HomeMy WebLinkAboutOrdinance 3638 N41 CROFILMED
ORDINANCE NO . 3638
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF $ 10 , 0001000 OF
WATER AND SEWER SYSTEM REFUNDING AND IMPROVEMENT REVENUE
BONDS , SERIES 1992 OF THE CITY OF FAYETTEVILLE , ARKANSAS ;
AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE
AGREEMENT AND AN ESCROW DEPOSIT AGREEMENT IN CONNECTION
THEREWITH ; DIRECTING THE TRANSFER OF MONEYS HELD IN CONNECTION
WITH THE OUTSTANDING WATER AND SEWER REVENUE BONDS OF SAID
CITY ; PROVIDING FOR CERTAIN OTHER MATTERS RELATING THERETO AND
DECLARING AN EMERGENCY .
WHEREAS , the City of Fayetteville , Arkansas ( the " City " ) , a
city of the first class , owns and operates water and sewer
utilities as a combined , integrated public water and sewer system
( which system , together with all capital improvements thereto , is
herein collectively called the " System" ) ; and
WHEREAS , the City issued its $4 , 335 , 000 Water and Sewer
Revenue Refunding Bonds , Series 1985 , dated November 15 , 1985 ( the
" Prior Bonds " ) , of which $ 3 , 280 , 000 in principal amount are now
outstanding , pursuant to Ordinance No . 3134 , adopted by the Board
of Directors of the City ( the " Board" ) on October 9 , 1985 , and the
constitution and laws of the State of Arkansas ( the " State " ) ; and
WHEREAS , the City is authorized under: the constitution and
laws of the State , including particularly Title 14 , Chapter 234 ,
Subchapter 2 , Title 14 , Chapter 235 , Subchapter 2 , Title 14 ,
Chapter 164 , Subchapter 4 and Title 19 , Chapter 91 Subchapter 6 of
the Arkansas Code of 1987 Annotated ( collectively the "Authorizing
Legislation" ) , to acquire , construct , equip , improve , maintain ,
operate and repair the System and to issue its revenue bonds to
finance capital improvements to the System or to refund any
outstanding bonds issued for the purpose of financing such capital
improvements ; and
WHEREAS , the Board believes that it is desirable to refund the
Prior Bonds and necessary to make certain capital improvements to
the System as hereinafter described and , accordingly , that it is in
the best interest of the City that the City authorize and issue its
Water and Sewer System Refunding and Improvement Revenue Bonds ,
Series 1992 , dated August 15 , 1992 , in the aggregate principal
amount of $ 10 , 000 , 000 and as further described in Section 3 of this
Ordinance ( the "Bonds " ) , to provide funds , with any other available
funds , to refund the Prior Bonds , to finance the cost of making
such capital improvements , to establish a related debt service
reserve and to pay certain expenses incidental thereto ;
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WHEREAS , the City has made arrangements for the sale of the '
Bonds to Llama Company of Fayetteville , Arkansas ( the "Purchaser" )
and in connection therewith has prepared and distributed a
Preliminary Official Statement , dated August 7 , 1992 ( the
" Preliminary Official Statement" ) ; and
WHEREAS , there has been submitted to the City a Bond Purchase
Agreement , dated August 18 , 1992 ( the "Bond Purchase Agreement" ) ,
providing for the purchase of the Bonds by the Purchaser ; and
WHEREAS , a final Official Statement , dated August 18 , 1992 ,
( the "Official Statement" ) , has been prepared and will be
distributed in connection with the offer and sale of the Bonds ; and
WHEREAS , there has been submitted to the City an Escrow
Deposit Agreement , dated as of August 15 , 1992 , between The State
First National Bank in the City of Texarkana , Arkansas , as escrow
agent ( the " Escrow Agent" ) , and the City , which provides for the
refunding of the Prior Bonds ( the " Escrow Deposit Agreement " ) ; and
WHEREAS , copies of the Preliminary Official Statement ,
Official Statement , Bond Purchase Agreement and Escrow Deposit
Agreement have been presented to and are before the Board at this
meeting ;
NOW , THEREFORE , BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF FAYETTEVILLE , ARKANSAS , AS FOLLOWS :
Section 1 . Definitions . In addition to the terms defined in
the preamble to this Ordinance the following terms shall have the
following meanings ;
"Accountant" means a firm of independent certified public
accountants of recognized national standing selected from time to
time by the City which may be the firm of accountants which
regularly audits the books of the City .
"Amortization Requirements " means the amounts required to be
deposited in the Redemption Account for the purpose of redeeming
prior to their maturity and paying at their maturity the Term
Bonds , the specific amounts and times of such deposits being set
forth in Schedule A attached hereto .
" Budget" means the annual budget of the System adopted in
accordance with this Ordinance .
"Code" means the Internal Revenue Code of 1986 , as now or
hereafter amended , and applicable regulations issued or proposed
thereunder .
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" Consulting Engineer" means a firm of independent engineers
having recognized experience in municipal water and sewer systems
selected from time to time by the City .
"Government Obligations" means ( i ) direct obligations of , or
obligations the payment of the principal of and interest on which
is fully guaranteed by , the United States of America ; ( ii )
obligations issued or guaranteed by any instrumentality or agency
of the United States of America , whether now existing or hereafter
organized , including but not limited to those of the Federal
Financing Bank , the members of the Farm Credit System whether
individually or consolidated , Federal Home Loan Banks , the
Export-Import Bank , Government National Mortgage Association and
the Tennessee Valley Authority ; ( iii ) evidences of ownership of
proportionate interests in future interest or principal payments on
obligations specified in clause ( i ) of this definition held by a
bank or trust company as custodian , under which the owner of the
investment is the real party in interest and has the right to
proceed directly and individually against the obligor on the
underlying obligations described in clause ( i ) of this definition ,
and which underlying obligations are not available to satisfy any
claim of the custodian or any person claiming through the custodian
or to whom the custodian may be obligated ; ( iv) municipal
obligations , the payment of the principal of , interest on and
redemption premium , if any , on which are irrevocably secured by
obligations described in clause ( i ) of this definition and which
obligations have been deposited in an escrow account which is
irrevocably pledged to the payment of the principal of , interest on
and redemption premium , if any , on such municipal obligations ; ( v)
obligations issued by any state of the United States ; and ( vi )
municipal obligations the payment of the principal of and interest
on which are insured ; provided , however , the obligations described
in clauses ( v) and ( vi ) of this definition shall also be rated in
one of the top two highest rating categories (without regard to any
gradation within such category ) by both Moody ' s and S&P or , upon
the discontinuance of either or both of such services , any other
nationally recognized rating service or services .
"Gross Revenues " means all fees , tolls , rates , rentals and
charges levied and collected in connection with and all other
income and receipts of whatever kind or character derived by the
City from the operation of the System . Gross Revenues shall
specifically include , but not be limited to , revenues from water
sales , fire protection charges , sewer service charges and interest
income on Revenue Fund balances . Notwithstanding the foregoing ,
Gross Revenues shall not include acreage , connection , front-
footage , tap-on , assessment and similar fees , charges ,
contributions or grants derived by the City in connection with the
provision of or payment for capital improvements constituting a
part of the System .
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"Guaranteed Investment Contract" means investment agreements
with any bank or trust company which has long-term obligations
rated in one of the two highest rating categories by Moody ' s and
S &P or , upon the discontinuance of either or both of such services ,
any other nationally recognized rating service or services .
" Improvements " means the capital improvements to be made to
the System described in Section 2 of this Ordinance , the cost of
which is to be financed in part by the issuance of the Bonds .
" Investment Obligations " means any of the following , to the
extent that the same are legal investments for the investment of
public funds under State law :
( a ) Government Obligations ;
( b) bankers acceptances , certificates of deposit or time
deposits of any bank , trust company or savings and loan
association ( including any investment in pools of such bankers
acceptances , certificates of deposit or time deposits ) , which ,
to the extent that such obligations are not insured by the
Federal Deposit Insurance Corporation , are collateralized at
all times in amounts and by obligations as shall be permitted
by State law ;
( c ) any repurchase , reverse repurchase or investment
agreement with any bank or trust company organized under the
laws of any state of the United States or any national banking
association , insurance company , or government bond dealer
reporting to , trading with , and recognized as a primary dealer
by the Federal Reserve Bank of New York and a member of the
Security Investors Protection Corporation , which agreement is
secured by any one or more of the securities described in
clauses ( i ) , ( ii ) or ( iii ) of the definition of Government
Obligations provided that the City has a perfected first
security interest in the collateral and that the City or its
agent has possession of the collateral , and that such col-
lateral is held free and clear of claims by third parties ; and
( d ) Guaranteed Investment Contracts .
"Maximum Principal and Interest Requirements " means the
maximum amount of Principal and Interest Requirements for any
fiscal year of the System .
"Moody ' s " means Moody ' s Investors Service , a corporation
organized and existing under the laws of the State of Delaware , its
successors and their assigns , and , if such corporation shall be
dissolved or liquidated or shall no longer perform the functions of
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a securities rating agency , "Moody ' s " shall be deemed to refer to
any other nationally recognized securities rating agency designated
by the City .
"Net Revenues " means , for any period , Gross Revenues less
Operating Expenses for such period .
"Operating Expenses " means , for any period , all ordinary and
necessary expenses of operation , repair , maintenance and insuring
of the System under generally accepted accounting principles except
that they shall not include any allowance for depreciation , any
deposits or transfers to the credit of the Bond Fund or any other
fund or account created for the payment of debt service on Parity
Indebtedness or subordinated indebtedness secured by a pledge of
Net Revenues as permitted hereunder , the Debt Service Reserve Fund
or any other debt service reserve fund or account created in
connection with the issuance of Parity Indebtedness or such
subordinated indebtedness or the Renewal and Replacement Fund , any
payments of franchise taxes to the City or any payments with
respect to obligations not payable in whole or in part under any
circumstances from Gross Revenues , Operating Expenses shall
specifically include obligations of the City to. the Beaver Water
District of Benton and Washington Counties , Arkansas .
" Parity Indebtedness " means indebtedness of the City issued on
a parity as to security with the Bonds in accordance with Section
14 of this Ordinance .
" Principal and Interest Requirements " for any fiscal year of
the System , as applied to the Bonds , means the sum of :
( a ) the amount required to pay the interest on the Bonds
then outstanding which is payable on February 15 and on August
15 of such fiscal year ,
( b) the amount required to pay the principal of the
Serial Bonds then outstanding which is payable on August 15 of
such fiscal year and
( c ) the Amortization Requirement for the Term Bonds then
outstanding for the twelve ( 12 ) -month period ending on August
14 of such fiscal year .
In calculating Principal and Interest Requirements there may be
excluded any principal amount of the Bonds or any Amortization
Requirement which the City covenants to pay or satisfy with moneys
in the Debt Service Reserve Fund which may be used for such
purpose .
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" Principal and Interest Requirements " for any fiscal year of the
System , as applied to any Parity Indebtedness , means the sum of the
amounts required by the ordinance providing for the issuance of
such Parity Indebtedness to pay or to provide for the payment of
the interest on and principal of such Parity Indebtedness then
outstanding with respect to such fiscal year .
"Registrar" means the Registrar serving as such under this
Ordinance , whether original or successor .
"Reserve Fund Requirement" , as applied to the Bonds , means the
amount of $800 , 000 unless the Bonds are redeemed prior to maturity ,
in which case such amount shall be the lesser of ( a ) such amount
reduced pro rata by multiplying such amount by a ratio the
numerator of which is the principal amount of Bonds so redeemed and
the denominator of which is $10 , 000 , 000 and ( b) the Maximum
Principal and Interest Requirements on account of the Bonds in the
then current or any subsequent fiscal year .
" Serial Bonds " means the Bonds which shall be stated to mature
in annual installments and are so designated in Schedule A attached
hereto .
" S&P" means Standard & Poorfs Corporation , a corporation
organized and existing under the laws of the State of New York , its
successors and their assigns , and , if such corporation shall be
dissolved or liquidated or shall no longer perform the functions of
a securities rating agency , " S&P" shall be deemed to refer to any
other nationally recognized securities rating agency designated by
the City .
"Term Bonds " means the Bonds so designated in Schedule A
attached hereto .
"Trustee " means the Trustee serving as such under this
Ordinance , whether original or successor .
Section 2 . Refunding Prior Bonds and Making improvements . 1 .
The Board hereby determines that it is desirable to refund the
Prior Bonds . The Board also hereby determines that it is necessary
to construct or otherwise make the Improvements consisting of the
following capital improvements to the System , the cost of which is
to be financed in part by the issuance of the Bonds as hereinafter
provided :
( a ) The construction of approximately 59 , 650 feet of a
36-inch water transmission main from the Beaver Water
Treatment Plant at Lowell , Arkansas to the northern part of
the City in accordance with the recommendations in a Water
Master Planning Study and an Overall Design Report prepared
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for the City by MCGoodwin , Williams and Yates in 1989 and
1991 , respectively , and as specified in plans and
specifications for such work prepared by McGoodwin , Williams
and Yates and McClelland Engineers ( "Phase I of the Water
Main" ) . The estimated cost of constructing Phase I of the
Water Main , including related engineering and right-of-way
acquisition costs , is $ 6 , 500 , 000 .
( b) The construction of approximately 38 , 000 feet of a
36- inch water transmission main constituting the continuation
of Phase I of the Water Main within the City and the
construction of other water lines connecting such main to the
System in accordance with such recommendations and
specifications described in subsection ( a ) above ( collectively
"Phase II of the Water Main" ) . The estimated cost of
constructing Phase II of the Water Main , including related
engineering and right-of-way acquisition costs , is $ 4 , 400 , 000 .
( c ) The rehabilitation of the existing sewer collection
system constituting a part of the System in the White River
Watershed in accordance with the recommendations in a Sewer
System Evaluation Study performed by McGoodwin , Williams and
Yates in 1989 and 1990 and in the Illinois River Watershed in
accordance with the recommendations in a Sewer System
Evaluation Study performed by RJN Environmental Group in
conjunction with McClelland Engineers in 1991 ( collectively
" Sewer Rehabilitation" ) . The estimated cost of such
rehabilitation is $5 , 841 , 600 .
( d ) The construction of two six-million-gallon water
storage tanks and approximately 12 , 500 feet of connecting
water transmission lines which are required to meet fire flood
and operational water demands and complement Phase I of the
Water Main and Phase II of the Water Main in accordance with
the recommendations in the study and the report and as
specified in the plans and specifications described in
subsection ( a ) of this Section ( collectively "Phase III " ) .
The estimated cost of Phase III is $ 3 , 3001000 .
2 . After the proceeds of the Bonds are applied to the
refunding of the Prior Bonds and the funding of the Debt Service
Reserve Fund and the Bond Fund in accordance with the provisions of
Section 23 of this Ordinance , the proceeds of the Bonds will be
deposited to the credit of the Construction Fund created by this
Ordinance and applied to pay a portion of the cost of making the
Improvements , as follows :
( a ) The first priority for such application of Bond
proceeds will be to pay a portion of the cost of Phase I of
the Water Main .
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(b) If the proceeds of the City ' s Sales and Use Tax
Capital Improvement Bonds , Series 1990 ( the " Sales and Use Tax
Bonds" ) intended to be used for constructing Phase I of the
Water Main are made available to the City for such purpose by
the Trustee under the Trust Indenture , dated as of October 15 ,
1990 , relating to the Sales and Use Tax Bonds ( the
" Indenture" ) , then ( i ) such proceeds of the Sales and Use Tax
Bonds will be applied or , with respect to costs of Phase I of
the Water Main paid from the proceeds of the Bonds , deemed to
have been applied to such purpose in accordance with the
Indenture , ( ii ) such proceeds of the Sales and Use Tax Bonds
in an amount equal to the costs of Phase I of the Water
Project paid from the proceeds of the Bonds will be deposited
to the credit of the Construction Fund as a reimbursement of
the proceeds of the Bonds so applied and ( iii ) the unexpended
or reimbursed proceeds of the Bonds initially intended to be
applied to pay the cost of Phase I of the Water Main will
instead be applied to pay the cost of Sewer Rehabilitation and
a portion of the cost of Phase II of the Water Main to the
extent that such proceeds are available therefor .
( c ) If , due to unexpected circumstances , the City is
unable to proceed with the construction of Phase I of the
Water Main or to apply the proceeds of the Bonds to such
purpose , then the proceeds of the Bonds initially intended to
be applied to pay the cost of Phase I of the Water Main will
instead be applied to pay the cost of Sewer Rehabilitation and
a portion of the cost of Phase III to the extent that such
proceeds are available therefor .
Section 3 . Authorization and Terms of Bonds . 1 . Under the
authority of the constitution and laws of the State , including
particularly the Authorizing Legislation , there is hereby
authorized the issuance of revenue bonds of the City to be
designated "Water and Sewer System Refunding and Improvement
Revenue Bonds , Series 1992 " in the principal amount of Ten Million
Dollars ( $ 10 , 000 , 000 ) . The Bonds shall be special obligations of
the City and the principal of and the interest and any redemption
premiium on the Bonds shall be secured by a pledge of and payable
solely from the Net Revenues as provided in this Ordinance . The
principal of and the interest and any redemption premium on the
Bonds may also be paid as herein provided from other moneys in the
Debt Service Reserve Fund and certain other funds created hereby ,
including any income received from the investment of moneys
deposited in such funds .
2 . The Bonds shall be dated August 15 , 1992 , and interest
thereon shall be payable semiannually on February 15 and August 15
of each year , commencing February 15 , 1993 . The Bonds shall be
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ssued as fully-registered bonds , numbered consecutively from R- 1
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upwards , and shall be in the denomination of $ 5 , 000 or any integral
multiple thereof . Each Bond shall bear interest from the interest
payment date next preceding the date of authentication thereof
unless it is authenticated as of an interest payment date , in which
event it shall bear interest from such date , or unless it is
authenticated prior to the first interest payment date , in which
event it shall bear interest from its date , or unless at the time
of authentication interest on the Bonds shall be in default , in
which event it shall bear interest from the date to which interest
has been paid in full .
3 . The Bonds shall be issued in the principal amounts , shall
mature , unless sooner redeemed in the manner in this Ordinance set
forth , shall consist of Serial Bonds and Term Bonds , with the Term
Bonds having such Amortization Requirements , and shall bear
interest as set forth in Schedule A attached hereto (which Schedule
is incorporated herein by this reference ) .
4 . The Bonds shall be subject to redemption prior to
maturity in accordance with the provisions pertaining thereto
appearing in the form of Bond hereinafter set forth in this
Ordinance . Bonds shall be redeemed only from and to the extent
funds on deposit in the Bond Fund are available and sufficient for
such purpose .
5 . The Bonds shall be payable , with respect to principal ,
premium , if any , and interest , in any coin or currency of the
United States of America which at the time of payment is legal
tender for the payment of public and private debts . The principal
of and any redemption premium on each Bond shall be payable to the
registered owner thereof or his registered assigns or legal
representative at the corporate trust office of the Registrar upon
the presentation and surrender thereof as the same shall become due
and payable . Payment of the interest on each Bond shall be made by
the Registrar on each interest payment date to the person appearing
on the registration books of the City hereinafter provided for as
the registered owner of such Bond ( or the previous Bond or Bonds
evidencing the same debt as that evidenced by such Bond ) at the
close of business on the record date for such interest , which shall
be the first ( lst ) day (whether or not a business day ) of the
calendar month of such interest payment date , by check mailed to
such person at his address as it appears on such registration
books . Payment of the interest on the Bonds shall also be made by
wire transfer to the registered owner of $ 1 , 000 , 000 or more in
principal amount of the Bonds upon the request of such owner .
6 . The Bonds shall bear the facsimile signatures of the
Mayor and City Clerk of the City and a facsimile of the official
seal of the City shall be imprinted thereon . In case any officer
a facsimile of whose signature shall appear on any of the Bonds
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shall cease to be such officer before the Bonds shall have been
delivered , such Bonds may , nevertheless , be delivered as herein
provided and may be issued as if the person whose facsimile
signature appears on such Bonds had not ceased to hold such office .
Any Bonds may bear the facsimile signatures of such persons who at
the time of the execution of such Bonds shall be duly authorized or
hold the proper office in the City although at the date of the
Bonds such persons may not have been so authorized or have held
such office .
7 . The Bonds may be exchanged and registered and transfers
of the Bonds may be registered in accordance with the provisions
pertaining thereto appearing in the form of Bond hereinafter set
forth in this Ordinance .
8 . No Bond shall be valid or become obligatory for any
purpose or be entitled to any benefit or security under this
Ordinance until it shall have been authenticated by the execution
by the Registrar of the certificate of authentication endorsed
thereon .
Section 4 . Bond Form , The Bonds and the endorsements thereon
shall be in substantially the following forms and the Mayor and
City Clerk of the City are hereby authorized and directed to make
all recitals contained therein :
UNITED STATES OF AMERICA , STATE OF ARKANSAS
COUNTY OF WASHINGTON
No . R- $
CITY OF FAYETTEVILLE
WATER AND SEWER SYSTEM REFUNDING AND
IMPROVEMENT REVENUE BOND
SERIES 1992
Rate of Maturity Dated
Interest : Date : Date : August 15 , 1992 CUSIP:
Registered Owner :
Principal Amount : Dollars
THE CITY OF FAYETTEVILLE , ARKANSAS ( the " City " ) , a city of the
first class , duly created under the laws of the State of Arkansas ,
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for value received , promises to pay to the Registered Owner shown
above , or registered assigns or legal representative , upon pre-
sentation and surrender of this bond at the corporate trust office
of The State First National Bank ( the "Registrar" ) , in the City of
Texarkana , Arkansas , the Principal Amount shown above on the
Maturity Date shown above (unless this bond shall have been called
for prior redemption , in which case on the redemption date ) , in
such coin or currency of the United States of America as at the
time payment shall be legal tender for the payment of public and
private debts , and to pay interest on said Principal Amount from
the Dated Date shown above or from the February 15 or August 15
next preceding the date of authentication to which interest shall
have been paid , unless such date of authentication is a February 15
or an August 15 to which interest shall have been paid , in which
case from such date , such interest to the maturity hereof being
payable on February 15 and August 15 in each year , at the Interest
Rate per annum specified above , until payment of said Principal
Amount . The interest so payable on any such interest payment date
will be paid to the person in whose name this bond ( or the previous
bond or bonds evidencing the same debt as that evidenced by this
bond ) is registered at the close of business on the record date for
such interest , which shall be the first ( 1st ) day ( whether or not
a business day ) of the calendar month next preceding such interest
payment date , by check mailed to such person at his address as it
appears on the bond registration books of the City maintained by
the Registrar . Payment of the interest on this bond shall also be
made by wire transfer to the registered owner of this bond upon the
request of such owner if such owner is the registered owner of
$ 1 , 000 , 000 or more in principal amount of the bonds of the series
of which this bond is one .
This bond is one of a series of bonds , designated "Water and
Sewer System Refunding and Improvement Revenue Bonds , Series 1992 "
and aggregating in principal amount Ten Million Dollars
( $ 10 , 000 , 000 ) ( the "Bonds " ) . The Bonds have been issued for the
purpose of financing a portion of the cost of refunding all
outstanding water and sewer revenue bonds of the City , financing a
portion of the cost of making certain capital improvements to the
water and sewer system of the City , funding a debt service reserve
and paying certain expenses incidental thereto . The Bonds have
been issued pursuant to and in full compliance with the
constitution and laws of the State of Arkansas , including
particularly Title 14 , Chapter 234 , Subchapter 2 , Title 14 , Chapter
235 , Subchapter 2 , Title 14 , Chapter 164 , Subchapter 4 and Title
19 , Chapter 9 , Subchapter 6 of the Arkansas Code of 1987 Annotated ,
and pursuant to Ordinance No . 3638 of the City adopted by the Board
of Directors of the City on August 18 , 1992 ( the "Ordinance" ) . The
Ordinance permits the City to issue , under certain circumstances ,
Parity Indebtedness ( as defined in the Ordinance ) which may be on
a parity of security with the Bonds and subordinated indebtedness
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payable from Net Revenues subordinate to the Bonds and Parity
Indebtedness . Reference is hereby made to the Ordinance and to all
ordinances supplemental thereto for the provisions , among others ,
with respect to the nature and extent of the security , the rights ,
duties and obligations of the City , the Registrar , the Trustee
appointed under the Ordinance ( the "Trustee" ) and the registered
owners of the Bonds , and the terms upon which Bonds are issued and
secured . A copy of the Ordinance is on file at the corporate trust
office of the Trustee and , by the acceptance of this bond , the
registered owner hereof assents to all of the provisions of the
Ordinance .
The Bonds are special obligations of the City and the
principal of and the interest and any redemption premium on the
Bonds are secured by a pledge of and payable solely from the Net
Revenues ( as defined in the Ordinance ) of the City ' s water and
sewer system , as more particularly described in the Ordinance . In
no event shall the Bonds constitute an indebtedness of the City
within the meaning of any constitutional or statutory debt
limitation or restriction .
THE TERMS AND PROVISIONS OF THIS BOND ARE CONTINUED ON THE
REVERSE HEREOF AND SUCH CONTINUED TERMS AND PROVISIONS SHALL FOR
ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE .
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 this bond do exist , have
happened and have been performed in due time , form and manner as
required by law and that the indebtedness represented by the Bonds ,
together with all other obligations of the City , does not exceed
any constitutional or statutory limitation .
This bond shall not be valid until the Certificate of
Authentication endorsed hereon shall have been signed by the
Registrar .
IN WITNESS WHEREOF , the City of Fayetteville , Arkansas , has
caused this bond to bear the facsimile signatures of its Mayor and
its City Clerk , thereunto duly authorized , and its official seal to
be imprinted hereon , all as of the Dated Date ,
CITY OF FAYETTEVILLE , ARKANSAS
( facsimile signature )
Mayor
( facsimile sianaturel
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