legal tender for the payment of debts due the United States of America at the office of the Paying Agent designated by the purchaser. The bonds, together with interest thereon, shall be payable solely out of the Municipal Airport Revenue Bond Fund, as hereinafter defined, and shall be a valid claim of the holders thereof only against such fund, and the amount of the revenues pledged to such fund, which amount of said revenues is hereby pledged and mortgaged for the equal and ratable payment of the bonds, and shall be used for no other purpose than to pay the principal of and interest on the bonds, except as may be hereinafter specifically provided. The bonds and interest thereon shall not constitute an indebtedness of the City within any constitu- tional or statutory limitation. t � Section 4. That the bonds herein authorized and ordered issued shall be sold at public sale on auction bids, and the time, place and terms of the sale shall be as set forth in the following form of notice, which notice shall be given by the Secretary of the Airport Commission by publishing the same, in substantially the form as hereinafter set forth, in a daily newspaper published and having a general circulation in the City of Little Rock, Arkansas. The notice shall be published in the Little Rock paper at least once a week for two consecutive weeks and may be published in such additional publications as the Airport Commission may determine: NOTICE OF BOND SALE $200,000 CITY OF LITTLE ROCK MUNICIPAL AIRPORT REFUNDING AND IMPROVEMENT REVENUE BONDS Notice is hereby given that on the day of , 1956 there will be sold to the highest bidder for cash on auction bids $200,000 City of Little Rock Municipal Airport Refunding and Improvement Revenue Bonds. The bonds will be dated December 1, 1956 with interest payable semi - annually on June 1 and December 1 of each year commencing June 1, 1957, with all bonds to mature on December 1, 1966. The bonds are being issued for the purpose of financing the improvement and equipping of the Little Rock Municipal Airport facilities and for refunding the outstanding $117,000 in principal amount of City of Little Rock Municipal Airport 3% Refunding and Im- provement Revenue Bonds, dated April 1, 1953 and maturing June 1, 1958. The bonds will not be general obligations of the City of Little Rock but will be special obligations payable solely from and secured by a pledge of the revenues of the Little Rock Municipal Airport. $117,000 of the total authorized principal amount of the bonds must bear interest at not to exceed 3% per annum, and no bid of less than par and accrued interest based upon the rate or rates sub- mitted by the bidder will be entertained. The bonds will be subject to conversion to an issue bearing a lower rate or rates of interest, the conversion to be in accordance with the Universal Bond Values Tables and upon such terms that the City receive no less and pay no more than it would receive and pay if the bonds were not converted. In the event of a conversion, the date of the bonds and the interest payment dates must be the same and all bonds must mature on December 1, 1966. The bonds will be callable.for payment prior to maturity, at the option of the Airport Commission, in numerical order at par and accrued interest on any interest paying date on and after June 1, 1959 with funds from any source. Notice of the call will be published once a week for two weeks before the date of such redemption in a newspaper published in the City of Little Rock, Arkansas and having a general circulation throughout the State of Arkansas, the first publication to be at least fifteen (15) days prior to the redemption date. The purchaser may name the Paying Agent and Trustee. All expenses of the issue, including without limitation, the printing of the bonds, the Trustee's fee, the publication expense, and the fee of Mehaffy, Smith & Williams, upon whose approving opinion the bonds will be issued, must be paid by the purchaser. The sale will be on auction bids at o'clock .m. on the day of , 1956 at the office of the Airport Commission, Adams Field, Little Rock, Arkansas. Each bidder will be required to file a certified check in the amount of $4,000 on a bank that is a member of the Federal Deposit Insurance Corporation, payable to the Little Rock Municipal Airport Commission, to be kept as liquidated damages if the bidder is awarded the sale of the bonds and fails to complete the purchase. Checks of unsuccessful bidders will be promptly returned. No interest will be paid on good faith checks. The right to reject any and all bids is reserved. For further information, address the undersigned. Given this day of 1956. Little Rock Municipal Airport Commission Floyd Sharp, Secretary Section 5. After the bonds are sold, the Little Rock Airport Commission shall by resolution approve the sale, the Trustee and Paying Agent named by the purchaser, and the conversion, if any, of the bonds. Thereafter the bonds of the issue as sold or as con- verted shall be numbered consecutively beginning with No. 1 and after being printed shall be presented to the Mayor and City Clerk (or equivalent officers) for execution. It shall not be necessary for the City Council to take any additional action other than this ordi- nance, it being the intention of the Council by this ordinance to authorize the issuance of said bonds, subject to the approval by resolution of the Airport Commission of the matters above specified. Section 6. That the bonds and coupons shall be in sub- stantially the following form and the Mayor and City Clerk (or equivalent officers) are hereby expressly 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 REFUNDING AND IMPROVEMENT REVENUE BOND NO. KNOW ALL MEN BY THESE PRESENTS: That the City of Little Rock, in the County of Pulaski and State of Arkansas, acknowledges itself to owe and, for value received, promises to pay to bearer, 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 December, 1966, and to pay, solely from said special fund, interest hereon at the rate of per centum ( ��) per annum from date, semi - annually on the first days of June and December in each year, commencing June 1, 1957, upon presenta- tion and surrender of the annexed coupons as they severally become due. Both principal and interest of this revenue bond are made payable at This bond is one of a series of ( ) revenue bonds, aggregating Dollars ( ), dated December 1, 1956, numbered from one (1) to ( ), inclusive, all of like tenor and effect except as to number, denomination and rate of interest, and are issued for the purpose of refunding all of the outstanding Little Rock Municipal Airport 3% Refunding and Improvement Revenue Bonds, dated April 1, 1953, and for the purpose of financing the improvement and equipping of Little Rock Municipal Airport facilities. This bond and the series of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act 53 of the Acts of Arkansas, 1949, and pursuant to an ordinance duly adopted by the City Council of the City of Little Rock, Arkansas, and a resolution duly adopted by the Little Rock Municipal Airport Commission, and do not constitute an indebtedness of the City of Little Rock within any constitutional or statutory limitation. Said bonds are not general obligations of the City, but are special obligations payable solely from a fixed amount of the revenues from the Municipal Airport, which amount shall be sufficient to pay the principal of and interest on the bonds as they mature. Said amount has been duly set aside and pledged as a special fund for that purpose and identified as the Municipal Airport Revenue Bond Fund, created by Ordinance No. duly passed by the City Council of the City of Little Rock on the day of , 1956, under which this bond is authorized to be issued, and in said ordinance the said City of Little Rock has covenanted and agreed to impose and collect such charges for the use of the Little Rock Municipal Airport and its facilities as will always produce sufficient revenues to provide for the operation, maintenance and repair of the Municipal Airport and to provide for the payment of the principal of and interest on the bonds as the same become due and payable. The bonds of this issue shall be callable for payment prior to maturity, at the option of the Airport Commission, in numerical order at par and accrued interest on any interest paying date on and after June 1, 1959 with funds from any source. Notice of the call for redemption shall be published once a week for two weeks 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, the first 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, provided funds for its payment are on deposit with the Pay- ing Agent at that time. The City of Little Rock and the Little Rock Municipal Air- port Commission hereby covenant that full payment has been received for this revenue bond and that there is no defense, offset, or counter- claim against this bond or the pledge of revenues hereinabove made to secure its payment. This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly signed by It is hereby certified, recited and declared that all acts, conditions, and things required to exist, happen, and be performed V pursuant to and in the issuance of this bond have existed, have happened and have been performed in due time, form and manner, as re- quired by law; that the indebtedness represented by this bond and the issue of which it forms a part does not exceed any constitutional or statutory limitation; and that sufficient of the income and revenue which is deemed to be derived from the operation of the Little Rock Municipal Airport has been pledged to and will be set aside into said special fund for the payment of the principal of and interest on said bonds. IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by its City Council, has caused this bond to be signed by the Mayor and City Clerk thereof and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be executed by the facsimile signature of said Mayor, all as of the first day of Decem- ber, 1956. City Clerk (SEAL) CITY OF LITTLE ROCK, ARKANSAS By Mayor No. (Form of Coupon) June On the first day of December, 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 fund specified in the bond to which this coupon is attached, Dollars ($ ) in lawful money of the United States of America at the office of , being six months' interest then due on its Municipal Airport Refunding and Improvement Revenue Bond, and numbered CITY OF LITTLE ROCK, ARKANSAS By Mayor On each bond shall appear the following: CERTIFICATE hereby certifies that this is one of a series of bonds, described herein, aggregating $ , numbered from 1 to , inclusive, all of like tenor and effect except as to number, denomina- tion and rate of interest. Little Rock, Arkansas 1956 By Section 7. That the City of Little Rock, Arkansas, and the Little Rock Municipal Airport Commission hereby covenant and agree with the holders of the bonds that there will be imposed and collected such charges for the use of the Little Rock 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, and to provide for the payment of the principal of and interest on the bonds as the same become due and payable. Section 8. That the Treasurer of the Little Rock Municipal Airport Commission shall be custodian of the revenues derived from the operation of the Little Rock Municipal Airport and shall give bond for the faithful discharge of all duties as such custodian. The amount of the bond shall be fixed by the Airport Commission and ap- proved by the Trustee. All Municipal Airport revenues shall be kept separate and apart from the other funds of the City and shall be de- posited in such depository or depositories as may be designated from time to time by the Airport Commission, subject, however, to the giving of security by such depository or depositories as now or as hereafter may be required by law. All deposits made by the Treasurer shall be in the name of the Airport Commission and shall be so desig- nated as to indicate the particular fund to which the revenues belong. Section 9. Municipal Airport Fund. From and after the delivery of any bonds issued under the provisions of this ordinance, the Little Rock Municipal Airport shall be continuously operated as a revenue - producing undertaking, and the income and revenues from such operation shall be set aside as and when collected into a separate fund which is hereby created and designated Municipal Airport Fund. Such revenues so deposited in the Municipal Airport Fund are hereby pledged and shall be applied and apportioned in the manner hereinafter provided. Section 10. Municipal Airport Operation and Maintenance Fund. That there is hereby created a special fund designated Municipal Airport Operation and Maintenance Fund, into which there shall be transferred and paid from the Municipal Airport Fund on the first business day of each month after the bonds are delivered and con- tinuing on the first business day of each month thereafter while any of the bonds issued under this ordinance shall be outstanding, an amount sufficient to pay, with other available income, if any, all reasonable and proper expenses of operation, repair and maintenance of the Municipal Airport for such month and from which disbursements shall be made only for that purpose. If in any month, for any reason, there shall be a failure to transfer and pay the required amount into said fund,then the amount of any deficiency shall be added to the amount otherwise re- quired to be transferred and paid into said fund in the next succeed- ing month. Fixed annual charges, such as insurance premiums and the cost of major repairs and maintenance expenses, may be computed and set up on an annual basis and one - twelfth (1/12) of the amount thereof may be paid into said Operation and Maintenance Fund each month. If any surplus shall be accumulated in the Municipal Air- port Operation and Maintenance Fund over and above the amount neces- sary to meet the requirements thereof during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred to the Municipal Airport Revenue Bond Fund (herein- after created); provided, however, that such transfer shall be in addition to all other payments required to be made into said Municipal Airport Revenue Bond Fund. Section 11. Municipal Airport Revenue Bond Fund. (1) That after making the monthly deposit in the Municipal Airport Opera- tion and Maintenance Fund, the Treasurer of the Little Rock Municipal Airport Commission shall transfer and pay from the Municipal Airport Fund on the first business day of each month after the bonds herein authorized are delivered, and continuing on the first business day of each month thereafter until the amount in said Municipal Airport Revenue Bond Fund is sufficient to pay all outstanding bonds, interest thereon, and the Paying Agent's fees, all moneys remaining in the Municipal Airport Fund. (2) That all moneys in the Municipal Airport Revenue Bond Fund shall be used solely for the purpose of paying the princi- pal of and interest on the bonds issued under this ordinance and the Paying Agent's fees, except as may be hereinafter specifically pro- vided. Section 12. That three (3) days prior to the maturity date of any interest coupon or bond issued hereunder, the Treasurer of the Airport Commission shall withdraw from the Municipal Airport Revenue Bond Fund and deposit with the Paying Agent, an amount equal to the amount of said maturing coupon or bond, together with an amount equal to the Paying Agent's fee of 122¢ for each $100.00 par value bonds and 5¢ per coupon, with the minimum payment to be $5.00, which the City and the Airport Commission hereby agree to pay. No withdrawal shall be made from the Municipal Airport Revenue Bond Fund for any other purpose, except as otherwise authorized in this ordinance. Such deposit shall be at the sole risk of the City and shall not operate as a payment of the bonds or coupons until so applied. Section 13. That the bonds authorized hereby and issued hereunder shall be callable,for payment prior to maturity in accordance with the terms set out in the bond form. Section 14. That so long as any of the bonds authorized hereby and issued hereunder shall be and remain outstanding and un- paid, the City of Little Rock, Arkansas and the Airport Commission covenant and agree that they will not issue additional bonds having or claiming to have a lien on the revenues of the Little Rock Municipal Airport superior to the lien of the bonds of this issue. However, nothing in this ordinance shall be construed to prevent the Little Rock Airport Commission from issuing additional bonds for the further improvement, extension and /or equipping of the Little Rock Municipal Airport facilities,but no such bonds shall be issued on a parity with the bonds of this issue, unless and until there shall have been filed with the Trustee a certificate of a certified public accountant not in the regular employ of the City, stating that revenues derived from the operation of the Little Rock Municipal Airport Commission for the preceding fiscal year were sufficient to provide for all expenses of operation, maintenance and repair and leave a balance equal to 150% of the maximum amount that will become due in any year for principal and interest on the outstanding bonds of this issue and on the bonds of the issue then proposed. Section 15. That all bonds paid, either at or before maturity, shall be cancelled when such payment is made, together with all unmatured coupons appertaining thereto. All unpaid interest cou- pons maturing on or prior to the date of such payment shall continue to be payable to the respective bearers thereof. Section 16. That it is covenanted and agreed by the City and the Airport Commission with the holder or holders of the bonds, or any of them, that they will faithfully and punctually perform all duties with reference to the Municipal Airport required by the Constitution and statutes of the State of Arkansas, including making and collecting of reasonable and sufficient rates and charges for the use of the Municipal Airport and its facilities, segregating the revenue of the Municipal Airport and applying it to the respective funds herein created. Section 17. That the Airport Commission will keep proper books of accounts and records (separate from all other records and accounts) in which complete and correct entries shall be made of all transactions relating to the operation of the Municipal Airport, and such books shall be available for inspection by the holder of any of the bonds at reasonable times and under reasonable circumstances. The Airport Commission agrees to have these records audited by an independent certified public accountant at least once each year, and a copy of the audit shall be delivered to the Trustee and to the original purchasers of the bonds and made available to interested bondholders. In the event the Airport Commission and the City fail or refuse to make the audit, the Trustee, or any holder of the bonds, may have the audit made, and the cost thereof shall be charged against the Municipal Airport Operation and Maintenance Fund. Section 18. That the City and the Airport Commission cove- nant and agree that the Municipal Airport will be maintained in good condition and will be operated in an efficient manner and at a reason- able cost. While any of the bonds are outstanding, fire, lightning and extended coverage insurance will be maintained on all buildings utilized by the Airport Commission, including the Administration Build- ing, in an amount which normally would be carried by a private company engaged in a similar type of business. The insurance policy or policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, and are to be kept continually in force. In the event of loss, the proceeds of such insurance shall be applied solely toward the re- construction, replacement, or repair of the property. In such event, the Airport Commission will, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement and repair. Nothing herein shall be construed as requiring the City to expend any funds for operation and maintenance of the Municipal Airport or for premiums on the insurance which are derived from sources other than the operation of the Municipal Airport, but nothing herein shall be construed as preventing the City from doing so. Section 19. That so long as any of these bonds are out- standing, the City and the Airport Commission covenant and agree that they will not mortgage, pledge, or otherwise encumber the Municipal Airport or any part thereof, including any and all improvements and extensions thereto, or any revenues therefrom, except as herein pro- vided, and will not sell or otherwise dispose of any substantial por- tion of the same. Section 20. That the Municipal Airport shall be operated on a calendar year basis beginning January 1 and ending December 31. Section 21. That the City and the Airport Commission cove- . nant and agree that if default is made in the payment of any bond or coupon, or if there is a failure to meet any Municipal Airport Revenue Bond Fund requirement, the holder of such bond may declare that bond immediately due and payable, and such bond shall thereupon be immediately due and payable, and in default; provided, that the failure to exercise this option upon any default shall not be a waiver of the right to execute it upon a subsequent default. Section 22. That whenever there is a default that continues for thirty (30) days or more in the payment of any revenue bond or interest coupon of this issue, the holder or holders of any revenue bond or interest coupon in default, or the Trustee acting on behalf of such holders, may exercise any available remedy.at law or in equity, including without limitation the right to apply to the Chancery Court of Pulaski County, Arkansas for.the appointment of a receiver for the properties and revenues of the Little Rock Municipal Airport, with power to operate said properties and to charge and collect rates sufficient to provide revenues for the payment of said revenue bonds and interest thereon, and for the operation and maintenance expenses and costs of the receiver, until all delinquent principal and interest are paid in full, whereupon the management and control of the properties shall revert to the City and to the Airport Commission; provided, how- ever, that a failure to exercise the right to apply for a receiver shall not be a waiver of the right to make such application upon any subsequent default. Section 23. That the City and the Airport Commission cove- nant that in the issuance of these revenue bonds, all acts, conditions and things required to be done precedent to and in the issuance thereof have been properly done and performed and have happened in regular and due time, form and manner as required by law; and that the revenue bonds are within every debt limit, tax limit, or other limits prescribed by law. And, the City and the Airport Commission covenant that full payment has been received for said revenue bonds and that they have no defense, offset, or counterclaim against said bonds or the pledge of revenues hereinabove made to secure their payment. Section 24. 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 t 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 outstand- ing bonds 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 may name a new Trustee, but if such holders do not name a new Trustee within thirty (30) days after a vacancy occurs, the City 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. Section 25. That after the bonds herein authorized to be issued have been executed by the Mayor and City Clerk (or equivalent officers) and the seal of the City impressed as herein provided, they shall be delivered to the Trustee designated by the purchaser, which shall authenticate them and deliver them to the purchaser upon receipt from the purchaser of the purchase price of the bonds plus accrued interest; provided, however, that prior to or simultaneously with the delivery of said bonds to the purchaser, the Trustee shall receive and cancel all of the outstanding Little Rock Municipal Air- port 3% Refunding and Improvement Revenue Bonds, dated April 1, 1953, or shall deposit in escrow with the Paying Agent of said outstanding bonds an amount sufficient to pay the principal of and interest on the bonds to the date upon which said bonds may be called for re- demption prior to maturity, and shall publish or cause to be pub- lished a legal notice of call for all of said outstanding bonds. The Trustee of the bonds of this issue shall take all steps necessary to cause said outstanding bonds to be cancelled, shall so mark the bonds, and thereafter shall forward the same to the Secretary of the Airport Commission. The Trustee shall remit the proceeds of the sale of the bonds and the accrued interest to the Treasurer of the Airport Com- mission and such Treasurer shall deposit the accrued interest in the Municipal Airport Revenue Bond Fund and shall deposit the entire balance of the proceeds in trust in a Construction Fund in a bank that is a member of the Federal Deposit Insurance Corporation, such deposit to be secured by bonds or other direct or fully guaranteed obligations of the United States of America. The moneys in the said Construction Fund shall be disbursed solely in payment of the cost of improving and equipping the Municipal Airport facilities, including necessary expenses incidental thereto, but only on warrants, checks or vouchers signed by the Treasurer of the Airport Commission briefly specifying the disbursement or expenditure and accompanied by a certificate signed by the architect for such construction that an obligation in a stated amount has been incurred on account of the cost of construction and to whom such obligation is owed, except that no such certificate shall be required before payment of engineering fees, legal fees and expenses of the Commission incurred in the issuance of the bonds. Section 26. 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 27. That if any provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. Section 28. That all ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 29. 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 of Little Rock. 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 preserva- tion of the public peace, health and safety,shall take effect and be in force from and after its passage. PASSED: December 17 1956. APPROVED: ATTEST: City Clerk May-of f/ r ' a ` herein authorized. It is, therefore, declared that an emergency exists, and this ordinance being necessary for the immediate preserva- tion of the public peace, health and safety,shall take effect and be in force from and after its passage. PASSED: December 17 1956. APPROVED: ATTEST: City Clerk May-of