HomeMy WebLinkAboutOrdinance 2524 �pP r
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FILED FOR RECORD
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1379 I4AY - 8 PN 3: 01
WASHINGTON COUNTY. ARK.
ORDINANCE NO . a5 `G2 ALMA KOLLMEYER
AN ORDINANCE AUTHORIZING THE CONSTRUCTION AND CIRCUIT CLERK
EQUIPIifrIT OF IMPROVEMENTS TO TT E FAYEITEVILLE
MUNICIPAL AIRPORT , DRAKE FIELD ; AUTHORIZING
THE ISSUANCE OF AIRPORT REVENUE BONDS ; PROVIDING
FOR THE SECURITY AND PAYMENT OF THE BODDS ; PRE-
SCRIBING OTHER MATTERS PERTAINING THEftE-i'0 ; AND
DECLARING AN EMERGENCY .
WHEREAS the Fayetteville Municipal Airport , Drake Field
(the "Airport " ) is operated on behalf of and for the mutual benefit
of the City of Fayetteville , Arkansas (the "City " ) and the citizens
and inhabitants thereof , by the City , pursuant to Act No . 175 of the
Acts of Arkansas of 1959 , as amended ; and
WHEREAS upon necessary investigation it has been found by
the Board of Directors of the City that it is necessary and in
the interest of the City that there be constructed and equipped
improvements to the Airport , in view of the increasing and rapid
growth and development of the City and its environs ; and
WHEREAS there has been prepared by a duly qualified
consulting engineer a report and estimates of costs concerning the
proposed improvements , which report and estimates have been studied
by the Board of Directors and a copy of which is on file in the office
of the City Clerk and to which reference may be had by any interested
party ; and
WHEREAS the total estimated cost of the proposed improvements ,
including payment of expenses incidental thereto and to the financing
thereof ( the "improvements " ) is approximately $1 , 200 ,000 ; and
WHEREAS the City can obtain sufficient funds to pay the total
estimated cost of the improvements by the issuance of airport revenue
bonds in the principal amount of $600 , 000 as the City ' s portion of the
cost ; and
WHEREAS the City has entered into a contract for the sale of its
Municipal Airport Revenue Bonds in the aggregate principal amount of $600 , 000 ,
with Payne , Weber , Jackson & Curtis and Powell & Satterfield ( the "purchasers " )
at a purchase price of 98 cents on the dollar for bonds bearing interest at
6 . 60% 5 6 . 70% , 6 . 80% 3 6 . 90% 3 7 . 00% , 7 . 10% 3 7 . 20% and 7 . 25% per annum, as
described in detail hereinafter .
MI�RoA� ED 19,9 '988 280
DATE
REEL�—
y
NOW , THEREFORE , BE IT ORDAI*IED by the Board of Directors
of the City of Fayetteville , Arkansas :
Section 1 . The construction and equipment of the
improvements is hereby authorized .
Section 2 . The sale of the bonds to the purchaser upon
the terms set forth above is hereby approved and confirmed .
Section 3 . To finance the cost of the improvements ,
including costs incidental thereto and incidental to the financing ,
there are hereby authorized and ordered issued City of Fayetteville ,
Arkansas , Municipal Airport Revenue Bonds , Series 1979 , dated
May 1 , 1979 , in the aggregate principal amount of $ 600 , 000
( the " bonds " ) .
The bonds are authorized and issued under the authority
of the Constitution and laws of the State of Arkansas , including
particularly Act No . 175 of 1959 , as amended .
The bonds shall be negotiable coupon bonds , payable to
bearer but shall be subject to registration as to principal or as
to principal and interest . ( References herein to " holders " or " bond-
holders " shall include the registered owners of bonds registered as
tol,, principal or as to principal and interest . ) The bonds shall be
executed on behalf of the City by the Mayor and City Clerk and shall
have impressed thereon the seal of the City . The bonds and the
interest coupons may be executed by the facsimile signature of the
Mayor , which signature shall have the same force and effect as if
he , had manually signed each of the bonds and coupons , and the bonds
shall be executed by the manual signature of the City Clerk ,
Section 4 . The bonds shall not be general obligations
of the City and shall not constitute an indebtedness of the City
within the meaning of any constitutional or statutory . limitation ,
but shall be special obligations , secured by a pledge of and payable
solely from gross revenues derived from the operation of the Airport ,
aspspecified in detail hereinafter in this Ordinance . A sufficient
amount of the revenues derived from the operation of the Airport shall
be set aside and deposited in the " Airport Revenue Bond Fund
988 281
created and to be maintained pursuant to the provisions of this
Ordinance , to pay the principal of , interest on and Paying Agent ' s
fees in connection with the bonds as due and payable . Such pledge
of , gross revenues is subject to the restriction that the City
shall never in any fiscal year be bound beyond an amount that
would , together with other expenditures and contracts of the City
call for a payment or payments in that fiscal year in excess of the
total revenue for the City for that fiscal year , so that the City
shall never at any time by its contract or pledge of gross revenues
and rentals violate the provisions of Amendment No . 10 to the
Constitution of the State of Arkansas .
Section 5 . The bonds will be dated May 1 , 1979 , and interest
on ' the bonds will be payable semiannually on May 1 and November 1
of each year , commencing November 1 , 1979 . The bonds will be
numbered , will bear interest and ( subject to the provisions set
forth hereinafter pertaining to redemption prior to maturity ) shall
mature as set forth in the following schedule :
Year Rate of
November 1 Amount Bond Nos . Interest '
1982 $ 25 , 000 1 - 5 7 . 00 %
1983 25 , 000 6 - 10 7 . 00 %
1984 30 , 000 11 - 16 7 . 00 %
1985 30 , 000 17 - 22 7 . 00 %
1986 35 , 000 23 - 29 7 . 00 %
1987 35 , 000 30 - 36 7 . 00 %
1988 35 , 000 37 - 43 6 . 60 %
1989 40 , 000 44 - 51 6 . 70 %
1990 40 , 000 52 - 59 6 . 80 %
1991 45 , 000 60 - 66 6 . 90 %
1992 45 , 000 69 - 77 7 . 00 %
1993 50 , 000 78 - 87 7 . 00 %
1994 50 , 000 86 - '97 7 . 10 %
1995 55 , 000 98 - 108 . 7 . 20 %
1996 60 , 000 109 - 120 7 . 25 %
Section 6 . The bonds and coupons shall be in substantially
the following form ( and the Mayor and City Clerk are hereby expressly
authorized and directed to make all recitals contained therein ) :
988 28�
I
f f
i
( form of bond )
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
% MUNICIPAL AIRPORT REVENUE BOND ,
SERIES 1979
No : $
KNOW ALL MEN BY THESE PRESENTS :
The City of Fayetteville , Washington County , State of
Arkansas ( the " City " ) , acknowledges itself to owe , and , for value
received , hereby promises to pay to bearer , or if this bond be
registered , to the registered owner hereof , solely from the special
fund provided as hereafter set forth , the principal sum of
DOLLARS
in ' lawful money of the United States of America on the first day
of November , 19_ , and to pay solely from that special fund interest
hereon at the rate of percent ( °s ) per annum , from date
until paid , semiannually on the first days of May and November ,
commencing November 1 , 1979 , upon presentation and surrender o£
the annexed coupons as they severally become '.due . Payment of
principal and payment of interest when evidenced by coupons shall be
at the principal office of ,
Arkansas ( the " Trustee " and " Paying Agent " ) . Payment of interest ,
when registered as to interest , shall be by check or draft mailed
to the registered owner at his address reflected on the registration
book of the City , maintained by the Trustee as Bond Registrar .
This bond is one of an issue of City of Fayetteville ,
Arkansas , Municipal Airport Revenue Bonds , Series 1979 ( the " bonds " ) ,
aggregating in principal amount Six Hundred Thousand Dollars
( $ 600 , 000 ) dated May 1 , 1979 , numbered from one ( 1 ) to one hundred
twenty ( 120 ) , inclusive , all of like tenor and effect except as to
number , denomination , maturity and right of prior redemption , issued
for the purpose of financing a portion of the cost of constructing
and equipping improvements to the Fayetteville . Municipal Airport ,
Drake Field ( the "Airport " ) .
283
The bonds are issued pursuant to and in full compliance
with the Constitution and laws of the State of Arkansas , including
particularly Act No . 175 of the Acts of Arkansas of 1959 , as amended ,
and pursuant to an ordinance of the Board of Directors of the City ,
duly adopted and approved , and do not constitute an indebtedness
of ' the City within any constitutional or statutory limitation . The
bonds are not general obligations of the City but are special
obligations secured by and payable solely from the gross revenues
derived from the operation of the Airport . The bonds are authorized
by and issued under Ordinance No , of the Ordinance of the City ,
duly adopted and approved on the day of 1979
( the " Authorizing Ordinance " ) , to which reference may be made
for' a detailed statement of the terms and conditions upon which the
bonds are issued , of the restrictions and conditions for the
issuance of parity bonds , of the nature and extent of the security ,
and of the rights and obligations of the City , the Trustee and
the bondholders . An amount of the revenues of the Airport sufficient
to'. ' provide for the payment of the principal of , interest on and
Paying Agent ' s fees in connection with the bonds as the same become due
and payable is to be set aside and paid into a special fund , designated
" Airport Revenue Bond Fund , " created by the Authorizing Ordinance .
The City has fixed and has covenanted to maintain rates and charges
for the services and facilities of the Airport which shall be
sufficient at all times to produce revenues adequate in amount
for the proper and reasonable expenses of operation and maintenance
of ' the Airport , to provide for the payment of the principal of ,
interest on and Paying Agent ' s fees in connection with the bonds
as due and payable and to provide for the maintenance of required
reserves , and to make the required deposits for depreciation of
the Airport .
The bonds are subject to redemption prior to maturity ,
at the option . of the City , in whole or in part , with there to be
no , partial redemption of any bond , in inverse numerical order , from
funds from any source , on any interest paying date on and after
988 X84
i r
November 1 , 1989 , at a price of the principal amount of the bonds
being redeemed plus accrued interest to the date of redemption .
Notice of the call for redemption shall be published
one time in a newspaper published in the City of Little Rock ,
Arkansas , and having a general circulation throughout the State
of Arkansas , giving the number and maturity of each bond being
called , with the publication to be at least fifteen ( 15 ) days
prior to the redemption date , and after the date fixed for redemption
each bond so called shall cease to bear interest , provided funds
for its payment are on deposit with the Paying Agent at that time .
In , addition , notice shall be given by certified or registered mail
toithe registered owner of any bond registered as to principal at
the address of such owner reflected on the books of the bond
registrar , and if all outstanding bonds shall be registered as
to principal , then notice by certified or registered mail to the
registered owners thereof as aforesaid shall be sufficient and
itlshall not be necessary to publish notice of the call for
redemption .
This bond may be registered as to principal or as to
principal and interest and 'may be discharged from such registration
in the manner and with the effect and subject to the terms and
conditions endorsed hereon . This bond is issued with the intent
that the laws of the State of Arkansas will govern its construction .
Subject to the provisions for registration endorsed hereon , nothing
contained in this bond or in the Authorizing Ordinance shall affect
orlimpair the negotiability of this bond , and this bond shall be
deemed a negotiable instrument under the laws of the State of
Arkansas ,
This bond shall not be valid until it shall have been
authenticated by the Trustee .
IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all
acts , conditions and things required to exist , happen and be
performed precedent to and in the issuance of the bonds have existed ,
have happened .and have been performed in due time , form and manner
988 285
as required by law ; that the indebtedness represented by the bonds
does not exceed any constitutional or statutory limitation ; and
that a sufficient amount of the revenues derived from the operation
of the Airport has been pledged to and will be set aside into the
Airport Revenue Bond Fund for the payment of the principal of and
interest on the bonds ,
IN WITNESS WHEREOF , the City of Fayetteville , Arkansas ,
by the Board of Directors of the City , has caused this bond to be
signed by the facsimile signature of the Mayor and the manual
signature of the City Clerk and sealed with the corporate seal
of the City , and has caused the coupons hereto attached to be
executed by the facsimile signature of the Mayor , all as of the
first day of May , 1979 ,
CITY OF FAYETTEVILLE , ARKANSAS
ATTEST :
By ( facsimile signature )
Mayor
City Clerk
( SEAL )
d'
988 28
( form of coupon )
No : $
May ,
On the first day of November , 19 _ , the City of
Fayetteville , Arkansas , unless the bond to which this coupon is
attached is paid prior thereto , hereby promises to pay to bearer ,
solely out of the funds specified in the bond to which this
coupon is attached ,
DOLLARS
in lawful money of the United States of America at the principal
office of
Arkansas , being ( ) months ' interest then due on '
its Municipal Airport Revenue Bonds , Series 1979 , dated May 1 ,
1979 , and numbered
CITY OF FAYETTEVILLE , ARKANSAS
By ( facsimile signature )
Mayor
On each bond shall appear the following :
CERTIFICATE OF AUTHENTICATION
Arkansas , hereby
certifies that this is one of an issue of bonds described herein
aggregating $ 600 , 000 , numbered consecutively from one ( 1 ) to one
hundred twenty ( 120 ) , inclusive , all of like tenor and effect except
as to number , denomination , maturity and right of prior redemption .
Arkansas
By
(Authorized Signature )
988 287
PROVISIONS FOR REGISTRATION A14D RECONVERSION
This bond may be registered as to principal on a registration
book of the City , kept by the Trustee as Bond Registrar , upon
presentation hereof to the Bond Registrar , which shall make mention
of ' such registration in the registration blank below , and this
bond may thereafter be transferred only upon an assignment duly
executed by the registered owner or his attorney or legal repre-
sentative in such form as shall be satisfactory to the Bond
Registrar , such transfer to be made on such book and endorsed by
the Bond Registrar . Such transfer may be to bearer , and thereafter
transferability by delivery shall be restored , but this bond shall
again be subject to successive registrations and transfers as
before . The principal of this bond , if registered , unless registered
to bearer , shall be payable only to or upon the order of the
registered owner or his legal representative . Interest accruing
on ', this bond will be paid only on presentation and surrender of
the attached interest coupons as they respectively become due , and
notwithstanding the registration of this bond as to principal , the
appurtenant interest coupons shall remain payable to bearer and
shall continue to be transferable by delivery ; provided , that if
upon registration of this bond , or at any time thereafter while
this bond is registered in the name of the owner , the unmatured
coupons attached evidencing interest to be thereafter paid hereon
shall be surrendered to the Bond Registrar , a statement to that
effect will be endorsed hereon by the Bond Registrar and thereafter
interest evidenced by such surrendered coupons will be paid by
check or draft at the times provided herein to the registered owner
of ', this bond by mail to the address shown on the registration book .
This bond when so converted into a bond registered as to both
principal and interest may be reconverted into a coupon bond at
the written request of the registered owner and upon presentation
at the office of said Bond Registrar . Upon such reconversion the
988 2.88
i
coupons representing the interest to become due thereafter to the
date of maturity will again be attached to this bond and a statement
will be endorsed hereon by the Bond Registrar in the registration
blank below whether it is then registered as to principal or
payable to bearer .
Date of Name of Manner of Signature of Bond
Registration : Registered Owner : Registration : Registrar
988 289
Section 7 . The City covenants that the rates and charges
for the services and facilities of the Airport shall never be reduced
while any of the bonds are outstanding unless there is obtained
from an independent certified public accountant a certificate that
the net revenues of the Airport ( net revenues being defined as gross
revenues less the expenses of operation and maintenance of the
Airport , including all expense items properly attributable to the
operation and maintenance of the Airport under generally accepted
principles of accounting ) with the reduced rates or charges will
always be equal to the amount required to be set aside for the
Depreciation Fund ( established and defined hereinafter ) , and leave
a balance equal to at least 125 % of the aggregate average annual
principal and interest requirements on all outstanding bonds to
the payment of which Airport revenues are pledged . The City further
covenants and agrees that the rates and charges shall when necessary ,
from time to time , be increased in an amount which will produce
revenues at least sufficient to provide for the operation and
maintenance of the Airport and leave a balance equal to at least
the amount necessary for paying principal of and interest when due
on ' all outstanding bonds to the payment of which Airport revenues
are pledged and maintain all funds in connection therewith at
the required levels .
Section 8 . The City covenants that the Airport shall be
continuously operated as a revenue producing undertaking , and all
moneys received from its operation shall be deposited in such
depository or depositories for the City as may be lawfully designated
from time to time by the Board of Directors , subject , however , to
the giving of security as now or as hereafter may be required by
law and provided that such depositories shall hold membership in
the Federal Deposit Insurance Corporation .
Section 9 , Airport Fund . All revenues derived from the
operation of the Airport , including the improvements after their
completion , shall be paid into a special fund , which is hereby
created and designated " Airport Fund " . The revenues in the Airport
Fund are hereby pledged and shall be applied to the payment of the
988 290
principal of and interest on the bonds of this issue , to the payment
of the reasonable and necessary expenses of operation and maintenance
of the Airport , to the providing of the Depreciation Fund , and
otherwise as in this Ordinance expressly authorized .
Section 10 , Airport Revenue Bond Fund . ( a ) There shall
be paid from the Airport Fund into a special fund which is hereby
created and designated "Airport Revenue Bond Fund " ( the " Bond
Fund " ) the sums in the amounts and at the times hereinafter stated
in ' subsection (b ) for the purpose of providing funds for the payment
of the principal of and interest on the bonds and the Paying
Agent ' s fees , as they mature according to the following schedule
and as a debt service reserve :
Year Bond Interest
(N6v . 1 ) Nos . Principal May 1 November 1 .. Total
1982 1 - 5 $ 25 , 000 $ 20 , 963 $ 20 , 963 $ 66 , 926
1983 6 - 10 25 , 000 20 , 088 20 , 088 65, 176
1984 11 - 16 30 , 000 19 , 213 19 , 213. 68 , 426
1985 17 - 22 30 , 000 18 , 163 18 , 163 66 , 326
1986 23 - 29 35 , 000 17 , 113 17 , 113 69 , 226
1987 30 - 36 35 , 000 15 , 888 15 , 888 66 , 776
1988 37 - 43 35 , 000 14 , 663 14 , 663 64 , 326
1989 44 - 51 40 , 000 13 , 508 13 , 508 67 , 016
1990 52 - 59 40 , 000 12 , 168 12 , 168 64 , 336
1991 60 - 68 45 , 000 10 , 808 10 , 808 66 , 616
1992 69 - 77 45 , 000 9 , 255 91255 63 , 510
1993 78 - 87 50 , 000 7 , 680 7 , 680 65 , 360
1994 88 - 97 50 , 000 51930 5 , 930 61 , 860
1995 98 - 108 55 , 000 4 , 155 4 ;. 155 63 , 310
1996 109 - 120 60 , 000 21175 21175 64 , 350
(b ) There shall be paid into the Bond Fund on the first
business day of each month until all outstanding bonds of this issue
with interest thereon have been paid in full or provision made for
such payment , a sum equal to one- fifth ( 1/ 5 ) of the next installment
of interest and one- tenth ( 1/ 10 ) of the next installment of prinicpal
(plus any additional amount that may be necessary together with
accrued interest received at the time of the delivery of the bonds
fully to provide for the first interest payment on the bonds , if
any additional amount be required ) , and an amount sufficient to
provide for the Paying Agent ' s fees , on all outstanding bonds ,
until a debt service reserve shall have been accumulated in the
amount of $ 69 , 500 . .. 1 When the debt service reserve has been
accumulated in the required amount , the monthly payments into the
988 291
Bond Fund may be reduced to one -sixth (1/6) of the next installment
of interest and one -twelfth (1/12)•of the next installment of
principal; respectively, and an amount sufficient to provide
for the Paying Agent's fees, but if the debt service reserve is ever
reduced below the required level, the payments of one -fifth and
one -tenth, respectively, and an amount sufficient to provide for
the Paying Agent's fees, shall be resumed until the debt service
reserve is restored to the required level.
(c) If the revenues of the Airport are insufficient
to make the required payment on the first business day of the
following month into the Bond Fund, then the amount of any such
deficiency in the payment made shall be added to the amount other-
wise required to be paid into the Bond Fund on the first business
day of the next month.
(d) If for any reason there shall be a deficiency in the
payments made into the Bond Fund so that there are unavailable
sufficient moneys therein to pay the principal of, interest on
and Paying Agent's fees in connection with the bonds as the same
become due, any sums then held in the debt service reserve shall be
used to the extent necessary to pay the principal of, interest on
and Paying Agent's fees in connection with the bonds, but such
reserve shall be reimbursed in th'e.amount of any such payment as
above provided. The debt service reserve shall be used solely as
herein provided, but the moneys therein may be invested as hereinafter
provided.
(e) When the moneys held in the Bond Fund, including the
debt service reserve, shall be and remain sufficient to pay the
principal of and interest on all bonds then outstanding and the
Paying Agent's fees, there shall be no obligation to make any
further payments into the Bond Fund.
(f) All moneys in the Bond Fund shall be used solely
for the purpose of paying the principal of and interest on the
bonds and the Paying Agent's fees, except as herein specifically
provided. If a surplus shall exist in the Bond Fund over and
above the amount required for making all principal and interest
988 292
payments when due and paying the Paying Agent's fees and over and
above the debt service reserve after it has been established, such
surplus may be applied only to the payment of the principal of
and interest on any bonds that may be called for redemption prior
to maturity or for the construction or equipment of improvements
to the Airport.
(g) There shall be withdrawn from the Bond Fund at least
ten (10) days before the due date of any bond or interest coupon
hereunder, at maturity or redemption prior to maturity, and
deposited with the Paying Agent, an amount equal to the amount of
such bond or coupon for the sole purpose of paying the same, together
with the Paying Agent's fee, and no withdrawal of funds from the
Bond Fund shall be made for any other purpose except as otherwise
authorized in this Ordinance.
(h) The bonds of this issue shall be specifically
secured by a pledge of all the revenues required to be placed into
the Bond Fund. The pledge in favor of the bonds is hereby
irrevocably made according to the terms of this Ordinance, and
the City and its officers and employees shall execute, perform
and carry out the terms thereof in strict conformity with the
provisions of this Ordinance.
Section 11. Airport Operation and Maintenance Fund. After
making the payments into the Airport Revenue Bond Fund there shall
be 'paid from the Airport Fund into a fund which is hereby created
and designated "Airport Operation and Maintenance Fund"("Operation
and Maintenance Fund"), on the first business day of each month
an!amount sufficient to pay the reasonable and necessary monthly
expenses of operation, repair and maintenance of the Airport for
such
month and
from which disbursements shall
be made only for
those
purposes.
Fixed annual charges such as
insurance premiums
and the cost of major repair and maintenance expenses may be computed
and set
up
on
an annual
basis,
and one -twelfth (1/12)
of the
amount
thereof
may
be
paid into
the
Operation and Maintenance
Fund
each
month.
988 293
• 1 1 1
If in any month for any reason there shall be a failure
toItransfer and pay the required amount into the Operation and
Maintenance Fund, the amount of any deficiency shall be added to the
amount otherwise required to be transferred and paid into the Operation
and Maintenance Fund in the next succeeding month. If in any fiscal
year a surplus shall be accumulated in the Operation and Maintenance
Fund over and above the amount which shall be necessary to defray
the reasonable and necessary cost of operation, repair and maintenance
of 'the Airport during the remainder of the then current fiscal year
and the next ensuing fiscal year, such surplus shall be transferred
and deposited in the Airport Fund.
Section 12. Airport Depreciation Fund. After making the
required payments into the Bond Fund and into the Operation and
Maintenance Fund, there shall be paid from the Airport Fund into
a fund designated "Airport Depreciation Fund" ("Depreciation Fund"),
on,the first business day of each month while any of the bonds
of this issue are outstanding, an amount equal to two percent of
the gross revenues of the Airport for the preceding month, to
provide for the depreciation of the Airport, except that moneys
inl'Ithe Depreciation Fund shall be used to the extent necessary
at!any time to prevent the default in the payment of principal,
interest and Paying Agent's fees.
If in any fiscal year a surplus shall be accumulated in
the Depreciation Fund over and above the amount necessary to defray
the cost of the probable replacements during the then current fiscal
year, and the next ensuing fiscal year, such surplus may be
transferred to the Airport Fund.
Section 13. Any surplus in the Airport Fund after making
all disbursements
and
deposits
required
by
the provisions
of this
Ordinance may be
used,
at the
option of
the
City, for the
redemption
of bonds prior to
maturity in
accordance with
the redemption
provisions herein
set forth,
for extensions,
betterments and
improvements to the Airport, or for any other lawful municipal purpose.
ra 988 294
Section 14. The City hereby agrees that all payments on
the bonds and interest shall be made only as provided herein. All
bonds paid or purchased either at or before maturity shall be cancelled
when such payment or purchase is made, together with all unmatured
coupons maturing on or prior to the date of such payment or purchase
shall continue to be payable to the respective holders thereof.
Section 15. As long as any of the bonds authorized and
issued under and pursuant to the provisions of this Ordinance are
outstanding, the City shall not issue or attempt to issue any bonds
claimed to be entitled to a priority of lien on the revenues of the
Airport over the lien
securing
the
bonds of
this issue, including
the herein authorized
and any
and
all future
improvements.
Nothing in this Ordinance shall be construed to prevent
the issuance by the City of additional bonds to finance or pay the
cost of constructing any future improvements to the Airport; provided,
however, the City shall not authorize or issue any such additional
bonds payable from the revenues derived from the operation of the
Airport and ranking on a parity of security with these bonds unless
and until there shall have been procured and filed with the City
Clerk and the Trustee a statement by an independent certified
public accountant not in the regular employ of the City reciting
the opinion based upon necessary investigation that the amount of
the average net annual revenues of the Airport for the last completed
fiscal year, plus the amount of any increase in the net annual
revenues estimated to be derived, during the next succeeding fiscal
year, from the proposed improvements and any increase in the net
annual revenues estimated to be derived, during the next succeeding
fiscal year, from an increase in the rates and charges to be charged
for the services and facilities of the Airport will be equal to at
least 150% of the average annual debt service (principal, interest
and Paying Agent's fees) for all the bonds then outstanding, and the
bonds then proposed to he issued. "Net annual revenues" are defined
as gross revenues less operating expenses, which shall include
salaries, wages, cost of maintenance and operation, materials and
supplies, and insurance, as well as all other items as are normally,
regularly included under recognized accounting pro ces.- c�r•
J
I
Notwithstanding the above, the City may issue additional
bonds in an aggregate principal amount of up to $150,000, ranking
onia parity of security with these bonds for the purpose of
completing the improvements contemplated by this Ordinance (the
"conpletion bonds"), if the net annual revenues of the Airport
for the last completed fiscal year are equal to at least 100%
of, the average annual debt service on the completion bonds.
In making the statement provided for by this Section,
the certified public accountant may rely upon the written opinion
of an independent qualified consulting engineer, not in the regular
employ of the City, as to the net annual revenues of the Airport
(including the proposed improvements, and taking into account any
adjustment in the rates and charges to be charged for the services
and facilities of the Airport) for the next ensuing fiscal year.
The City reserves the right to issue bonds or other
obligations the security and source of payment of which is subordinate
to'the pledge of revenues to these bonds, without regard to the
restrictions set forth in this Section.
Section 16. It is covenanted by the City with the holders
of 'the bonds, or any of them, that the City will faithfully and
punctually perform all duties with reference to the Airport required
bylthe Constitution and laws of the State of Arkansas, including
the charging and collecting of reasonable and sufficient rates
and charges as herein specified, lawfully established for services
of, the Airport, the segregating of the revenues of the Airport
as herein required and the applying of such revenues to the respective
funds herein created and referred to.
Section 17. The bonds shall be subject to redemption
proir
to maturity
in accordance
with the terms set out in the bond
form.
Section
18. The City
will keep proper books of accounts
and records
(separate from all other records
and accounts) in which
complete and
correct entries
shall be made of
all transactions
relating to
the operation of
the Airport, and
such books shall be
E' 988 296
J•
available
for inspection by
the holder
of any of the
bonds
at
reasonable
times and under
reasonable
circumstances.
The
City agrees
to have these records audited by an independent certified public
accountant at least once each year, and a copy of the audit shall
beidelivered to the Trustee and made available to interested
holders of. the bonds. In the event the City fails or refuses
to make the audit, the Trustee, or any holder of the bonds, may
have the audit made, and the cost thereof shall be charged against
the Operation and Maintenance Fund.
Section 19. The City covenants and agrees that it will
maintain the Airport in good condition and operate the same in an
efficient manner and at reasonable cost. While any bonds authorized
hereby are outstanding, the City agrees that it will insure and
at all times keep insured, in the amount of the actual value
thereof, in a responsible insurance company or companies authorized
and qualified under the laws of the State of Arkansas to assume
the risk thereof, properties of the Airport to the extent that
such properties would be covered by insurance by private companies
engaged in similar types of businesses, against loss or damage
thereto from fire, lightning, tornado, winds, riot, strike, civil
commotion, malicious damage, explosion, and against loss or damage
from any other causes customarily insured against by private
companies engaged in similar types of businesses. The insurance
i
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,
and are
either to be
placed
in the
custody
of,the Trustee or satisfactory evidence of said insurance shall be
filed with the Trustee. In the event of loss, the proceeds of
such insurance shall be applied solely toward the reconstruction,
replacement or repair of the Airport, and in such event the City
will, with reasonable promptness, cause to be commenced and completed
the reconstruction, replacement or repair work. If such proceeds
are more than sufficient for such purposes, the balance remaining
shall be deposited to the credit of the Airport Fund and if such
EJ1 988 297
proceeds shall be insufficient for such purposes, the deficiency
shall be supplied, first,
from
moneys in
the
Depreciation
Fund,
and second, from moneys
in
the
Operation
and
Maintenance
Fund, and
third, from surplus moneys in the Airport Fund. Nothing herein
shall be construed as requiring the City to expend any funds for
operation and maintenance of the Airport or for premiums on its
insurance which are derived from sources other than the operation
of'the Airport, but nothing herein shall be construed as preventing
the City from doing so.
Section 20. The City covenants that so long as any bonds
authorized hereby are outstanding, it will not mortgage, pledge
or' otherwise encumber the Airport, or any part thereof, or any
revenues derived from the operation thereof, except as herein
specifically provided, and will not sell or otherwise dispose of
any substantial portion of the same.
Section 21. (a) (i) The provisions of this Ordinance
constitute a contract between the City and the holders of any of
the outstanding
bonds. If
there
be
any
default
in the payment
of the
principal of or
interest on
any
of
the
bonds of
this issue, or
if
the City defaults in any Bond Fund requirements or in the performance
oflany of the other covenants contained and set forth in this
Ordinance, the Trustee may, and upon the written request of the
holders of not less than ten percent in principal amount of the
bonds then outstanding shall, by proper suit, compel the performance
of the duties of the officials of the City under the laws of
Arkansas.
(ii) If there be any default in the payment of principal
ofior interest on any of the bonds, the Trustee may, and upon the
written request of the holders of not less than ten percent in
principal amount of the bonds then outstanding shall, declare the
entire principal amount of the bonds outstanding to be immediately
due and payable.
r,,� 9SS (tib
(b) No holder of any of the outstanding bonds of this
issue shall have any right to institute any suit, action, mandamus
orotherproceedings in equity or at law for the protection or
enforcement of any right under this Ordinance or under the laws
of Arkansas unless such holder previously shall have given to the
Trustee written notice of the default on account of which such suit,
action or proceeding is to be taken, and unless the holders of not
less than ten percent in principal amount of the bonds then out-
standing shall have made written request of the Trustee after the
right to exercise such powers or right of action, as the case may
be, shall have accrued, and shall have afforded the Trustee a
reasonable opportunity either to proceed to exercise the powers
herein granted or granted by the laws of Arkansas, or to institute
such action, suit or proceedings in its name, and unless, also, there
shall have been offered to the Trustee reasonable security and
indemnity against the costs, expenses and liabilities to be incurred
therein or thereby and the Trustee shall have refused or neglected
to comply with such request within a reasonable time, and such
notification, request and offer of indemnity are hereby declared
in every such case, at the option of the Trustee, to be conditions
precedent to the execution of the powers and trusts of this
Ordinance or to any other remedy hereunder. It is understood and
intended that
no one
or
more
holders of the
bonds
hereby secured
shall have any
right
in
any
manner whatever
by his
or their action
to affect, disturb or prejudice the security of this Ordinance,
or to enforce any right hereunder except in the manner herein
provided, that all proceedings at law or in equity shall be
instituted, had and maintained in the manner herein provided and
for the benefit of all holders of the outstanding bonds and coupons,
and
that any
individual rights
of action or other
right given to
one
or more
of such holders by
law are restricted
by this Ordinance
to the rights and remedies herein provided.
LVtJ0SS 299
(c) All rights of action under this Ordinance or under
any of the bonds secured hereby, enforceable by the Trustee, may
be enforced by it without the possession of any of the bonds or
coupons appertaining thereto, and any such suit, action or proceedings
instituted by the Trustee shall be brought in its name for the benefit
of all the holders of such bonds and coupons, subject to the
provisions of this Ordinance.
(d) No remedy herein conferred upon or reserved to the
Trustee or to the holders of the bonds is intended to be exclusive
of any other remedy or remedies herein provided, and each and every
such remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or given by any other law.
(e) No delay or omission of the Trustee or of any holders
of the bonds to exercise any right or power accrued upon any default
shall impair any such right or power or shall be construed to be
a waiver of any such default or any acquiescence therein; and
every power and remedy given by this Ordinance to the Trustee and
to the holders of the bonds, respectively, may be exercised from
time to time and as often as may be deemed expedient.
(f) The Trustee may, and upon the written request of the
holders of not less than ten percent in principal amount of the
bonds
then outstanding shall,
waive any
default which shall
have
been
remedied before the entry
of final
judgment or decree
in any
suit, action or proceedings instituted under the provisions of
this Ordinance or before the completion of the enforcement of any
other remedy, but no such waiver shall extend to or affect any other
existing or any subsequent default or defaults or impair any rights
or remedies consequent thereon.
Section 22. The City covenants that it will take no
action or suffer or
permit
any
action to be
taken or
condition to
exist which causes
or may
cause
the interest
payable
on the bonds
to be subject to federal income taxation. Without limiting the
generality of the foregoing, the City and the Trustee covenant
that the proceeds of the sale of the bonds will not be used directly
r 85 300
or indirectly in such manner as to cause the bonds to be treated
as, "arbitrage bonds" within the meaning of Section 103(c) of the
Internal Revenue Code.
Section 23. When the bonds have been executed and the
seal of the City impressed thereon, they shall be delivered to the
Trustee and the Trustee shall authenticate them and deliver them
to the purchasers
upon payment in cash
of the purchase
price
of
$ 588,000
plus
accrued interest from
the date of the
bonds
to the
date of
delivery
("total sale proceeds").
The Trustee
shall
handle
the total sale proceeds as follows:
(1)
Deposit
the accrued interest in
the
Bond
Fund.
(2)
Pay the
expenses incidental to
sale
and
issuance of
the bonds as instructed by a Letter of Delivery Instructions
signed by the Mayor.
(3) The balance of the total sale proceeds shall be
deposited in a special account in the name of the City designated
"Airport Construction Fund" ("Construction Fund") which shall be
established and maintained in a bank that is a member of the Federal
Deposit Insurance Corporation. The moneys in the Construction Fund
in excess of the amount insured by the Federal Deposit Insurance
Corporation shall be continuously secured by bonds or other direct
or fully guaranteed obligations of the United States of America,
except that any moneys invested as hereafter authorized need not be
so secured. The moneys in the Construction Fund shall be disbursed
solely
in payment
of the
costs of accomplishing,
the improvements,
paying
necessary
expenses
incidental thereto and
paying expenses
of 'issuing the bonds not paid by the purchasers. Disbursements
shall be on the basis of checks or requisitions which shall contain
atileast the following information: the person to whom payment
is being
made; the amount
of
the payment; and
the
purpose by
general
classification of
the
payment. Each
check
or requisition
must be signed by the individual occupying the top managerial
position of the Airport, and in the case of all items of expense
@88 3( 11
over which the Consulting Engineers shall exercise supervision
(which shall include all expenses except engineering fee, legal
fees,
and
expenses pertaining
to the issuance
of the bonds)
each
check
or
requisition shall be
accompanied by
a certificate
signed
by,the Consulting Engineers (or by a representative thereof
designated by the Consulting Engineers) certifying approval thereof.
In'the case of requisitions, the depository shall issue its check
upon the Construction Fund payable to the person, firm or corporation
designated in the requisition. The depository of the Construction
Fund shall be required to keep records as to all payments made on
the basis of checks.
I When the improvements have been completed and all required
expenses paid and expenditures made from the Construction Fund for
and in connection with the accomplishment of the improvements and
the financing thereof, this fact shall be evidenced by a certificate
signed by the person occupying the top managerial position of the
Airport and by the Consulting Engineers, which certificate shall
state, among other things, the date of the completion and that all
obligations payable from the Construction Fund have been discharged.
A copy of the certificate shall be filed with the Trustee, and upon
receipt thereof the Trustee shall transfer any remaining balance
in the Construction Fund to the Bond Fund.
Section 24. (a) Moneys held for the credit of the
debt service reserve in the Bond Fund shall be continuously invested
and reinvested pursuant to the direction of the City in direct
obligations of, or obligations the principal of and interest on
which are unconditionally guaranteed by, the United States
Government, which shall mature, or which shall be subject to
redemption by the holder thereof, at the option of such holder, not
later than ten (10) years after the date of such investment.
(b) Moneys held for the credit of the Construction Fund
may, at the option of the City, be invested and reinvested pursuant
to the direction of the City in direct obligations of, or obligations
the principal of and interest on which are unconditionally guaranteed
c cv 988 302
by, the United States Government and which shall be subject to
redemption by the holder thereof, at the option of such holder,
not later than the date or dates when the money held for the credit
of the particular funds will be required for the purposes intended.
(c) Moneys held for the credit of any other fund may,
at the option of the City, he invested and reinvested pursuant to
the direction of the City in direct obligations of, or obligations
the principal of and interest on which, are unconditionally
guaranteed by, the United States Government, which shall mature, or
which shall be subject to redemption by the holder thereof, at the
option of such holder, not later than the date or dates when the
moneys held for the credit of the particular funds will be required
for the purposes intended.
(d) Obligations so purchased as in investment of moneys
in any such funds shall be deemed at all times to be a part of
such fund and the interest accruing' thereon and any profit realized
from such investment shall be credited to such fund, and any loss
resulting from such investment shall be charged to such fund, except
that earnings on investments of moneys in the debt service reserve
which increase the amount thereof above the required level may,
to the extent of any such excess, be transferred from time to time
out of the debt service reserve into the Bond Fund.
Section 25. In the event the office of Mayor, City Clerk -
Treasurer, Airport Manager or Board of Directors shall be abolished,
or any two or more of such offices shall be merged or consolidated,
or, in the event the duties of a particular office shall be transferred
toIanother office or officer, or in the event of a vacancy in any
such office by reason of death, resignation, removal from office
orIotherwise, or in the event any such officer shall become
incapable of performing the duties of his office by reason of
sickness, absence from the City or otherwise, all powers conferred
and all obligations and duties imposed upon such office or officer
shall be performed by the office or officer succeeding to the
principal functions thereof, or by the office or officer upon
whom such powers, obligations shall be imposed by law.
988 ")0:3
Section 26. The provisions of this Ordinance shall
constitute a binding contract between the City and the holders of
the outstanding bonds and coupons issued hereunder, and the City
will at all times strictly adhere to the terms and provisions hereof
and fully discharge all of its obligations hereunder. Subject to
the terms and provisions contained in this Section and not otherwise,
the holders of not less than seventy-five percent (75%) in aggregate
principal amount of the bonds then outstanding shall have the right,
from time to time, anything contained in this Ordinance to the
contrary notwithstanding, to consent to and approve the adoption
by'the City of such ordinance supplemental hereto as shall be
necessary or desirable for the purpose of modifying, altering,
amending, adding to or rescinding, in any particular, any of the
terms or provisions contained in this Ordinance or in any supplemental
ordinance; provided, however, that nothing herein contained shall
permit or be construed as permitting (a) an extension of the
maturity of the principal of or the interest on any bond issued
hereunder, or (b) a reduction in the principal amount of any bond
or the rate of interest therein, or (c) the creation of a lien
upon or a pledge of revenues other than as expressly authorized by
the appropriate provisions of this Ordinance as now adopted, or
(d), the creation of a privilege of priority of any bond or bonds
over any other bond or bonds, or (e) a reduction in the aggregate
principal amount of the bonds required for consent to such
supplemental ordinance.
Section 27. The Mayor is hereby directed to publish
this Ordinance for one insertion in a newspaper published in the
City and of general circulation therein.
Section 28. The Trustee shall only be responsible for
the exercise of good faith and reasonable prudence in the execution
of its trusts. The recitals in this Ordinance and in the face of
the bonds are the recitals of the City and not of the Trustee.
The Trustee shall not
be
required to
take
any
action as
Trustee
unless it shall have
been
requested
to do
so
in writing
by the
988 304
holders of not less than 10% in principal amount of the bonds of
this issue then outstanding and shall have been offered reasonable
security and indemnity against the costs, expenses and liabilities to
be incurred therein or thereby. The Trustee may resign at any time
by ten (10) days' notice in writing to the City Clerk and the majority
in principal amount of the holders of the outstanding bonds of this
issue may appoint a new Trustee, such appointment to be evidenced by
a written instrument or instruments filed with the City Clerk. If the
majority in gincipal amount of the outstanding bonds of this issue fail
to fill a vacancy within thirty (30) days after the same shall occur,
then the City shall forthwith designate a new Trustee by a written instru-
went filed in the office of the City Clerk. The original Trustee and any
successor Trustee shall file a written acceptance and agreementuto
execute the trust imposed upon it or them by this Ordinance, but only
upon the terms and conditions set forth in this Ordinance and and subject
to the provisions of this Ordinance, to all of which the respective
holders of the bonds agree. Such written acceptance shall be filed
with the City Clerk and a copy thereof shall be placed in the bond transcript.
Any successor Trustee shall have all the powers herein granted to the
original Trustee. In the event of a change in the office of the
Trustee, the old Trustee which has resigned or been removed shall cease
to be Paying Agent.
Section 29. The provisions of this Ordinance are hereby
declared to be severable and if any provision shall for any reason be
held illegal or invalid, such holding shall not affect the validity
of the remainder of the Ordinance.
Section 30. It is hereby ascertained and declared that the
improvements must be accomplished as soon as possible in order to make
the Airport adequate for the needs of the City and its inhabitants,
without which the life, health, safety and welfare thereof are jeopardized,
and the issuance of the bonds and the taking of the other action authorized
by this Ordinance are necessary for the accomplishment thereof. It is,
therefore, declared that an emergency exists and this Ordinance being
cn
ttcI 988 305
e
necessary for the immediate preservation of the public peace, health
and safety shall take effect and be in force from and after its
passage.
PASSED: April 17 , 1979.
ATTEST:
City Clerk
• N w
�na.l
APPROVED: ^•
BY:{ �v��
Mayor
ffl988
CERTIFICATE
STATE OF ARKANSAS
COUNTY OF WASHINGTON
The undersigned, City Clerk of the City of Fayetteville,
Arkansas, hereby certifies that the foregoing pages are a true and
compared copy of an Ordinance passed at a parupow/ session of
the Board of Directors held at the regular meeting place of the
Board in the City at %.3Q p.m. on the / �'3ay of April, 1979,
and that the Ordinance is of record in Ordinance Record Book No.
Vim, Page __________, now in my possession.
GIVEN under my hand and seal this // day of April, 1979.
City Clerk
'tvs •Ai =
i Aa
I }i
CERTIFICATE OF RECORD
State of Arkansts ( SS
City of i :ryCfeiile
I, Suzanne C. Ken 1y, City Clerk and
E!c-Officio reecr le:• f;;r the City :.f Fayetteville,
do hereh..- cvr`ify ti:t `.hc ain ,-o I or fore-
going is of record in my offico •r'd Cc s-ima ap-
pears in Ordinance & Resolution book
y I 1 at Witness my
hand and seal this_.__.day of
City Clerk and Ex-OLficia ::ecordor
CERTIFICATE OF RECORD
I ATE OF ARKANSAS 1 SS.
Washington County
I, Alma L. Kollrneyer, Circuit Clerk and Ex -Officio Recorder for
Washington County, do hereby certify that the annexed or fore-
going i s ument was filed for record in my office on the X day
of ' M a bto'clock-FLPA and thesamee is
duly recorded in record at pagd7
Witness my hand and seal day of 1913
ircuit Clerk and
x-Offici Re .orded'
By
I Deouty Clerk
ct 888 31,
auCTION
ROVEMENTS�EQUIPMENT
TO THEPAYET-
ILLE MUNICIPAL AIRPORT,
E MELD: AUTHORIAIRPORT SING THE
REVENUE
CE orE
Y
NDS. pPAYMENT FOR THE BONDS -
AND PAYMENT OF THE BONDS;
%INGSB18ING OTHER MATTERS ING
EMER ENCYtty AND DECLARING
w'14ERE.AS the Fayetteville Municipal
r
Drake Field )the "Airport") u
taed on behalf of and for the mutual
it of the City of Fayetteville, Arkaw
stl Ithe "City") and the citizens and In'
asbtlant thereof, by the City, pursuant to
Azi ,No. 175 of the Acts of Arkansas of 1969,
amended and
WHEREAS upon necessary investigation
it has been hound by the hoard of Director.
of the City that ills iwcesury and In the in -
of the City that there be contracted
and equipped improvements to the Airport,
in view of the increasing and rapid growth
and development of the City and tat ere
virona: ale
WHEREAS then has been prepared by a
duly qualified consulting engineer a report
and estimates of costa concerning the pro-
posed improvement, which report and
estimates have been studied by the Board
of frs and a copy of which is on rile in
the office of the City Clerk and to which
reference may be had by any interested
party: end
WHEREAS the total estimated coat of
the proposed improvement. Including pay-
mmii of expenses incidental thereto and to
the :financing thereof tthe ^Im-
provetnent"t is approximately 51,100,000:
and i
• WHEREAS the City can obtain sufficient
undo to pay the total estimated cat of the
enprovements by the tuuance of airport
rerenlae bonds in the principal amount of
rru the City's portion d the cal:
i. LREAS the City has entered into a
hnlead for the sale of it Municipal Air-
gmt Revenue Bonds in the aggregate prlo-
.cipa amount of 5)/10,001. with Payne,
Weber, Jackson & Curtis and Powell & Sat.
Mallard (the "purchasers"l at a purchase
of a cents on the dollar for bonds
• sing latent at 6,60%. 6.70%, 6.90%,
7.s0%. 7.10%, 7.2 % and 7.25% per annum,
a described in detail hereinafter.
' POW.THEREFORE, BE ITORDAINED
pthe Board of Directors of the City of
Aleville. Arkansas:
top 1. The conatwetion and equip
Slip of the improvements is hereby
MTh,sed.
San 2. The note of the bonds to the
upon the terms set forth above is
approved and confirmed.
PettMq I. To finance the cost of the Im-
neNs, Including cost incidental
aad Incidental to the financing,
signs hereby authorized and ordered
' qty of Fayetteville, Arkansas,
Airport Revenue Bonds, Series
dated May 1, 1979. in the aggregate
ipalamount o(Moot00 (the 'bonds').
Tb bonds are authorized and issued
edit the authority of the Constitution and
o(IEe State of Arkansas, including
itc4MIy Act No, in of 1959, as amend-
.iSs binds shall be negotiable coupon
• payable to beam but shall be sub -
to regutratuta as to principal or as to
I and Interest. IReferences herein
'. or •'bo dholdeis" shall In -
registered owners of bonds
u to principal or as to principal
mat. n The bads shall be executed
Harm of bond I
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OFWASHI,NGTON
CITY OF FAYETTEVILLE
—% MUNICIPAL AIRPORT
REVINLE BOND.
SRIIIES 1171
No.--
KNOW ALL MEN BY THESE
PRESENTS
The City of Fayetteville. Washingtas
County. State of Arkansas the ''City'),'
acknowledges itself to owe, and, for value
received, hereby promises to pay to
bearer, or 1f this bond be registered, to the
registered owner hereof, solely from the
special fund provided as hereafter set
forth, the principal sum of
--DOLLARS in lawful money of the
United States of America on the first day of
November, 19—, and to pay solely from
that special fund interest hereon at the rate
of — percent I %) per annum, from date
until paid, semiannually on the first days of
May and November, commencin((
November I, 1979. upon presentation anO
surrender of the annexed coupons as they
severally become due. Payment of Prim
cipal and payment of Interest whe
evidenced by coupons shall be at the pries:
cipal office of Arkansas uh
'trustee'' and "Paying Agent''). Paymen
of interest, when registered as to inter"
shall be by check or draft mailed to to
registered owner at his address reflected
on the registration book of the City, main-
tained by the Trustee as Bond Registrar,
'This bond is one of an Issue of City of
Fayetteville, Arkansas, Municipal Airport
Revenue Bonds, Seri" 1919 (the 'bonds".
aggregating in the principal amount Six
Hundred Thousand Dollars ($6011,000) dated
May 1, 1979, numbered from one 11) to one
hundred twenty 1110), indleave, all of like
tenor and effect except as to number.
denomination, maturity and right of prior
redemption, issued for the purpose of
financing a portion of the east of construc-
tion and equipping improvements to the
Fayetteville Municipal Airport, Drake
Field ( the "Airport'').
The bonds are issued pursuant to and in
full compliance with the Constitution and
laws of the State of Arkansas, including
particularly Act No. In of the Acts of
Arkansas of 1950, as amended, and par
want to an ordinance of the Board of Duet -
tots of the City, duly adopted and approv-
ed, and do not constitute an indebtedness
the City within any constitutional
statutory limitation. The bonds are 4
general obligations of the City but art
special obligations secured by and payable
solely from the gross revenues derived
from the operation of the Airport. The
bonds are authorized by and issued non Or-
dinance No. — of the Ordinance of the City,
duly adopted and approved on the — day of
—, 1979 (the 'Authorizing Ordinance"), to
which reference may be made for a detail-
ed statement of the terms and conditions
upon which the bonds are issued, of the
restrictions and conditions for the issuance
of parity bonds, of the nature and extent of
the security, and of the rights and oblige'
tions of the City, the Trustee and the bon-
dholders. An amount of the revenues of tie
Airport sufficient to provide for the pay-
ment of the principal of, interest on and
Paying Agent's fees to connection with the
bonds as the same become due and payatee
is to be set wide and paid into a special
fund, designated "Airport Revenue Rood
Fund." created by the Authorizing lb.
dinance. The City has fixed and has
covenanted to maintain rates and charges
man have Impressed thereon the
which shall be sufficient at all times to pr
tlM CityThe bonds and the interest
duct revenues adequate in amount for the
jisy be executed by the facsimile
proper and reasonable expenses of opera.
lion the
the Maya', v'lch signature
and maintenance of Airport, to pro-
r the same face and effect as If
vide for the payment of the principal of. in -
5y molly signed each of the bows
Iciest on and Paying Agent's fees in coo -
and the !aids Heft be ex.
Donlan with the bonds as due and payable
b the memot signature w ate city
and to provide for the maintenance of re-
_
qutred reserves, and to make the required
4. T'Ie bads shall not be ge. rsl
deposits
for depreciation of the Airport.
M the City and shall not roe
The
bonds are subject to redemption
iegsbtednea of the City within
prior to maturity, at the option of the City.
M my constitutional or
in whole or in part, with there to be no par-
Im MUne, but shall be special
)sal redemption of any bond, in inverse
aetwd by a pledge of and
numerical order, from funds from any
Ina poll revenues detiv-
amnce. on any interest paying date on and
Yls aapprY��tine a1 the Airport, as
after November 1. 1969, at a price of the
10 Oda bsnlnaftse from the
principal amount of the bonds being
if the Airport shell be set wide
redeemed plus accrued interest to the date
Y the Airport Revenue
of redemption.
seeded mad M M malntuned
Notice of the call fur redemption shall be
M IM Pro'hlots of Nt Or
published one time in a newspaper publiu-
psf tap FhK4pal oj: Mutest ee
id in the City of Little Rock, Arkansas. giv-
AMK) Wt ioetmeeµon with
big the number and maturity of each bond
dal W "Yale Lira pkdga
being called, with the publication to be at
be —_es S ' J,a1 MOw Mar-
least fifteen,I5t days prior to the redem
IQd ski saver Ia an fiscal
Ilea date, and alter the date fixed fa
4 a. nr that
redemptan each bond so called shall cease
e14 expenditures
M bear interest, provided funds for Its pay.
_ 6f`.a bsIlaa palmat
mast are on deposit with the Paying Agent
M O�IrsIfF ow yen exceed
at that time. In addition, notice ahali be
•red qty
for that fusel
given by cendied or registered mail to the
qb MrO
never a: any
registered owner of any bond registered a
W pledge of gnu
ise" viWla led
to
reflected
principal at the address of such owner
the books
provision
IN. MMIi. ComIlitalanof
on of the bond
registrar, and if all outstanding bondsman
1M toad% still be dated May 1,
be registered as to principal, then notice by
certified
or registered mail to the
we M bawb will be
registered owners thereof as aforesaid
r May I and
shall be sufficient and it shall not be
• ewiaaayy
ueaeaary to publish notice of the call for
°:.- boar wa be
Pdempa inn
wiass —,.dwill bear (merest and isubject
This bond may be registered as to prim
prirl-
trliions set forth hereinafter per.
cipal or as to principal and interest and
b9suYTs raSlerpl.. Pella W nutwltyl
.k.8
ma) be discharged from such registration'
nu(ure u Iel feat j n the fellowlrtT> tithe manner and with the effect and Sub.
sNedide: ,
-,tact to the terms and condllldnbendotstd
Year Rate of
hereon. This bond is issued with the intent
Nov. l Amt Sand No.. Interest
that the laws of the Stale of Arkansas will
19X2 I25Grp 1b 700%
govern its construction. Subject to the pro -
1963 " D.No atO 7.00%
visions for registration endorsed hereon,,
[9e4 ' soaks) file 7 (U%
nothing contained in this bond or In the
I9aS ' JIl0 1732 7.00%
Authorizing Ordinance shall affect or im-
196e 35.0%0 73-29 7.111%
1911? 35.000 30-36 7.00%
pair the negotiability of this bond, and thi
band shall be deemed a negotiable insist -
199' 37-43 6.60%
ment under the laws of the State of Arkan-
19151,• 40,aio 44-51 $70%
us.
199)' 40.0® 3239 6.60%
This bond shall not be valid uiitll it shalt,
1991 u,0ho 6066 6.911%
have been authenticatedby the Trustee.':
2999— ♦inn 60-77 700%
. IT IS HEREBY CERTIFIED, RECITED
IDW - 50,000 7aR7 7.00%
AND DECLARED that all acts, conditions
1994 ' Slim 19-97 7.10%
and things required to exist happen and be
I995:- M.Gb0 9a1U9 7.20%
performed
precedent to and in the issuance
1996 60,000 1(9120 7 25%
of the bonds
have existed, have happened
Section. The bonds and coupons shall to
and have been performed in due time, form
In suMlantWly the following form t and the
and manner as required by law:thattheinn-
}tayr- <^d Clty Clark are hereby expressly
dehIedness •eor"anted by fling bonds Mac'
- - ___ .. • _.area to make ail
. WY ids- ��
. no exceed any cnn.::i:aaa :ai ar,ttolulay.
—Legal Notices
—Legal Notices OjrD a
`YLegal Notices —Legal Notices
limitation. add That a Sufficient amount of
the revenues derived from the operation of
the Airport has been pledged to an: will he
set aside Into the. Airport Revenue Bond
Fund (or the payment of the principal of
and interest on the bonds,
IN WITNESS WHEIIF:OF. the City of
Fayetteville. Arkansas. by the Board of
Directors of the City, has caused this bond
to be signed by the facsimile signature of
the Mayor and the manual signature of the
City Clerk and sealed with the corporate
seal of the City, and has caused the
coupons hereto attached to be executed by
the facsimile signature of the Mayor, all as
of the first day of May, 1979.
CITY OF FAYETTEVILLE, ARKANSAS
ATTEST
BY (facsimile mgnatureiMayor
City Clerk
SEAL
(form of coupon)
No.
(in the fiat day of November, May. 19
the City of Fayetteville. Arkansas. unless
the bond to which this coupon is attached is
paid prior thereto, hereby promises to pay
to bearer, solely out of the funds specified
in the bond to which this coupon is atiach-
Ad. DOLLARS in lawful money of
the United States of America at the psm
opal office , Arkansas, be-
ing i ) month" interest then due on
Its Municipal Airport Revenue Bonds.
Series 1979. dated May 1. 1979, and
numbered ---
CITY OF FAYETTE VILLE. ARKANSAS
By (facsimile signature
Mayor
On each bond shall appear the following.
CERTIFICATE OF AUTHENTICATION
, Arkansas, hereby certifies that
this is one of an issue of bonds described
herein aggregating sap,", numbered
consecutively from one ( U to one hundred
twenty I Ih) i, inclusive, all of like tenor and
effect except as to number denomination.
maturely and right of prior redemption.
, Arkansas
By i Authorized SignatureI
PROVISIONS FOR IIF:GISTIOATI(ON
AND RECONVERSION
This bond may be registered as to prin-
cipal on a registration bank of the City.
kept by the Trustee as Bond Registrar.
upon presentation hereof to the Bond
Registrar, which shall make mention of
such registration in the registration blank
below, and this bond may thereafter he
transferred only upon an assignment duly
exeeutived by the registered owner or his
attorney or legal representative in such
form as shall be satisfactory to the Hood
Registrar, such transfer to be made on
such honk and endorsed by the Bond
Itegntrar Such transfer may be to hearer.
And thereafter transferability by deliver)
shall be restored, but this bond shall again
be subject to successive registrations and
transfers us before. The puncipal d this
bond, If registered. unless registered to
bearer, shall be payable only to or upon the
order of the regoured owner or hb legal
representative, Interest accruing on this
bond will be paid only m talon and
surrender of the attached Wltnal capons
as they respectively octane *'n. and rot
withstanding the reglstralim of lba bond
as to principal, the Apptvlsaat interest
emotions shall amain payOlds Ib bearer
and shall conlinus to be W& Weeabie by
ton d the bad; fir ae
WNW this SadS rage
Me sus( the -scan
thereafter interest evidenced by such sur-
rendered coupons will be paid by check or
draft at the tames provided herein to the
registered owner of this bond by mall to the
address .hewn on the registration book.
Than bad when so converted into a bond
registered as to both principal and interest
may be reconverted into a coupon bond at
the written request of the registered owner
and upon presentation AI the office of said
Bond Registrar. Upon such reconversion
he coupons representing the merest to
become due thereafter to he date of
maturity will again be attached to this
bond and a statement will he endorsed
hereon by the Bond Registrar in the
registration blank below whether it is then
registered as to principal or payable to
bearer.
Dated Name of %tanner
Signature
Reg R e g
Owner of Reg of Bond
_ Registrar_
Section 7 The City covenants that the
rain and charges for tht services and
facilities of the Airport shall never be
reduced while any at the bonds are outstsn-
ding unless Were is obtained from an in.
dependent eertifed public accountant a cer-
tificate that the net revenues of the Airport
(net revenue, being defined as gross
revenues less the expenses of operation and
maintenance to the operation and
maintenance of the Airport under general.
N accepted principles of accounting) with
the reduced rates or charges will always be
@goal to the amount required to he set aside
lo, the Depreciation Fund (etablished and
del red hereinafter,, and leave a balance
peal to as least 12.5% of the aggregate
avenge annual pnncipol and interest re.
qulrensnts on an outstanding bonds to the
payment of which Airport revenues are
pledged the City further covenants and
aipsea that 166 atn and charges shall
wren necessary, from time to time, be in -
teased in an arrant which will produce
N, at Rut tufflelent to provide for
00 5P.ntos And maintenance of the Air
am
a balance equal to at least ryOuaMm a0 sPnnctn gMYdeN d which Airprt purged she maintain alleHun Iwruwlth at the re -
h -_.._.eu...he uty covenants that the
Airport shat being wMwsly operated as.revenue producing undertaking, and all
moneys •., from its operation shall
be deposited in such depository or
depositories 1m the City M may be Board
ly
designated Iron time to time by the Boa
of Director,, subject, however, to the giv.
-, t a:cuz ty as now or as hereafter may
be required by law and provided that such
dep
ositories shall hold membership in the
Federal Deposit Insurance Corporation.
Section 9 Airport Fund. 111 revenue
derived from the operation of the Airport,
including the improvements after their
completion, shall be paid into a special
mho, which is hereby created and
designated Airport Fund'' The revenues
to the Airport Fund are hereby pledged are
shall be applied to the payment of the prin-
cipal of and interest on the bonds of this
aflue, to the payment of the reasonable and
necessan, expenses of operation and
maintenance of the Airpor, to the pro-
vidingas the Depreciation on Fund, and other-
wise as in this Ordinance expressly
authorized. /
Section l0 Airport l emur Bond Fund.
, a, There shall be pa� from the Airport
tSnd into a special Ii4nd which is hereby
-sated and designated "Airport Revenue
id Fund" ( the - Fund") the sums
, oe amounts are at the limes hereinafter
I led in subsection I b I for the purpose of
I ,ns'iding funds for the payment of the
„ mcipal of and interest on the bonds and
Fe Paving Agent's fees, as they mature ac.
riling to the following schedule and as a
ht aen' re raceme
year Bond
,Nov.11 New Principal.
I= ., 1-5 s25.OOO
19", A 610 25.000 i
1984 I1 -Is V.000 t
1985'. 1722 3n.ax1
1966 2329 35.000
)987 3036 4 35.00 I
- 1966 - 3743 35,000
1966 4451 n1.Mo 3
1990 r 52.59 4O.tO I
. 1991 6oM 45.000
1992 60-77 45 w0 y,
1993 76-67 50,000 f
1994 - MA7 50]O'
1995 ' 9a -1O6 53,000
1996 109128 w,wo - g.
Interest
May 1 Nov I Total s
$20,963 $20.063 $66,926 _ 3
20.088 2lin66 66.178 If
19.213 19,213 ' M,426
6.l83 18.lw . 66.326
' 17.113 17,113 �'+ ge.226 ,r
158&' 15,888 's ^ aw-68.TM"aa''y
I' 14.6w 14,6Gb N,3*
a
❑,Soo 13.506 67,016
, 12,166 12.1& 69.336
10 are 10.808 66.616
9,253 9255 63,510
' 7,660 7,6w 65,360
5.930 5.930 61.660
4,155 4,155 6.3.310
2.175 2.175 64.350
b) then Mall be paid into the Bond
. Find on the first business day of each
month until all outstanding bonds of this
issue with interest thereon have been paid
in full or provision made for such payment,
a sum equal to one -fifth f 15) of the next in-
stallment of interest and one tenth 1110, of
the next installment of principal (plus any
additional amount that may be necessary
together with accrued interest received at
the time of the delivery of the bonds fully to
provide for the first interest payment on
(he rends, if any additional amount be re-
gnired), and an amount sufficient to pro-
vide for the Paying Agent's fees, on all
outstanding bonds, until a debt service
reserve shall have been accumulated in the
amount of 669,500. When the debt service
reserve has been accumulated in the re
quired amount, the monthly payments into
the Bond Fund may be reduced to nue-sixth
i r.6) of the next installment of interest and
one -twelfth (1.12 of the next installment of
principal, respectively, and an amount su1
ficient to provide for the Paying Agents
fees, but if the debt service reserve is ever
reduced below the required level, the
payments of one -filth and one -tenth,
respectively. and an amount sufficient to
provide for the Paying Agents fees, shall
be resumed until the debt service reserve is
restored to the required level.
Ici If the revenues of the Airport are io
suffcient to make the required payment on
the first husiness day of the following
month into the bond Fund, then the amount
of any such deficiency in the payment
made shall be added to the amount other
wise required to be pod into the Bond Fund
on the first &sines, day of the next month.
I d) If for any reason there shall bea deli'
ciency in the payments made into the Bond
Fund so that there are unavailable suffi-
cient moneys therein to pay the principal
of, interest on and Paying Agent's fees in
connection with the bonds as the ,ame
become due, ary sums then held in the debt
service reserve shall be used to the extent
necessary to pay the principal of, interest
on and Paving Agent's fees in connection
with Ih. ' bonds, but such reserve shall he
reimbursed in the amount of any such pay-
ment as above provided The debt service
reserve shall be used solely as herein pro-
vided, but the moneys therein may be in-
vested as hereinafter provided.
I When the mnnevs held in the Bond
Fund, including the debt service reserve,
shall be and remain sufficient to pay the
principal of and interest on all bonds then
outstanding aid the Paying Agent's fees,
there shall be no obligation In make any
further payments into the Bond Fund
(U All moneys in the Bond Fund shall be
used solely be the purpose of paving the
principal of and Interest on the bonds and
the Paying Agent's fees, except as herein
specifically provided Ifs surplus shall ex -
let in the bond Fund over and above the
amount required for making all principal
and interest pay menu when due and pay-
ing the Paying Agent's fees and over and
above the del service reserve after it has
hen esteblimed. suet surphu may he ap-
plied only to the payment of the principal of
and eteront en Any boa* that may be call
ad for ndnmptoo prim IA maturity or for
, like 4OMb .n It. elpgpment of Am -
11' be wOhiswo from the
un oncost f6i i idi days before the
due date of any bond or interest coupon
hereunder, at maturity or redemption prior
maturity, and deposited with the Paying
Agent, an amount equal to the amount of
such bond or coupon for the sole purpose of
paying the same, together with the Paying
Agent's fee, and no pimdrawal of funds
from the Bond Fund shall be made for any
other purpose exc4pl as otherwise
(hi The bonds of Ihis issue shall be
specifically secured by a pledge of all the
revenues required to be placed into the
Bond Fund. The pledge in favor of the
bonds is hereby irrevocably made ac
cording to the terms of this Ordinance, and
the City and its officers and employees
shall execute, perform and carry out the
terms thereof in strict conformity with the
provisions of this Ordinance.
Section If. Airport Operation and
Maintenance Fund. After making the
payments into the Airport Revenue Bond
Fund there shall be paid from the Airport
Fund into a fund which is hereby created
and designated "Airport Operation and
Maintenance Fund" (''Operation and
Maintenance Fund" I, on the first business
day of each month an amount sufficient to
pay the reasonable and necessary monthly
expenses of operation, repair and
maintenance of the Airport for such month
and from which disbursements shall be
made only for those purposes. Fixed an-
nual charges such as insurance premiums
and the of of major repair and
maintenance expenses may be computed
and set up on an annual basis, and one -
twelfth 114121 of the amount thereof may be
paid into the Operation and Maintenance
Fund each month.
If in any month for any reason there shall
be a fatlyre to transfer and pay the a
quired amount into the Operation and
Maintenance Fund, the amount of any defi.
ciency shall be added to the amount other-
wise required to he transferred and paid in-
to the Operation aid Maintenance Fund in
the next succeeding month If in any fiscal
year a surplus shall be accumulated in the
Op•auon and Maintenance Fund over and
above the amount which shall be necessary
to defray the reasonable and necessary
cost of operation, repair and maintenance
of the Airport during the remainder of the
than current fiscal year and the next ensu'
Ing fiscal year, such surplus shale. be
transferred and depos tat in the Airport
Section 12. Airport Deprecta....., r'UM.
After making the required payments Into
the bond Fund and into the Operation and
Maintenance Fund, then shall be paId
from the Airport Fwd into a fund
"Airport
Fund o on atic Fund"
business thy of each month whit@ any of
the bonds of this issue are outstanding, an
amount equal to two percent of the gross
revenues of the Airport for the preceding
month.. to provide for the depreciation of
the .Airport. except Iher moneys in the
Depreciation turd shall be used to the ex.
tent necessary at any time to prevent the
default in the payment of principal, IR-
terest are Paying Agent's fee.
1f in any fiscal year a surplus shall be Ac-
cumulated in the Depreciation Fund over
and above the amount necessary to defray
the cost of the probable replacements dur-
ing the then current fiscal 'ear, and the
next ensuing fiscal year. such surplus may
be transferred to the Airport Fund.
Section 13. any surplus in the Airport
Fund after making all disbursements and
deposits required by the provisions of this
Ordinance may be used, at the option of the
City, for the redemption of bonds prior to
maturity in accordance with the eedemp
lion provisions herein set forth, for exten-
sions. betterments and improvements to
the Airport, or for any other lawful
municipal purpose.
Section 14. The City hereby agrees that
all payments on the bonds and interest
shell be made only as provided herein All
bonds paid or purchased either at or nature
maturity shall be cancelled when such pay-
ment or purchase is made, together with
all unreasoned coupons maturing on or
prior to the date of such payment or pur-
chase shall continue to to payable to the
respective holden thereof,
Section 15. As Jong as any of the bonds
authorized and issued under and pursuant
to the proirsions of fine Ordinance are
at-
tempt to issue the
(bonds claim to eoen
tilled to a prfon(v of lien ion the revenuse to.
the Airport over the lien securing the bonds
of this issue. including the herein authoriz-
ed and any and all future improvements.
Nothing in this Ordinance shall be con-
strued to prevent the issuance by the City
Of additional reeds to finance or pay the
cost of constructing any future am
hrovements to the Airport; provided,
owever, the City shall not authori,e or
issue any such additional bonds payable
from the revenues derived from the opera.
lion of the Airport and ranking on a parity
d security with these bonds unless and un-
lll then shall have been procured and filed
with the City Clerk and the Trustee a slale-
ment by an independent certified public ac-
countant not in the regular employ of the
City reciting the opinion based upon
necessary Investigation that the amount of
Ihe average Mt annual revenues of the Air
port for the last completed fiscal year plus
instituted, bad and maintain&, in life sh
the amount of any increase in the net an
nor herein provided and for the benefit of
—Legal Notices .
nual revenuesestimated lore derived,due
all holders of the outstanding bonds and
dance shall constitute abinding contra
ing the next succeeding fiscal year. from
coupons, and that any Individual rights d
between he City and the &den of 1
the proposed Improvements and any in
action or other right given to one or mom of
outstanding bonds and coupon oM4
crease in the net annual revenues
such holden by law are reatkNd by this
hereunder, and the City will at all lion
estimated to be derived, during the next
Ordinance to the rights and remedies,
smelly adhere to the terms and provirae
succeeding fiscal year, from an increase in
the rates and charges tobecharged (or the
herein provided,
(o All rights of action under mu Or-
hereof aid fully discharge all of its oblig
services and facilities of the Airport will be
dinance or under any of the rends stewed
lions hereunder Subject to the terms a,
equal to at least 150% of the annual debt
hereby, enforceable by the Trustee, may
d
provisions contains ins this Section and n
d
service ,principal, interest and Paying
be arced by it without the pti session of
otMrym
n tse, the Mldot
Agent's fees) for all the bonds then outstm-
any of the bonds or coupons appertaining
sevemy'live percent 073%n in aggren
ding, and the bonds then proposed to be
thereto. and any such suit. action or W0
r cipal amount of the bogs then oulau
issued. "Net annual revenues" are defined
ceedings instituted by the Trustee shall be
ding shall have the right. from time
as gross revenues less operating expenses,
brought in at name for the benefit of all the
time. anylh ha contained in this Ordlnan
which shall include salaries. wages, cost M
holden of such bonds and coupons, subject
to the contrary notwithstanding, to come
maintenance and operation, materials and
tathe provstonsof this Ordinance
to and approve the adoption by the City
supplies, and insurance, as well as all other
(d) No remedy herein conserved upon ne
such ordinance supplemental hentn
Items as are normally, regularly included
reserved to the trustee or to the realm
of
shall be necessary ne desirable for the p
under reeogntted accounting practice.
the bonds Is Intended b exclusive of any
pose of modifying, altering. amending, a
Notwithstanding the above, the City may
other remedy or remedies herein provided,
ding Orrescinding, in any particu
to or
issue additional bonds In an aggregate
and each and every such remedy shall be
any of ow terms or provisions contained
principal amount of up to $150,000, ranking
cumulative and shall be In addition to
this ordinance ar in an supplemental
y
on a parity of security with these bonds for
every other remedy given hereunder or
dinance. pins Ideal. however that hh
the purpose of completing the am-
given by any other law
be cc
hernia contained ,Mil permit urn e
provements contemplated by this Or
I ci Nodelay oromissiond tMTrsoteeor
•' as permitting
dinance (the completion bonds'I, it the
P
of any oenoar eanycuva
maturity d the d or IM lobster
principal of or
net annual revenues of the Airport for the
std It
shall power accrued upon any default
on any hard issued hereunder, or (bl
m
last completed
d fiscal year are equal to atr.
shall impair any such right or power or
in the principal amount d u
pa
of
least I(gl% the average annual debt see
shall construed to be a waiver of any
bond a' do rate of
brig therein. e
viceon the completion bonds.acquiescence
a
andh very loe saygimartin
a pon
IM cneo alt lienitemorlpledge
In making statementprovided fur by
and suer and
every paremedy given this
P
author
Act by the oher than tos
s Section,the
Ordinance to rsTnuleeand me
provisions of IF
ofIt
std in
Ordinance now adopted. or ( d) the Cr.
as now adopted,
fantn-nt
theynde yontee Writtepopinion of
may opinionnfin Ion
ay barexerholder.
may
the bonds, respectively, mayt
bon of a priority of any bond
t quthedr constten
not ried
dependent engineer,
be from
a a as Ma-
and as often may
over any- the
bonds any other hard or bonds, or t
loyioltthit ,
i regular
nhl in the employ of the City, as to
d ex
be deemed nt
stee
a reduction in the aggregate prtncif
the net annual pes the Airport
,The Trustee me
r may, and the wrin
'ten
smountd the bongo required foreensenl
including the proposed i improvemnt
n the not not
request of me holden of not least
sure natal order e.
and into arges
account any oin
the
ten percent ut principal amount the
)ion 23
Sectionn The Mayor Is hereby classes
is
sng arged tate
rates to charged for the
the antl cfacilities
bonds the., outstanding shale waive
a
to publish this for one national
services and the AlrparI for
of
ied
default which shall have been remedied
published
in p newspaper Published in the City are
the he
before me envy of final lodgment a
general circulation therein
The City es the right
the sicuiiolasuebonds
salute i4o-
of
Section 21 The Trustee shalt only
or otheray enti oftwhic the security
obligations source
Atnuted uny4 Toth provisions
ifs this
bee the provisions of Oren
forble the exercise of Is
of ve which it wMrdnd t iti rho
or the of ire em
dinance nt beof r
and
are
goat
reasonable prudence In the execut
reasonable
of revenue,
pledge
r ,
oCheto these bonds, withouttis
an
forcsuch want any her btl no
erred
of its trusts The recalls in this
Bard
regard to the restrictions set forth In this
mend to
extend or affect any
such waiverti
recta
and to that face of the outtle are the nets
defaults existingsubsequent
or any q or
dremeltdies
of the City and not ofa the Trusted. T
Section It is covenanted Cf
defaults or impair My rights or remedies
or s
Trustee shall not be required to take
with the
eof
holders of the bonds, , any of
consequent
action as Trustee unless it shall have be
e
them, that the
t a
2thereon,
Section
keno act The City covenants It will
requested toy) w in writing by thebolds
alywtis witulryerepiton
tually perform al duties e nrencti to
rthat
take no action or suffer permit any at
of not leas than to% in principal amount
the Airport required by the Constitution
lion b be taken or condition to ester which
the bony d this owe then outstanding a
and laws of the State of Arkansas, in.,
the in
causes or may cause me interns payable
shall have bean offered reasonable mean
eluding the charging and collecting of
on the bonds to be subject to federal income
and indemnity against the cute expo
reasonable and sufficient rates and
taxation. Without limiting the
and liabilities to be incurred thereaW
charges as herein specified, lawfully
a
the trustee
, the foregoing, the City and the Taleo
thereby. The Truske may resign at
established for services d the Airport, the
covenant that the proceeds d me ,ale of
g
segregating of the revenues of the Airport
the bonds will hot be used overtly or
time by ten 110) day- notice in writs (
as herein required and the applying of such
indirectly in such manner as to cause the
the City Clara and the majority In plant
' revenues to the respective funds herein
bonds to he treated as "arbitrage bonds''
l
amount of the holders of the oint at
created and referred to.
within me meson of Section lmm)olthe
bony this issue may at
Trwlee. such appointment b
ant a t
N
evental
Section 17, The bonds shall be subject rat
Internal ho the.
by a written instrument or instrumental
prior to maturity Iy in ac-
Section D
23 When the bonds have been ax-
ed with the City Clerk. If the majority
voidmpeon
fordance with 166 terms set out In the bond
set
the r are the seal of the City impressed
principal amount of the outstanding bin
form,
ma
thereon, they shall redelivered b the
e
of this issue jail to fill a vacancy with
Section 18. The City will keep proper
Trustee and the Trustee shall sutheniae-s
Iw thirty ) days after the seine shall Date
books of accounts and records (separate
them and deliver them to the purchasers
then the City shall forthwith designate
from all other records and accounts) in
upon payment in cashofthe purchase price
new Trustee by a wnteds instrument ml fit
which complete and chess entrin shall be
of plus accrued interest from the
In the office of Use City Clerk The origk
made of all transactions relating to the
a of the
dated bonds to the date of delivery
Trustee aid Trustee it
operation of the Airport, and such bothe
("total sale proceeds"),
). The Trustee anW
any successor
filet writtenacceptanceand aQremtle
ce and a
ideaexecute
shall be available for inspection by the
handthen tot wisp as
rho trust trop it or
holder of any of the bonds at reasonable
at
the .proceeds ifollows
(1) Deposit the accrued Interest in the
Interest
a Ordinance,
by this nrnebut only upon the Ix
the tw
er
times and under reasonable cif
Bond Fund.
and diti
condition, set farm In this
cecords cos. The City agrees to have these
(2) Pay thce expenses incidental to sale
and subject to I
records sodded by an independent cer
and issuance of the bonds as instructed by
y to all he which mtedl
which the r pe
. lifted public accountant at least once each
a Letter of Delivery INtrudlau signed by
holders
liters
holden of the Mhos Such
year, And a copy of the audit shall de
the Mayor.
agree writ
aC e shall be filed with the C
theplacMC
delivered b the Trustee and made
IS) The balanced the total sale proceeds
Clerk aid a copy thereof shall be
available to interested Ialden of the
shall be deposited in a special account in
the bond transcript Any successor Trust
bonds. In the event the City fails or refuses
the name of the City designated ''Airport
shaB Ave all the powers oein gvnnte
b make the audit, the Trustee, or any
Construction Fund" ('Construction
the pri Trustee In the event ('
holder of the bonds, may have the audit
Fund") which shall be established and
made, at thereof shall be charged
the( ined in a bank that is a member d
In of the Trustee, e. t
change ofs eresigned
t thed
me Operation and Maintenance
the Federal Insurance Corpora-
TnWes which has ml{fee been re.
'Fund
'Fund
esInt
Hon. The money In the Construction Fund
Msectio lore Paying Agent
Agent
Sees th i9. The City covenants and
in excess of the amount insured by the
Section a The provisions of of
agrees that it wall maintain the Airport in
Federal Deposit Inly urancesecured Corporation
dinance are hereby declared to I I
opra
good condition and operate the same man
sail di condo ously by bonds or
severable b and if any atoll for aI
s lf
or
efficient manner and at reasonable cost.
Omer direct or full'- guaranteed obligations
reason le Mid illegal invalid, sit
While any bonds authorized hereby are
of the Unused States of Amanu. except
ffect
affect
Masi shall not afire) the validity if O
y
outstanding. the City agrees that it will Ion
that any moneys invested as hereafter
remainder the
sure and at all limes keep insured, In the
authorized need not be so secured. The
y a
Section o Its hereby as
amount of me actual value thereof, In a
moneys in the Construction Fund shall be
mentaioed
declared that the improvements nout t
responsible insurance company or corn -accomplished
pa fi Y
in payment ofnts costs d
as soon as possible in orde
authorized erg qualified under the
accomplishing me Ionprov
t payffignd
to make the Airport adequate for the need
V"onies
4wsofrMS in
asthe Aasortito the
pecrosery expenses tat the
ry ensuing (thereto are
of the City and its inhabitants,lad within
thereof, propoer e
properties of to the
Petrov
paying
erases of
d issuing the bonds nos
- . the We, health, safety sad welrar
t r tent shahpropertieserthe in
the6,060 to
pans
b y the DsMrrmeate
the purchasers.
thereof
e ye')Da trk. and the oaeuaa
the extent
the that such properties be
shall re the or as
bond the
of the Dardr and taking IM other at
covered yhwould
byn insurance tie
is ll rain at the
loons which treat contain at least the
s
Oo
1100 std by this Dmet nn r
an
pantn engaged in similar types
ion ar s of
�rotow)n8 information. the Anon b whom
ry for
for the accomplishment mMmr
arthat
businesses, against loss or damage thereto
payments being made, the amount of Die
Itaevhrr
h ia, tharHore, declared an emerge
a
from fire, lightning, tornado, winds, riot,
, payment; and me purpose of general
rdi
cy exists and [has Ordinance man
strike, civil commotion, malicious
'i Nasegicatton of the payment. Each check
oethe arypub for the immediate alto
damage, explosion, and against ton of
or requisitionccu must re signed by the M.
of the
.alety
public peace, olthre and wand she
damage from any other causes customarly y
oidual occupying the lap managerial
take effect
and be in force from and Arte
Insured against by private companies
I position of the Airjaort, and in the caseof AS
Its passage
engage! in simn!ar•y Ybusi^eean The
' items of expense over which the Consulting
PASSED. April 17, Ion
insurance policies are ta be taken with
! Enginvan suit ^zeros, aaprv•sbn
APPRO EL
companies approved by the Trustee, are be
Include all expenses except
! (which sailMay
BY.Davd R.Na
carry
ca- a clause making them payable to the
' engineering fee, legal fees, and expense
y
Trustee as its Interest may appear. and are
pertaining to the issuance of the bondsl
ATTEST'
either to be placed In the custody of the
each check or requisition shall Mac-
Angela R. Medbek
Trustee or satisfactory evidence of said in-
companied by a certificate signed by the
City Clerk
surance shall be filed with the Trustee In
Consulting Engineers for by a repre-
sen
(SEAL,
the event of loss, the proceeds of such In
(alive thereof designated by the Consulting
CERTIFICATE
surance shall be applied
solely toward the
.
Engineers) certifying approval thereof. o
STATE or ARKANSAS
reconstruction. replacement
or repair of
the case of requisitions. the depository
COUNTY OFWASHINGTON
the Airport, and In such event the City will,
shall issue its check upon the Construction
The undersigned, City Clerk of the City
with reasonable promptness, cause to be..
Fund payable to the person, firm or err
Fayetteville, Artanass, hereby eertlri
commenced and completed the reconstrut-
i Potation designated in the requisition The
that the foregoing Pages Are a true a
lion, replacement or repair work. If such
depository of the Construction Fund rut
compared ropy d an Ordinance passed
proceeds are mom than sufficient for such
be required to keep records As to sl
regular session of the ROOM of Directs
purposes, the balance remaining shall be
, payments made on the basis of checks,
held at the regular meeting place of t
deposited to the credit of the Airport Fund
When the improvements have been coin-
Board in the City at 7 30 p m. on the V
and if such proceeds shall be insufficient
pleted and all required expenses paid add t
day of April. 1yn. and that the iird,nann
for such purposes, the deficiency shall be
expengllure, made from the Corrtructan
Of need in ordinance Record Book F
supplied, first, from moneys In the
Fund for and in connection with On ac-'
VII. Page5e, now in my possegm.
Depreciation Fund, and second, from
complishment of the improvements and the,
GIVEN under my band and sell this F'
moneys in the operation and Maintenance
financing thereof. this fact mull be,
day of April. 1979.
Fund, and third. from surplus moneys m
evidenced by a certificate signed by the
Angela R. Medk
the Airport Fund Nothing herein shall be
person occupying the top managerial
ppaauu
I City Ca
construed as requiring the City to extend
Lion of the Airport aid by the Coasts
(SEAL
any funds for operation and maintenance
Engineers, which certificate shall state,
of the Airport or for premiums on its m-
among other things the date of the comple'
surance which are derived from sources
lion and that all obligation payable from.,
other than the operation of the Airport, but
the Constr seton Fund have been dscharg-.
tithing herein shall be contained as
ad. A copy d the certificate shall be 1*d
preventing the City from doing w.
with the matte, and upon receipt thereof'
-
the Trust.. shall transfer any remammg
Section 20. The City covenants that le
long as any bonds authorized hereby an
outstanding, it will not mortgage, pledge or
otherwise encumber the Airport, or any
pans thereof, or any revenues derived from
the operation thereof. except as herein
specifically provided, and will not sell or
otherwise dispose of any substantial por-
tion of the same.
Section 21. lit (I) The provisions of this
Ordinance constitute a contact between
the Carl 'cA k- ' ' -',', „r ,nv of the.
outstanding bonds. If there be any deiawe
in the payment of the principal of or in-
terest on any of the bonds of this issue, or if
the City defaults in any Bond Fund re-
quirements or in the performance of any oil
the other covenants contained =r,d set for
in this Ordinance, the Trustee may, aa
upon the written request of the holders of
not Iess than ten percent in principal,
s amount of the bonds then outstanding shalt .
i by proper suit comp( the performince of
s the dukes of the officials of the City under
the laws of Arkansas,
(iii If there be any default in the pay.
meat of principal of or interest on any of
Ihe bonds, the Trustee may. and upon the
written request of the holders of not less
than ten present in principal amount of the
bonds then outstanding shall, declare and
entire principal amount of the bonds
outstanding to be Immediately due and
payable.
(b) No holder of any of the outstanding
bonds of this issue shall have any right to
institute any suit, action, mandamus it
other proceedings in equity or at law for
the protection or enforcement of any right
under this Ordinance or under the laws of
Arkansas unless such holder previously
shall have given to the Trustee written
notice of the default On account of whits
such suit, action or proceeding a to be
taken, are unless the holders of not lee
than ten percent in principal amount of the
bonds then outstanding shall have made
written request of the Trustee after the
right to exercise such powers or right of ac-
tion, as the case may be, shall have ac-
crued, are shall have afforded the Trustee
a reasonable opportunity either to proceed
to exercise the powers herein (ranted or
gibele wit action, suit or proceedings In
In AM*',d unless, also, there shall have
been offnw to the Trustee reasonable
security and indemnity against the costs,
expenses and liabilities to be incurred
therein or thereby and the Trustee shat
have reload or neglected to comply with
such request within a reasonable time, and
such notification, request and offer or in-
demnity cry hereby declared In every such
case. ,lt. Option of the Trustee, to be con-
ditions precedent to the execution of the
pwaem AM trusts of this Ordinance or a
any Sic remedy lereunder it i.
undent ed and intended that no one or
more hagass of the bonds hereby secured
snail kars any right .n any manner
waster by his or their action to affect,
disluea prejudice the security at this Or
dln,AN le enforce any right hewnder .
nueptMt a manner herein provided, that
ag WWOOdwp at law or in equity shat be r
f\ulluwv.I MratusraYb as,
PAYIUSedla. ARKANSAS
` balance in is Construction Fund to the
$mil Fund.
rw Section M. U, Moneys held for the credit
s of the debt service reserve in the Boon
Fund shall be continuously invested end
reinvested pursuant to the direction of the
City in direct obdgations of, or obligations
I the principal of and interest on which are
unconditionally guaranteed by, the United
States Government, which shall mature, or
which shall be subject to redemption by the
it. holder.
not later thanten ram years after the data
of such investment.
j' tb) Moneys held for the credit of the Con
strudlon Fund may, at the option of the Ci-
ty,be Invested and reinvested pursuant to
Lie dir: „.... 3.s City bt d reci oL'F.aa-
tiros otor obligations the principal of are
interest on which are unconditionally
guaranteed by, the United States Govern.
meet and which shall be subject to redemp-
tion by the holder thereof, at the option of
such holder, not inter than the date or dates
when the money held for the credit of the
particular funds will be required for the
purposes intended.
to) Moneys held for the credit of any
other fund may, at the option of the City, be
invested aid reinvested pursuant to the
direction of the City in direct obligations of,
or obligation the principal of are interest
on which, are unconditionally guaranteed
by, the United States Government, which
shall mature, or which shall be subject to
redemption by the holder thereof, at the op-
tion of such holder, nol later than the date
or dales when the moneys held for the
credit of the particular funds will ne re-
quired for 166 purposes intended.
( di Obligations so purchased as in invest-
mnt of moneys in any such funds shall be
deemed at all tames to be a part of such
fund and the Interest Accruing thereon and
any profit realized from such investment
shall be credited to such fund, and any less
resulting from such investment shall be
charged to such fund, except that earnings
on investments of moneys in the debt sir
vice reserve which Increase the amount
thereof above the required level may, to
the extent of any such excess, be transfer
varl from time to time out of the debt Aar
Section 23. In the event the offer
Mayor. City Cleft -Treasurer, Allis Of
Manager or Board of Directors shat
abolished, or any two or more of such
films shall be merged or consolidated, or
the event the duties of a particular off
mull be transferred to another office or
ficer, or in the event of a vacancy In a
such office by reason of death. resigna6
removal from office or otherwise, or in i
event any such officer mall become
capable of performing the duties of his
Rce by hewn of acksas, absence In
the City or otherwise, all powers confers
and all obligations and duties Imps
upon such office or officer shall be pp
formed by the office or officer aucceedl
to the principal function, thereof or by 1
office or officer upon whom six -fl prt
eblitatigN shall be imposed by law
Section M. The.-provlsloM of thu C