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0442 c a • 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 l -2- 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 1 -3- 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 i Section 4. That the bonds shall be executed on behalf of the City by the Mayor and City Clerk (with the facsimile signature _ 4- I 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, r r -6- 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 -7- • 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. -8- 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 • I • I -12- 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 -13- 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. -14- 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): -15- 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 -16- 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 -17- 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. r -18- (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. -19- 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 -20- 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. r -21- (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. ` -22- 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 ': ATTES : / Y l7 " o-f� xe. Mb. 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 .-t✓ C 1-4 --- • o � l • 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. • • 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 ___ • • 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 ti A City C (SEAL) •