HomeMy WebLinkAbout32-74 RESOLUTIONRESOLUTION NO. 32:111-
BE
32-'19.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
That the Mayor and City Clerk be, and they hereby are,
authorized and directed to execute a Subordination Agreement
with Mcllroy Bank -to enable= the City of Fayetteville to
issue additional Airport Improvement Revenue Bonds. A copy
of said agreement, marked exhibit "a", is attached hereto
and made a part hereof.
PASSED AND APPROVED THIS cPtatDAY OF `p%yj�
1974. %
APPROVED:
MAY
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SUBORDINATION AGREEMENT
This agreement made on this .Ia/day of int/ , 1974,
the City of Fayetteville, Arkansas, a municipal corporation
Mcllroy Bank of Fayetteville, Arkansas.
The parties recite and declare that
Mcllroy Bank is the obligee named in a
obligation entitled "71/2% Airport Improvement Revenue Loan.Obliga-
tion" executed by the City of Fayetteville on the 9th day of
September 1971, and authorized by Resolution No. 58-71.
between
and:-
b.
nd -
b. Said loan. obligation and the authorizing resolution
provide that said loan obligation will be a special..obligation
secured by a pledge of and payable solely from netrevenues
derived from the.peration of Drake Field.
c. :Said loan obligation and Section 4 of the authorizing;:
resolution as amended provide that so long as said loan obligation
is outstanding, the City shall not issue any bonds or incur
:loan obligation on a party of security with said loan obligation
orissue any bonds or incur any obligation claimedto be entitled...
to a priority of lien on, or pledge of, airport revenues over, the
lien and pledge in favor of said loan obligation, including revenues
derived -from existing and future improvements of' Drake Field; Unless
rthe written consent of McIlroy Bank, its successors or
is first obtained.:
d. The City of Fayetteville desires
;airplane hanger facility. at Drake Field and
to construct a new
does not have sufficient•
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:funds therefore but could obtain sufficient funds by issuing:Fifty
'Thousand Dollars ($50,000 00) in revenue bonds secured by a pledge:
of the lease revenues received by the City from said hanger facility.
In order to enable the City to issue .Airport Improvement
:Bonds secured by a pledge of any airport revenue, itis necessary'
that Ncllroy Bank consent to the issuance of said bonds -and
that the pledge of net airport revenues held by Mcliroy Bank.
pursuant; to the aforesaid loan obligation and authorizing
resolution be subordinated to thepledge of the.airplane
hanger facility revenues about to be made as above set'eforth..:
g. Mcllroy Bank is willing rto consent to the issuance
of said bonds and to subordinate the pledge of net airport revenues
in its favor insofar as said pledge would incumber revenues
received by the City of Fayetteville from the lease of that.
certain new airplane hanger facility the City proposes to
constructby issuing revenue bonds secured by a pledge of
lease revenues from said hanger facility; said subordination
to be effective only. as long_as the aforesaid revenue bonds
remain outstanding.
For the:.reasons,set forth above, and in of
the mutual covenants and promises of the parties hereto,
Mcllroy Bank and .the City of Fayetteville, Arkansas, covenant
and agree as follows:
1. Subordination. Mcllroy Bank of Fayetteville, Arkansas,
hereby covenants, consents, and agrees with the City of Fayetteville,
Arkansas, that the aforesaid pledge of net airport revenues is
and shall be subject and subordinated to the pledge of certain
hanger facility lease revenues about to be made by the City of
Fayetteville to secure the repayment of revenue bonds to be
issued for the purpose of financing construction of said hanger
facility;, said subordination to be effective only as long as
the aforesaid revenue bonds remain outstanding mMcIlrey Bank:,.'
:further agrees and consents to the issuance of said revenue bonds.
2: Consideration. In consideration of Mcllroy Bank.so
subordinating the pledge of net airport revenues held by it?
the City of Fayetteville agrees to sell Mcllroy Bank a portion
of the aforesaid revenue bonds having a par value of Twenty-
five Thousand Dollars ($25,000.00), said bonds to mature ten
(10) years from the date thereof and to bear interest.at the
rate of 61/2% per annum.
3. Binding Effect. This agreement shall be binding upon:
and inure to the benefit of the successors and'assigns of the
parties hereto.
In witness whereof, the parties have
this day of 11I f' 1974.
CITY OF FAYETTEVILLE
BY: 82“44LU% 6 u .
executed this agreement
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... KN WI E D GMFEN T
STATE OF ARKANSAS )
)ss
COUNTY OF WASHTNGTON) :
On this the day ofa..._, , 1974, before me,
the undersigned officer, personally appeared -
w
ho acknowledged
acknowledged himself to be the
f`"' _ ,„ , a corporation, and
such d .14,�"" , being authorized so to do,
the foregoing instrument for the purposes therein
by signin the name of the corporation by himself
that he,
executed
:cohtiane
as;;
as
seal.
My
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n\witness whereof•I hereunto set my hand and official
Commission Expires:
/ 7 2-1/7C
NO ARY PUtC
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A C K.NDWL•E''D.GM EENT
STATE OF ARKANSAS )
)ss
COUNTY OF WASHINGTON)}
On this 1 day of, 1974, beforeundersigned,
a Notary Public, duly commissi ned, qualified and acting, Within,
and for the said County and State, appeared in person the within
named Russel Purdy and DarleneWestbro.ok¢, to me personally well .'.•
known, who stated that they were the Mayor. and C.ity.,:Gletk:,
of the City of Fayetteville, Arkansas, a municipal corporation,
and were duly authorized in their respective capacities to
execute the foregoing instrument for and in the name land behalf,
of said corporation, and further stated and acknowledged that
they had so signed, executed and delivered said instrument for
:the consideration, uses and purposes therein mentioned and set.
:forth.
IN TESTIMONY WHEREOF, I have hereunto set my hand
off e; ai AAA) this 2-1 day of Hel , 1974.
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My Comm 's•&sdori,.Exppiir/es