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• ORDINANCE NO.7",,i'
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION IMPROVEMENT BONDS FOR THE PURPOSE OF
FINANCING THE COST OF PURCHASING SITES FOR AND
CONSTRUCTING AND EQUIPPING FIRE STATIONS AND CON-
STRUCTING AND EQUIPPING EXTENSIONS, BETTERMENTS
AND IMPROVEMENTS TO EXISTING FIRE STATIONS AND
PURCHASING A SITE FOR AND CONSTRUCTING A MUNICI-
PAL BUILDING, INCLUDING FACILITIES FOR THE POLICE
DEPARTMENT, THE MUNICIPAL COURT AND A JAIL;
LEVYING A TAX SUFFICIENT TO PAY THE PRINCIPAL OF AND
INTEREST ON THE BONDS; PRESCRIBING OTHER MATTERS
RELATING THERETO; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Jacksonville, Arkansas, is a city
of the first class (the "City "); and
WHEREAS, by Ordinance No. 410, duly passed by the City
Council ofx the City, and approved on the 16th day of September, 1976,
there was submitted to the qualified electors of the City the
question of issuing, under Amendment No. 13 to the Constitution of
the State of Arkansas, General Obligation Improvement Bonds in the
principal amount of $565,000 (the "bonds ") for the purpose of financing
• the cost of purchasing sites for and constructing and equipping fire
stations and constructing and equipping extensions, betterments and
improvements to existing fire stations and purchasing a site for and
constructing and equipping ui ain a Municipal Building, q p� g unicipal Bsilding, including facilities
for the Police Department, the Municipal Court and a jail (the
"improvements "), paying necessary expenses incidental thereto and
paying the expenses of issuing the bonds; and
WHEREAS, at the general election held November 2, 1976, a
majority of the electors voting on the question approved the
issuance of the bonds; and
WHEREAS, the results of the election were announced by
the I4ayor by a Proclamation duly published on December 7, 1976 in a
newspaper of bona fide circulation in the City; and
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WHEREAS, after due advertisement for the time and in the
manner required by law, bonds in the amount of $565,000 were
offered for sale on sealed bids on June 22, 1977, and at the sale
T. J. Raney & Sons, Inc.(the "purchasers ") bid and offered the
price of par and accrued interest from August 1, 1977 to date of
delivery for bonds bearing interest at the rate of 4.25% per
annum, plus a premium of $15,438.00. and this being the best bid,
the bonds were sold to the purchasers at that price; and
WHEREAS, pursuant to the authorization in the Notice of
Sale the purchasers have elected to convert the $5_65.4 of bonds
bearing interest at the rate of 4.25% per annum to an issue of $597,000
of 3.50 %, 4 %, and 4.25% bonds, hereinafter described in detail, and
the Council has examined the conversion and has found the same to
be within the provisions of the Notice of Sale, and that by virtue
of which the City will pay no more and receive no less than it
would pay and receive if the bonds were not converted;
NOW, THEREFORE, BE IT ORDAINED by the City Council of
the City of Jacksonville, Arkansas:
Section 1. That the improvements be accomplished.
Section 2. That the sale of the bonds to the purchasers
and the conversion of the bonds set forth above be, and the same
are hereby, approved and confirmed.
Section 3. That under the authority of the Constitution
and laws of the State of Arkansas, including , u g particularly Amendment
No. 13 to the Constitution of the State of Arkansas, City of Jackson-
ville, Arkansas General Obligation Improvement Bonds are hereby
authorized and ordered issued in the total principal amount of $ 000,
the proceeds of the sale of which are necessary to provide sufficient
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funds for accomplishing the improvements. The bonds shall be
numbered consecutively from 1 to 121, inclusive, and shall be in the
denomination of $5,000 each, except Bonds Nos. 5 and 6', which
shall be in the denomination of $1,000 each. The bonds shall be
negotiable coupon bonds payable to bearer but shall be subject to
registration as to principal or as to principal and interest. Pay-
ment of the bonds and interest coupons shall be made at the principal
office of First Jacksonville Rank, Jacksonville. Arkansas (the
"Trustee" and "Paying ]gent "). Payment of interest, when registered
as to, interest, may be by check or draft mailed to the registered
owner at the address shown on the registration book of the City
maintained by the,Trqatpe. Interest shall be payable semiannually
on February and August 1 of each year commencing August 1, 1977
(the first coupon printed will be coupon No. 2 due February 1, 1978).
The bonds shall be dated February 1, 1977 and shall mature on
February 1 of each year, as follows, but are callable for redemption
prior to maturjty as hereinafter set forth:
YEAR BOND NOS AMOUNT
1980 1 - 6 $22,000
1981 7 - 11 25,000
1982 12 - 16 25,000
1983 17 - 21 25,000
1984 22 - 26 25,000
1985 27 - 32 30,000
1986 33 - 38 30,000
1987 39 - 44 30,000
1988 45 - 50 30,000
1989 51 - 56 30,000
1990 57 - 63 35,000
1991 64 - 70 35,000
1992 71 - 77 35,000
1993 78 - 85 40,000
. 1994 86 - 93 40,000
1995 94 - 102 45,000
1996 103 - 111 45,000
1997 112 - 121 50,000
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Section 4. That the bonds shall be executed on behalf
of the City by the Mayor and City Clerk (with the facsimile signature
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of the Mayor and the manual signature of thg —City Clerk) and shall
have impressed thereon the seal of the City. Interest coupons
shall be executed by the facsimile signature of the Mayor. The
facsimile signature of the Mayor on the bonds and coupons shall
have the same force and effect as if he had personally signed each
of the bonds and coupons.
Section 5. That the bonds and coupons shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF JACKSONVILLE
% GENERAL OBLIGATION IMPROVEMENT BOND
No. $5,000
($1,000)
KNOW ALL MEN BY THESE PRESENTS:
That the City of Jacksonville, Pulaski County, Arkansas
(the "City "), acknowledges itself to owe and for value received
promises to pay to bearer, or if this bond be registered, to the
registered owner hereof, the sum of
FIVE THOUSAND DOLLARS
ONE THOUSAND DOLLARS
in lawful money of the United States of America on the first day
of February, 19, and to pay interest hereon at the rate of
percent ( %) per annum from date
until paid. Interest is payable semiannually on February 1 and
August 1 of each year, commencing August 1, 1977 (the first coupon
printed is Coupon No. 2 due February 1, 1978). Payment of
principal, and payment of interest when evidenced by coupons,
shall be made upon presentation of the bonds and coupons at the
principal office of First Jacksonville Bank, Jacksonville,
Arkansas (the "Trustee" and "Paying Agent "). Payment of interest,
when registered as to interest, may be by check or draft mailed to
the registered owner at his address reflected on the registration
book of the City maintained by the Trustee as Bond Registrar.
This is one of an issue of 121 bonds, aggregating $59,7 -,440,
dated February 1, 1977, and numbered from 1 to 121, inclusive, all
of like tenor and effect except as to number, denomination, rate
of interest, maturity and right of prior redemption. The bonds
are issued for the purpose of financing the cost of purchasing sites
for_and constructing and equipping fire stations and constructing
and equipping extensions, betterments and improvements to existing
fir_ a_tions and purchasing a site for and constructing and equipping
a Mun cipal_Building, including facilities for the Police Department,
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the Municipal Court and a jail (the "improvements "), paying necessary
expenses incidental thereto and paying the expenses of issuing the
bonds.
The bonds are issued pursuant to and in full compliance
with the Constitution and laws of the State of Arkansas, particularly
Amendment No. 13 to the Constitution of the State of Arkansas, and
pursuant to Ordinance No. of the City, passed and approved
on the day of , 1977 (the "Authorizing Ordinance "),
and an election duly held at which the majority of the legal
voters of the City voting on the question voted in favor of the
issuance of the bonds. Reference is hereby made to the Authorizing
Ordinance for the details of the nature and extent of the security
and of the rights and obligations of the City and the holders and
registered owners of the bonds. The bonds are general obligations
of the City, payable fro m the proceeds of a continuinc_ annual 2 -1/2
mill special tax (the "special tax ") levied by the_,,City__Council
under the authority of Amendment No. 13 to the Constitution of the
State of Arkansas, and_the City hereby pledges its full faith,
credit and taxing power, including the special tax, for the payment
of the bonds.
The bonds willbe subject to redemption prior to maturity
(mandatory from surplus collections of the special tax and optional
from other sources) in inverse n mgrical order at a price of par and
accrued interest as follows: From__aurp1us proceeds of the sale of
the bonds not required for accomplishing the .improvements and from
surplus collections of the special tax on any interest paying date;
from funds from any source on any interest paying date on and after
February 1, 1982.
The City hap covenanted and agreed that, subject to
the conditions set forth below, surplus tax collections, being
collections from the special tax in excess of the amount
necessary to insure the prompt payment of the principal of, •
interest on and Trustee's and Paying Agent's fees in connection
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with the bonds as the same become due, must be used from time
to time on each interest payment date as and to the extent available
to redeem the outstanding bonds. There ,will be sach mandatory redemp-
tion to the extent that the total interest cost to the City for the
period of the projected payout on the basis of the mandatory call
does not exceed the interest cost that would result from an interest
rate of 6% per annum for the period of the projected payout on the
money received by the City. In determining the extent of such manda-
to redemption, it will be assumed (1) that collections of the
special tax will be at the rate of. 100 %, (2) that the same (1976)
assessed valuation will continue and (3) that the principal added by
the conversion constitutes interest. Redemption on interest payment
dates from surplus tax collections in excess of such mandatory redemp-
tion will be optional. Under the law, however, all collections of the
special tax must be used,fpr,.gaymeot.gf_,.debt service on the bonds
at maturity or zed ,t,ion_prior to maturity and can be used for no
other purnnse.
Notice of the call for redemption shall be published one
time in a newspaper published in the City of Little Rock, Arkansas,
and having a general circulation throughout the State of Arkansas,
giving the number and maturity of each bond being called, the
publication to be at least fifteen.. (15.) days prior to the redemption
date, and after the date fixed for redemption each bond so called
shall cease to bear interest, provided funds for its payment are
on deposit with the Paying Agent at that time. In addition,
notice by first class mail shall be mailed, fifteen (15) days
prior to the redemption date, to the,_registered owner of each bond
registered as to principal or as to principal and interest at the
address of such owner reflected on the bond registration book of
the Bond Registrar and if all outstanding bonds shall be registered
as to principal and interest, then notice by first class mail to
the registered owners thereof shall be sufficient, and it shall
not be necessary to publish notice of the call.
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This bond may be registered as to principal or as to
principal and interest and may be discharged from such registration
in the manner, with the effect and subject to the terms and conditions
endorsed hereon. Subject to the provisions for registration
endorsed hereon, nothing contained in this bond or in the Authorizing
Ordinance shall affect or impair the negotiability of this bond
and this bond shall be deemed a negotiable instrument under the
laws of the State of Arkansas and is issued with the intent that
the laws of the State of Arkansas will govern its construction.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required to exist, happen and be
performed, under the Constitution and laws of the State of Arkansas,
particularly Amendment No. 13 to the Constitution of the State of
Arkansas, precedent to and in the issuance of this bond have
existed, have happened and have been performed in due time, form
and manner as required by law; that the indebtedness represented
by this bond and the issue of which it forms a part does not
exceed any constitutional or statutory limitation; and that a tax
sufficient to pay the bonds and interest thereon has been duly
levied in accordance with Amendment No. 13 to the Constitution of
the State of Arkansas and made payable annually until all of the
bonds and interest thereon have been fully paid and discharged.
This bond shall not be valid until it shall have been
authenticated by the Certificate hereon duly signed by the Trustee.
IN WITNESS WHEREOF, the City of Jacksonville, Arkansas,
has caused this bond to be executed in its name by the facsimile
signature of the Mayor, the mnual signature of the City Clerk and
its corporate seal to be affixed and has caused the coupons hereto
attached to be executed by the facsimile signature of its Mayor,
all as of the first day of February, 1977.
CITY OF JACKSONVILLE, ARKANSAS
ATTEST;,,
, \� {f C /i /I // By (facsimile signature)
r g ✓ sue. ,a Mayor
Ci*. Clerk
(SEAL)
(form of coupon)
No. $
On the first day of (February) (August), 19, the City
of Jacksonville, Pulaski County, Arkansas, unless the bond to
which this coupon is attached is paid prior thereto or unless the
bond is registered as to interest in accordance with the provisions
pertaining thereto set forth on the bond, hereby promises to pay
to bearer
DOLLARS
in lawful money of the United States of America at the principal
office of First Jacksonville Bank, Jacksonville, Arkansas, being
six (6) months interest then due on its General Obligation Improve-
ment Bond, dated February 1, 1977, and numbered _ •
CITY OF JACKSONVILLE, ARKANSAS
By (facsimile signature)
Mayor
On each bond shall appear the following:
CERTIFICATE
This is to certify that this is one of the City of Jackson-
ville, Arkansas General Obligation Improvement Bonds, dated February 1,
1977, mentioned and described within.
FIRST JACKSONVILLE BANK
Jacksonville, Arkansas
By
Authorized Signature
PROVISIONS FOR REGISTRATION AND RECONVERSION
This Bond may be registered as to principal alone on books
of the City, kept by the Trustee as bond registrar, upon presentation
hereof to the bond registrar, which shall make mention of such regis-
tration in the registration blank below, and this Bond may thereafter
be transferred only upon an assignment duly executed by the registered
owner or his attorney or legal representative in such form as shall
be satisfactory to the bond registrar, such transfer to be made on
such books and endorsed hereon by the bond registrar. Such transfer
may be to bearer, and thereafter transferability by delivery shall
be restored, but this Bond shall again be subject to successive reg-
istrations and transfers as before. The principal of this Bond, if
registered, unless registered to bearer, shall be payable only to or
upon the order of the registered owner or his legal representative.
IniteXast accruing-on this Bond will be paid only on presentation and
surrender of the attached interest coupons as they respectively become
due, and notwithstanding the registration of this Bond as to principal,
the appurtenant interest coupons shall remain payable to bearer and
shall continue to be transferable by delivery; provided, that if upon
registration of this Bond, or at any time thereafter while this Bond
is registered in the name of the owner, the unmatured coupons attached
evidencing interest to be thereafter paid hereon shall be surrendered
to said bond registrar, a statement to that effect will be endorsed
hereon by the bond registrar and thereafter interest evidenced by
such surrendered coupons may be paid by check or draft of the bond
registrar at the times provided herein to the registered owner of
this Bond by mail to the address shown on the registration books.
This Bond when so converted into a bond registered as to both principal
and interest may be reconverted into a coupon bond at the written re-
quest of the registered owner and upon presentation at the office of
said bond registrar. Upon such reconversion the coupons representing
the interest to become due thereafter to the date of maturity will
again be attached to this Bond and a statement will be endorsed hereon
by the bond registrar in the registration blank below whether it is
then registered as to principal or payable to bearer.
: Manner of : Signature of
Date of Registration: Name of Registered Owner:Registration:Bond Registrar
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Section 6. That in order to pay the bonds as they mature,
with interest thereon, there is hereby levied upon all taxable
real and personal property within the City a continuing annual tax
of 2 -1/2 mills (the "special tax ") on each dollar of assessed
valuation to be collected in 1978 and annually thereafter as long
as may be necessary to pay the principal of, interest on and
Trustee's and Paying Agent's fees in connection with the bonds.
The special tax shall be collected in lieu of and in substitution
for the tax of five mills levied by the City Council of the City
for collection in 1977 pursuant to Amendment No. 13 to the
Constitution of the State of Arkansas by Ordinance No. 417 of the
City, adopted and approveg ov. lot , 1976 ( "1977 Tax "). The City
Clerk is directed to transmit a copy of this Ordinance to the
_........ _........... .
Cou County, Arkansas, to the end that the
special tax ma be extended on the tax books of the County and
collected annually along with the other taxes until the bonds and
interest thereon are paid in full or until adequate provision is
made for their payment. The City covenants and agrees that all of
the revenues from the 1977 tax and from the special tax shall be
placed in a separate fund which is hereby created and designated
"1977 General Obligation Improvement Bond Fund') (the "Bond Fund "),
&n__ bank or banks.,designated from time to time by theCity
of the City_ membership in the Federal Deposit Insurance
Cprporatj,nn, and used solely for the payment of the principal of,
interest on and Trustee's and Paying Agent's fees in connection
with the bonds. The amount of the deposit in excess of that insured
by_the Federal Deposit Insurance Corporation must be continuously
secured by bonds or other direct Or fully quaranteed obligations
o�f,_the United_$tates of America, except that moneys invested as
hereinafter provided need not be so secured. Moneys in the Bond
Fund may be invested in direct obligations of, or obligations the
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principal of and interest on which are guaranteed by, the United
States of America which mature.or_Are subject to redemption at the
option of the _hoi or gr gr, SP .the..date the moneys will be
i1eeded to meet debt service_ requirements on the bonds. All such
investments_shali_be considered at of the Bond Fund from which
made and all„_earniugs_.and profits_..credited to, and all losses
charged against,_euch,_fund. The City covenants, subject to the
conditions set forth _below, that all revenues derived from the
special tax in. excess of. the amount necessary to insure the prompt
payment of , the principal of, interest on and Trustee's and Paying
Agent's fees in connection with the bonds as they mature will be
used frnm time to time on earth interest navment date as and to the
extent available for the,_r..gdempt ---=.• f.
_._ -.. onds- -maturity...
There will be such mandatory rede_ mption to the extent that the
total interest cost to the City for the period of the projected
payout on the basis of the mandatory call does not exceed the
interest cost that would result from an interest rate of 6% per
annum for the period of the projected payout on the money received
by the City. In determining the extent of such mandatory redemp-
tion, it will be assumed (i) that collections of the special
tax will be at the rate of 100 %, (ii) that the same (1976)
assessed valuation will continue and (iii) that the principal
added by the conversion constitutes interest. Redemption on
interest payment dates from surplus tax collections in excess of
such mandatory redemption will be optional, but all collections
of the special tax must be used for payment of debt service on the
bonds at maturity or redemption prior to maturity and can be used
for no other purpose.
Section 7. That for the prompt payment of the bonds, with
interest, the City hereby pledges its full faith, credit and taxing
power, including the special tax levied in Section 6 of this
Ordinance.
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Section 8. That in order to pay the principal of and
interest on the bonds as they mature and as they are redeemed
prior to maturity, there are hereby appropriated the entire proceeds
of the special tax levied in Section 6 hereof, and if the proceeds
be not sufficient to pay the principal of and interest on the
bonds as they mature, then there are hereby appropriated sufficient
additional funds out of the general revenues of the City to
accomplish the payment at maturity. The principal of and interest
on the bonds shall mature according to the following schedule
(which also sets out the interest rate for the bonds of each
maturity):
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BOND INTEREST INTEREST
YEAR AMOUNT NOS. RATE FEBRUARY 1 AUGUST 1 TOTAL
1978 11,315.00- 11,315.00 22,630.00
1979 11,315.00 11,315.00 22,630.00
1980 22,000 1 -6 4.00% 11,315.00 10,875.00 44,190.00
1981 25,000 7 -11 4.00% 10,875.00 10,375.00 46,250.00
1982 25,000 12 -16 4.00% 10,375.00 9,875.00 45,250.00
1983 25,000 17 -21 4.00% 9,875.00 9,375.00 44,250.00
1984 25,000 22-26 4.00% 9,375.00 8,875.00 43,250.00
1985 30,000 27 -32 4.25% 8,875.00 8,237.50 47,112.50
1986 30,000 33 -38 4.25% 8,237.50 7,600.00 45,837.50
1987 30,000 39 -44 4.25% 7,600.00 6,962.50 44,562,50
1988 30,000 45 -50 4.25% 6,962.50 6,325.00 43,287.50
1989 30,000 51 -56 4.25% 6,325.00 5,687.50 42,012.50
1990 35,000 57 -63 3.50% 5,687.50 5,075.00 45,762.50
1991 35,000 64 -70 3.50% 5,075.00 4,462.50 44,537.50
1992 35,000 71 -77 3.50% 4,462.50 3,850.00 43,312.50
1993 40,000 78 -85 3.50% 3,850.00 3,150.00 47,000.00
1994 40,000 86 -93 3.50% 3,150.00 2,450.00 45,600.00
1995 45,000 94 -102 3.50% 2,450.00 1,662.50 49,112.50
1996 45,000 103 -111 3.50% 1,662.50 875.00 47,537.50
1997 50,000 112 -121 3.50% 875.00 50,875.00
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Section 9. That the bonds shall be callable for payment
prior to maturity in accordance with the terms set out in the face
of the bond form in Section 5 of this Ordinance.
Section 10. That the Treasurer of the City is hereby
ordered and directed to place on deposit with the Paying Agent, at
least five (5) days before the maturity date of any bond or interest
coupon issued hereunder, an amount from the funds herein appropriated
equal to the amount of such bonds or coupons, for the sole purpose
of paying the same, together with the customary Paying Agent's
fee. Such deposit shall be at the risk of the City and shall not
operate as a payment of the bonds or coupons until so applied.
This instruction to the Treasurer is irrevocable and may be enforced
by mandamus.
Section 11. (a) If there be any default in the payment
of the principal of and interest on any of the bonds, or if the
City defaults in any Bond Fund requirement or in the performance
of any other covenant contained in this Ordinance, the Trustee
_Lnay, and upon the written request of the holders of not less than
ten percent (10%) in principal amount of the bonds then outstanding
shall, by proper suit compel the performance of the duties of the
officials of the City under the Constitution and laws of the State
of Arkansas and under this Ordinance and protect and enforce the
rights of the bondholders by acceleration, instituting appropriate
proceedings in_law or equity or other action deemed necessary or
desirable by the Trustee.
(b) No holder of any bond shall have any right to
institute any suit, action, mandamus or other proceeding in equity
or at law for the protection or enforcement of any right under
this Ordinance or under the Constitution and laws of the State of
Arkansas unless such holder previously shall have given to the
Trustee written notice of the default on account of which such
suit, action or proceeding is to be taken, and unless the holders
of not less than ten percent (10 %) in principal amount of the
bonds then outstanding shall have made written request of the
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Trustee after the right to exercise such powers or right of action,
as the case may be, shall have accrued, and shall have afforded
the Trustee a reasonable opportunity either to proceed to exercise
the powers herein granted or granted by the Constitution and laws
of the State of Arkansas, or to institute such action, suit or
proceeding in its name, and unless, also, there shall have been
offered to the Trustee reasonable security and indemnity against
the cost, expenses and liabilities to be incurred thereon or
thereby and the Trustee shall have refused or neglected to comply
with such request within a reasonable time, and such notification,
request and offer of indemnity are hereby declared in every such
case, at the option of the Trustee, to be conditions precedent to
the execution of the powers and trust of this Ordinance or to any
other remedy hereunder. It is understood and intended that no one
or more holders of the bonds hereby secured shall have any right
in any manner whatever by his or their action to affect, disturb
or prejudice the security of this Ordinance, or to enforce any
right hereunder except in the manner herein provided, that all
proceedings at law or in equity shall be instituted, had and
maintained in the manner herein provided and for the benefit of
all holders of the outstanding bonds and coupons, and that any
individual rights of action or other right given to one or more of
such holders by law are restricted by this Ordinance to the rights
and remedies herein provided.
(c) All rights of action under this Ordinance or under
any of the bonds secured hereby, enforceable by the Trustee, may
be enforced by it without the possession of any of the bonds or
coupons appertaining thereto, and any such suit, action or proceeding
instituted by the Trustee shall be brought in its name and for the
benefit of all the holders of the bonds and coupons, subject to
the provisions of this Ordinance.
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(d) No remedy herein conferred upon or reserved to the
Trustee or to the holders of the bonds is intended to be exclusive
of any other remedy or remedies herein provided, and each and
every such remedy shall be cumulative and shall be in addition to
every other remedy given hereunder or given by any law or by the
Constitution of the State of Arkansas.
(e) No delay or omission of the Trustee or of any
holders of the bonds to exercise any right or power accrued upon
any default shall impair any such right or power or shall be
construed to be a waiver of any such default or an acquiescence
therein, and every power and remedy given by this Ordinance to the
Trustee and to the holders of the bonds, respectively, may be
exercised from time to time and as often as may be deemed expedient.
(f) The Trustee may, and upon the written request of
the holders of not less than ten percent (10 %) in principal amount
of the bonds then outstanding shall, waive any default which shall
have been remedied before the entry of final judgment or decree in
any suit, action or proceeding instituted under the provisions of
this Ordinance or before the completion of the enforcement of any
other remedy, but no such waiver shall extend to or affect any
other existing or any subsequent default or defaults or impair any
rights or remedies consequent thereon.
Section 12. That when the bonds herein authorized to be
executed have been executed by the Mayor and City Clerk and the
seal of the City impressed as herein provided, they shall be
delivered to the Trustee, which shall authenticate them and deliver
them to the purchasers upon payment in cash of the purchase price
of g 580t438.00> plus accrued interest from August 1, 1977 ( "total
sale proceeds "). The accrued interest sha11__g_deposited
in the Bond Fund.
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The balance of the total sale proceeds shall be deposited
in a special account_o _the_citflhereby created and designated the
"Construction Fund" in a bank that is a member of the Federal
Deposit Insurance Corporation. The moneys in the Construction
.Fund shall be used for accomplishing the improvements, paying
ex1enses incidental thereto and,payiiq the ex enses of issuing the
bonds, with any unexpended balance to be deposited in the Bond
Fund.
Moneys on deposit in the Caa.strgction Fund in excess of
the amount insured by the Federal Deposit_, Insurance Corporation
must,._be..c .tinuously. red. by. .kaonds..or...Dt)aex or fiLtly
guaranteed ot,�l iga ; r r Q. of America; provided,
however, moneya in the Construction Fund that are invested as
hereinafter prnvidPd need not be so secured. Moneys in the Con-
struction Fund_may beinvested in direct obligations of, or obligations
the principal of_._and interest on which are guaranteed by, the
United States 4dAtingLica, having_matur_ity dates, or subject to
redemption at,the_.option of tha..holder, not later than the date or
dates on which the moneys will be needed for accomplishing the
improvements.
Section 13. First Jacksonville Bank, Jacksonville, Arkansas,
is hereby designated as Trustee„ � and Pa+ing__Agent. It shall only be
responsible for the exercise of good faith and reasonable prudence
in the execution of its trust. ThP recitals in this Ordinance and
in the face of the bonds are the recitals of the City and not of
the Trustee. The._Trustee shall, not be required to take any action
as Trustee unless it shall have been requested to do so in writing
by the holders of not less than ten percent (10 %) in principal
amount of the bonds then outstanding and shall have been offered
reasonable security and indemnity against the costs, expenses and
liabilities to be incurred therein or thereby. The Trustee
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may resign at any time by ten (10) days notice in writing to the
CityClerk, and the majority_ in principal amount of the holders of
the outstanding bonds at any time, with or without cause, may
remove the Trustee. In the event of a vacancy in the office of
Trustee, either by resignation or by removal, the majority in
principal amount of the holders of the outstanding bonds may
appoint a new Trustee, such appointment to be evidenced by a
written instrument or instruments filed with the City Clerk. If
the majority in principal amount of the holders of the outstanding
bonds shall fail to fill a vacancy within thirty (30) days after
the same shall occur, then the City shall forthwith designate a
new Trustee by a written instrument filed in the office of the
City Clerk. The original Trustee and any successor Trustee shall
file a written acceptance and agreement to execute the trusts
imposed upon it or them by this Ordinance, but only upon the terms
and conditions set forth in this Ordinance and subject to the
provisions of this Ordinance, to all of which the respective
holders of the bonds agree. Such written acceptance shall be
filed with the City Clerk and a copy thereof shall be placed in
the bond transcript. Any successor Trustee shall also become the
Paying Agent and shall have all the powers herein granted to the
original Trustee and Paying Agent.
Section 14. (a) That the terms of this Ordinance shall
constitute a contract between the City and the holders and registered
owners of the bonds and no variation or change in the undertaking
herein set forth shall be made while any of these bonds are outstanding,
except as hereinafter set forth in subsection (b), and the holder
or registered owner of any bonds may at any time for and on his
own behalf or for and on behalf of all bondholders enforce the
obligations of the City by a proper suit for that purpose.
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(b) Subject to the terms and provisions contained in
this Section and not otherwise, the holders and registered owners
of not less than seventy -five percent (75%) in aggregate principal
amount of the bonds then outstanding shall have the right, from
time to time, anything contained in this Ordinance to the contrary
notwithstanding, to consent to and approve the adoption by the
City of such ordinance supplemental hereto as shall be necessary
or desirable for the purpose of modifying, altering, amending,
adding to or rescinding, in any particular, any of the terms or
provisions contained in this Ordinance or in any supplemental
ordinance; provided, however, that nothing herein contained shall
permit or be construed as permitting (a) an extension of the
maturity of the principal of or the interest on any bond issued
hereunder, or (b) a reduction in the principal amount of any bond
or the rate of interest thereon, or (c) the creation of a pledge
of tax revenues other than the pledge created by this Ordinance,
or (d) a privilege or priority of any bond or bonds over any other
bond or bonds, or (e) a reduction in the aggregate principal
amount of the bonds required for consent to such supplemental
ordinance.
Section 15. The City covenants that it shall not take
any action or suffer or permit any action to be taken or condition
to exist which causes or may cause the interest payable on the
bonds to be subject to federal income taxation. Without limiting
the generality of the foregoing, the City covenants that the
proceeds of the sale of the bonds will not be used directly or
indirectly in such manner as to cause the bonds to be treated as
"arbitrage bonds" within the meaning of Section 103 (c) of the
Internal Revenue Code of 1954, as amended.
Section 16. That the provisions of this Ordinance are
separable and in the event that any section or part hereof shall
be held to be invalid, such invalidity shall not affect the remainder
of this Ordinance.
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Section 17. That all ordinances and resolutions and
parts thereof in conflict herewith are hereby repealed to the
extent of such conflict.
Section 18. That this Ordinance shall not create any
right of any character and no right of any character shall arise
under or pursuant to it until the bonds authorized by this Ordinance
shall be issued and delivered.
Section 19. That is is hereby ascertained and declared
that the above described improvements to be constructed out of the
proceeds of the bonds authorized hereby are immediately needed for
the preservation of the public peace, health and safety and to
remove existing hazards thereto. The improvements cannot be made
without the issuance of these bonds, and therefore, it is declared
that an emergency exists and this Ordinance being necessary for
the preservation of the public peace, health and safety shall be
in force and take effect immediately upon and after its passage.
PASSED: , 1977.
APPRO ':
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City perk
(SEAL)
CERTIFICATE
STATE OF ARKANSAS )
COUNTY OF PULASKI )
The undersigned, City Clerk of the City of Jacksonville,
Arkansas, hereby certifies that the foregoing pages,
numbered 1 to 21, inclusive, are a true and correct copy
of Ordinance No. 442 of the City, adopted at a
SPECIAL session of the City Council of the City of Jacksonville,
held at the regular meeting place of the Council in the
City at 7:00 p..m on the 28 th day of JULY
1977, and that the Ordinance is of record in Ordinance
Record Book No. TWO at Page 224 , now in my
possession.
GIVEN under my hand and seal this 2nd day of
AUGUST , 1977.
fra--1- A -d
City Clerk
(SEAL)
NOTICE OF' AND CONSENT TO MEETING OF COUNCIL
The undersigned hereby acknowledges receipt of official and timely
notice of a meeting of the City Council of the City of Jacksonville
Arkansas, to be held on i , 19a, at 7 o'clock/_.m.,
at the regular meeting place of the Council in the City of Jacksonville
Arkansas, the purpose of the meeting being:
to consider an Ordinance authorizing the issuance
of general obligation improvement bonds.
and for the transaction of such other business as may properly come before
the Council.
The undersigned further consent to the meeting at the time and place
and for the purposes hereinabove set forth and hereby ratify all action taken
at said meeting for said purposes.
l-
Mayor
=. i/
City 1 Clerk
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EXCERPTS FROM MINUTES OF MEETING OF THE
• Jacksonville CITY COUNCIL,
HELD JULY 28th , 19 77
The City Council of the City of Jacksonville
Arkansas met in SPECIAL session at its regular meeting place in
,Tarksnnvilla . Arkansas, at seven o'clock P• .m., on the 28th
day of July , 19 77. The following were present: Mayor James
G. Reid ,City Clerk Floy Avants
and Alderman
Lecil 0. Lawson, Don Elkins, Tommy Swaim, Larry Wilson,
Eddie Brickell and Mike Abdin
Absent: none
The Mayor stated that consideration should be given to an ordinance 442
authorizing the issuance of general obligation improvement
bond s
This was a matter with which the Council was familiar and after a discussion, Alderman
Mike Abdin introduced an ordinance entitled:
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION IMPROVEMENT BONDS FOR THE PURPOSE OF
FINANCING THE COST OF PURCHASING SITES FOR AND
CONSTRUCTING AND EQUIPPING EXTENSIONS, BETTERMENTS
AND IMPROVEMENTS TO EXISTING FIRE STATIONS AND
PURCHASING A SITE FOR AND CONSTRUCTING A MUNICIPAL
BUILDING, INCLUDING FACILITIES FOR THE POLICE DEPART-
MENT, THE MUNICIPAL COURT AND A JAIL; LEVYING A TAX
SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE
BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO;
AND DECLARING AN EMERGENCY
Mayor's Secretary
and the N. Gerren read the ordinance in full.
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Page
Alderman — Larry Wilson seconded by Alderman
Mike Abdin , moved that the rule requiring the reading
of an ordinance or resolution in full on three different days be suspended and
that the ordinance be placed on its second reading. The Mayor put the question
on the adoption of the motion and the roll being called, the following voted aye:
Aldermen: Lecil 0. Lawson, Don Elkins, •
Tommy Swaim, Larry Wilson, Eddie Brickell
and Mike Abdin
4 _
and the following voted nay: none
•
Thereupon the Mayor declared that at least two- thirds of all
members of the Council having voted in favor of the motion to suspend the rule,
the motion was carried and the rule suspended. The ordinance was then read
by the MAYOR
Aldennan Larry Wilson , seconded by Aldennan
Tonuti_Swaim then moved that the rule requiring the reading of an
on: 1:C.(3 in full on three different days be further suspended and that the ordin: ce
1)0 pHcud on its third reading. The Mayor put the question on the adoption of
the motion and the roll being called the following voted aye:
Aldermen: Lecil 0. Lawson, Don Elkins,
Tommy Swaim, Larry Wilson, Eddie Brickell
and Mike Abdin •
and the following voted nay; none ___
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Page 3
The Mayor declared that at least two- thirds of all members elected
to the Council having voted in favor of the motion to suspend the rule, the
motion was carried and the rule suspended. The ordinance was then read by
the MAYOR
Alderman Tommy Swaim , seconded by Alderman
Don Elkins , moved that the ordinance be adopted. The
question was put by the Mayor on the adoption of the motion and the roll
being called, the following voted aye:
Aldermen: Lecil 0. Lawson, Don Elkins,
Tommy Swaim, Larry Wilson, Eddie Brickell
and Mike Abdin
and the following voted nay: none
Alderman Larry Wilson , seconded by Alderman
Lecil 0. Lawson , moved that Section 19 , the emergency
clause, be adopted, and on roll call the following voted aye:
Aldermen: Lecil 0. Lawson, Don Elkins,
Tommy Swaim, Larry Wilson, Eddie Brickell
and Mike Abdin
and the following voted nay: nnne
The Mayor thereupon declared the ordinance and the emergency
clause adopted and signed the ordinance, which was attested by the City
Clerk and sealed with the seal of the City. The ordinance was
given No. 442 ,
(Matters not relating to
the ordinance are omitted.)
There being no further businessCouncil adjourned. , th
Aayor
ATTEST: `
1
City / Clerk
(SEAL)
CERTIFICATE
The undersigned, City clerk of
Jacksonville , Arkansas, hereby certifies that the
foregoing pages numbered 1 to 3, inclusive, are a true and correct copy of
excerpts of the minutes of a meeting of the City Council of Jacksonville
Arkansas at a SPECIAL session held at the regular meeting place of the
Council in said City a t seven o'clock p • . m. , on the 28th day of
JULY , 1977 and the time and place of the meeting was furnish-
' ed to each person who made a request therefor in accordance with the provisions
of Act No. 93 of the Acts of Arkansas of 1967. /
Air
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City C
(SEAL)
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