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ORDINANCE N0, 5690
AN ORDINANCE .PROVIDING FOR THE SALE
AND DELIVERY OF $27,000 OF LITTLE ROCK
4% SEWER REVENUE BONDS FOR THE PURPOSE
OF RAISING FUNDS WITH -WHICH TO PAY THE
FINAL COST OF CONSTRUCTION OF IMPROVE-
PI
MEniT$ TOE. $Y,$T; P;VIt FOR THE
TIMMS 01F . tk SAa or SAI N�?INDS AND
AUTHORIZING THE EXECUTION OF A CONTRACT
WITH THE PURCHASER OF SAID BONDS; AND
DECLARING AN EMERGENCY.
WHEREAS, it is necessary for the City of Little Roc}
to sell $27,000 of City of Little Rock 4% Sewer Revenue
Bonds in order to pay the final cost of the construction of
improvements to the sewer system; and
WHEREAS, the City of Little Rock duly authorized the
issuance of 4% Sewer Revenue Bonds in Ordinance No. 5305 in
the total amount of $1,037,000; and
WHEREAS, the City of Little Rock has issued and sold
only $902,000 of said issue of sewer bonds; and
WHEREAS, the City of Little Rock.is authorized by law
to sell an additional $27,000 of said sewer bonds to pay
the final cost of the improvements to the sewer system; and
WHEREAS, the Sewer Committee has agreed to sell said
additional $27,000 of sewer bonds to Cherry - Villareal &
Company, subject to the approval of this Council, at a price
of 10 3 interest 1 cents on the dollar and accrued 5 s fro m
December 1, 1939, under an agreement hereinafter set forth.
NOW, THEREFORE, BE IT ORDAINED by the City Council of
the City of Little Rock, Arkansas, as follows:
V
$action 1. That the City of Little Rock sell and deliver
to Cherry - Villareal & Company $27,000 of City of Little Roc$
4% Sewer Revenue Bonds, dated December 1, 1935, maturing Decembe
1, 1966, under the terms and conditions of a contract providing
as follows, to -wit:
C0.NTRA.CT
This agreement, entered into by and between the
City of Little Rock, Arkansas, (hereinafter called "the
City "), Cherry Villareal & Company (hereinafter called "the
dyer") , and of Little
Rock, Arkandas,' (hereinafter ealled vthe: Bank *) WIMSSWEa: 1
The City has sold, and the Buyer has purchased,
$27,000 of City of Little Rock 4% Sewer Revenue Bonds, dated
December 1, 1935, maturing December 1, 1966, bearing interest
at the rate of 4% per annum, payable semiannually on June 1
and December 1 in each year, each in the denomination of $10000
and numbered from 903 to 929, inclusive, at the price of 103.51
cents on the dollar and accrued interest from December 1, 1938,
the interest coupons maturing previous to that date having been
detached therefrom on the following understanding and agreement:
-1. She City will have-the option to repurchase the
said bonds, for cash at the price of par and accrued interest,
of the following numbers and denominations on the respective
dates set opposite each, and not before, (except as provided in
paragraph 2 hereof, only if payment is made therefor from the
"Surplus Account "'of the Little Rock Sewer System, as defined
and described in Section 4 (c) of Ordinance No. 5305 of the
City, passed and approved on the 20th day of s uaz+n 1436.
it being understood, however, that-the City is obligated
to use any available fund s in the- eSurplua Accoun-w. - t4
u
any of the following bonds at the market price,'tefore it shall
repurcb se .ethsr ewer Yids fir# ,Aa wt, priee in the open
market:
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2. Contract.
BOND NOS.
DENOMINATION AMOUNT
i 903
to
905,
incl.
$1,000
$3,000
906
to
909,
Incl.
1,000
3,000
909
to
911,
incl.
1,000
3,000
912
to
914,
incl.
1,000
000
915
to
917,
incl.
19000
3,000
918
to
920,
incl.
10000
3,000
921
to
9231
incl.
12000
3,000
924
to
926,
incl.
11000
3,000
927
to
929,..
December
1,
1939
December
1,
1940
December
1,
1941
December
1,
1942
December
1,
19433
December
1,
194+
December
1,
1945
December
1,
1942
December
19
1947
2. The City will have the option to repurchase for cash
at the price of 103.51 cents on the dollar and accrued interest
on or before December 1, 1939, all or any one of bonds Nos. 921
to 929, inclusive, above, only if payment is made therefor from
funds granted to the City from the Public Works Administration of
the United States, or from any funds of the City other than the
revenues of the said Sewer System of the City.
3. The said $27,000 of bonds will be held by the
Bank in escrow to be delivered to the City from time to time
If and when the City izo"isee the options set out above, (time-
to be the essence of the contract) and the Bank to pay the prb-
ceeds to the Buyer or his assignee; otherwise to be delivered
to the Buyer, or its assignee, annually upon the expiration of
the respective option periods mentioned in paragraph No. 1 with-
out said options having been exercised by the City.
4. An affidavit of the Mayor and Treasurer of the
City stating that any payments under paragraph No. 1 above by
the City are made only from the "Surplus Account", shall be
sufficient evidence for the Bank to accept said payments and
deliver the bonds; and a like affidavit that any payments under
paragraph 2 are not made from the revenues of the Sewer System
shall be sufficient evidence for the Bank to accept said payments
and deliver the bonds.
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3. Contract.
5. The Bank is authorized to deliver to the Buyer,
or its assignee, the interest coupons attached to said bonds on
their maturity dates so long as it holds any of said bonds in
escrow.
6. If any assignment of any interest in any of said
bonds or rights in this contract is made, the assignor shall give
written notice to the Bank; including theFname and address of the
assignee, which writing shall be attached to the executed copy of
this agreement held by the Bank and the Bank thereupon may execute
to any such assignee a proper participation certificate.
7. The Bank agrees to hold the said bonds in escrow
for the purposes herein described, and to deliver the same only
as herein authorized.
8. It is agreed that the Bank may at any time purchase,
for its own account, an interest in any of the said bonds.
9. It is understood that the Bank1s charges for its
services herein will be $1.00 per thousand of principal of out-
0
standing bonds annually, with a minimum of $25.00 annually, to be.
payable annually in advance beginning on the date of this contract,
and that said charges will be paid by the City.
IN WITNESS WHEREOF, this agreement has been executed in
triplicate on this day of Febfuary, 1939.
CITY OF LITTLE ROCK
By
ATTEST: Mayor
City Clerk
CHERRY VILLAREAL & COMPANY
ATTEST:
Secretary
ATTEST:
Secretary
By
President
By
2. Ordinance.
Section 2. The Mayor and the City Clerk are hereby
authorized and directed to execute the foregoing contract
and to deliver the said bonds in accordance therewith.
Section 3- It is ascertained and declared that the
City has been indebted to contractors for a balance due for
work done on Its $ewe a year, and tk�at
h there is danger of thi.rih6N �i3ki 'night tie up
funds of the City and thereby result in crippling the operat
of the sewer, water, fire, police, health and other departme
of the City, which would endanger the health, lives and safety
of the inhabitants of the City. An emergency is hereby declared
to exist, and this Ordinance being necessary for the preservation
of the public peace, health and safety, shall be in full force
and effect from and after its passage.
PASSED: February 13, 1939•
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APPROVED:
Mayor
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