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HomeMy WebLinkAbout56484 � � ORDINANCE NO....... AN ORDINANCE PROVIDING FOR THE ISSUING OF $75,000 OF REFUNDING BONDS BY THE CITY OF LITTLE ROCS, ARKANSAS,TO REFUND A LIKE PAR AMOUNT OF ITS FUNDING BONDS DUE NOVEMBER 1, 1938. WHEREAS, the City Council of the City of Little Rock, Arkansas, finds that because of the decrease in the assessed valuation on property for tax purposes in Pulaski County, the taxes from the special tax authorized by Amendment No. 10 to the Constitution of Arkansas and other revenues of the City are insufficient to pay the $75,000 of 4 % funding bonds of the City, dated May 1, 1925, which will mature November 1, 1938, numbered 619 to 695, inclusive; that the holders of said funding bonds have offered to extend their maturity and to exchange them for the refunding bonds of the City, hereinafter described; and that it would be to the.best interest of the City to accept said offer and issue said refunding bonds. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LITTLE ROCK: Section 1. That the Mayor and City Clerk of the City of Little Rock, Arkansas, be and are hereby authorized and directed to execute $75,000 of negotiable bonds of the City, i dated November 1, 1938, maturing November 1, 1952, bearing i interest at the rate of 41% per annum, numbered from l to 75,., inclusive, and being in denominations. of $1000eacY.'`'" Section 2. The said bond shall be in the following form: I UNITED STATES OF AMERICA STATE OF ARKANSAS I CITY OF LITTLE ROCS 4j% REFUNDING BOND. NO. KNOW ALL MEN BY THESE PRESENTS: *1000.00 That the City of Little Rock, in the County of Pulaski, t. Page 2. Ordinance, in the State of Arkansas, acknowledges itself to owe, and for value received promises to pay to bearer the sum of One Thousand Dollars ($1000) in lawful money of the United States of America on the first day of November, 19522 with interest thereon from date at the rate of four and one -half per centum per annum, payable semi - annually on the first day of May and November of each year, commencing May .1, 1939, on presentation and surrender of the annexed coupons as they severally mature. Both principal and interest of this bond are hereby made payable at the Chase National Bank in New York City. This bond is one of a series of seventy -five (75) bonds aggregating Seventy -five Thousand Dollars ($75,000.00), all of like tenor 0and effect, and numbered from one (1) to seventy - five (75), inclusive, issued for the purpose of refunding a like par amount of the legally binding outstanding bonds of an issue of 42% of funding bonds of said City, dated May 1, 1925, and due November 1, 1938, which were issued for the purpose of funding the indebtedness of the City of Little Rock existing on the 7th day of October, 1924; and the said City of Little Rock hereby covenants that it is a city of the first class of the State of Arkansas, with a population exceeding sixty thousand (60,000) inhabitants, and that in the issuing of this bond it has proceeded in accordance with the provisions of Amendment No. 10 (formerly known as Amendment No. 11) to the Constitution of the.State of Arkansas, and in accordance with the laws of the State of Arkansas, including provisions of Act No. 292 of the Acts of the General A$9eiably of the State of Arkansas of the year 19252 entitled "An Act Relative to Citibe of the First Class, authorizing and validating bonds and the levy of a tax, and fixing the fiscal year of cities of over sixty thousand population, and for other purposes ", approved March 30, 1925, and under ordinances of the City Council of the said Cilry of Little Rock and resolutions of its Board of Public "Page 3. Ordinance. Affairs duly adopted; and that all things necessary to the validity of this bond under the laws of the State of Arkansas, and particularly under the said Amendment to the Constitution and the Act aforesaid, have been done, have happened and have been performed as required by law; and that a tax sufficient to pay the bonds aforesaid has been levied in accordance with the provisions of said constitutional amendment and act, and payable annually until the last of said bonds:: has been fully paid and discharged. For the prompt payment of this bond. and the interest thereon, the said City of Little Rock hereby pledges its full faith, credit and taxing power, including the three mill additional tax authorized by said Amendment No. 10 to the Constitution and applicable solely to the payment of this bond and other bonds issued to pay indebtedness outstanding at the time of the adoption of the Amendment. IN WITNESS WHEREOF the City of Little Rock has executed this bond by the hands of its Mayor and City Clerk and attested it with its corporate seal, and has caused the coupons hereto attached to be authenticated by the facsimile signature of its Mayor as of the first day of November, 1938. ATTEST: City Clerk ( SEAL) To each of said bonds are attached coupons for the semi- annual interest in the following form: No.� May On the first day of November, 19 , the.City of Little Rock, Arkansas, promises to pay to bearer Twenty -two and 50/100 Dollars at the Chase National Bank in the City of New York, being six monthst interest then due on its refudding bond dated r y Page 4. Ordinance. November 1, 1938, and numbered . Mayor. (The signature of the Mayor to the coupons attached to said bonds may be lithographed or engraved.) Sedti2nn 3. That the holders of said refunding bonds shall be subrogated to all the rights of the holders of the i original funding bonds, if such subrogation be necessary or convenient for the protection of their rights under said re- funding bonds. Section 4. That in order to pay the principal and interest of said refunding bonds as the same mature in 1952, there is hereby levied upon all the real and personal property within the City of Little Rock a tax of three mills for the year 1951, being a sum sufficient to pay said principal and interest with ten per cent (10%) added for unforeseen contingencies; and the City Clerk is directed to transmit a certified copy of this ordinance to the County Clerk of Pulaski County, to the end that said taxes may be extended upon the tax books of Pulaski County and collected along with the other taxes of the county. Section 5. That out of the three mill special tax here tofore levied by the Council, thereis hereby appropriated the sum of $5,375.00 in each of the years 1939 to 1951, inclusive, for the purpose of paying the interest on said refunding bonds as it matures; and out of the three mills levied by Section 4 of this ordinance, there is appropriated the sum of $78,375.00 in the year 1952, for the purpose of paying the principal and interest of said bonds mattering in that year. Section 6. After said refunding bonds have been duly executed as aforesaid, each shall be exchanged by the City Clerk for one of the said 42% funding bonds of the City dated May 1, 1925, due November 1, 1938, and numbered 619 to 6912 inclusive. Each Ordinance. funding bond so exchanged shall be immediately marked "Cancelled" by the City Clerk. Sec 7. It is hereby ascertained and declared that if the City does not immediately issue the said refunding bonds and.,exchange them for the said past due funding bonds, the credit of tb►e� t wi11 be seriously imp4ired, which will make the City n extain�tain proper facilities for the �inoton of fire; E. proper police protection and proper safeguards for the public health; and for these reasons it is hereby declared that an emergency exists and that this ordinance is necessary for the preservation of the public peace,health and safety, and the same shall take effect and be in force immediately upon its passage. ♦TTES APPROVED: ty Clerk* Mayor. ! AMDf