HomeMy WebLinkAboutOrdinance 911 ORDINANCE NO .
AN ORDINANCE AUTHORIZING THE BORRO{'dING OF TINTY THOUSAND DOLLARS PROVIDING
FOR THE REPAYMENT THEREOF AND FOR OTHER PURPOSES
Whereas the Sewer Committee of the City of Fayetteville , Arkansas has
undertaken the construction of a secondary disposal plant for the City of
Fayetteville , Arkansas and has heretofore received the proceeds of the sale
of one hundred twenty -five thousand ( $125, 000 . 00 ) dollars in revenue bonds ,
and
t�hereas because of increased costs of labor and materials , it now
appears that the proceeds of the sale of said bonds is insufficient to com-
plete said project , and an additional twenty thousand ( $20 ,000 . 00) dollars
will be needed to complete said project and put it in operation, and
Whereas First National Bank of Fayetteville , Arkansas and McIlroy
Bank of Fayetteville , Arkansas have each agreed to loan to the Sewer
Committee of Fayetteville , Arkansas the sum of twenty thousand ( $20 , 000 . 00)
dollars , each of said banks to loan one-half of that amount , payable over
a period of ten years with interest at the rate of four ( 4% ) per cent per
annum on the unpaid balance payable solely from revenues of the Sewer
System of the City of Fayetteville , Arkansas .
NOW BE IT THEREFORE ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAY-
ETTEVILLE , ARKANSAS :
Section 1 . The Mayor andthe City Clerk of the City of Fayetteville ,
Arkansas are hereby authorized to borrow ten thousand ( $10 , 000 .00 ) dollars
from the First National Bank of Fayetteville , Arkansas , and ten thousand
($ 10 ,000, 00) dollars from the McIlroy Bank of Fayetteville, and to execute
notes in said sums payable on or before ten ( 10 ) years from date of execution
of said notes in sums not less than five hundred ( $$500. 00 ) dollars and
accrued interest on unpaid balances each six ( 6 ) months , interest to accrue
at the rate of four ( 4% ) per cent per annum and said payments to be five
hundred ( $500 . 00) dollars to each of said banks together with the accrued
interest as herein above provided.
MICROFILMED
DATE pCT
REEL 1976
-2-
Section 2 . Said notes shall in no sense constitute an indebtedness
of the City of Fayetteville , Arkansas , but shall be paid -exclusively from
surplus revenues of the Sewer System of the City of Fayetteville , Arkansas af—
ter the provision has been made for payment of bonds and interest now out —
standing which were secured by a first lien on the revenues of said Sewer
System .
Section 3 . Surplus revenues as provided in Section 2 hereof , are
specifically pledged for the purpose of repaying said notes in the manner
herein set forth .
Section 4 . It appearing that the funds hereinabove mentioned are
needed immediately in order that said secondary disposal plant may be
completed and put in operation, an emergency is hereby declared to exist
and this ordinance shall be in full force and effect from and after its
passage and approval .
Passed and approved this day of April, 1947 ,
Mayor
Attest :
City Clerk