HomeMy WebLinkAbout1689 RESOLUTION NO. 1689.
A RESOLLTTION AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLER K TO EXECUTE
A CONTRACT WITH T. J. RANEY & SONS FOR THE REFUNDING OF $350,000 OF MUNICI-
PAL AUDITORIUM BONDS DECLARING AN EMERGENCY• AND FOR OTHER PURPOSES.
BE IT RE-OLVED BY THE CITY COUNCIL OF THE CITY OF LITTiLE ROCK, ARKANSAS:
SECTION 1. That the Mayor and City Clerk of the City of Little Rock,
Arkansas, be and are hereby authorized and directed to execute on behalf of the
City the following contract with T. J. Raney & Sons:
Little Rock, Arkansas
September 6, 1945
T. J. Raney & Sons
604 Wallace Building
Little Rock, Arkansas
Gentlemen:
We have outstanding $403,000 Municipal Auditorium Bonds, dated February 1,
1937, bearing interest at 4$, which are not callable. We are of the opinion
that the assessed value and the revenues of the City will increase from year
to year, which would give us an opportunity to pay these bonds in a shorter
time and save a considerable amount ofinterest for the City if the bonds
were refunded into callable bonds.
We understand you own $350,000 of these 4% bonds which mature from 1950 to
1967. We agree to deliver to you an issue of $433,000 2% refunding bonds
dated August 1, 1945, maturing from 1946 to 1967, in exchange for our out-
standing $350,000 4% non-callable bonds. The new bonds will mature as per
schedule attached.
Bonds Nos. 375 to 438 shall be callable in inverse numerical order at par and
accrued interest from surplus tax collections only as follows: Bonds Nos.
426/438 inclusive on August 1, 1946; Bonds Nos. 416/425 inclusive callable on
August 1, 1947; Bonds Nos. 406/415 inclusive on August 1, 1948; Bonds Nos.
396/405 inclusive on August 1, 1949; Bonds Nos. 386/395 inclusive on August 1,
1950; and Bonds Nos. 375/385 inclusive on August 1, 1951. All the bonds shall
be callable in inverse numerical order on August 1, 1952, and on any interest
paying date thereafter at par and accrued interest with money from any source.
You are to pay the accrued interest on the new bonds to the date of exchange
and we are to pay the accrued interest on the old bonds to the date of exchange.
We agree to deliver these bonds to you within 45 days from this date accompanied
by the unqualified approving opinion of Rose, Loughborough, Dobyns & House,
Attorneys, Little Rock, Arkansas.
You attach hereto your good faith check in the amount of $5, 000 guaranteeing
your performance in this contract. If you fail to carry out your provisions
in this contract this check is to be cashed by us as full and complete liquidated
damages. When you comply with this contract, we are to return this check to you.
YOU AGREE TO PAY ALL THE EXPENSE OF THE ISSUE, INCLUDING PRINTING, TRUSTEEING,
AND APPROVING ATTORNEYS' OPINION.
Yours very truly,
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
APPROVED this the
day of , 1945. By
City Clerk
T. J. RANEY & SONS
BY
SECTION 2. It is found and declared by the City Council of the City
of Little Rock, Arkansas, that by the issuance of the refunding bonds herein
referred to, the City will certainly save $10,340, and, by reason of the call
feature which is not in the bonds which they are to refund, the City will pro-
bably save a substantial additional amount; that because of the uncertainties
of the bond market, T. J. Raney & Sons might refuse to enter into the said
contract if there is any delay in the adoption of this resolution authorizing
its execution, which would prevent the City from receiving the benefits of the
said refunding, to the financial detriment of the City and its taxpayers; 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 delay, An emergency, therefore, exists, and this resolution shall take
effect and be in force from and after its adoption.
ADOPTED: September 6, 1945.
APPROVED:
iOr r
de
Mayor /
' ATTES :
'1, ,r Clerk