437~• ' ~ / ~ ,
,~9i . ~ - ,' ..
~a
~a[
ORDINANCE NO.~
AN ORDINANCE AUTHORIZING THE ISSUANCE OF A
SERIES OF PUBLIC UTILITY REVENUE BONDS OF
1963 FOR THE PURPOSE OF FINANCING THE COST
OF CONSTRUCTING EXTENSIONS, BETTERMENTS AND ~;a~
IMPROVEMENTS TO THE WATERWORKS AND SEWER ~-~~~~
SYSTEM SERVING THE CITY OF WEST MEMPHIS,
ARKANSAS AND RELATED EXPENSES INCIDENTAL ~~
THERETO; PLEDGING CERTAIN FUNDS FOR THEIR ;K°~~
PAYMENT; PRESCRIBING OTHER MATTERS RELATING ~.,.`i
THERETO; AND DECLARING AN EMERGENCY.
WHEREAS the City of West Memphis, Arkansas ( called
"City") owns and operates a municipal waterworks and sewer system
and a municipal electric light and power system, and the three
systems constitute the City's public utilities system (which will
be herein sometimes referred to as the "System"); and
WHEREAS the City has determined that certain extensions,
betterments and improvements to the waterworks and sewer facilities
are immediately needed and has had prepared by Cy Bond, Jr., a
duly qualified consulting engineer, plans covering the needed exten-
sions, betterments andimprovements (herein called the "improvements")
at an estimated cost to the City of $195,650, including necessary
expenses incidental thereto and to the issuance of bonds, and a copy
of the report and plans prepared by said consulting engineer is on
file in the office of the City Clerk and to which reference may be
made by any interested party; and
WHEREAS the City does not have the necessary funds tv
construct the improvements but can obtain the same by the issuance
of revenue bonds, as hereafter in this ordinance described in detail,
and after due advertisement has sold at public sale an issue of
Public Utility Revenue Bonds of 1963 in the principal amount of
$195,650, dated July 1, 1963, with interest payable semiannually on
~
. ~
~
• ,.
~.~' .
' ,
Page 2
May 1 and November 1 of each year, commencing May 1, 1964, and
maturing on May 1 in each of the years 1965 to 1984, inclusive, to
Raney Securities Company, Inc., at a price of~-~~ and accrued in-
terest for bonds bearing interest at the rate of 4 1/4% per annum;
and
WHEREAS pursuant to the provisions of said Notice of
the public sale of the bonds the said purchaser has elected to
convert the $195,650 in principal amount of 4 1/4% bonds to an
issue of $215,300 in principal amount of bonds bearing interest
at the rates of 3%, 3 1/4% and 3 1/2% per annum, all as hereafter
described in detail, and the City has examined the conversion and
found that the same is within the provisions of the Notice of Sale
and that pursuant to which the City will receive no less and pay
no more than it would receive and pay if the bonds were not converted;
NOW, THEREFORE, BE IT ORDAINED by the City Council of
the City of West Memphis, Arkansas:
Section 1. That the improvements, referred to above,
be constructed.
Section 2. That it is hereby found and declared that
the period of usefulness of the System is more than forty years,
which is longer than the term of the proposed bonds.
Section 3. That the sale of the bonds to Raney
Securities Company, Inc., at a price of~0s' a d accrued interest
and the conversion of the $195,650 in principal amount of bonds
bearing interest at the rate of 4 1/4% per annum to an issue of
$215,300 in principal amount of bonds bearing interest at the rates
of 3% per annum, 3 1/4% per annum and 3 1/2% per annum, be, and
the same hereby are, approved and confirmed.
. v'
Page 3.
Section 4. That the City has outstanding an issue of
Sewer Revenue Refunding and Improvement Bonds, dated June 1, 1945,
authorized by Ordinance No. 107 of the ordinances of the City,
adopted and approved on July 6, 1945 and an issue of Sewer Revenue
Bonds dated August 1, 1949, authorized by Ordinance No. 171 of the
ordinances of the City, adopted and approved on September 9, 1949,
with there being $326,000 in principal amount of both of said issues
outstanding as of the date of this ordinance, to the payment of
which there is a first pledge of sewer revenues. The City has out-
standing an issue of Water Refunding and Improvement Revenue Bonds
dated Junel, 1950, authorized by Resolution No. 181, adopted and
approved on May 2, 1950, and there is a first pledge of water reve-
nues to said outstanding June 1, 1950 issue, there being $86,000
in principal amount of said June 1, 1950 bonds outstanding as of
the date of this ordinance. In addition, the City has outstanding
an issue of Public Utility Bonds dated May 1, 1954, authorized by
Ordinance No. 275 of the ordinances of the City, adopted and
approved on May 18, 1954, there being outstanding $870,000 in
principal amount of said May 1, 1954 bonds as of the date of this
ordinance, and the City has outstanding an issue of Public Utility
Bonds dated April 1, 1956, authorized by Ordinance No. 316 of
the ordinances of the City, adopted and approved on March 15, 1956,
as amended, there being $426,000 in principal amount of said April 1,
1956 bonds outstanding as of the date of this ordinance (the said
Public Utility Bonds dated May 1, 1954 will be sometimes referred to
~-
herein as the "1954 Utility Bonds " and the said April 1, 1956 Public
Page4
Utility Bonds will be sometimes referred to herein as the "1956
Utility Bonds"). The 1956 Utility Bonds are issued on a parity of
pledge, lien and security with the 1954 Utility Bonds and the appli-
cable provisions of Ordinance No. 275, referred to above (being
Section 17 thereof) permit the issuance of additional parity bonds.
a It is hereby found and declared that the conditions set out in said
Section 17 have been fully met and complied with and that, therefore,
the bonds of this issue are issued on a parity of pledge, lien and
security on the System revenues and on the System with the said out-
standing bonds of the 1954 Utility Bonds and the 1956 Utility Bonds.
As in the case of the 1954 Utility Bonds and the 1956 Utility Bonds,
with which the bonds now authorized are issued on a parity, the pledge,
lien and security in favor of the bonds now authorized is subject to
the prior and superior pledge and lien on Sewer, Water and Electric
Revenues in favor of said outstanding June 1, 1945 Sewer Bonds,
August 1, 1949 Sewer Bonds and June 1, 1950 Water Bonds. It is
recognized that the City has made a conditional pledge of electric
revenues to an issue of Swimming Pool Revenue Bonds of the City
dated March 1, 1955, as set forth in Section 14 of Ordinance No.
295 of the ordinances of the City adopted and approved on February 1,
1955, and nothing in this ordinance shall be construed as impairing
s aid conditional pledge to the extent that the same may be determined
to be applicable to the pledge of revenues to the bonds hereby
authorized.
Section 5. That under the authority of the Constitution
and laws of the State of Arkansas, including without limitation,
Act No. 131 of the Acts of Arkansas of 1933, as amended, Act No. 132
of the Acts of Arkansas of 1933, and the decision of the Supreme
Court of the State of Arkansas in the case of City of Harrison v.
`~
Page 5
Braswell, 209 Ark. 1094, City of West Memphis, Arkansas Public
Utility Revenue Bonds of 1963 are hereby authorized and ordered
M
issued in the principal amount of $215,300, the proceeds of the `"
sale of which are necessary to provide funds for paying the cost
of constructing the improvements, and necessary expenses incidental ~-
,.. ,.
,. .
thereto and to the issuance of bonds. The bonds shall be dated ~~~"
July 1, 1963, interest thereon shall be payable semiannually on
May 1 and November 1 of each year commencing May 1, 1964 (at the
rates hereafter set forth), and the bonds shall be numbered con-
sectively from 1 to 216, inclusive. All of the bonds shall be
in the denomination of $1,000 each except Bond No. 9 which shall
be in the denomination of $300. The bonds shall bear interest
as follows: Bonds Nos. 1 to 90, inclusive, being the bonds maturing
in the years 1965 to 1974, inclusive, shall bear interest at the
rate of 3% per annum; Bonds Nos. 91 to 147, inclusive, being the
bonds maturing in the years 1975 to 1979, inclusive, shall bear
interest at the rate of 3 1/4% per annum; and Bonds Nos. 148 to
216, inclusive, being the bonds maturing in the years 1980 to 1984,
inclusive, shall bear interest at the rate of 3 1/2% per annum. The
interest on the bonds shall be evidenced by interest coupons, and
the principal and interest shall be payable in lawful money of the
United States of America upon presentation of the bond or proper
coupon at the office of The First National Bank in Little Rock,
Little Rock, Arkansas. The bonds shall mature on May 1 in each
year as hereafter set forth, but shall be callable for payment prior
to maturity as specified in the face of the bonds, and as hereafter
set forth in this ordinance:
Page 6
YEAR BOND NOS. AMOUNT
1965
1966
1967
1968
1969
~'~ 1970
1971
1972
1973
1974
"~ 1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
Section 6.
1 - 9 $ 8,300
10 - 17 8,000
18 - 25 8,000
26 - 33 8, 000
34 - 42 9,000
43 - 51 9,000
52 - 60 9,000
61 - 70 10,000
71 - 80 10,000
81 - 90 10,000
91 - 101 11,000
102 - 112 11,000
113 - 123 11,000
124 - 135 12,000
136 - 147 12,000
148 - 160 13,000
161 - 173 13,000
174 - 187 14,000
188 - 201 14,000
202 - 216 15,000
That the bonds shall be executed on behalf
of the City by the Mayor and City Clerk and shall have impressed
thereon the seal of the City. Interest coupons attached to each
of the bonds may have the facsimile signature of the Mayor litho-
graphed or printed thereon, which signature shall have the same
force and effect as if he had personally signed each of said coupons.
The bonds, together with interest thereon, shall be payable solely
out of the "1963 Public Utility Bond Fund" (herein sometimes called
the "Bond Fund") and shall be a valid claim. of the holders thereof
only against such fund and the revenues pledged to such fund, which
revenues are hereby pledged and mortgaged for the equal and ratable
payment of the bonds on a parity of pledge, lien and security with
the 1954 Public Utility Bonds and the 1956 Public Utility Bonds,
and shall be used for no other purpose than to pay the principal of
and interest on the bonds herein authorized and the paying agent's
fees, except as may be herein specifically set forth. The bonds
and the interest coupons shall not constitue an indebtedness of
the City within any constitutional or statutory limitation.
Page ?
Section 7. That the bonds and coupons shall be in
substantially the following form and the Mayor and City Clerk are
hereby expressly authorized anddirected to make all recitals con-
tamed therein:
f
Page 8
UNITED STATES OF AMERICA
STATE OF ARKANSAS
f COUNTY OF CRITTENDEN
CITY OF WEST MEMPHIS ~~~ ,~ ~ '~
~,,,, % PUBLIC UTILITY REVENUE BOND OF 1963
No. $
KNOW ALL MEN BY THESE PRESENTS:
That the City of West Memphis, in the County of Crittenden,
State of Arkansas, for value received hereby promises to pay, solely
from the special fund provided therefor as herein set forth, to
bearer, the principal sum of
DOLLARS
in lawful money of the United States of America on the 1st day of
May, 19 and to pay solely from said special fund interest thereon
at the rate of per -cent ( %) per annum from
date until paid, payable semiannually on May 1 and Novemberl of each
year, commencing May 1, 1964, upon presentation and surrender of the
annexed coupons as they severally become due. Both principal and
interest of this bond are made payable at the office of The First
National Bank in Little Rock, Little Rock, Arkansas.
This bond is one of a series of bonds aggregating Two
Hundred Fifteen Thousand Three Hundred Dollars ($215,300), all of
like tenor and effect except as to number, denomination, rate of
interest, maturity and right of prior redemption, numbered consecutively
from one (1) to two hundred sixteen (216), inclusive, and issued
for the purpose of constructing extensions, betterments and improve-
ments to the Municipal Waterworks and Sewer Systems of the City.
Page 9
THs bond and the series of which it forms a part are
issued pursuant to and in full compliance with the Constitution and
laws of the State of Arkansas, including without limitation, Act No.
131 of the Acts of Arkansas of 1933, as amended, Act No. 132 of the
Acts of Arkansas of 1933, the decision of the Supreme Court of the
State of Arkansas in the case of City of Harrison v. Braswell, 209
Ark. 1094, and pursuant to ordinances of the City Council of the
City, duly adopted and approved, and do not constitute an indebted-
ness of the City within any Constitutional or statutory limitation.
The bonds are not general obligations of the City, but are special
obligations payable solely from revenues derived from the operation
of the Municipal Waterworks and Sewer Systems and from a conditional
pledge of electric revenues derived from the operation of the
Municipal Light and Power System. The bonds are issued on a parity
as to lien, pledge and security with an outstanding Public Utility
Bond Issue of the City dated May 1, 1954 and an outstanding Public
Utility Bond Issue of the City dated April 1, 1956, but subordi-
nate to certain outstanding Sewer Revenue Bonds and Water Revenue
Bonds of the City (described and referred to in the ordinance of
the City authorizing the bonds of this issue). An amount of revenues
sufficient to pay the principal of, interest on and paying agent's
fees in connection with the bonds of this issue is to be set up in
a special fund for that purpose, identified as the "1963 Public
Utility Bond Fund". Reference is hereby made to Ordinance No. ~4 3 7
of the ordinances of the City, duly adopted and approved on the
day of ~U n3 ~ , 1963, under which this bond and the
issue of which it is part are authorized to be issued, and reference
Page 10
is hereby made to said ordinance for a detailed statement of the ~
. .~
nature and extent of the security, the revenues pledged to the '~
bonds of this issue, and of the rights and obligations of the City,
the Trustee and the bondholders. Among other covenants, the City ,,
has covenanted to maintain rates for water and sewer services which
at all times will be sufficient to provide for the payment of the
expenses of operation, repair and maintenance of the Waterworks and
Sewer Systems, to pay the principal of, interest on and paying
agent's fees on all bonds of the City to which said Waterworks and
Sewer Revenues are pledged, and to maintain all funds required by
the various ordinances of the City authorizing said bonds to which
said revenues are pledged. In addition, the City has covenanted to
at all tunes maintain rates for services from the Municipal Light
and Power System which will produce net electric revenues sufficient
to comply with all conditional pledges of said net electric revenues
in favor of the bonds of this issue and all other bonds of the City
to which said pledges are made.
This bond is expressly made negotiable by the laws under
which it is issued, and is issued with the intent that the laws of
the State of Arkansas shall govern the construction thereof.
The bonds of this issue shall be noncallable prior to
May 1, 1965, but they shall be callable for payment prior to
maturity in inverse numerical order at par and accrued interest on
any interest paying date on and after May 1, 1965 as follows: from
surplus Water, Sewer or Electric Revenues only on any interest pay-
ing date between May 1, 1965 and November 1, 1972, inclusive; from
funds from any source on any interest paying date on and after May 1,
1973. Notice of the call for redemption shall be published once a
Page 11
week for two weeks before the date for such redemption 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 first 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.
This bond shall not be valid until it shall have been
authenticated by the certificate hereon duly signed by The First
National Bank in Little Rock, Little Rock, Arkansas.
It is hereby certified, recited and declared that all
acts, conditions and things required to exist, happen and be per-
formed 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 Constitu-
t ional or statutory limitation; and that sufficient revenues have
been pledged to and will be set aside into said special fund for
the payment of the principal of and interest on the bonds of this
issue as the same become due and payable.
IN WITNESS WHEREOF, the City of West Memphis, Arkansas,
by its City Council, has caused this bond to be signed by the
Mayor and City Clerk thereof and sealed with the corporate seal
of the City, and has caused the coupons hereto attached to be
executed by the facsimile signature of the Mayor, all as of the
Page 12
1st day of July, 1963.
ATTEST
City Clerk
(SEAL)
No.
CITY OF WEST MEMPHIS, ARKANSAS ~,
By,
Mayor
f
!,
~~
(Form of Coupon)
May
On the first day of November, 19 , the City of
West Memphis, Crittenden County, Arkansas, unless the bond to which
this coupon is attached is paid prior thereto, hereby promises to
pay to bearer, solely out of the fund specified in the bond to which
this coupon is attached,
DOLLARS
in lawful money of the United States of America at the office of
The First National Bank in Little Rock, Little Rock, Arkansas,
being six months' interest due on its Public Utility Revenue Bond
of 1963, dated July 1, 1963, and numbered
CITY OF WEST MEMPHIS, ARKANSAS
By
Mayor
Page 13
'~~ On each bond shall appear the following
`'~
E
w
~"" ~ CERTIFICATE
The First National Bank in Little Rock, Little Rock,
Arkansas, hereby certifies that this is one of a series of bonds,
described herein, aggregating $215,300, numbered from 1 to 216,
inclusive, all of like tenor and effect, except as to number,
denomination, rate of interest, maturity and right of prior
redemption.
THE FIRST NATIONAL BANK IN LITTLE ROCK,
LITTLE ROCK, ARKANSAS
Little Rock, Arkansas By
( Authorized Signature)
1963.
Page 14
Section 8. By ordinances heretofore adopted and approved
the City has fixed rates to be charged for the services to be fur- CGS
~,Jt
Wished for the water facilities, sewer facilities and electric f,
9
facilities and the City hereby finds the rates so fixed to be the ~~~
~,,
reasonable and necessary minimum rates to be charged, and said rates
are hereby approved and confirmed. The said rates shall never be
reduced below an amount which will produce sufficient revenues to
provide for the operation, repair and maintenance expenses cf the
water facilities, sewer facilities and electric facilities and to
fully comply with all pledges of the City to all bonds of the City
to which said revenues are pledged, including, without limitation,
the bonds of the issue authorized by this ordinance. And, the
City covenants and agrees that it will, if and when necessary, increase
said rates so that the revenues produced therefor will always be
sufficient for the above set forth purposes.
Section 9. The funds created by Sections 8, 9, 11 and 12
of said Ordinance No. 275 of the ordinances of the City, adopted and
approved on the 18th day of May, 1954, shall remain unchanged by this
ordinance and shall continue to be maintained by the City as required
by and pursuant to the provisions of said Ordinance No. 275 and
Ordinance No. 316 of the ordinances of the City duly adopted and
approved on the 15th day of March, 1956, as amended.
Section 10. 1963 Public Utility Bond Fund.
(A) There is hereby established with the Trustee a special
trust fund in the name of the City designated "1963 Public Utility
Bond Fund" (herein sometimes called the "Bond Fund") which shall
be maintained as long as any of the bonds of this issue are outstand-
ing and unpaid, and into which there shall be paid the funds in
the amounts and at the times hereafter set forth in subparagraph
(B) for the purpose of providing funds for the payment of the prin-
Page 15
cipal of, interest on and paying agent's fees in connection with the
bonds of this issue as the same become due and payable in accordance
with the following schedule and to create and maintain a reserve for
.,
;~~ contingencies:
YEAR BOND NOS. PRINCIPAL
MAY 1 INTEREST
NOVEMBER 1 TOTAL
.~
1964
$
$5,788.75
$3,473.25
$ 9,262.00
1965 1 - 9 8,300 3,473.25 3,348.75 15,122.00
1966 10 - 17 8,000 3,348.75 3,228.75 14,577.50
1967 18 - 25 8,000 3,228.75 3,108.75 14,337.50
1968 26 - 33 8,000 3,108.75 2,988.75 14,097.50
1969 34 - 42 9,000 2,988.75 2,853.75 14,842.50
1970 43 - 51 9,000 2,853.75 2,718.75 14,572.50
1971 52 - 60 9,000 2,718.75 2,583.75 14,302.50
1972 61 - 70 10,000 2,583.75 2,433.75 15,017.50
1973 71 - 80 10,000 2,433.75 2,283.75 14,717.50
1974 81 - 90 10,000 2,283.75 2,133.75 14,417.50
1975 91 - 101 11,000 2,133.75 1,955.00 15,088.75
E 1976 102 - 112 11,000 1,955.00 1,776.25 14,731.25
1977 113 - 123 11,000 1,776.25 1,597.50 14,373.75
~- 1978 124 - 135 12,000 1,597.50 1,402.50 15,000.00
1979 136 - 147 12,000 1,402.50 1,207.50 14,610.00
1980 1~8 - 160 13,000 1,207.50 980.00 15,1$7.50
1981 161 - 173 13,000 980.00 752.50 14,732.50
1982 174 - 187 14,000 752.50 507.50 15,260.00
1983 188 - 201 14,000 507.50 262.50 14,770.00
1984 202 - 216 15,000 262.50 15,262.50
(B) Beginning on the first business day of the month after
the delivery of the bonds authorized by this ordinance and continuing
on the first business day of each month thereafter until all of the
bonds authorized hereby have been paid in full or provision made for
such payment, a sum equal to one-fifth (1/5) of the next installment
of interest and one-tenth (1/10) of the next installment of principal
(plus any additional amount that may be necessary together with accrued
~""' interest received at the time of the delivery of the bonds to fully
provide for the first interest payment on the bonds, if any additional
amount be required), and an amount sufficient to provide for the
paying agent's fees, on all outstanding bonds, until a reserve for con-
tingencies shall have been accumulated in the amount of $15,000. The
reserve for contingencies shall be maintained as hereafter provided .
Page 16
When the reserve for contingencies has been accumulated in the
required amount, the monthly payments into the Bond Fund may be
r
~•+ reduced to one-sixth (1/6) of the next installment of interest-and
one-twelfth. (1/12) of the next installment of principal, respectively,
and an amount sufficient to provide for the paying agent's fees, but if
the reserve for contingencies becomes impaired, the payments of
one-fifth and ors-tenth, respectively, and an amount sufficient to
provide for the paying agent's fees, shall be resumed until the impair-
meet is cured. The payments into the Bond Fund required hereby shall
be made simultaneously with payments into the Public Utility Bond
Fund, created by Sectinn 11 (a) of Ordinance No. 275, and referred
to in Section 9 of Ordinance No. 316, both of which ordinances have
been heretofore referred to and identified.
(C) If the revenues of the System are insufficient to make
the required payment on the first business day of the following month
into the Bond Fund, then the amount of any such deficiency in the
payment shall be added to the amount otherwise required to be paid
into the Bond Fund on the first business day of the next month.
When the moneys held in the Bond Fund, including the reserve for
contingencies, shall be and remain sufficient to pay the principal
of and interest on all outstanding bonds of this issue, and the
paying agent's fees, either at maturity or on earlier redemption,
there shall be no further obligation to make any payments into the
Bond Fund, If for any reason there shall be a deficiency in the
payments made into the Bond Fund so that there are unavailable suf-
ficient moneysiizerein to pay the principal of, taaterest on and paying
agent's fees in connection with the bonds as the same become due and
Page 17
payable, any sums then held as a reserve for contingencies shall
be used to the extent necessary to pay the principal of, interest
on and paying agent's fees in connection with the bonds, but such
reserve shall be reimbursed in the amount of any such payment as
above provided. The reserve for contingencies may be invested in
~~ bonds or other direct or fully guaranteed obligations of the United
States Government having maturity dates not exceeding five (5) years
from the date of purchase. Any earnings on investments of moneys
in the reserve for contingencies which increase the principal amount
of the reserve for contingencies in excess of $15,000 need not be
retained in the reserve for contingencies but any sums therein at
any time over and above the amount of $15,000 may be transferred
to the Bond Fund and used as other moneys may be used in the Bond
Fund .
(D) If at any time for any reason there be accumulated
in the Bond Fund an amount in excess of the required amount of the
reserve for contingencies and in excess of the amaunt necessary to
insure the prompt payment of the principal of, interest on and paying
agent's fees in connection with the bonds as the same become due and
payable, such surplus amount may be used to call the bonds of this
issue for payment prior to maturity in accordance with the provisions
pertaining to redemption prior to maturity set forth in the face
of the bond form included in this ordinance.
Section 11. That all the covenants, restrictions, conditions
and provisions set forth in Sections 14, 15, 16, 17, 18, 19, 20, 21
and 22 of said Ordinance No. 275 (heretofore identified), and all
other provisions of said Ordinance No. 275 and said Ordinance No. 316,
Page 18
as amended (heretofore identified) are hereby,each and all, ratified
and confirmed, and shall continue in force and inure to the security
and benefit of the bonds of this issue, together with the 1954
Utility Bonds and the 1956 Utility Bonds (which 1954 Utility Bonds 4~
and 1956 Utility Bonds rank on a parity of lien, pledge and security
with the bonds of this issue) as fully and as effectively as if
herein set out in full, it being the intention of this section to
give the bonds of this issue the full benefit of all such covenants,
restrictions, conditions and provisions as well as the full benefits
of all applicable provisions under the Constitution and laws of the
State of Arkansas. In this regard, with particular reference to
Section 18 of said Ordinance No. 275, pertaining to the pledge of
electric revenues, the provisions of that section pertaining to a
payment directly into the Public Utility Bond Fund shall be con-
s trued to mean a payment directly into the 1963 Public Utility Bond
Fund, created by this ordinance, insofar as the bonds of this issue
are concerned.
Section 12. That the bonds authorized hereby and issued
hereunder shall be callable for payment prior to maturity in accord-
ance with the terms set out in the face of the bond form in Section
7 of this ordinance.
Section 13. That the Trustee of the bonds issued hereunder
shall be The First National Bank in Little Rock, Little Rock,
Arkansas. The Trustee shall only be responsible for the exercise
of good faith and reasonable prudence in the execution of its trust.
The 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
Page 19
y
.~
~"~
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 per
cent (10%) in principal amount of the bonds of this issue then out-
standing and shall have been offered reasonable security and indemnity
against the costs, expenses and liabilities to be incurred therein or
thereby. The Trustee may resign at any time by ten (10) days' notice
in writing to the City Council and the majority in value of the holders
of the outstanding bonds of this issue 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 value of the l~lders of the outstanding bonds of this issue may
appoint a new Trustee, such appointment to be evidenced by a written
instrument or instruments filed with the Mayor and the City Clerk.
If the majority in value of the holders of the outstanding bonds of
this issue shall fail to fill a vacancy within thirty (30) days after
the same shall occur, then the City Council 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 trust imposed
upon it or them by this ordinance, but only upon the terms and con-
ditions 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 band transcript. Any
successor Trustee shall have all the powers herein granted to the
original Trustee. In the event of a change in the office of Trustee
the old Trustee which has resigned or been removed shall cease to
be paying agent and the successor Trustee sh~.l become the paying agent.
Page 20
Section 14. The Mayor is hereby directed to publish for one
Erf~nJiNC:
insertion in the Times, which is hereby found and
declared to be a newspaper published in and of general circulation in
the City of West Memphis, Arkansas, a certified copy of this ordinance,
preceded by a Notice signed by him, in substantially the following
form:
'r
Page 21
r
NOTICE ;;~~;~ ~.^
2~.~.
Notice is hereby given that the City Council of the
City of West Memphis, Arkansas has adopted the ordinance
hereinafter set out; that the City contemplates the issu-
ance of the Public Utility Revenue Bonds of 1963 described
in the ordinance; that any person interested may appear
before the Council on the day of ,
1963, at o'clock .m., at the usual meeting
place of the Council in the City of West Memphis, Arkansas,
and be heard and present protests.At such hearing all objec-
tions and suggestions will be heard and the Council will
take such action as is deemed proper in the premises.
DATED this day of , 1963.
Mayor of West Memphis,
Arkansas
:~
Page 22
Section 15.
That if any provision of this ordinance
shall for any reason be declared to be illegal or invalid, such
declaration shall not affect the validity of the remainder of the
ordinance and to that end the provisions of this ordinance are
hereby declared to be separable.
Section 16. That all ordinances and parts of ordinances
in conflict herewith are hereby repealed to the extent of such
conflict.
Section 17. That it is hereby ascertained and declared
that the improvements to be constructed are immediately necessary
for the adequate protection of the life, health and property of
the inhabitants of the City of West Memphis, Arkansas, and that
such improvements can be constructed only by the issuance of the
bonds authorized by this ordinance. It is, therefore, declared
that an emergency exists and this ordinance being necessary for
the immediate preservation of the public peace, health. and safety
shall take effect and be in force from and after its passage.
PASSED JLne 2n , 1963.
APPROVED:
~..
Mayor