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439. . ~t L URDIDiANC.t,: Di4. ..~.,L~ :.L-- Air ©~=~A~e~ AvTH©xz~=~ Tx~ rssvA~tc~: Anus D~N~ ~ crrst aF w~s~e ~Hi~, ARxAr~~a~, AIRB(JRT R~'NsNtTl:: $t~~Si ~ 3k~TTIB1C.i UP C~tT~1IDi FtTNDSS A~ D,m1CLARINiG AbT ~RGLNCY. ~.. i~v'I3 ~. ,AS, The City of ~•~',:st Memphis, Arkansas, created an airport Canmiasivn by ordinance Rio. 422, panned dune 15, 19b2, by authority of Act ATo. 175 of the Qeneral Assembly of the btate of Arkansas for the year 1959, for the: purpose of operating and managing its arunicipal airports and ~L~:Tt~AS, said Commission has employed C. H. Bc~aad, Jr. , a registered profe,~sionai engineer, who has prepared plans for the proposed improvement which were filed on 1+~arch 8, 1963, in the officae of the City Clerk and show an estimated cost of 565~,~000:~~,.,_.. _.__.,_.~ of which the City is to provide the sum o€ $3$8,n~0~4.by the~;sauaare of ~' airport revenue b~ndss and WH~R~AS, after due advertieemeAt in The B+~nd Buyer, a national financial journal, a public sale was had of said bonds at 3x00 PM CBT lay 28, 1963, in the office of the Mayor in the City Hall in hest Memphis, Arkansas, at which time the only bidder was the United states, acting by and through the Ad~ainistrator of the Housing and Home Finance Agency, who submitted a bid for all of the bonds, aaaturi~ according tc- the schedule set out in tho notice of sale, of par plan accrued interest for bCnda bearing intsucest at the rata of 3 3/896 per annum, which is a bid allowed by law, az~d in the opinion of the members of the City Council it is a goad and acaeptabLe bids new, therefore, B~ IT ORDAIb~D by the City Council o€ the City of West M~nphis, Arkansas: s1esCTIt3D1 1 • That the City C©uncil hereby finds and diclaren that there is icaZtwdiate need for the construction of the proposed impraveme-nts to the municipal airport in s~rder to meet the civic awl cosa~ercial needs of the community, and that the purpose of the bond issues Ss to construct an airport, including ruuways, taxiways, parking ramps, hangars, utilities, buildings, and accessories, according to plans now on file in the offic® of the City Clerk, at an estimated 0 cost to the City of $388,Q~Q. (T'he entire project, including the lands, buildings and improvements thereon, shall be hereinafter col- lectively referred to as the "Airport."~ SLCTI©~t 2. That the City Council further finds and declares that the offer of the Housing and Home Finance Agency for the $388,004 band issue is a fair price a~ one that is allvwe~d by law, and thera- fors said bonds are heraby sold to said Housing sad He Finance Agency. ~~;CTIaM 3. 'T'hat under the authority csf the gen+~ral atatutce of the .Mate of Arkansas, gaxticularly acct liks. 175 of the Acts mf the General ?~sseatbly of tha Mate of Arkansas for tba year 1959 (h+~ra~inafter called "Act ~.i75"), re~rsaue bc-ads be issued its th+e total amount of X3€38, 044, the presceeds frc~ th® sale of which shall bce used tra pay th+e east oaf the icgprovnts h+~reinabcve dascri], including engine~aring and legal fa+~s, interest oz~ tha br~s~s during th~a p~:riod oaf cangtructic~n, a~ rthc~r necessary axpens~esr that the bands bo desig~gated 'City a-f v~~sst Ai~mphis, AxkaASas, airport Revenues Honds," be dated as of F`April 1, 28b3, be aurred frcxa l tv 388 bath inclusive, ba in than den4minatifla of ~100fl each, be scaseti.i~s here-- ina~t~er referred tc~ as "Bonds, " be callable as heyc+~lnaftar set rant, and mature i» nu~serical carder on .April 1 of aacah year as foilcrwss • ~ x ? - ~~ ~ a ~$r" ' +~-1 ~ ~ ai ~' ~~ ~ ~~ ~~ ~~~~ ~~1~ ~# ~'~~ +~ ~* ~~ +~~ ~t ~~ ~~ ~ ~ ~t ~~ ~~ ~~ +~.~ ~# ~I a~- ~~ ~ i it ~* ~~ ~1~, ,,,, ~ ~ ~IF ~l~ ~ ~ • ,~ ~+ ~- ~ l1 ~y ~ ~~~ ~ ~ ~~~ +~-' + ~~ ~~ ~ ~ ~ ~~ ~~ ~~ ~ ~ ~' - +~ ~~ ~ ~ ~~* +~~ +~~ ~ ^~1/ +~ ,~ ~i +~ '~ .# '~ ~ Wit' ~ ~ a#~rll ~ ~ ~' ~~ ... ~+~ ~ewra~u~r~r. ~# i~!M- ~r 1 ° I~r ~~ rat #- r t fii~r ~ ~ ~~~ ~ ~~r ~r .r, ~ . appearing on said coupons, Bath the principal of and interest on said Bombs shall be payable in any coin ar currency which on the respective dates of payment thereof is legal tender for payment of debts due the United state® of America, art the main office of The ~..~ drat ~tationa3 Bank in Little Reek, Little. Rack, Arkansas, or, at the option of the holder, at the main office of The Chase MarAhattr~n Bank, N+~w York, Ns~- York (®ometistes hereinafter called th® "Hank of Paytll@tAt" ~ . the Bonds, together with interest thereon, shall b+e payabl~r solely out of the Airport Revenue Band and Int®rest sinking B'uzs~, as _ .r~L hereinafter defina:c9, and sha31 be a valid claim of the hold+~s thereof only against such fund, and th® amount of r~.venues pledged to said fund, which amount of said retr®nuee is hereby pledged and mortgaged for the equal and ratable payment of the Bonds and shall be used for ~„ no other purpose, except as hereinafter sat out. SECTIUI~ 4. That said Bonds and coupons shall be in substantially the following f©rms dMITi3D ~TAT:~ S C3F AM~:RZCA ~TAT~ ~' ARKA~A~ COUL9TY i}F CRITT~ID~~i CITY ~' V~~;ST MEMPHIS 3 3/86 Airport Revenue Hoed No . ____- IC~TC~ ALL M~ BY TI3~SE FR~s.u3~1TS s ~1©p© That the City of hest Memphis, in the County of Crittenden, :Mate of Arkansas, for value received hereby promises to pay to bearers, solely from th~- special fund provided therefor as hereinafter set forth. th® su~a of O~ TH<yJ`:>AI,~iJ DQLLAR3 on the first day of April, ,with interest ther~aon st the rate of thr®e and three-eighths per centum (3 3/896) per annum payable on ~e first day of April and October in each year beginning October 3, 19~i3, ~ - ~ ' until the principal h~areof is paid, only upon presentation axed sur- render of the anrtaxed coupons as they aevar~-lly become dw+e, Both the principal of and interest vathls Band shall be payable in any coin ar currency which on th® respective dates of payment thereof is legal +r.. tender for payment of debts due the United ~3tates of America, at the main office of The First National Hank in Little Rack, Little Rock, Arkansas, ar, at the option of the holder hereof, at the main caffice of The Chase Manhattan Bank, Hew York, blew York (heraieafter col- lectively called the "Bank of Payment"). This Bond is one of a aeries of Bad s aggregating Three Hundr~ mighty-eight Thousand Dollars (~388,etI4), all of like tenor and effetxt except as to number, ~eturity, and privilege of pr®payment, nu~xarad from i to 388 both inclusive, and issued for the purpose of paying part of the cost of constructing an airport, with all rurnvays, buildings ~, and appurtenances {hereinafter collaetively called the "Airport"}. This Bond and the series of which it forms a part are issued pursuant to and in accordance with the provisions caf th® laws and Constitution of the state of Arkansas, particularly Act Ito. 175 of the Acts of the General Assembly of the Mate of Arkansas for the year 1959, and do not constitut~a an indebtedness of the City of ~~BSt Mes-phis within any constitutional or statutory iintitativn. said Binds are payable from and secured by a first li~rn on and pledge of a fixes amount of the gross revenues derived from the operation of the Airp4=t, and are ft~cther secured by a pledge of general revenues of the City. and said amount sha11 be sufficient to pay the principal of and interest an the Bonds as the same b®com~a due and payable. raid amount ~.. has been duly sat aside and pledgmd ass spacial fund for that purpose and identifi~ad as the "Airport Revenue Bond and Interest pinking Fund," created by the ordinance by which this Band is authorized to be issuaA, and the said City of west M~aphis has fixed and has cvvanant~ az~ agr8ad to maintain rates for Airport servicras which shall ba sufficient at all times to provide far the payment of the reaa©nabl+a expana~ss ©f operation and maintenance of this Airport, to provide for adaquat® depreciation, and to prcYVide far flee payment of the principal of and interest on the Banda of this issue a~a the same become due and payable. Thin Hoed is expressly made negotiable by the statutes under which it is issued, and fa issued with the intent that the laws of the stets of Arkansas sha11 govern the eanstruction thereof. Th® Bonds o€ this issue are callable at the option of the City on any interest paying date on and after April 1, 1973, for payment prior to the stated maturities thereof, 1n who1~: or in part. in lnverre numerical order, at par plus accrued interest to th® date of rsdemptioat, plus a premium of 4~6 on all Bonds calf for rsd+acaption prior to maturity at the Qxpiration o€ the tenth year, with a reduction of 1/4 of 1~6 per year until the expiration ©f the 26th year after issue after which there shall bps no premium on Bonds called fear prepayment. xn the avant the City elects to exercise the option to call any Bcandn for prepayment, it shall publish notice thereof, giving the numb®r stud ~aaturity of each Bend being called, once a w®+~k for two weeks in an English-language n~:wecpap+~r of general circulation throughout the State of Arkansas, the first publication to be not lass than thirty days prior to the date fixed for redemptian. All B©nds ao call+ad shall cease to bear interest after the data fixed for their redemption, provided the fund~t for their payns•nt are on deposit with the $ank of Payment at that time. IT Zs H~Ria~3Y C.e:RTIFIi:D, R~CIT.u~U 1~]'~ 1)LCL~REH that all conditicyn~-, acts and things r squired to exist, to be perf©rtnad, and to happen prec~zdrant to and in the issuance of this Barml do exist, havoc bean perform, and have happened in due time, €orm and manner as requir®d by law, and that ~' .fib! amouAt of the gross revea~ues deriveQ fros- the operation of the Airport hat bean pledged to and will be set J' aside into said r~pecial fund for the payment of the principal of and interest on said Bonder and these Bonds do not exceed any consti- tutlonal or statutory limitation. This Bond shall not be valid until it shall haws been anthenti- sated by the certificate h~sreon, duly signed by The First stational Bank in Little Rock, Little: Rock, Arkansas. IN ~+ITSS W~;Ri~CF. the City of We=st 1-~t~phis, Arkansas, by its City Council, has caused this Bond to be signed by the Mayor a~ City Clerk thereof azx~ sealed with the corporate seal of said City, and has caused the coupons hereto attached to be exc~c~uted by the facsimile signature of said Mayor, all as of the first day of April, 1963. CITY OF WEST B~MPHIS, ARKANSAS (Seal) By ,fittest: Mayor City Glerk (Form of Coupon) Dto . ,.~.~..., on the first day of ~tob~er. +,~,.. upon surrender hereof, unless the Bond to which this coupon is attached is sooner called for payment, the City of west btphis, Arkansas, promises to pay to bearer the sum of DOLLARS in any coin or currency which. on said date is legal tender for payment of debts due the Llbited States of America, solely out of the fund specified in th® Bond to which this coupon appertains, at th® main office of The First National Bank in Little Rock, Little Rock, Arkansas, or, at the option of the holden, at the main office of The Chase Manhattan Sank, New York, N~~w York, being interest then due on its Airport Rwvenue Bores datec9 April 1, 1953, and numbers ____,~. CITY c~F WElBT N ~' IS, ARKANSAS ~r.. $ y Mayor (All coupons shall be for six monthr~' interest. The Mayor's signafire on the coupons may be lithographed or engrawed.) _ g- tan the back of said Bonds is to appear thy: foilawing: Cs~RTIFICATr; This Sond is one of th+~ 388 City ref ~• ~=st ~iecnphis, Arkansas, `P~:: FIRST NATIONAL. BANK IN LITTL.[y 1tOCK, LITTLB MOCK, ARK~fSAB, Trustee BY. airport Revenue B©nds aggregating $388,000 described within. Little Rock, Arkansas =~uthori~ed officer 3ECTIC-t~ ~. In order to pay the Sods and inter®st thereon as they titaatttre, the Airport Cotmnission, under authority of the statutes of Arkansas ind of west Niecephis ordinance No. 422, by which it was crt:ated, will fix rates, rentals and charges for the uses of the °,irport facilities, v~hicsh will be pledge~3 to the payment of said ar-~ 8©nds and interest, and in addition the City Council hereby approgri- e-~ etas aut of the City's general revenues the sum of $5000, to be depositet9 in the Airport Revenue Fund upon the initiation of operation of the Airport. The City Cc+uncil finds and declares that the rates, rentals and chargasfor ~iirport services, together with said deposit of $5000, will produce a sum total that will be large enough to meet the payments of principal amr9 interest as they mature and to pay the reasonable costs of the operation. repair and mair-tetaance of this Airport, sad to provide adeiquate depreciation as herr~ina~fter defined. and that the amount availabl® for the payment of Bonds and interest shall be equivalent to 1503b of the average annual prim end interest nuturities of the Bonds. The rates and chars®s sca fixes shall never be reduced until the Honda and all interest thereon shall have been paid in full, and shall when neeessary be increased in eta amount sufficient to provide for the maintenance of the funds hereinafter described. 86~C'P24~i 6. The City covenants and agrees to establish, and tea maintain so lo~tg as say of the BC9nds are outstanding, the folle3wing special funds: A. The ;~irc-ort Revenu, ~„~,,,,un~d, t© be kept separate and apart from all rather funds, into which shall be deposited all income and rsveAt~s• derived from the operation of the Airport and the sum of $000 from the City's general revenues, to be expcndsd and used oAly in the manner and order hereinafter specified, all as permitted ar~d defined by applicable statutes. 8. The r Revers Bond nd tercet ~ nk (sometimes hereinafter called "R~rv~anue Bond Fund'*) , into which shall be deposited ail accrued interest r®ceived from the sale of the Bonds, any proceeds of the sal® of the Bonds remaining after the compl$tion of construction, at~3, by transfer from the Airport ~t~venue Fund on ear or bcfcar® the fifth day of each month, sums equal to at least one fifth caf the aatcaunt of interest due the next succeeding interest payment c9ate plus cane tenth of the principal due the next principal payment date plus paying charges, until a debt services reserve in the amount of $8,000 has been accumulated. Thereafter, it shall transfer and deposit such sums as may bs Accessary to meet t2~ then currant year's debt service and maintain the reserve of $4F~,000. Provided, ho~areveer, that no further paya~nts new bs made into said Revenue Bond Fund after and su 14ng as such aoaount cff the Bonds shall haws been retired that the amount then held in sucsh Revenue Bond Fund, including the reserve, is equal tv the entire amt of the interest and principal that w111 have accrued and become dins at the time of th+~retire~nt or maturity of all the Bonds then remaining 1 outstanding. The undertaking to transfer the prescribed ants from said Airport Revenue Fund into said R~enus Hand Fund shall bs cumulative, so that in the event the revenues during any month era /o- inadequate to make the rc~quir~d transfer anc7 payment, or if for any other reason there be a failure to make such transfer and payment. the amount of the deficiency shall be made up from the first ava~llable revenues thereafter received, asx'~ the same shall be in addition to t2Ye amounts atherwise required to be transferred and paid into said Revenu+a Burs! Fund . C. The Airport D~reeiation Fund. {aometirnea~ hereinafter called "Depreciation Fund"`), into which shall be transferred frost the Airport Revenue Fund on ar befor® the fifth day of each month sums equivalent to five per septum of the gross revenues of the Airport for the preceding month. Moneys in this fund are to be used to pay for necessary replacements or repairs to the facilities of the Airport or for the coat of economically justifiable extensions to the Airport. Ha~wever, in the event that fus~da in the Revenue Hand Fusin should be reducec?I below the amount required to meet the current debt service plus the reserve of $~8,4t~©, funds on deposit in the Depreciation Fund easy be tranafe~rred to the Ravenu~a Bond Fund to the extent required to eliminate the deficiency 1n that fund. D. The ~ir~ort 4x~aration and ~int~rnance,,,_, Fund (s~ometimea hereinafter called "t~peratlon as~l Maintenance Fund'), into which shall be transferred from the 1~irport Revenue Fund, on or before the fifth day of each month, such sums as are estimated to be r+aguirc~d for the necessary operation and maintenance expanses of the Airport for the currant month as the same become due and payabl®. ~3.~~I41~ 7 . pub j ect to the foregoing, which are cu~raulative, any balance in the Airport Revenues Fund shall be used by the Airport Coamr- mission for the purpose of acquiring outstanding Gonda for cancellati~~ for redeeming outatata9ing Ronda on the next interest paying date in issverae numearical or8er at not to eexceed the applicable call price or for the expansion, maintenance, or operation of the ,airport or any of its facilities, buildings, or other improvements, ineltsding the payment: of princaipal of and intere,at upcan otbesc bsauds isiaed tamer saidl R+at ~1a. 1~'3. - ~ ~ ~ - // ., ~~CTI©~ 8. The pledge of ra`renues from the operation of the Airport a~ frown the general revenues of the City is subject to the restriction that the City aha11 never in arty fiscal year be l6ound beyond an an~runt that would, together with the oth+sr expenditures and cobtracts of the City, call for a payment or payments in that fiscal year is exc®ss of the total revenue for the City for that fiscal year. so that the City shall never at any time by itss contract or pledge of revenues and rentals violate the provisions o€ ,~im~r~dlment So. lQ to the Constitution of the Mate of Rrkansta$. ~~CTI©~ 9. The City covenants and agrees that it will not issue arty bond~on a parity with these Bonds unless the net revenues of the Airport for the fiscal year inuaediately preceding such issuance and sale of additional bonds be equal to at least one and one-half tines the average annual debt service requirements of the then out- standling Sonds as certified by an independent public accountant and uales• the projected n®t revenues of the hirport for the life of the then ~tstaadinq ~aonds and the prcFdsed additional revenu® bonds be equal to at least on~t arr~d one-half times the average annual debt service regdireoeats of the them outstanding Bondy combined with the average annual debt service requirements o€ the propos®d additional rev~raue bands, as prepared by a quslifirad recognisaed consulting erngiaear. i'~rovided, no bonds shall be issued having a lien on the r~reaues of the Airport prior to the lien of the Bonds authorised by this ordinance, but nothing herein shall be construed to prevent the City from isauiaq beads to setntre funds for extensi©ns or it~roveenents to the Airpo~ct subject to the prior lien of said Bons. 5~7.`iC1~t 1©. The Revenue Soil Fund shall be used sol~aly and only sad is hesiay pledged for the purpose of paying the interest on and accos~lishiAq the rstiremeat of the Sands. It shall be the duty of the City Treasyarer tar deposit in the Retirenue Bond Fund ors the fifth day of sash sapatth after the issuanas of these Sarnds the respective soma which aria rea~uired t4 ba Kithdra~+a ircea th+~ Airpcart R+wertrte puAd .- , i ,~ , ., ~nli~!I1iwM1a ~i-! P~ #~~l ~ of ~~ ~, ~~l~rr ~ 1l~3 ~ # his ~4~'. i r'~?`. ~i1 ~ ! i ~r ~##iM ~r~l ~ r~r~M 1l~i ~ r '~ • ~~ ~ r ~~ «~"1 ~3 f. ~ ~rw~ ~~~~ ~~+~~rt~i ~ ~ ~r~~!+w ! X71 ~ s l- ~ r'~~« ~ ~ r tM ; y ~ «t~!~M~ ~~ ~r~~ f~~ '~~ ~r ~r,~r'l~ ~~tt aF'~#is i i ~~~'1Ir~ y ~ -~~~4 ~ ~1 ~i+ t ~r~~~~ ~ ~ Mr ~.~ a ~lr~ + ~~ + ! ~1t.i~s~i i~q~Y ~t +Y~ n ~r ~[,~ ~sii t +#~~~ ~#'s~ ~r~tt~ + ~R+1MM~ + + ~~r~i~ +~~ ~ri ~1ti'R~r ~r~K~ +/+i-~1I- 1~~~ ~r~~ ~;~~~~ ~"rr~ ~ ~ w +- ~~4 ~r.f~ ~rs~ ~rr~~ +~+~ ~1~1t + ~ ~r1~ r +l f~+~F fiit l!'~~ "1r~~+~ .? `'~ qtr ~ 1r','~C~1f3 # t ~#,~l #r3" ~ # ~ e A ~ ~ ~Trs~ ## + ~~ ~r~#+~r1 y ~ ~r~t~ ~~ .. ~~ * r 4+ii~1i+A~+~7 ,q~ # ~ i~ , • ~ t- ~t ~r~ ~r i+1! ~11 ~~r1- ~ r ~ f ^ -~#~' ~A ~ l lW~~ +I rrI~RS#!I al ~i'~7~f w,~+~ ~r ~ ~r+~w~ rt +~ ~-~~r~i 1 ~ +i ~~i1/ l ~~ 1 ~ ~~~~~if ~ ~ ~+t~ ~- ~r~1Y~ +l ~-r~$~•~~ ~t ~~+r~~ , Ir ~r~. ~ralfi ~r~~-~ ~r~~~5 '~r~'~s 1 ~rr~ ~r~~~Zf ~~~~3 ~~~r ~+~!•In ~. ~r1i ~#~~1-~~ '~r~+w~~ ~~~7~~ ~ ~trt ~~~~~s~ ~ w "~1~ ~r s •~ ~~w f ~ AA ~+~~a w ~ ~~1 ~ ~r+ ~ ~i t Af ~ r+~4~i ~t wi #~~rf ~i l ~r ~ j +l 1r~r+t~l~I + s + ~r ~~• 7~ ~ t # 'lrs~fi + ~ ~~~M !~i li~ i~ ~ t i ~ ~ M ~ +~ I III! +A-~ #~ ++~~ ~~~i ~,~is~ ~~tt ! ~r~IR~+~a~ +~ + ~ ~,~~+ rf#~li ~1 t ~~li-+Y I~ l ~.~*w~ ~r3.1~ ~;rY~~M~~ ~~Ilf~ ~~~~ ~~~« I~ ~~ia ~w~#~1~~~ ,~ ~~r~ ~r~/ 4dwn4- ii~s [~ i*#f•~s1 ~ +~ ~~r~~ ~.,~+~a~~ e~r~r-~.~ t at~rt~s +~Ma1~ ~ l1Nw 11M'1~' +~-~' ~iMt ~1l~ "~1`iilftiD~ ~al- ~t~R' 11ca ,. -, ,, _~3_ ., SBCTl:C31t 11. The xaycr aAd +City Cles'k era har+a~-y antl~c~rtsed and ~lireated tc execute th+~ Sands and deliv8r th+~sst to the buyer upon pay~tent of theft 11 purahaae Brice with accrues interest to data of delivery of the Bonds. The money received far accrued interest shall ~.. be paid into the Revenue Bond Fund. The balance Qf the a~ney reoeivedl for th® Bands shall bs deposited in a fund hereby created and desig- nat~ad "Construction Account," and shall be expended solely for such purposes as shall have been previously specified in ~- sign®d certifi- cate of purposes filed with and appr©vad by the Administrator ©f the fi©using and Hcurle Finance Agency. Any funds remaining in the C~n- struction Account after the completion of the construction of the smpravementr shall be promptly used far the rede~aption of bonds= provided, hcav+~wer, that if the funds rr~maining amount to lase than $1000, such funds shall be deposited in the Revenue Band ~*und. SECTIOD~ 12. The depositary bank of each fend hereixiabr3ve created shall give security, either by a corporate band car by the escre-w' deposit of bonds or other direct or fully guaranteed cjbliga- tions Qf the Ueited States of America. for all sums of each fund ab deposit with it in excess caf X10,000. Upon request by the tiity, moneys on deposit to the credit of accounts and funds established and taaintained in conformity with the pr©visions of this ordinance shall be investerd by the depository bank in direct abligatians of, or obligations the principal of and interest on which are guaranteed by, the United states Governtaent. Tv"here the City is required to maintain fixed amounts in such '~"' aceounta arnd funds,. the irzvestttaents shall. be valued in terms of current mark~at value as of June 30 and December 31 of +~ac~a year. Interest earned on such ittv~asttaents shall be dep©sited in th~a fund from which the investca~ant was mad®. . ' ~ '. .p ~ • , -r•~e~ SECTION 13 The terms "City" and "Bond Fund" as used in this section shal- mean, reseectively, the Incorporated Town or the City issuing the Bonds and the Fund provided by this ordinance for the payment of the Bonds. ' Sys em" means .Airport ~ For and in consideration of the purchase and acceptance of the Bonds authorized- by this ordinance and to facilitate their payment, with interest, the City agrees to the following terms: (a) None of the facilities or services afforded by the System shall be furnished without a reasonable charge being made therefor. In the event that the City or any department, agency, or instrumentality thereof shall avail itself of the facilities or services afforded by 's the System, the reasonable value of the services and facilities so afforded shall be charged against the City or such department, agency, or instrumentality, and shall be paid for as the charges therefor accrue. The revenues so received from the City shall be deemed to be revenues derived from the operation of the System; provided, however, that nothing herein shall be construed as requiring the City or any department, agency, or instrumentality thereof to avail itself of the facilities or services afforded by the System. lb) The City will maintain the System in good condition and operate the same in an efficient manner and at a reasonable cost. So long as any of the Bonds are outstanding, the City agrees to maintain fire, lightning and tornado insurance on the System in an amount which normally would be carried by a private company engaged in a similar type of business. These insurance policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, are to be kept continuously in force, and either the original policies of insurance shall be placed in the custody of the Trustee or the Trus- tee shall be furnished evidence satisfactory to it that the policies have been issued and carry the loss payable to the Trustee clause. In the event of loss, the proceeds of such insurance are to be applied solely toward the reconstruction, replacement, or repair of the System. In such event the City will, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement and repairs. Nothing herein shall be construed as requiring the City to expend any funds for premiums on its insurance on the System which are derived from sources other than the operation of the System. (c) The City Treasurer shall be the custodian of the revenues derived from the System, and shall give bond as such custodian. Such bond shall be in an amount not less than $~8,~n0•~Q and shall be approved by the Trustee. (d) The System shall be operated upon a fiscal year basis, beginning January 1 of each year and ending and including the following I2E't'E'm~er 31 . (e) So long as any of the Bonds are outstanding, the City will not mortgage, pledge, or otherwise encumber the System or any part thereof or any revenues therefrom, except as herein provided, and will not sell, lease, or otherwise dispose of any substantial portion of, the some. The obligations of the City set out in this ordinance, the pledge of revenues, and the City's agreement not to mortgage, pledge, or otherwise encumber the System, shall be made o matter of public record by having a certified copy of this ordinance recorded as a mortgage in the office of the Circuit Clerk and ex-officio Recorder of Crittenden County, Arkansas. (f) All revenues from the System shall be deposited in such depository or depositories as may be lawfully designated from time to time, subject, however, to the giving of security by each such depository as now or as hereafter may be required, and provided each such depository shall hold membership in the Federal Deposit Insurance Corporation. All deposits shall be made in the name of the City and be so designated as to indicate the particular fund to which the revenues belong. Payments from each fund set out in this ordinance shall be made by check or voucher signed by two duly designated persons and drawn on the depository in which the moneys in said fund shall have been deposited, and each such check or voucher shall briefly specify the purpose of the expenditure. (g) The Bonds, together with interest thereon, are not general obligations of the City nor do they constitute an indebtedness of the City within the meaning of any constitutional or statutory provision or limitation, but shall be payable solely out of the Bond Fund and shall be o valid claim of the holders thereof only against said Fund, and the amount of the revenues pledged to said Fund, which Fund is hereby pledged for the equal and ratable payment of the Bonds and shall be used for no other purpose than to pay the principal and interest of the Bonds as the some mature, except as provided in this ordinance. (h) It is covenanted and agreed by the City with the holder or holders of the Bonds, or any of them, that it will faithfully and punctually perform all duties with reference to the System required by the Constitution and statutes of the State of Arkansas, including the making and collecting of reasonable and sufficient rates lawfully established for services rendered by the System and applying the revenues therefrom to the respective funds herein created. (i) The City will keep proper books of records and accounts (separate from all other records and accounts) in which complete and correct entries shall be made of any transactions relating to the System. The City agrees to have these records audited by an independent certified public accountant at least once each year, and it shall furnish the Trustee a copy of this audit. In the event that the City foils or refuses to make the audit, the Trustee may have the audit made, the cost thereof to be charged to the cost of operation. (j) If there be any default in the payment of either the principal of or the interest on any of the Bonds, the holder or holders thereof may enforce any mortgage lien granted by statute and may by proper suit compel the performance of the duties of the officials of the City, as set forth in the statutes authorizing the Bonds. If there be default in the payment of the principal of or interest on the Bonds or if the City shall foil to keep any other obligation which it herein assumes, and such default shall continue for thirty days thereafter, any court having jurisdiction in any proper action, which may be instituted either by the Trustee on behalf of all the bond- holders, or by the holder of a Bond in default, may appoint a receiver to administer the System on behalf of the City, with power to charge and collect rates sufficient to provide for the expenses of the receivership, the payment of the Bonds and interest thereon, and the pay- ment of the operating expenses, and to apply the income and revenues in conformity with said statutes and this ordinance providing for the issuance of said Bonds, but when al- defaults are cured, the receivership shall be ended and the management and control of the Sys- tem restored to the City. (k) The City further covenants and agrees that if default is made in the payment of any Bond or coupon, or if the City fails to meet any Bond Fund requirements, the holder of such Bond may declare that Bond immediately due and payable and in default, and either the Trustee on behalf of all the bondholders or any bondholder for himself may institute suit to enforce the pledge lien herein granted. The failure to exercise this option upon any default shall not be a waiver of the right to exercise it upon any subsequent default. (I) The Bonds authorized hereby shall be callable for payment before maturity according to the terms set out in the bond form. (m) The City hereby agrees to make all payments on Bonds and interest only through the designated paying agent. All Bonds paid or purchased, either at or before maturity, shall be canceled when such payment or purchase is made, together with all unmatured cou- pons appertaining thereto, shall be returned to the City, and shall not be reissued. All unpaid interest coupons maturing on or prior to the date of such payment or purchase shall continue to be payable to the respective bearers thereof. (n) The charges for paying Bonds and interest coupons shall be '/a of 1 % on principal and Sc per coupon; provided, the minimum fee for any semi-annual payment shall be $~.~-. No withdrawal from the Bond Fund shall be made for any purpose other than the payment of Bonds and interest, and the monthly deposits in the Bond Fund or with the Trustee shall be at the sole risk of the City and shall not operate as a payment of the Bonds or coupons until so applied. (o) Wherever reference is made in this ordinance to a Trustee, it shall refer to ~~ ~'I~l~ a R' i ref- Na f-i nn a 1 u n n'Ir ~ ++ r i i-1.7 ~ n '~ The said Trustee shall be responsible only for wilful misconduct in the execution of this trust. The recitals of act herein contained, and W contained in the Bonds, except the recitals in the Trustee's Certificate, are statements of the City and shall not be construed as being made by the Trustee. The Trustee shall not be required to effect insurance against fire or damage to mortgaged property, nor to advance any money to pay insurance premiums, nor to pay any charges or special assessments against said property, nor to see that this pledge of revenue is properly recorded and kept in force as a pledge, nor shall it be required to take notice or be deemed to have had notice of any default of the, City in the failure to perform any of the conditions of this ordinance, unless said Trustee shall have been specifically noti- fied in writing of said default; nor shall' it be required to take any action hereunder until it shall have been indemnified to its satisfaction by the holders of the Bonds, or some of them, against loss or damage on account thereof. The Trustee is authorized in its discretion to release any real or personal property no longer used in the operation of the System. The holder or holders of a majority in value of the Bonds at any time outstanding may at their option remove the Trustee, and may appoint a successor trustee for one either removed or resigned, by an instrument duly acknowledged and filed for record in the office of the Circuit Clerk and ex-officio Recorder of Sri i-t-anr7c?n County. The Trustee may resign of any time upon ten days' written notice to the City 6~{~,~;~- The successor trustee shall have all the rights and powers of the originally appointed Trustee. (p) It is hereby declared that the provisions of this ordinance are separable, and if any provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. (q) It is hereby declared that the provisions of this ordinance constitute a contract by and between the City and the holders of the Bonds and interest coupons issued by authority hereof; and after the Bonds have been issued and paid for, the terms of said provisions shall not be changed except with the written consent of the holders of all Bonds and coupons then outstanding. • ~ .~ .. ,~ ~ , . ~ ... -~~ ; 3~:CT3t~' 14. It is hr~reby ascerta fined and dr~clared that there ~- is is to need, in order to gxotect the lives and property ©f the inhabitants of the City of west I~ntphis, to improve a~ equip the municipal sir~-ort t th+~rsfore, an emergency exists and this ord~nanc®, being necessary for the preservation of the public peace, health and safety, shall take affect and be in force frog and after its passage. Paused z , 1~b3 . 1~,PP~(3V.~ s Mayor Attests ~4 w~ z City Cler;s C:~tTT~'ICAT:;; Z, the undersigned, City Clerk of the City of Vest Memphis, Arkansas, hereby certify the foregoing to be as true copy of an ordinance adopted by said Council at a d my coiled and ccanstituted meeting at which more than two thirds of the members--elect Qf eaic~ Council ware present and voted in favor of said ardinanc+~. C~RTIFI.~7 under mY hand and the seal of said City, dais day of r 19~~• ~t _._ _ j~ City Clerk i~eall