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156~,~~ f ~ ~} ~ ~. 'p ~4 .+~, d ORDINANCE NO.~ AN 0RDINAPICE PROVIDTIQG FOR THE 2~SUANCE OF 3 t~'ATER REVEt1tJE BONDS TQ PROVIDE FOR A2J ADDITIOPd TO THE Z~ATER?~TORKS $Y'STFM SERVIl`SG THE CITY OF t'iiE~T Y~E~t~IPHIS, ARK~.PiSAS; aETTTP3G UP CERTAIN . Ft?~1D5; AND I?ECLARTPIG AN E~.ERGEI~CY. S°~HEREAS, the City of ~°Fest YZemphis, Arkansas, (hereinafter c~.lled the "City"), otims its present waterTTOr'_~s sys~te~a (hereinafter Balled the ~~~dorks~) , on z~rhich it oti,Tes a b~.lance of 174,000, evi d S; denmed by t•~ater revenue refunding bonds dated July 1, 1g4-b, be~.rin~ i3iterest at the rate of one end one-half per centum (1-~~)F,~per annum, maturing on January 1 of the years lg4g to 1956; both inclusive, authorized by Ordins.nee Ttiro. 121 of the City of d^rest 2?Ienphis, passed • 'ti4~" and approved.2~'Iay 28, 1946; and ~~~IEREAS, Section 20 of said ordinance authorizes the'City -- ...._ . ... ~~..,.~..._-., r. .,, to .issue additional revenue bonds to finance or pay the eo~st a~~- ~LL~ °°-°° cons~trueting a.ny future betterments ~.nd improvements to the ~rTorka, provided, however, that in order to insure t'ne payment of the `inters-~t on and principal of such additional bondL, the City shall issue such additional revenue bonds T-hile any of the bonds of the issue of ~ July 1, 194b, remain outstanding only if,a~ the time of the passs,ge' of e.n ordinance autk~orizing such additional bonds, the revenues of • .the ~~Torks for .the fiscal year • inmedia,tely prededing the pass~+.ge of said ordinance (in this paragraph called the "Revenues") shall have been sufficient in amount so the t, if they ti~rere deemed, to be th8 tota3 revenues derived from the entire t~=atert~~orks system after the then"contemplated betterments and improvements 'had been completed, they t•*ou1d. be at least ea~ual to the maximum amount required to vay the cost of operation, maintenance, and depreciation of the ?~Torks for the next' -ensu'! ng fiscal year,. and to ~~ay the combined principal and interee~ m2.turity requirements of t~~e remainder of the July 1, .1946 bonds a:nd the• bonds of the ne~{u ssL?e; ~.nd WHEREAS, the `audit of the City~s operation of the `Works Wade by Oliver. P. Cobb & Company of I~ieraphis, Tennessee, certified -1- .•.. ~~~ D ~ ~' • i ~ ~ public accountants, shot~rs ths..t the revenL~es from the ZTor`~s for `the immediately ~oreceding pisc~.l year ~~.-hich ended December 31, 1947, fully and adeot~~.tely meet t?~.e conditions:. set out in said Sedtion 20, so that the Citir is duly a.nd legally authorized to issue the ad- ditional bonds notti~ proposed; a.nd -~ '~4fiEREAS, the City needs additional ~~.2ter storage capacity in order to e.fford at all times an am~:~le supply of T~*ater to meet `"" the increased commercial a.nd domestic needs of its in'_=abitants and to give effective protection to their lives a.nd property; and to that end has '_~?ad a survey made of s~~id needs icy the Chicago Bridge and Iron Company of Chicago, Illinois, recognized a.s experienced and capable construction engineers, t~~rho have filed t~rith the City Clerk of se,id City detailed plans, specifications, and estimates of cost fora 500,000 gallon elevated storage tank trhich zti*i1.1 meet not only present needs but s.ll reasonable future needs fora st?bstanti~.l number of years, at a total cost of not over ~80,0OO,~including purchase, .erection, engineering, legal and. incidental expenses; anti Sh1T?EREAS, the City needs to replace some supply mains t~rith t ~ larger mains and to lay additional mains to furnish service to newly ` developed parts of the City and has heal A. E. Heagler "rMrr° of Little Rock, Arkans~.s, duly recognized and experienced water ~ror'~ engineer, to prepare plans, specif:~.ca.tions a.nd estirzatee of cost of .. the pror~soed improvements ~•nd extensions, shot~ring an estimated cost of X0,000, s.nd the plans, specifications and estimates of cost of both the storage tank and the nejT mains have been filed T~rith the City Clerk and. .have been exar~:ined and approved by the Mayor and Gity Council of said City; and S°~'RE~A,EAB, the City, by a resolution duly adopted on the ~,, • ~r~clay of 1948, ~~as entered into a contract t~-ith the Southern Securit s Corporation of Little Rock, ArrLansas, ~. Yor t2ae sale of x;110,000 of 3~ ti~Tater Revenue Bonds, to be issued f.or the purpose of making the-needed additions to~the water~rorks system, said 3~ we.ter revenue bonds to be dated June 1, 198, e:nd to ms.ture serially on January 1 of the ye~tirs 19,50 to 1961, both inclusive, as hereinafter set out; _~_ NO`°', TT~E~i.EFORE, 3E IT ORDATrTED BY THE CITY COUNCIL OF THE CITY OF `.'J'EST TIEP~.PHIS, ARiiANSAS SECTION 1. That the Council hereby finds ~.nd declares that. there is immediate need for the additions to th.e ~1*atert~ror?~s system notir supplying t~sater services in and to said City and that - ~. brief description of tl~e ~.dditions to be rryade is: the purchase ' and installation of a 500,000 gallon elevated .storage tank, at an estimated cost of y~~0,000, and replacing certain ~~ra.ter mains and laying additional eater mains, ~ an estimated cost of #30,Od0; and it is the determination of the Council to mare said additions and ir?prover~ents. SECTS~ra 2. The Council hereby d_eclz.res that it has examined tl~.e plans, specif ic~.tions, a.nd estir.?a.tes of cost for the proposed elevated ti,~a.ter storage tan~i and ne:~r t~Ja.ter ms.ins and: has. determined tl_at the plans, s~oecifica.tions and estimates Of cost `~ are adequate for tr.e needs of the Cit~r; and likB~rise the Council has determined thQ.t the contract ~~ith the Southern Securities Corporation ~'or the sale of its issue of 3r~ Vrater revenue bonds is at a fair and reasons°ole intei^est r~.te and at a price allo~-dec~ bar la.ar. SECTION 3. The Council hereby finds ~:-.r_d declares thG.t the vs.l?ze of the existing o'lorks 'now serving the City of ~i;est ~IeMphis and its inhai~itants is ~'>2~~-,136.69 end that the period off, usefulness of the. present S~Jorks is more then forty years, Z~TY`.ic~i i~ longer- than the term of the proposed revenue bends; t~iat the cost of the 2.d- ditions gill be ~~~110,000 and that the v~~lue of the '~lorks after the additions have been completed ?~..*ill be ~"~35~t13~•~9• SECTION ~. The Council hereby finds that it is to the best interests of the City to authorize, issueend deliver at thie time, in accordance ?•,Tith t?-±e contrast m~.d_e ?-rith the Southern Securities Corporati~an of Little Rack, Ar'>>>ansas, X110,000 in 3~ -tai*2ter revenue bonds, a.s hereinafter described. SECTION 5. That under all ls.t:*f~?1 autY~o-rity of the St~.te „y,, of Arkansas, and ;particularly of Act No. 131 of the Acts of the Ger.er~.l Assembly of the St2.te of Ar'__~.nsa.s for tl~e year 1933, as • - 3- r , c:~ ~. amended by later acts of the Legislature (hereinafter called "Aet N'o. 131, as arienaed" } , 3~ tip.*~.ter revenue bonds of the City (herein- after called "Bonds"'} be issued in the total amount of X110,000, the. proceeds of t~rhich issue shall be used to provide funds to pay the cost of .the netiJ irnprover~ents, including legal s.nd ot'rler necessary experises,• said bonds shall be dated as of June 1, 198, be numbered from_ 1 to 110, both. inclusive, be in the denonir_ation of 1000 e~,eh, '"' be callable for payment prior to m~.turity as hereinafter set out, and r.~~,ture in nurseric~.l order on the first day ~~f January in each. of the follot~ring years a.nd in the follo-~-ing amounts, respectively: YEAR BOND rdQS. AtvfiOUNT ...~ ..1950 1 to 5, incl. ~ 5,000 1951 6 to lo, " 5,000 1952 ll to 15, ~ 5,ooa 1953 16 to 20, S,OOo 195 21 to 27, " 7,000 ..195:5 28 to 3k, ri 7,00 1956 35 to ~1, " 7,000 1957 42 to 5~, " 17,000 .1958 59 to 75, " 17,000 1959. 76 to 90 ~~ 15,0.00 1960 91 to loo, lo,ooo . 1961 101. to 110, " 10,000 That the bonds bear interest at the rr.te of three per centum (3~} per annum; ,that interest iae paya'n1e on J~.nuary 1, 199, and semi- annually thereafter on the first day of J~.nuary and July of encl. ,t year; that the t:.onds be signed by .the .Mayor and City Clerk ~.nd sealed ~a~ith the corporate seal of the Cit~T; that t~ze interest upon the bonds be evidenced by coupons thereto attacl^ed, the cout~on.s to be signed by said T~Sayor Uy his facsimile signs t@re; that said PTayor shz.ll by the e~ ecutior of the bonds adopt as and for his o?~:m pro~oer signature .his. fa,csir_:~ile sirrnature appearing on sand coupons; that the bonds and co~.xpor.L be payable in such funds as at the t3.mde off' the respective payments are leg~.l tender for the payment of de'~t~ _J.w. k ~~ ,- due the United Stites of America at the office of The Comzercial National. Ba,n?~ of Little Rock, Ar~~a.nsas. The bonds, to€ether t~rith interest t~Lereon, sha.11 be payable solely out of the 3 0 ~^Iater Revenue Bonr'• Fund ~s hereinafter defined, and shall be t~aya.ble in the first instance from. such func_, and the amount of the revenues ~led~ed to said fund, t~*hich a.rnount df said ' revenues is hereby pled~~ed 2.nd. mort~a~ed for the ecual a.nd ratable ;,~+"'~""" ~a.yrnent of the bonds a.nc'_ s?~a.11 be used for no other ='p3ee than to pay the principal ~.nd interest of the bonds, except a.s herein- a.fter set out. SECTION 6. That said bonds and coupons be in sub- s ta.ntially the f ollo~ring form: UNITED STATES '~F AMERICA STATE OF ARKAIISAS COUt?Tv OF CRITTEPIDEPI CITI' CF ?,'EST T=~ET~~IPRIS 3~ ~~Jater Revenue Bond No.,~ 1000.00 KNOVd ALL MEP1 BY T~IESE PRESET~TS: That the Gits* of irlest I.2emyohis, in the County of Critten- den, State of Ar~_a.n=as, for value received hereby T ,~ prornis es to pa3 , solely from the special fund provided therefor ~s ~hereina.fter .set forth, to 'oea.rer, the sum of Or1E '"uOUSAMD DOLLARS on the first da.y of Jant?a,ry, 1Q frith interest thereon at the rate of tl^ree per centum (3 0) per annum fron June 1, 1Q~-~, until paid, paya.'~le on January 1, lA~N9, and semi-annually thereafter on the ~"irst day of January and July of each year, upon presentation and surrender of the annexed cou~~ons a.s they severally beeor~e ~.ue. Both prina~,pal hereof a.nd interest hereon sha11 lie payable in such funds as at the tir_1e of the respective payner_ts are legal teed,®r for the payment of debts due the United States of America, at tl~?e office of The Comriercial National Ban11 of Little Rock, Ar~Lansas. ~.. ,,~ -.~.. ~ a .... ,~ - This ~ bond is one of a series of 110 bonds, aggregating One Hundred: Ten Thousand Dollars 0110 , 000) , all of li'_~se '~x~nc~r and effect except as to Maturities, numbered from 1 to 110, both inclusive, •`~ and is issued for the purpose of pureihasing and constructing ad- ditions to the existing t~rater~;~orks system nos~.* serving the City of ;hest Memp}a.is (hereinafter called the "t~latertror?~s System"). This bond and the 'series of t~,*hich it forms a part are issued ptzr~tu.a.nt to and in accordance ?.rith all laz~.*fu1 authority of the State of Arkansas, a.nd particularly Frith the provisions of Act No. 13.1 of the regular session of t'Ze General Assembly of the Htate of Ar?~ansas far the year 1p33, as amended by later acts of said General Assembly of the State of Ar1~ansae, a.nd do not consti- tute an indebtedness of said City of V~Test tiemphis within any eonstituti~nal or .statutory limitation. These bonds are payable in the first instance from a. fixed. amount of the net revenues of the ~raterT~rorks system, sufficient to pay the principal of and interest on the bonds. Said fixed amount of Tdra.ter .revenue has been duly set aside a.nd pledged as a s~~eci~a fund for that .purpose and identified as the "3~ ~~rater Revenue Bona. Fund," created by Ordina.nc~ X36 No...~~~.~ duly .:adopted by the City Council of s^id City of Nest I~~emphis on the „da.y of , 1Q~R, under ~~:rhich this ~~ bond is authorized to be issued, an t'r_e said City of ~1test ~'~emphis has fixed and. has covenanted a.nd agreed to maintain rates .for ~ra.ter services which shall be sufficient a.t all times to provide for the creation of separate depreciation funds, for necessary .replacements. to said waterwor~e s~tsten,'for the payment of the reasanable expenses of o~y~e~^ati~~n, administration a.nd maintenance of said ?Rrater- worzs system, a.na. for the payment of the princi~:~a.l of a.nd interest on the 'oonds dated July 1, 196, and the bonds of this issue, as the same becorle dt?e and payable. This bond is expressly made negotiable bZr the statutes. under whfieh it is issued, and_ is is=ued z•~ith the intent that the -~ .: lame of the State of Ar'~ansa.s shall :govern the construction thereof and the City hereby at•rees and z*arrants that it ha_s na offset, counterclaim or defense against this band. The bonds of this issue. shall be cr.llable for payment be~'ore maturity, in inverse numerical order, s~,ith accr~.zed interest, from funds from a_ny source, at a ?rice of 10?_ cents on the dollar face value on 2nsr interest 1~aying date on and a.~'ter July 1, 199, to and `including January 1, 1952, 2nd. a.t par on an4r interest paying date on and after July 1, 1952. In the event a call is made, the City shall publish notice of such call for redemption once a. T~ree't . for tt~ro ~-?ee'rs in ~or~e neT°sy~a.per of general circulation throughout t'r~e Sta.fie of Ar'~anse.s and published in the City of Little Rock, Arkansas, giving the member and maturity of each. bond being called, tn.e first publication to be at leapt fifteen. days prior to the '{ date fixed for redemption,.2.nd after the date fixed for.redemptian, 1 each bond so called Till cease to bear interest, provided furd.s for its payment are on de;~osit T~rith t1_,e baying agent at .that tirale.. IT IS HEREBY CERTIFIED, RECITED Ar,D DECLARED tl^~at all wets, conditions and things required to exist, hapy~en, and be ~` - performed pursuant to and in the issuance of this bond have existed, ~"Y hapioened and been performed in due time, form and manner, as required by lat~r, and that sufficient of the income a.nd revenL?e t~rhic~~. is deemed to be derived from tree operation of said T~raterUror'.is system ha.s .been pledged to and T~.rill be set aside into said special fund for the payment of the principal of a.nd interest on said bonds. This bond shall not be valid until it shall have been a.uthentica.ted by the 'certifica.te hereon, d_ul;l signed by The Cam- mercial Rtationa.l .Bank of Little Rock, Ar'-ansas. I~' ?FITNESS '=t~'EREOF, the City of nest P~emphis, Ar'_rz.nsae, by its City Council, has caused this bond to be signed by the t~~ayor and City Cler?~ thereof and sealed T~,Tith the corborate seal ~~ of said City, and has caused the coupons hereto attached to be ~; -?_ executed by the facsimile signature of the said Iaayor, all as oP the first day of June, 198. CIT" OF t~TES`r' i°iE~1PHTS, ARKANSAS By P~~ayor (Seal) Attest:. City Clerk (Form of Coupon) No. --,- On the first day of J~ulyry, 19 the City of ?Test t~?emphis, Crittenden County, Ar'ranLas, unless the bond to Z-Thic~1 this coupon is attached is sooner called for payment, promises to ;ray t© bearer the sum of DOLLARS, ;solely out of the fund specified in the bond to t~~rhich ..this c~u~~on ~.ppertains, at the office of The Com- mercis.l .National. Bank of Little Rocx~, Ar'_~a.nsas, in such funds ,as at . the time of payment hereof are `lega.l tender for the payment of debts due the United States of America, being interest t~~.en due on its 3ro tfra.ter revenue bond dated June 1, 1~~8, and numbered ~° . CITY ~?F ?jdEST MEMPHIS, AR~'Ai3SAS By 2~2ayo r . (First coupon shz11 be for seven months' interest. The ~2ayarts signature may be lithographed.) a On the bac'_-r of s~.id bonds is to appear the following: CERTIFICATE This is one of the one hundred ten bonds aggregating X110,000 described ti~~ithin. ~. Little Rock, Arkanss.s 198. TFiE COMiiERCIAL NATIONAL BANK '~F LITTLE ROCI1, ARKANSAS, Trustee By ice President & ecretarp _g_ Y BECTI~N '~. The City h.a.s esta:blished_ and_ no`~r has on file with its tlra.ter d.e~~artment a. schedule of rates for the various types oP service for t^Ta.ter a.s supplied b;T sa.id_ department of the. Cit~t, and the Council hereby finds them to be reasonable and the necessary ninin~?m rates to be char~~ed, .anal the .Council hereby confirms and continues said rates. This Council further finds a.nd d.ecla.res t~!.at the water rates a.re set out in tl^~e schedule above ?~entioned z~,-ill produce a total revenue sufficient to pay the total operation, adbinistration a.nd Maintenance expense of the '6lorlts and provide for the payment of the bonds dated July 1, 196, a.nd the bonds herein authorized to be issued, both principal and interest, ~.s the same fall d.ue and .are payable, and to create all funds hereinA~rovided. Except as herein authorized, said rates shall never be reduced until a.11 bonds '_^erein aut~_ori~,ed a.nd all coupons tY~ereto 2.ttac'~-ed 'nave been paid. in "ull, anc_ shall - ~7en necess~.ry be increased in an a.rnou:~t sufficient to provide for the maintenance of the funds hereinafter described. ~'Theneve~~^ the ttotal anount of the ou,tsta.nding ~~ bonded indebtedness ha.s been .reduced to sixty per centun (6J~) of its original total or less, exc7.usive of inter~t, and it sha11 be made to a_p~pea.r to the Trustee that t'n_e earning capacity of the t~'or1~s is sufficiently lar~•e to ,justif;T it, a reduction nay be ~a,de in t'ne rates herFinabove described, bar and z~rith t'^e consent of the Tr~:~stee, and. to continzze for such tune as t~~e Trzastee in its. sole discretion mar deem consistent T:*it~^; the ability ~" the Cit~r to neet bond and interest 7aa.yments ;~ron~y~tly, rorovided. no r~ed.uetion in rates s'r~a.ll be r~a.de that ~-ri11 ~~~roG.2.zee a.n ectir?ated net revenue, after setting up necessary funds for o,;>eration, administration, maintenance and depreciation of the ~~lorl~s, less than one hundred fifty per centum (150"0 0° the average annual requirements fora all the.payment of principal and interest of all t.*ater revenue bonds of both issues ~~ tl~.en outstanding, a.nd although a reduction in rates may be granted, ~~ the original rates hereina,bove described may be restored at a.riy _~ . ~ . time later, upon the sole demand of the Trustee. The d~cretion of the Trustee shall be final, either as to granting, ref?.?sn~, or terminating ~.ny red?action in rates . SECTION 8. TTone of the facilities or services afforded by the Z'?or'~s shill be furnished ti~*ithout a reasona'ole charge being made therefor. In the event that the City or any department, agency, `or instrulnenta.lity thereof shall avail itself of the facilities or ~= services afforded 'oy t~-e ':ror'-~s, the re.~.conahle value of the services and faci~'i.~kes so afforded shall be charged against the City oP such department, agency, or instr~?nentalit~T, ar?d shall be paid for a,s the cha.r~;es therefor accrue. .The rFVen??es so received from the City shall be deemed to be revenues derived from the operation of tY<e Storks, and shell ~~e uced and a.cco~?nted for in the s~rne manner as any other revenues derived from the operation o" the '^lor'~.s; provided, hot~rever, that nothing herein shall 'oe constr?~ed as rec?uiring the City or any department, agency, or instr~?~entUlity thereof to avail itself of the facilities or .services afforded by the ~rorks. SECTION 9. All moneys paid as aecr~aed interest on the bonde issued hereunder shill be placed in the ; a i°'a.ter Revenue Bond Fund, hereinafter created, ~.nd appliec~_ to the payment of interest payable on such bonds on the next interest payment date. SECTION 10. The Treasurer of .the City shall be the Custodian of the revenues derived frog? ti"e ~''or'rs, and sha..ll give bond for the faithful discharge of all duties as such custodian. Such bond shall be in an amount not lese than ~r10,000, irTith a corporate surety authorized to do business in Ar'~ansas. SECTI`~N 11. y~ta.ter Revern?e Fund. From a.nd after tree. delivery of a.ny bonds issU.ed un~_er the _~~r~~visions of this ord_inar~ce, the revenues of t~~e t~r~+.ter4~-or'cs s~rstern of the City and as it .nay hereafter be ir.?~~roved anc?_ e:~tenc7_ed, =}~.all be dept separ^'ye From t~^.e ~~eneral fund a.nd. a.ll ,ot~^er/funds of the City, and shall be set aside and placed into a s_eci~l a.nd sep~-rate fund ?ono=.~*n a.s the. ~ ~, , Titer Revenue Fund, ~~ a.n~. such revenues a.re here~?y ljled~;ed ~.nd sha.11 be app,lied, first, to the ?~ayi~!ent off' tT,:e cnct of operation, -10- administration and maintenance of the w~'or1=s. SECTION 12. °ra__ ter ~ystem I~,epreeia.tion Fund. After making due provision for the oioera.ti~n, a..diuinistration and ma:intena:nce of the ~ti'or';s, the?-e shall be ~oa.id from the ~'Ta.ter Revenue Fund into a Fund ?~.~hich is hereby created ?nd designated ",Water System 1epreciation Fund," on or before the 10th day oi' ea.ch month ?•*hile any of the bonds slued under this ordinance sh.^11 be outst2nding, five per centum (5°~) ~~ of a.ll moneys derived from the operation of the ?~Tor?~s. Moneys in the !Water .System Depreciation Fzznd ~?n~all be us Pd solely for the p~zrpose of paying costs of repla.ce?~ents made necessary by the depreciation of the ~dor'cs, except a.s of}.aer?rise provided ?^_erein. SECTION 13. Section 10 of Act No. 131, a.s amended (?~rhich is Section l~-~?10 of 2 Ar?~ansas Statutes or Section Ip009 of Pope's Digest), provides that ?~rhen a muniei~~ality cha.11 decide to construct i~sprovements or betterrzents to awater?~ror'~s syste~?, it t~~ay issue revenue bonds to ~~ay for the same under t?~:ro o~;~tiona l ply ns for payment;- ~.nd this Council ha.s elected to by provision (a) of said section, ~.nd in previously made a'finding that the value WorZis is ~2~~,136. b9, and th~+.t the value fir' is ~I10,000, ?~:-hich trill mz.'_~e a total va.l~ e,.ercise the rights': eonferr~cl accordance there?~rith it has of the present existing of the proposed add3:tions to of the entire :~Tor'ts, after the ac~ditionshave been co~?leted, of z3S~,136.6g, so that under the provisions of the sta.tiztP ,just quoted, &~'. ~?~-~ of the net revenue. derived .from the entire ~ior~LS ?:Then the contemplated a.ddi~tons have been comy:~leted a.nd ~~ut in service Trill be considered as revenue from the no?~ existing ~ulant, and 31.06" of such net revenLae Trill be deemed to be income derived exclusively from such ne?•r ~.dditions. The ..net revenue from tl^e ?ro~^?=s after the cor?pletion of tl~e P.ddi'tions, ~rhich ?!rill be that revPn~ae remaining a°ter mar:inrr due provision for the operation, administration and r~ainter.~ nce of the Worl~s and depreciation thereon, shall be divided., end 6~.9~~ thereof shall be ,~ paid. into a fund which ?~:ra.s created by Ordinance No. 121 of 196 and designated as "Water Revenue Refunding Bond Fund., " and 31. Q6~ -11-~ thereof shall be paid. into a. fund ~=ahieh is ??ereby created a.nd designated "~ o ?~ta.ter Revenue Hord Func~_," provided, that if at a.ny time there should be a. deficit in Pith.er fund ann_ here is a surplus in the ot~:.er fund .*'ricl~ under the ;provisions of Section 17 of this ordinance rlay be used by the City for a.ny muniei~A~a.l purpose, then such surplus shall bP used to ~~~eet the deficit in the other fund. SECTIQN l~. Since ti-_e Cit~,r operates its ~ra.ter and electric '~ systems ,jointly, the Council hereb~r finds rnc_ d~clz.res t~~.at the necessary general ac~.ministra.tive expense for ~~rater and electric operations shall be allocated as follot~rs: ~0~ of tk~_is exy.~ense shall be charged a_ga.inst the revenues from the hater system a.nc. tie remaining 60`~ of the expense shall be cha.r~ed a.~;a.inst the revenues from the electric svsterz. SECTION 15. Plater Aev____ent~e Refunding Bond Fund.... (1) After a mal~ing dtze provis,io~n for the operation and maintenance of the ~jlor'~s an_d depreciation thereon, there shr::ll be paid from 6R.94~,`~ of the Water:_Revenu.e Fund, beginning Y,~*ith the completion and putting into service of the ne~•.- a.dditions to the ~~'or'.s, into a find ~•Thich t.~s created by sa:id_ Ordinance No. 121 of 196 end designated ~~later .Revenue Refunding Hond Fund, the sumG in the amounts and a.t the tide `ww `` hereinafter stated in subsection (2,) for the ~~~~_r~~ose of providing funds a.s a. reserve and for the ~oa.yinent of tY?e principal and interest on the July 1, 19~c bonds ~s they m2.ture accordir_g to the follo~ring schedule: ,~. ' _ -12- YEAR BOI~1D NOS. PRIPtCIPAL INTEREST TOTAL (Eoth Jan. 1 of Jan. 1 and July 1 inch, u~ve„~ eack~ Year of each y~e_ar _ 197 1 to 19 ~ 19,000.00 4~ 1,597•.50 ~~ 1,~-SS.oo 22,052.50 1948 20 to 39 20,000.00 1,55.00 1,305.00 22.,,760.E 1949, ~o-to 60 21,000.00 1,305.00 1,1~7.5a 23;~5~•50 1950 61 to 82 22,000.00 1,147.50 982.50 24,130.40 _.~~` 1953: 83 to l05 23~~aooo0 982.50 810.00 2479~.50~ 1952 10& to 128 23,000.00 810.00 6J7.50 .24,44750 1953 12~ to 150 22,0.0:0.00 637.50 47:50 23,110.00 1954 1.51 to 172 22,000.00 x'72.50 307.50 22,780.00 1955 173 to 193 21,ooa.oo 307.50 150.00 21,~57.50~` 1956 194 to 213 20 , 000.00 .150.00 ------ 20 ,150.°t3,~ (2) There shall be paid f rorr. the V~la.ter Revenv.e Fund into .the ~~Jater Revenue Refunding Bond Fund,. to be deposited ti••ith the Trustee, on or before the 10th day of each month until all said bonds, x-ith interest thereon, lA{:avP been paid in full,. or provision made for such payment, a sum e~Ua.1 to one-fifth (1/5) of the next installment of interest a.nd one-tenth (1/10) of the next installment of principe:l of the binds; provided, ho?~~ever, that Tr,r~~en in any f isca:l year no princip~.l r~r interest or the bonds of said issue is in default a.nd the amount in said a"pater RevFnue Refunding. Bond_ Fund eauals the tot~.l amount reauired_ for making all princi~oal and int-erect pa.yMents on the 'bonds of said issue during the ,sueceea_ing tti*elve months, the amount. so pa.ya.l~le each month into said fund shall .equal one-sixth (1/6~ of the next insta,llr_lent of interest and one- tt~~Felfth (1/12) of the next. installment of ~arincipa.l. The City ma.y establish this reserve, er~uivalent to the amount required for a.ll princi-y~a.l and interest y~a;;T~?.ents on the bongs of said issue during the next s?.?cceeding tt-slue months, either a.s herein set up or, at its o}~tion, it na.y set up said reserve from futlzre net revenues of either the ?~*~.~er or Plectric systems, or both. The City further agrees that the payment herein provided to be made rota the ?f'n.ter Revemae Refunding Bond Funo_ sh~.11 be made `' -13- by the City in equal monthly installments, sufficient to neet the next reGUirernents of principal and interest, by depositing s~..id amounts with the Trustee e.nd y~aying agent; provided, that such de-;oosits ,sh::^11 be at the sole ris'_ of the City and shall not operate ~.s a ~~~~ti*r~.ent ,~~' the bond= or cou~aons until so a1~~~la.ed. In a,doition to the foregoin,., the City shall deposit t•.*ith the Trustee t!ae sum of ~'~100.00 per month z•*heneve ^ neeeess.ry so as to accvr^h-~1Q,te znd ' maint2in a. contingency reserve of ~`~,000.00 in C~~ch r'e.ter Revenue Refuncl_in~~ Bond Fund, to be used for baying agents fees or other incidental expenses. Any fund.Y in the reserve hereina.laove set up ~h2.11 upon recue~t of the City, be invested in United. States Goverment Bonds of .such t~~pe a:nd. maturities ~.s the Trustee and the Mayor of the Cit?T sh~.ll mutu~..lly agree uiaon. (3) If the revenues of the ~~?orbs in a.ny Month are. in-~ sufficient to r.1a're the required .,oa.yment on or before the 10th day of the follo~-i:~.~ month into tl~!e :later Revenue .Refunding Bond. Fund, t~:en t'r,e a.rlount of a.ny deficiency in the payment z:~a.de shall. be added to the amount other?-Vise rec~ui re,d to be y>a.id into the ?~'a.ter Re~~nue Refunding Bond FL?nd. on or before the 10th da~r of the next month. The amount br Trhicr. payments in any fiscal year exceed the ~"' a.ggregate amount of interest end arincia,~21 payable in the next snc- ceeding fisc~.l ;,,*e~.-r sYla.11 be held. in s2 id T.^'~ ter Revenue Refurdin Bond.. Fur.d_ as a refierve ~.r_d used 'solel~~T a= ?aerein provided; provided, hoT~.=ever, that ~~Then the moneys meld in the '~~~rater Revenue Refunding Rind Fund, including the reserve, Lh<~11 be and remain sufficient to pay the prir~ci?aal of and interest on all" the bonds then outstanding, the City shall not. be obli~~ed to ~a'•~e anz7 fu-rt?^_er pa~T.~ents into the Z5later Revenue Refunding Bond Fund. zf , for ~.ny reason, the City sha1.1 fa.i1 'at any time to mane any of suc~~ payments into the ~'?ater Revenue Refunding .Bona. Fund, a.n?r sums tizen held as a. reserve shall be used to t?~.e e~-tent necessary in t?~e y~a,rMent of the.. intPrect on ~.. e.nd the principal of the bonds, 'aut such reserve shz.ll be reimbursed ~, from the eater Revenue Fund out of t?~e first moneT~s ~.va.ilable in `~Mr~ - said '~?ater :Revenue Fund aster nz~~ing the pa.ymenta hereinalaove -1~- reC,uired to be made. All moneys in the T~~ater Revenue Refunding Bond Fund shall be used solely fox the pury~ose of Haying the interest on a:nd the princi~~a1 of said bonds z.nd the paying agent ~ s fees. SECTION 16. ~ ?~ta.ter Rein Bond F~ r ~ . (1) After mal~ing dlze ~~~rovision for tl~.e operation, ~d.ninistration a.nd maintenance of the. ~'Tor'~s anc_ .depreciation thereon, there shall be p~.id: (a} from 31.Ob"~ of the ~ti'a.ter Revenue Fund, beginning ~:rith the completion and ~~utting into service of tl~e ,ne~;,.r additions to ,the ';.'or'e=, ~.r!d (b) ..after all the present 1'd ~~-z.ter revenue re- funding bonds a.nd all interest thereon shall have been paid. in full , from the entire ba.la.nce remaining in the ~tiTa:ter Revenue Fund, into a fund ~*hich is hereby created and designated "3°~ f'?~ter Revenue Bond Fund,p the Burs in the amounts and at the time hereinafter stated in subsection (2) for the puruose of providing funds a~ a. reserve and for t'_~e pa.yment of the. ~~rincipal a.nd interest thn the bonds authorized by t?~is ordinr.nce as t'~:eJ* ma.ti?.re according to the folloti~~ring schedule: YEA~'t BO~II7 1105. PRIldCIPAL ~ IFITEREST TOTAL (E,ot h Jan. 1 of Jan. 1 and July 1 inclusive} eac1= year of ea.cr. year 1g4g ~ ~ 1, gz5. oo ~~ 1, 650.00 ~ 3 ~ 575.00 1950 1 to 5 5,000.00 1,650.00 1,575.0.0 8,25.00 1951 6 to 10 5,ooo.ao 1,575.00 1,500.00 8,075.00 1952 11 to 1.5 5,000.00 1,500.00 1,425.40 7,925.00 3953 16 to 20 5,000.00 1,425.00 1,350.00 7,775.00 1854 21 to 27 7,000.00 1,35o.oa 1,245.00 9,570.00 1955 28 to 34 7,000.00 1,245.00 l,l~~-o.oo .9,385.00 1956 35 to 4l 7,ooo.ao 1,140.00 1,035.00 9,175.00 1957 ~2 to 58 17,000.00 1,0;5.00 70.00 18,815.00 1958 S9 to 75 17,000.00 780.00 525.00 18,305..00. 1959 76 to 90 15,000.00 525.00 300.00. 15,25.00 1960 gl to loo lo,ooo.o0 300.00 150.00 10,450.00 1961 101 to 110 10,000.00 150.00 ------ 10,150.00 -15- (2) There shall be paid from the ;dater RPVen~ze Fund into the ~~ '=eater Revenue Bonr_ Fund, to-be de,~osited. frith the Trustee, beginning on or before. the lOt'~~ day of the month after the. completion and -~~uttin~ into ser~rice of the ~~ra.ter ta.nl~, and. neT- mains, _s.r~d con- tinuing on or before the 10th day of each month t'~~.ereafter until all tl-~e bonds tirith interest issued under this ordinance i~a.ve been p~.d in full, er provision made for such pa~rr~ent, a sum e~ua.l to one-fifth (1/5) of the nett installment of .interest and one-tenth (1/10) of the next ~nstallrzent of principal of the bonds; provided, ha~~ever, th~_t T•?hen in zny fiscal year no princip~.l or interest of the bonds of this issue is in default and the a.moz?.nt in_ said_ 3~ Z+latPr Reven~?e Bond Fund. eaua.ls the. total amount required for rZal~ing all principal r and interest pa.yrzents on the bonds of this issue during the succeeding t~relve month s, the a.rzo?zr:t so LL~ayable each. month into said fund shall eauai one-sixth (1/6) of the ne3~t install_r~ent of interest and one- tzry?elfth (1/12,) of tine next installment of ~~rinci~al. T~'re CitT further a.Lrees t}~.t the pa.yr~lents herein ~arovided to be° made into the 3 a .dater Revenue Honc~_ Fund s',_all be made by t'^.e City in eotizal monthly. installments, beginning upon the completion a.nd putting into service of the Vra.ter tanlt a.nd ne~~? mains, sufficie~~t °~rr to meet the next reuzzirer~ents of princi?~a.l and interest, by de-,positing s2 id .amounts t:ritr_ tl,~e Try°stee a.nc_ payint-~~ agent; provided, tr~z.t such deposits sh^11 be at the sole risk of the Cit?T and shQ.ll not operate as a. pa.yrzent of the bon~..s or coupons until so a~-;lied. Any funds in the reserve herein2.?rove set uyo sha.11, upon the revue=t of the City, be invested in tTnit~d States Govern.~:1Fr?t Bonds of such type and maturities as tl~e Trustee and t'ie ~'iayor of t'_^e City sY~a.ll rzutually agree upon. (3) Tf the revenzzes of the ~dorl~s in any month. are in- sufficient to r~al~e the reauired ~~:~ayment on or before the 10th day of the fallot~ring month into the 3~ Water Revenzae Band Fund, then the a?~:otznt of a.ny deficiency in the pa~rment made shall be added tp the amount of^erT-?ise reat.zired to be ~~aid into the 3~ S~Rd^.ter Revenue -16- Bond .Fund on or before the 10th day. of the neXt month. The amount, by ~:~hich payments in a,ny .fiscal year exceed tree ag^~regate amount of interest and principal payable in the -next s~zeceeding fiscal year shall be held, in said 3~ t~Ta.ter Revenue Bond Fund as a reserve a.nd ~?ced solely as herein provided; ~~rovided, hot•*ever, that. Try~en t~-~~e raone~rs held in the 3 ~ ?dater Revenue Bond Func?_, inelt_~.ding the :reserve, shill be and remain sufficient to ;lay t~.:~e principal of a.nd interest on all tY~e bonds tll.en outstanding, the City shall not be obliged to r~a'~e any further payments into the 3~ 'dater Revenue Bond Fund.. If, fa-r any reason, the City skull fail at any time to make any_ of such payrents into the 3 ~ ~Tater Revenue Bond' Fund, any sums then held as a,:2eserve shall be used to the e;:tent necessary in the payment of the interest an and t~~e prir_cij~a.l of .the bonds, but eu~rM reserve shall be reis_~bursed from the ~'r2ter Revenue Fund out of the first moneys available in said ?'ra.ter Revenue Fund after making the payments hereinabove required to be r.:ade. All ~none~rs in the 3~ ?^~z,ter Revenue Bond Fund shal~_ be used_ solely for the. purpose of paying the interest-on and the principal of the bonds issued under this orc3ina_nce and t'_~e y~ayin~; a.s•ent's fees. S~C'TION 17. After t?2e Gity shall ~^ave establish:ed the "~w' ~~Jater Revenue Refunding Bond Fund and the 30 ~l^ter Revenue Bond Fund a.s hereinabove set out, and shill maintain st?ch funds, the.. City, may use the sur?~lus revenue arising from the operation of the ~~dor?~s for anv municipal fur}pose. If an4r sur~alus shall be acctaraula.ted in t?~ie ~'Tater Bystem Depreciation Fund .over ^nd a:.bove the amount T:~'~_ich shall be necessary to defray the cost of the probable replacements during: the then current f3.scal year a.nd next ensuing fiscal yTear, and. trkiich in the ,judgment of the Council is 'not needed- for re~~lace~:ents, such surplus or excess r!ay be transferred b;r t~~e Council and maid. into the ?~Tater Revenue Refunc~_ing Bond Fund as hereina.bove defined; provided, ,.. hot~~ever, that slash transfer or payrlent into said ?^~ater Revenue Refunding Bond Fund shall be in adc~.ition to a.ll other payments hereinabove required to be made .into said ?'a ter Revenue: Refunding Bond Fund.. ,17- e SECTIOT~' 1°. In the event of a default in pa.~-ment'`-of eithe?~• a~rinci,,~al or interest of this 3 0 ~~rater revenue bond ~~.e, the City sh-.11 imraediatel~r bed°~.n to a~ay a rental on tl~e ~~ra.te~.. s~.orag~e tangy., ?:=hick shall 'oe equivalent to an annual charge of 6~ on the de?~recia,ted v~:lue, T-hich grill be the original cost •,~lus ~.ny latter - additions thereto, lees a de~_~reciation of 3;~ ann;<.ally on the original cost, and this rental s~la.ll be a first c?isx~;e on the ~°later l~eve~.ue f~ Fund as hei^eii~ai~ove defined until all deficiencies in ~aa.yment of princiy:,al and interest on the 3 o T•.*s.ter revenue bonds h~~ve been cured.. Upon the curing of the defa??lt, all amounts so ~~.a.id shall be a~oplied first to the -?a~,~ment of interest, ne~;t to the ,aayment of prineiy~a.l of the outstanding bonds. SECTION 1Q. Under t~~.e provisions of the statute, being Section 7 of said Act. No. 131 as amended, there is crez.ted a stetutory mortgeg,:e lien u;~on the stora.~•e tar.'.: 2.nd mains to 'be acquired and constructed from the x~roceeds of the 'ponds aut~~.orized to be issued by this ordinance, ~ri~ich shall e.riet in favor of the 'Molders of said bonds ~;nd catch of then, and to and in favor of the holders of the j coupons att~.ched to said bonds, ..?nd_ s1~ch additions, nar?el~~, the ~" storage ta.n'{ and rra.ter r~ainC, s'n.all re:~a.in sub,jeet to s?:~eh atatutory mortgP.ge lien unt31 the pa~Tment in full of the principal and interest of the 3~ t~*a.ter revenue bonds, and this lien rta.~r ae erg°orced a.c- cording to the-. ~.~rovit ions of s~^_id Section 7. SECTION 2~J. T'^.e City hereb~r agrees to rya.">e a.11 paynents on bonds ans. interest only through t'Ze l~a.ying agent. All bonds .;;paid or purchased, either. at or before ma.turit~r, shall be c^.nceled ?•.rhen such payment or purchase is Wade, toMether vrith all unmatured co~.zpons a.pperta.ining thereto, anc?. held by the City Treast?rer, `and shall not 'oe reis~v.ed. A11 unpe.id interest cou~~ons maturing on or prior to the date of such payment or purchase s},.all continue to be payable to the respedtive '~earers thei~•wof . SECTION 21. T_ne ~?onds, togetT,er ?with interest the-neon, are not general obligG.tions of the City nor do their constitute an -1$- indebtEdness of the. Cit=r z,*ithin the Mea,nint of an~T constitutional or stPtutory provision or limitation, but sh~.ll be payable solely ou.t of the 3~ Z~Ja.ter Revenue Eond Fund e.s hereinbef ore provided, and shall be a~ ~v~.lid clam of the holders t'~ereof only against said Fund, a:nd the amount of -the revenues pledged_ to said Furld, Trhich . Q:mount of said revenues is _~erebvT pledged for the ec!ual end ra.tabl~ ,payment- of the bonds iss~.zed., and shall be used for no otr.er pur,~ose t- j ~,?'"""'' than to pay th.e princi~,~1 z.nd~ interest of the bonc~c ac t~,_e same ' accrue, except as provided in this ordinance. SECTION 22. All revenues front the tor'=_s shall be de~~osited in .such depository or depositories as r~a.y be laT.*fully designated from time to time, subject, haT~ever, to the givin~s of sec~a.rity by s?~ch depository as no~~r or as hereafter kay be required by 1aT~, and provided such d_ex~ository or depositories shall hold membership in the Federal Deposit Insurance Corporation. All deposits shs.ll be made in the n~.me of the City and be so designated as to Indic^.te the particular fund to Trl~icl the .revenues belong. SECTIOP? 23. It is recognized that ~~rith. the continlted ~;ro~rth of "the City of `Jest gemphis, it Trill be necess~:ry for ss.id' City to issue from time to ti~:!e s.do.itional Crater revenue bonds to ~ finance send pa,~r the cost of constrz~eting a.d.ditional .improvements and betterMents to the rdror'=_s, a.nd the rig'~.t of the City to do so is hereb~r exj~ressly eserved, sub,j eet to the follot~,ring provisions, namely: In order to insure the payment of .the interest on and principal of such a.dditiona.l bonds, the Cit- shall issue such ad- ditional revenue bonds Tr!^ile ~.ny of the bonc_s of .the iceue of July 1, lg~b and of this issue remain outstanding only if the maturities of ` such additional bonds shall begin after t'~e last maturity of the revenue bonds. authorized by this ordinance and if, a.t the tir~.e of th.e passage of an ordinance authorizing such s.dditional bonds, the revenges of the ?'Joe'-Ls for the °iscal year imr~ediateiy preceding the .. passafe of said ordin~.nce (in this paragraph called the "Revenues") ~~ shall have been sufficient in amount so that, if they T-sere deemed -1 g-- i ( ~ -i ~,. •' to 'be tl~.e total revenues derived from the entire t~rater~7or'Ls eysten, s.fter t'~e then contemplated betterments and ir}l;~rover?ents had been completed, they Could be at least eau l to 1S0`' of th.e amount reoluired to pay the cost of opers..tion, administrs.tion, maintenance and de;~r•eciation of the s~ror_ss for tl~e next ensuing ~"iscal ;Tess, and to pay the combined ?~rinci~_~s.l a.nd interest r~!at?zrit~T re~ruirements o$ tl~e .remainder of all then outs Landing bonds end t'ne bonds of the net:,r issue. SECTION 2~l. The ?1:'or?~s shall be o;oerated upon a fiscal year basis, be~innizg January 1 of each year ~~nd ending on s.nd including the ~'o11oT«rint° December 31. SECTIOI`T 25. It is covenanted and agreed by the City t~rith. the holder or h3~~ders of the bonds, or s.ny of them, that it gill faithfully and y~unctus:l?_y perform x.11 duties T~rith reference to the ~"~or'_~s rec??fired b~T tle Constitution and stc.tutes of the State of Arkansas, including ms.'rin~ and eollectinf• of res.sonable ~-nd s~_~.fficient rs.teL ls:.?~~`'>>_ll~r esta'~lished for services rendered by the S~dorks, segregating the revenues of tl~~e s~;~stem a.nd t'~eir ap~~licaton to the res~~ective funds herein created. SECTION 26. Tl~e City t°Till maintain the elevated grater stors~e tank and ?crater r_?P.ins in ~-good co~~dit~.~~n and operate the e ame in a.n efficient r.?s!nner G.nc~. at a, reasons'ole cost. So long as s.ny of the bonds s.re outsts.ndin~, t~~e Cit-T agrees to maintain fire, 1gl=tning sand tornac_o insurance on said tsr'i in an amount ?~-hich normally ?-ould be es.rried br s. privste coi~~._~an;,r engaged in a similar ty_oe of business. These insurance ;policies are to be taken ti-Tith com~~s.nies a~oproved by the Try?stee, are to cs.,^ry a clause Msi>ing them 'payable to the Trustee s.s its interest ray appear, are to be kept continuously in force, ~~~ are either to be placed in the e~?study of the Tr~a.stee or the Trustee shall be furnished a certifi- es.te of execution of said ~~olicies. In the evert of loss, the proceeds of such in=ursnce 4xe to be applied solel~r tot-:~~:rds the reconstr??etion, reiola.ce:~ent or re~c~a.ir of the tan'... In suc'~ event, -2p_ the City ?Trill, ?~rith reasonable~~romptness, c<~use to ~>e commenced and com~~leted tTie reconstruction, replace~ent ^nd repair, and the Tr?.?stee sh~.ll pay €uch money to the City for such purposes uyoon the estir~a.tes of a nutus~lly selected engineer or ~?rchitect. TTotT~ing herein shall 'oe construed as requiring the City to ex~aend any funds for prem3.ums on its insurs.nce on the ?:ror'~s ~~rhich are derived from sources `other then thF~ operation of th.e ''or'_~s, but nothing. herein shall 1~e construed ~.s preventinM the City fror~ doing so. SECTICTJ 27. So long ac any of the bonds ale outstanding, t4~e City ?Trill not mort~~~_ge, pledr~e, or ot~?er.~s:-ise encumber the T~~orlts or any ps.rt thereof or s.ny revenues therefro~:, except as herein. provided, ~.nd t:*ill not sell, lez.se,or oth.ei~z-rise d.is,~~ose of any substantial portion of the same. SECTICT~T 28. The City ?rill deep proper boo's of records and accounts (sep~.r~.te from ell other records and accounts) in ?~rhich complete and correct entries shall be r_.2de of any trans^.etions relating to the ~'~or'_~s. SECTIOTd 2Q. If there be a.ny default in the payment of either the principal of or interest on an~,* of the bond, the holder , or holders of any of the 'aonds may by proper suit compel the per- form~nce of the duties of the officials of the Cit~r, as set forth in said Aet T•1o. 1~1, as ar,~end ed. If t':erP be d efa.ult in the ~t~ayment of the princi-y~a.l of or interest on the 'sonde or if the City sh~21 fail to l-cep any other obligs,tion ?~rhich it herein assumes, and such default shill continue for thirty d~~ys there^.f ter, any court having ,jurisdiction in any proper ~.ction, ~rhich ray bF iristitT~.ted either by the Trv.stee on behalf of a.ll the bondholders, or by any holder of a bond in default, may ~.i~point a. receiver to a.d~iinister the TtTorT~s on behelf of the City, t~rith -oot~.*el~ to ch~.rge 2.nd collect rs.tes sufficient to provide for the exj~er_ses of t'~e receiversr.ip, the payment of the bonds and interest the~~eon, and for the pG.~[ment ~... of tl~e operating expenses, and. to a.loaly the incoi~?e and revenues "ti..r - 21-- .: . in conformity ~-~Tith said Act and this ordin~.nce providing for tI^_e issu^~nce of sG id bonds, but ~~*hen all def^.ults are cured, the . reeeivers:nip sh~~.ll be endea_ and. the rna.na.genent and control o~' the °~oriis restored to the City. SECTIOt1 30. Tire City furtJer covenants and ~.grees teat if default is r_-~ade in the pa.ment of a.ny bond or cou~~on, or idi the- City fails to neat any sin~_ing fund requirements., tree molder of suer bond Y?2y decl~ re tl~.at bond imr:?Fdia.tely c'_ue ~.ne. ~ay~~le, a.nd such .bonds shall thereu~aon be immedia,tel~r due ~ nd payable ~.nr~ in default, and eit' er the Trti?stee on behalf of all t'=e bondholders or _a.ny bondholc_er for hir~iself r.1ay institute suit to enforce the pledge lien herein grantee.. SECTION 31. The bonds in the face ar?ount of~'~110,000 shall be deliverec_ to Southern Securities Corporation of Little Rock,. Ar_~~.nsas, upon payment by ti~.e:~ in ca sr of the full purchase price of sa_ic' bonds, to~et?~.er ~.*ith tl_e accrued inte~~est' on said bones. ~ The r?oney received b~,T t'-e CitJr ~'or a.ecruea interest s'_~a.ll be ~~aid into .the 3~ s'.Ta.ter Revenue Bond Fund.. The balance of th.e .price received for the bends sl_a.ll be dep oeited by the City. in a s~~ecial fund to be ?~not~m as the r'Cor_strl.?ction Fund, Acco?ant" 2nd to be used solely for the purpose of paying the cost of the a,ddition~ -r~hich the City h~.s planned. SECTION 32. Tl_P bonds authorized hereby shall be callable a~ set ou.t in the face t'-.ereo~'. SECTIOrI 3~. In order ti~a.t the ~~led~;e of net revenues shall be a, m~.tter of rFCOrd, a Certyfied cop~r of tl:~is ordinance shall be -placed of record in file office of ti_e Circuit Cler% ~ nd e« officio Reca-rcl.er of C'_1i'~tenden County, Arkansas. £~EC"'ION 3'~. t{Jherever reference is ~?a.de in ti~is ordinance to a Trustee, it shall refer to The Corlmercia.l T7a,tional E~-.n'~ of Little Rock, Ar'~.ansas. Ti~~e said Trustee small be respor_siblg.-only for t*il~'ul misconduct in the execs.?tion or th,~_s .trust. Tlie recit~.ls `~ of fact herein ~nta3.nec'_, ,a.nd .contained in the bonc._s, are stater?ents of the City a.nd sh2.11 not be construed a s being; made by the. Trustee.. -22- • - . r 3 + The Trustee shall not be required to effect insurance against fire or damage to property, nor to advs,nce any rioney to payinsuranee premiums, nor to pay any charges or special assessr:lents against Said property, nqr to see that. this pledge of revenues is properly recorded and kept in force as a pledge, nor shall it be required to take notice or be deemed to have ha.d notice of any default, of the City in the failure to per~'orm any of the conditions of th~8 ordinance, unless said T~-ustee sha.11 have been ;~specifieally notified in writing of said default; nor. shall it be required to take any action hereunder until it hz.s been indemnified to its satisfaCtian by the holders of the bonds herein mentioned, or some of them, ag2_inst loss or damage on account thereof. SEC~IQN 35• It is hereby declared that the pravisions of this ordinance ~.re sepa.rable, and, if ~.ny provision of this ordinance shall for any reason be held illegal or invalid, it shall not affect the va.lic.ity of the ra~maner~ of the ordinance. SECTION 36. The Mayor is ~~ereby directed to publish for one insertion in the CRITTENDEN COUg1TY TI~~kES, ~'i?ich is hereby Pt~'uhd and.. d ecla.red to 'oe a netArUpaper published. in and of general ~: circulation in the City of ~~1est Mem:hi A?^~L^nsa~, a. certified copy of this ordi~.a.nce, attrched to a notice signed by him, in substantially the follo-~ing fora: ~: -2 . r. _., .. (.The date set 'for the hearing shall. be more than ten days .after the d^.te of publica.ti~n of the notice and ord.ina,nce. ) N O T I C E Notice is hereby given that the City Council of the Gity of ti~Jest I~Iemy~his, Arka.n~as, has adopted the ordinance Yiereina°ter set out; that said City conterm~lates the issuance of the bona_s described in s~~id ordinance; . that any -~~erson interested may appear before t~^e Council on the~r,.ay of ______-~, 19~°, at ~;~~~ otclock P.I~~. at the usual .~~1^,ce of meeting in the .City of ~"hest Mem~ohis and be heard. At s~~ch hearing a.ll obi eetions and sv:@;~estions ~,~ill be heard ~.nd the said Council t~Till ta.l~e such action as is c,.eemed pro aer in the ~~rer~i= es . m z, ~ a. of ..r! 1`g~8 DA ~ ED t _ _ i s __,_~._,.___.d Y ----- Q ~ ~~~ M~.yor of ti^~est TTe ,phis, Ar'~a.nsas Attest. ._------' - j _.__.._ Y erk ,_ ~: - 2~- f ..r _.,. ~,.. ' ^:.. SECTION 3?. All ordinances or ~~arts of ordina.nceC in conflict heret~Tith are hereby repealed.. SECTION 38. It is hereby ascertained and declared_ that tti~ere is imz^ea_ia.te need, in order to protect the health and property of the in'.~.abitants of the City, for t`:.e additions to t'r~.e t<<ra.terwor'ys system noT~~,* gervin~ the City of t~Tet a~empl~is; therefore, a.n e~er~;ency exists and this ordinance is necessary for the preservation of the pu'~lic peace, he~.lth a.nd sa.f et~~ , and shall ta'_~e effect and be in force ?::*ithout delay from ar_d after its passa~°e. Passed: 1848. Approved: (Seal) Attest: ty er~~ ,~> a ~ STATE OF, ARI'AT18AS ) County of Crittenden ) ~/ N:a~ror ~~ __ H_ _a__.._~ ~~~~-~ ~- CERTIFICATE The unde-rsi~ned, City Clem. of t~~e City of :'rest T"emp~•is, ArlLansa.s, hereby certifies the a.I~ove and fare~oin~ to be a tr~_~.e, correc3t, and com~~~lete copy of Qrdinazz No. , -~hieh i~ras duly passed ~y said City.Council on the da.y of , 1948, z.r at a duly called. and constituted mee ing at .hich . or t?lan ttio-thirds of the total number of ~~en~:ers of the City Council elect ~~rere present end voted for Baia ardina:nce, znd s~.id ordina~nc~e is note of record in Ordina.r~ce Boob ~?o . ,~,._,_~ page No • -~---' of the records of said City. CERTT.~'IE under rry kle;nd a.nd the seal of said City this day of _~, 194 C • t~ erk (deal) _~5.. .- ~- ~ R E S O L U T I O N WHEREAS, the City of West Memphis, Arkansas, by Ordinance f i~. No. 156, passed and approved on July 7, 1948, provided for the issuance of X110,000 in 3~ water revenue bonds dated as of June 1, 1948, numbered from 1 to 110, both inclusive, and maturing serially on January 1 of the years 1950 to 1961, both inclusive, and has sold to the Southern Securities Corporation of Little Rock, Arkansas, Bonds Nos. 1 to 75, inclusive, in the aggregate amount of 75,000 of said issue, but the agreement of purchase by the said Southern Securities Corporation expired by limitation on July 1, 1948; how- ever, the said company is still willing to take fe~rei~ X75,000 of said bonds as hereinafter set out, and the City needs this money for the purpose of installing the proposed 500,000-gallon elevated storage tank; NOW, TfIEREFORE, BE IT RESOLVED By the City Council of the City of West Memphis, Arkansas, at a regular meeting of said Council held on the day of August, 1948, at which more than two-thirds of the number of the C ouncilmen-elect are present and voting, that: 1. The Mayor and City Clerk proceed to execute the 110 bonds of the issue of 110,000 in 3;6 water revenue bonds dated June 1, 1948, and attest their execution with the seal of the City and deliver said bonds to The Commercial National Bank of Little Rock, Arkansas, trustee and paying agent for the issue. 2. The Commercial National Bank, as trustee and paying ~r-' agent, shall certify and deliver to the Southern Securities Corpora- tion..- , X75,000 of the bonds numbered 1 to 75, both inclusive, _ _ - , at a price of 98 cents on the dollar face value of said bonds, plus accrued interest, upon receiving the opinion of Townsend & `Townsend, Attorneys at Law of Little Rock, Arkansas, approving the validity of said bonds. 3. The said trustee and paying agent b® instructed to hold the undelivered part of said issue of bonds without certifi- cation, subject to the further order of this City Council. 4. A certifbmd'~eopy of this resolution be delivered with the bonds to The Commercial National Bank of Little ~~ock, Arkansas.