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HomeMy WebLinkAbout1677 R E S O L U T I O N NO. 1677 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LITTLE ROCK: SECTION 1. That the following proposal of T. J. Raney & Sons & Associates to refund airport bonds of the City of Little Rock be, and it is hereby, accepted and that the Mayor and City Clerk be, and they are hereby, authorized to endorse on a signed copy of the same in behalf of the City an acceptance, and deliver the same to T. J. Raney & Sons & Associates: Little Rock, Arkansas February , 1945 To the Honorable Mayor and City Council Little Rock, Arkansas Gentlemen: You have outstanding 4325,000 Airport Improvement bonds bearing interest at the rate of 2 %, dated October 1, 1940 and due serially arch 1, 1946 through 1968. We desire to refund the above mentioned 025,000 2j bonds into refunding bonds dated July 1, 1945 bearing interest at the rate of 2% and maturing from March 1, 1946 to March 1, 1963, inclusive. You are to have the right to call the bonds, in whole or in part, in in- verse numerical order, at par and accrued interest, on any interest paying date from surplus revenues received from tax collections. You are to have the right to call the bonds with money from any source on any interest paying date at par and accrued interest on aryl. after January 1, / yJ . We are to have the right to convert the new issue into bonds bearing a low- er rate of interest, the conversion to be figured according to the Universal Bond Values Table. You agree to trade to us any or all of the new issue of bonds described for your present outstanding issue of bonds, as described dove. We are to have the right to name the trustee and ppce of payment. The bonds are to be approved by Rose, Loughborough, Dobyns & House, Attorneys. We are to pay for the printing, trustee, and other expense invoked in refunding these bonds. You agree to deposit the new refunding bonds with the trustee at our request on or before August 1, 1S45. In order to carry out this contract we are to have the right to exchange your new bonds for the outstanding bonds with the original bondholders, or we are to have the right to purchase any of your outstanding bonds on such a basis as we can purchase them and then exchange the bonds so purchased for the new refunding bonds. If we are unable to exchange all of your bonds before August 1, 1945, you agree to call your old outstanding bonds at our request and advertise for sale the new bonds that we have not exchanged to secure money to pay for your old bonds when they are presented for payment. If we reauest you to advertise any part of the above described bonds for sale, we agree to bid at least par and accrued interest for said bonds at the sale. If at the sale the bonds are sold to other dealers at a higher bid, you agree to pay us one-half of the premium you receive on 2% bonds, in considera- tion of our agreeing to- bid par and accrued interest at the sale and also agree- ing to pay all expense. r-7— You understand it will be necessary to amend the present law before the attorneys will approve the refunding bonds and as son as this law is amended to permit the refunding of these bonds, we agree to put up a cashier's check for $2500.00 to be held by you uncashed pending the completion of this refund- ing. If we fail to complete this contract according to the conditions above set out, you are to cash this check as full and complete liquidated damages. Yours very truly, T. J. RANEY & SONS & ASSOCIATES BY SECTION 2. It is found and declared by the City Council of the pity of Little Rock, Arkansas, that unprecedently low interest rates now prevail which have created a market advantageous to the issuance of bonds by the City, that the ('ongress of the United States may shortly enact a statute taxing interest upon future issues of city bonds which would pre- vent the refunding at a lower rate of interest of the airport bonds re- ferred to in Section 1; that the City should take advantage of the present favorable market, and that its failure to do so would result in financial detriment to the City; that a delay in the taking effect of this resolution might prevent the City from refunding the bonds; that for said reasons it is hereby declared necessary for the preservation of the public peace, health and safety that this resolution shall become effective without de- lay. An emergency therefore exists, and this resolution shall take effect and be in force from and after its adoption. 2 -S- /6 • timo) ' 4.) ADOPTED: February 5, 19+5 AT' E6T: APPROVED: e ity Clerk. Mayor.