HomeMy WebLinkAboutOrdinance 918 �� • r
ORDIP?AF?CE N0 ,
AN ORDINANCE AUTHORIZING THE BORRO' .SPd: OF FIFTY 'MOUSAND DOLLARS PalOVIDII,'G
FOR THE REPAY12NTT THEamT AiID FOR OTHER. PURPOSES
:hereas the Sevier 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 tti.' enty-five thousand ( (?125 ) 000. 00 ) dollars in revenue bonds ,
and
::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 fifty thousand dollars ( W, 000 . 00 )
rill be needed to complete said project and put it in operation, and
' hereas First National Bank of Fayetteville , Arkansas and *cIlroy Bank
of Fayetteville , Arkansas have agreed to loan to the Sever Committee of
Fayetteville , Arkansas the sum of fifty thousand dollars ( 350 , 000 .00) , each
of said banks to loan one-half of that amount , payable over a period of ten
years rith interest at the rate of four per cent ( 4% ) per annum on the unpaid
balance payable solely from revenues of the Sevier System of the City of
Fayetteville , Arkansas ,
NO:; BE IT , THEREFORE, ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAY-
ETTEVILLE, ARKANSAS :
Section 1 . The ':ayor and the City Clerk of the City of Fayetteville ,
Arkansas are hereby authorized to borrow twenty-five thousand dollars 025 , 000 .00)
from the First National Bank of Fayetteville , Arkansas , and twenty-five thousand
dollars 025 , 000 . 00 ) from the i 'cIlroy Bank of Fayetteville , Arkansas , and to
execute notes payable on or before ten ( 10) years from date of execution of said
notes in sums not less than twelve hundred fifty dollars ($1, 250 . 00) and accrued
interest on unpaid balances each six ( 6 ) months , interest to accrue at the rate
tFS
of four per cent ( 4% ) per annum on each of said tell,
tes . And that notes heretofore
executed in the sum of ten. thousand dollars ( ,'10 , 000 .00) to each of said banks
in accordance r:ith the terms of Ordinance No . �� , be retired out of the proceeds
of the notes herein authorized .
MICROFILMED
DATE
REEL ��
err•
-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
after 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 Sever
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 1947 .
• L:ayor
Attest :
Q A^I-
y Clerk