HomeMy WebLinkAbout2278 RESOLUTION NO. 2278
A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A
PROPOSAL TO GUARANTEE AN ACCEPTABLE INTEREST
RATE FOR THE CITY` S MULTI—PURPOSE BONDS.
WHEREAS, the City of Little Rock, proceeding under Amendment
No. 13 to the Constitution of the State of Arkansas, advertised the
public sale by auction bids on December 12 , 1958, of $3 ,300,000 of
an authorized bond issue of $4, 950,000, at which time the best bid
was par and accrued interest at an interest rate of 3 .595 %,
and after a full discussion the Board of Directors felt that the
interest rate was too high and all bids were rejected; and
WHEREAS, since that time Stephens, Inc. and T. J. Raney & Sons
have submitted to the City an offer to guarantee the City a bid of
102% for bonds bearing interest at the rate of 3 .48276 % per
annum; and
WHEREAS, this offer guarantees a sale of the bonds at a price
better than the best bid received at the pol.ic sale and also provides
for a public sale of the bonds as required by said Amendment No. 13 ,
and therefore it is the judgment of the Board of Directors that it
is to the best interests of the City to accept the offer, which is
as follows:
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1 . That the offer be and the same is hereby accepted,
and the Mayor and City Clerk are hereby authorized and directed to
sign the acceptance thereof.
SECTION 2 . It is hereby ascertained and declared that there
is an immediate and urgent need for the construction or acquisition
of the various municipal projects to be financed by the sale of the
bonds, in order to protect the health, lives and property of the
inhabitants of the City of Little Rock, Arkansas . It is, therefore,
declared that an emergency exists and this resolution, being
necessary for the preservation of public peace , health and safety,
shall take effect and be in force immediately upon and after its
adoption .
January 1959 -
ADOPTED: Dacambtax 5 , ISS8.
APPROVED:
)f?17
yor
Attest:
City Clerk
Honorable Mayor and City Directors
City of Little Rock, Arkansas
Gentle: en:
For your $3,300,000 City of Little Rock General Obligation bonds we guarantee to
secure for you a minimum bid of 102 plus accrued interest at your public sale for
bonds bearing an average interest rate of not to exceed 3.48276% in accordance
with your official Notice of Sale dated November 19, 1958, which sale was held
Friday, December 12.
In consideration of our guaranteeing to secure for you a minimum bid of 102 for
bonds bearing an average interest rate of not to exceed 3.48276% at your public
sale, you are to pay us for our services 2% of the authorized issue. Out of this
commission we agree to pay expenses of printing, trusteeing and approving opinion
as outlined in your official Notice of Sale dated November 19, 1958.
We hand you herewith our goodfaith check in the amount of $80,000 to be held by
you as complete liquidated damages in the event that we fail to carry out this
contract.
It is understood that the City will advertise these bonds for public sale as soon
as legally possible and this contract shall remain in effect for a period of
sixt11 days, and renewable at our option.
Yours very truly,
T. J. RAI EY & SONS
BY
Dallas P. Raney
STEPHENS, INC.
BY
ACCEPTED THIS DAY OF , 19 .
CITY OF LITTLE ROCK, ARKANSAS
BY:
Mayor
BY:
City Clerk