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HomeMy WebLinkAboutOrdinance 1050 ORDINANCE NO, 1DS�J AN ORDINANCE PROVIDING FOR EXTENSIONS AND ADDITIONS To THE KKUNICIPAL SHIER SYSTE : CF THE CITY OF FAYETTEVILLE, AIMMISAS , AND FOR UIHE ISSUANCE OF BEVIER REVE;ME BONDS TO PAY FM THE SAKE, AND DECLARING AN EKERGENCY . , 4 EAS, the City Council of the City of Fayetteville, Arl�.nsas, hercin- after so: ctimcs c1llcd the " Council" , has determined to construct additions and extensions to the scnitary sorer system now serving the City in order to provide sewa.ac facilities for properties not presently served, and, ' ,7IEREAS , the Council has caused plans to be prepared by L. M. McGoodvrin, a registered, consulting engineer , which show that the esti ytcd cost of the proposed additions and extensions is Twonty-Five Thousand ( 025, 000. 00) Dollars, which the City c,,-n secure from the issuance and sale of sewer revenue bonds in that amount ; and , WHE_^,.EAS, under the provisions of Section 10 of Ordinance No . 892 of the City of Fayetteville pasood and approved on Kfarch 4, 1946 under which ordinance the City of Fayettevillo issued its "City of Fayotteville, Arkansas Scwcr Revenue Bonds" of 1946; the City of Fayetteville reserved the right to issue additional bonds to be payable from the revenues of the system to finance or pay the cost of construction PF further extensions , betterments and additions to the system provided only that the gross rcvcnu: s derived from the system for the fiscal year then next preceding shall have been sufficient to provide for cll costs of operation, repair and r.:aintenancc of theEystem and loave a balance equal to at least 160 per centum of the aggregate of (a ) the principal and interest payment for such ycar'o71 total bonds then outstanding , and the fiscal agency ' s charge therefor; (b ) One year ' s interest on the total issue of such additional bonds proposed to be issued ; ( c ) an amount of principal of such additional bonds for one year computed by dividing the total amount of such issue by the number of years to the final rnturity date of such bonds, and, WHE .'ZAS , under the terms of Section 6 of Ordinance No . 892 the fiscal year is established as the calendar year and the last preceding fisatl year immediately IS preceding the issue proposed to be issued under this ordinance Sor the year 1952, and , ;-MREAS , the City has had an audit prepared by Scarbrough and K:yers, an independent fim of Certified Public Accountants whose principal place of business is Fayetteville , Arkansas, which audit is now on file in the office of the City Clerk of the City of Fayetteville, Arkansas from which it appears that the require- Lents for the issuance of additional bonds under Section 10 of said Ordinance No . 892 has been fully met and complied with and that the City of Fayette ' 1 16 is duly AIC1t0j � authorized to issue the bonds herein contemplated, and , DATE ,OC1910 .*MREAS, the Council by Ordinance No , 1046 passed and approved on klarch 23, 1953 fixed minimum rates to be charged for the services to be rendered by the addit- ions and extensions to the system, and, KEEu'IiS , said plans have been duly filed with the City Clerk of the City of Fayetteville and copy of the same has been referred to the planning board of the City of Fayetteville, and report of the planning board has boon filed with the City Clerk of the City of Fayetteville finding that the plans for the extensions and additions hereinafter more fully described are in conformity vrith the general sewer plan for the City of Fayetteville, Arkansas. N0:'J, M4REFORE, BE IT ORDAINED BY THE CITY COUNCIL Cr THE CITY OF FAYETTE- VILLE , 0RANSAS : Section 1. The City Council does hereby approve the plans for additions and extensions prepared by the said L. M. McOoodwin and now on file with the City Clerk and does hereby determine to construct said additions and extensions as there- in described. ( The additions and extensions, together with the Municipal Sevier System as now constructed, is soretimes hereinafter referred to as the "System" ) . Section 2. A brief and general description of the proposed improvement is : The laying of sewer mains to be connected to the system of the City of Fayotto- villa for the purpose of servicing the areas adjacent to South College Avenue and South .-lashington Avenue from Seventh Street South to the South City Limits of the City of Fayetteville, and Sixth Street and Seventh Street East of College Avenue to Mood Avenue . ° Section 3 . The Sewer Committee as now or may hereafter be constituted, is hereby authorized, ordered and directed to sell the bonds hereinafter authorized under such terms that the City shall receive par and acciced interest to the date of delivery of said bonds and the purchaser shall be required to pay the costs aP printing the bonds and for the approving opinion of an attorney of their own selection. Said sewer committee shall also have control and jurisdiction of the construction of the improvement hereinabove mentioned and after its construction, _ o+ _ , 6 _ it shall be a part of the Municipal Sewer System under the ecn agement of said 9zSy. C 0 w+ w, c *"C e, Section 4. The Council hereby finds that the price of par and accrued interest to the date of delivery of said bonds , the purchaser being required to pay for the printing of the bonds and the approving opinion, is a fair price and one allouad by law, and the Sewer Co:T.ittee as horcinabove set forth is authorized and directed to consu=.ate said sale under these conditions without further action upon the part of said Council . Section 5: That under authority of the General Statutes of the State of Arkansas, and particularly Act No . 132 of the Acts of the General Assembly of the State of Arkansas for the year 1933 r.s amcnded( some times hereinafter referred to as "Act . 132 as amended" ) sewer revenue bonds of the City be issued in the total amount of Twenty-Five Thousand ( 325, 000. 00) Dollars , the proceeds of the sale of which shall be used to provide funds to pay the cost of the new improvement including engineering, legal, interest during construction and for six months after completion of construction, and other necessary expenses ; that said bonds be designated "City of Fayetteville, Arkansas 3% - 3e% Sewer Revenue Bonds of 1953; to be dated as of May 1, 1953 numbered from 1 to 60 , both inclusive ( sometimes hereinafter referred to as I'Bonds" ) ,V be in denominations of ($100 . 00 each , excopt bond numbers 5, 10, 47, 49, 52, 55 and 59, which are in dcnominati9ns of $500. 00 each and bond numbers ll , 12, 13, 15,17 , lg , 22,25,8, 321 363 41P 46 ) 483 50 , i 53, 56 and 60, which shall be in denominations of X1, 000. 00 each to be callable as hereinafter set forth, and to mature in numerical order on the first day of ray in each of the following years and in the following amounts , to-wit : YEAR BOND NOS, AMOUNT 1954 1 to 5 inclusive 900. 00 1955 6 to 10 inclusive 900 . 00 1956 11 11000. 00 1957 12 12000. 00 1958 13 1,000. 00 1959 14 and 15 11100. 00 1960 16 and 17 1, 100. 00 1961 18 and 19 1, 100. 00 1962 20 to U inclusive 1 , 200. 00 1963 2 3 to jinc snvr^ 1 200. 0 1964 2 to 28 inclusive 1 , 200 .00 1965 29 to 32 inclusive 1000 . 00 1966 33 to 36 inclusive 1000 . 00 1967 37 to '41 inclusive 1, 400. 00 1968 . 42 �b 46 inclusive 1, 4 . 00 1969 47 snd; •1, 500. 00 1970 49 and 50 1, 500. 00 1971 51 to 53 inclusive 11600 . 00 1972 54 to 56 inclusive 11600. 00 1973 57 to 60 inclusive 1 70Qrpg Bond numbers 1 to 25 inclusive shall bear interest at the rate of 3% per annum and bond numbers 26 to 60 inclusive shaji bear interest at the rate of 312% per annum, interest payable semi-annually beginning on November 1 , 1953 and semi- annually thereafter on the first day of P-lay and Gelbeber of each year ; the bonds shall be signed by the Mayor and City Clerk and sealed with the corporate seal of the City ; the interest on the bonds shall be evidenced by coupons thereto attached and the coupons bhall' bo signed by said mayor by his facsimil6 signature and the mayor shall by the execution of the bonds to which said coupons arc attached, adopt as and for his own proper signature his facsimile signature appearing on said coupons . The bonds and coupons shall be payable in lawful money of the United States of America at the office of McIlroy Bank, Fayetteville, Arkansas. The bonds , together with interest thereon shall be payable solely out of seurer revenue bond fund of 1953 as hereinafter defined and shall be a valid claim of the holder thereof only against such fund and the amount of the revenues pledged to said fund , which amounts of said revenues is hereby pledged and mortgaged for the equal and ratable payment of the bonds and the interest thereon, and shall be used for no other purpose except s hereinafter set out . Section 6 . That said bonds and coupons shall be in substantially the follow- ing fo rm: UNITED STATES OF A -ZR.ICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE 3% - 3-2N Sewer Revenue Bond of 1953 No. KNa-1 ALL IMN BY THESE PRESENTS : That the City of Fayetteville, in the County of `iashington, State of Arkansas, for vclue received hereby promises to pay, solely from the special fund provided therefor as hereinafter set forth , to bearer , the sum of _ DOLLARS three) onthe first day of I•lay, 19 with interest thereon at the rate ofthreejand one-half) per centum �3ia,) per annum from date until paid, payable on November 1, 1953 , and semi-annually thereafter on the first day of May and November of each year , upon presentation and surrender of the annexed coupons as they severally become duo . Both principal and interest hereon shall be payable in lawful money of the United States of America, at the office of the McIlroy Bank of Fayetteville, Arkansas. This bond is one of a series of bonds aggregating Twent; -five Thousand ( 325 , 000 ) Dollars , all of like tenor and effect except as to number , denomination, interest rate and maturity, dated as of May 1, 1953, numbered from 1 to 60 , both inclusive, and issued for the purpose of extending and improving the Fayetteville municipal sewer system (hereinafter called the "System" ) . This bond and the series of which it forms a part arc issued pursuant to and in accordance with the provisions of the laws and Constitution of the State of Ark- ansas, and particularly Act No . 132 of the Acts of the General Assembly of the State of Arkansas for the year 1933 , as amended , and do not constitute an indebtedness of the City of Fayetteville within any constitutional or statutory limitation. Said bonds are payable solely from a fixed amount of the revenues from the System, which amount shall bo sufficient to pay t he principal of and interest on the bonds as the sano become due and payable. Said amount has been duly set aside and pledged as a special fund for that purpose and identified as the "Sewer Revenue Bond Fund of 1953" created by Ordinance No . 1D ro duly adopted by the City Council of the City of Fayetteville on April(:? 1953, under which .this bond is authorized to be issued, and the said City of Favatteville has fixed and has covenanted and agreed to maintain rates for sewer services which shall be sufficient at all times to pro- vide for the creation of a separate depreciation fund for necessary replacements to said System, to provide for the payment of the reasonable expon5cs of operation and m-intenance of said System, and to provide for the payment of the principal of and interest on these bonds as the same become due and payable and of the outstanding balance of Sewer Revenue Bonds issued by the City under date of March 4, 1946 . This bond is expressly made negotiable by the statutes under which it is issued, and is issued with the intent that the laws of the State of Arkansas shall govern the construction thereof. The bonds of this issue shall be callable for payment prior to maturity in inverse numerical order at par and accrued interest on any interest paying date with funds fPom any source . In the evenla call is made, the City shall publish notice of such call for redemption once a week for two .reeks in the Northwest Arkansas Times , a newspaper published in the City of Fayettevillo , Arkansas, Giving the numbar and maturity of each bond being called, the first publication to be at least fifteen days prior to the date fixed for roderption, and after the data fixed for rcdazption each bond so called will cease to bear interest , provided funds for its payment are on deposit with the paying :bent at that time . IT LS HE.-MY CM1 TIFIED, RECITED AiD D3CLARED that all acts, conditions and things required to exist, happen and be perfor=ed pursuant to and in the issuance of this bond have existed, happened and been performed in due time, form and manner, as required by lair, and that sufficient of the income and revenue t:hich is deemed to be derived from tha operation of said System has been pledged ' to and frill be set aside into said special fund for the payment @f the principal of and interest on said bonds. This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly signed by the McIlroy Bank of Fayett,vil.le , Arkansas . IN :.TTNESS :4THE 0F , the City of Fayetteville , Arkansas , by its City Council, has caused this bond to be signed by the Payor and City Clork thereof and scaled with the corporate seal of said City, and has caused the coupons hereto attached to be exocuted by the facsinile signaturc of said Mayor, all as of the first day of I.Iay , 1953 • Attest : CITY OF FAYETTEVIM4 , ARI;A.•:SAS City Clerk By, ( Seal) Mayor ( Form of Coupon) No . On the first day of (May) (November). 19 t:ze City of Fayetteville , `.lashing- ton County, Arkansas, unless the bond to which this coupon is attached is sconcr called for payment , promises to pay to bearer the sum of Dollars, solely out of the fund specified in the bond to which this coupon appertains, at the office of the McIlroy Bank of Fayetteville, Arkansas, in lawful money of the United States of America, being interest then due on its 3 - 32 % Soorar IM Revenue Bond of 3353 dated May 1, 1953 and numbered CITY OF FAYE =M' ARIU1;?SAS By Mnyor (All coupons shall be for six months ' interest. The I•;ayor ' s signature may be litho- graphed or engraved . ) On the back of said bonds is to appear the following : CERTIFICATE This is one of the 60 bonds aggregating X25 , 000 described within. MCILROY BANK OF FAYETTEVILLy, ARKA:.'SAS , Trustee By Fayetteville, Arkansas , 195$. Section 7. The rates for the sewer services fixed by Ordinance No . 1046 of tl^W City of Farpettoville shall never be reduced until all the bonds of this issue nd all coupons thereto attcchod have been paid in full and shall , when necessary, be increased in an amount sufficient to provide for the maintenance of the funds horcinaftcr described. Section 8 . By the torus of Ordinance N 892, the City created a Sewer Revenue Bond Fund and in Section 10 of said Ordinance No . 892, the City authorized the issuance of additional bonds to finance the cost of constructing additional cxtcn- sions and improvements to the System if gross revenues for the preceding fiscal yc.ar shall have beon sufficient to provide all costs of operation, maintenance and repair of the system and leave a balance equal to 120 per tontum of principal and interest payments for such year , oT all bonds then outstanding and the fiscal agency ' s charges therefor ; one year ' s interest on the total issue of such adeitional bonds then proposed to be issued ; and one year ' s average maturity of the principal ;mount of the proposed issue and that the annual audit for the year 1952 of the operation of the sewer system shows a net profit more than sufficient to moot these requirements, and the City has the authority to set up from said net profit a bond fund for this issue . Section 9 . Sevier Revenue Bond Fund of 19530 ( a) . The balanca of the income and revenues of the system after ra=king the required paymcnts into said sager operation and maintenance fund as created by said Ordinance No . 892, are hereby declared to be the net revenues and income from said System. These is hereby created and so long as any of the bonds hereby authorized are outstanding, there shall be maintained a special fund to be known as the "Sewer Revenue Bond Fund of 1953" (Sometimes hereinafter referred to as the "Sinking Fund" ) , into which there shall be sot aside frac said income and revenues such portion thereof as will be sufficient to pay the interest on said bonds as the same becomes due and to pay the necessary fiscal agency charges for paying bonds and interest and to pay the principal of said bonds at or before maturity as herein provided, and to create a margin for safety. In order to provide for payment of principal and interest and margin for safety there shall be paid into said sinking fund each month one-fifth of thenext sour-annual interest requirements and one-tenth of the next principal requirement until there stall be accumul- ted in said fund an amount equal to current principaland interest requirements and fiscal agency fees and an amount in reserve equal to one year ' s principal and interest and fiscal agency charges, at which time payments into said sinking fund shall be reduced to one-sixth of the next semi-annual interest payment and onc-twelfth of the next principal payment, provided however thr.t no further pay=nts need be made into said sinking fund after and so long as such amount of the bonds shall have been retired that the amount then held in said sinking fund including the reserve, is equal to the entire amount of the interest and principal that will have accrued and become due at the time of the retirement or maturity of all the bonds then remaining outstanding. The undertaking to transfer and pay the prescribed amounts £fonsaid net profits derived from the operation of the system into said sinking fund shall be cumulative so tint in the event the net income and revenues durinE any month are not adequate to make the required transfer in payment or if for any other reason there sh_ll be a failure to make such transfer in payment, the amount of deficiency shall be rade up from the first available net incomo and revenues thereafter received and the same shall be in addition to amounts otherwise provided to be transferred and to be paid into said sinking fund. (b) . Said sinking fund shall be used solely and only and is hereby pledged for the purpose of paying the interest on and accomplishing the retirement of the bonds herein authorized. Withdrawals and remittances to the place or places of payment of the principal and interest shall be made in ample time to meet the payments of such principal and interest, which are as follows : Year Principal Interest Pi.1v 1st May 1 Nov. 1 Total 1953 #a a 4S 411 . 25 $ 411 . 25 1954 900. 00 411. 25 397 . 75 1, 709. 00 1955 900. 00 397. 75 384. 25 13682. 00 1956 11000 . 00 384. 25 369 . 25 1, 753. 50 1957 11000. 00 369 . 25 354. 25 1, 723. 50 1958 13000. 00 354. 25 339 . 25 1 , 693 . 50 1959 12100. 00 339 . 25 322. 75 1, 762. 00 1960 11100. 00 322. 75 306. 25 1, 729. 00 1961 11100. 00 306 . 25 289. 75 1, 696 . 00 1962 15200 . 00 289 . 75 271 . 75 1, 761. 50 1963 13200. 00 271. 75 253 . 75 1 , 725 . 50 1964 11200. 00 253. 75 232. 75 1 , 686 . 50 1965 12300. 00 232. 75 210. 00 1, 742. 75 1966 13300. 00 210. 00 187. 25 13697. 25 1967 11400. 00 187. 25 162. 75 1, 750 . 00 1968 1 , 400. 00 162. 75 138 . 25 13701. 00 1969 1, 500. 00 138 . 25 112. 00 1, 750. 25 1970 1, 500. 00 112. 00 85 . 75 1, 697. 75 1971 1, 600. 00 85 . 75 57 . 75 1, 743. 50 1972 1, 600 . 00 57. 75 29 . 75 11687. 50 1973 1, 700 . 00 29. 75 1, 729. 75 It shall be the duty of the Treasurer to deposit in the Sewer Revenue Bond Fund of 1953 in the depository for the revenues of said system on the first day of each month aftor the issuance of thc ' bonds herein authorized the respective suns set out above, which are required to be withdrawn from the said net profits and to be paid into the sinking fund. Reserves in tho sinking fund in excess of current principal and interest requirements arc horoby designated as the "Reserve Fund" . YJithdrawals and disbursements may be m de from said reserve fund to meet the payments of interest or principal to whatever extent funds in sinking fund arc insufficient for that purpose, or for mectin3 special and unforeseen emergencies or repair or replacement work which could not have been anticipated or which is essential for the continued operation of the system and for the payment of which there are no other funds available . Provided, however , that if Ydthdrawals are made on said reserve fund that payments into the Sewer Revenue �ond Fund shall be equal to one-fifth of the next interest payment and one-tenth of the next principal payment, until said reserve fund is again equal to one year ' s principal and interest payment in advance at which time payments shall be reduced to one- sixth of t' e next interest requirements and onc-twelfth of the next principal requirements. Section 10 . Nothing in this Ordinance is intended to or shall be construed to impair in any manner or degree the contract of the City with the holders of its Sewer Revenue Bonds of 1946 . Section 11. Nothing in this Ordinance shall be construed to prevent the issuance by the City of additional bonds payable from the revenues of the system to finance or pay the cost of constructing any further extensions , betterments or additions to the system provided, however , that the City shall not authorize or issue any such additional bonds so long as any of the non-redeemable 4% sewer revenue bonds dated November 1, 1935 or any of the bonds issued under the terms of Ordinance No . 892, or any of the bonds of thio series are outstanding, unless the gross revenues derived from the system for the fiscal year then next preceding shall have been sufficient to provide for all costs of operation , repair and maintenance of the system and leave a balance equal to at least 120% of the aggregate of ( a ) the principal and interest payment for such year on total bonds then out- standing ane the fiscal agency ' s charges therefor . (b ) One year ' s interest on the total issue of said additional bonds proposed to be issued, and ( c ) An amount of principal for such additional bonds for one year computed by dividing the total amount of such issue by the number of years to the final maturity date of such bonds. Section 12. The bonds in the principal amount of ,^25, 000. ;,0 shall be delivered to the purchaser upon payment by such purchaser in cash of the face amount of said bonds together with accrued interest on said bonds to the date of delivery and satisfactory proof of the payment of the cost of printing said bonds and the opinion of the approving attorney. The money received for accrued interest shall be paid into the Sewer Revenue Bond Raid of 1953 and the balance shall be deposited in a special fund to be known as Construction Fund Account in a bank in the City of Fayetteville carrying federal deposit insurance , i%hich bank shall give adequate security for said deposit . Funds in the Construction Fund Account shall be used solely for the purpose of paying the cost of the improvements and extensions accord- ing to the plans thereof, which arc now on file, together with the necessary engin- eering , legal and other expenses incidental to such construction, and except for legal and engineering costs and administrative expenses , shall be paid out only on engineers estimates and the depository shall be notified of this requirement. Section 13. For and in consideration of the purchase and acceptance of the bonds authorized by this ordinance and to facilitate their payment , with interest, t1v 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 facil- ities or services afforded by 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 rcvonues derived from the operation of the System; provided, however, that nothing herein shall be construed as requiring the City or any dopartrnnt, ;agency, or instrumentality thereof to av;i l itself of tYn facilities or services afforded by the System. (b) . The City will maintain the System in good condition and operate the sane in an efficient manner and at a reasonable cost . ( c ) . The City Treasurer shall be the custodian of the revenues derived from the System and his present bond shall be so endorsed . ( d) . All revenues from the System shall be deposited in such depository or depositories as may b(, lawfully designated from time to time, subject, however, to the giving of security by each such depository as now or as hereafter may be re- quired , and pm vided 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 sot 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 . ( b ) . The bonds, together with interest thereon, aro 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 Rodd Fund and shall be a valid claim of the holders th^reof only against said Fund , and the amount of the revenues pledged to said Fund, wiah which Fund is hereby pledged for the equal and ratable payrcnt of the bonds issued by authority of this ordinance and shall be used for no other purpose than to pay the principal and interest of the bonds as the same mature, except as provided in this ordinance . ( f) . The System shall be operated upon a fiscal year basis, beginning January 1 of each year and ending and including the following December 31 . ( g ) 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 rnking and collecting of reasonable and. sufficient rates lawfully established for services rendered by the System and applT-ing the revenues thorcfrom to the respective funds horcin crcatcd. ( h) 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 there- from, except as herein provided, and will not sell, lease , or otherwise dispose of any substantial portion of the same. 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 a natter of public record b;, having a certified copy of this ordinance recorded as a mortgage in the office of the Cir- cuit Clerk and Ek-Officio 3ecorder of Jashington County, Arkansas . (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 fails 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 of any of the b :,nds 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 thw bonds . If there be d.,fault in the payment of the principal of or interest on the bonds or if the City shall fail to keep any other obligation which it heroin 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 bondholders , 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 receiver- ship , the payment of the bonds and interest thereon, and for the aymcnt of the operating expenses , and to apply the incomo cnd revenues in conformity with sa' d statutes and this ordinance providing for the issuance of said bonds, but when all defaults arc cured, the receivership shall be ended and the management and control of tho System restored to the City. ( k) The City further covenants andcgroes that if default is made in the pay- mcnt of any bond or coupon, or if the City fats to meet any sinking fund require- nont s, 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 bond- holder for himself may institute suit to enforce the pledge lien herein 3rantcd. The failure to exercise this option upon any default shall not be a waiver of the rijit to exorcise it upon any subsequent default . (1 ) The bonds authorized hereby shall be callable for payment before maturity according to the terms set out in the bond form. (m) McIlroy Bank of Fayetteville , Arkansas is designated as the paying agent and shall receive for their services 25¢ for each 5100. 00 in coupons paid and 122¢ for each 31C0. 00 in bonds paid, provided that the paying agent ' s fee shall not be less than 01. 00 . (n) The City hereby agrees to make all payments on bonds and intcr.;st only through the desigra ted paying agent. All bonds paid or purchased, either at or before maturity, shall be cancelled whon such payment or purchase is made, together with all unmr.tured coupons appertaining thereto , shall be returned to the City, and shall not be reissued . All unpaid interest coupons :aturing on or prior to the date of such payment or purchase shall continue to be payable to the respective bearers thereof . ( 0 ) 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 . (p ) It is hereby declared that tho provisions of this ordinance constitute a contract by and between the City and the holders of the bonds and interest coupons issuod 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.