ORD NO 15-1976 ORDINANCE NO. /.5
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER
ACT NO. 9 OF THE FIRST EXTRAORDINARY SESSION
OF THE SIXTY- SECOND GENERAL ASSEMBLY OF THE
STATE OF ARKANSAS, APPROVED JANUARY 21, 1960,
AS AMENDED, FOR THE PURPOSE OF PROVIDING
PERMANENT FINANCING OF THE COSTS OF SECURING
AND DEVELOPING INDUSTRY (THE PARTICULAR
INDUSTRIAL PROJECT IS DESCRIBED IN THE ORDINANCE);
AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST
INDENTURE SECURING THE BONDS; THE ACCEPTANCE OF
A GUARANTY AGREEMENT; AUTHORIZING AND PRESCRIB-
ING OTHER MATTERS PERTAINING TO THE ACQUISITION,
CONSTRUCTION AND EQUIPMENT OF THE INDUSTRIAL
PROJECT AND THE FINANCING THEREOF; AND DECLARING
AN EMERGENCY.
WHEREAS, the City of Van Buren, Arkansas (the "City is
authorized by Act No. 9 of the First Extraordinary Session of the Sixty
Second General Assembly of the State of Arkansas, approved January 21,
1960, as amended "Act No. 9 to acquire lands, construct and equip
manufacturing buildings, improvements and facilities and to incur other
costs and expenses and make other expenditures incidental to and for the
implementing and accomplishing of the conduct of manufacturing operations;
and
WHEREAS, the City is authorized by Act No. 9 to issue Industrial
Development Revenue Bonds payable from revenues derived from the Industrial
Project so acquired and constructed and secured by a lien thereon and
security interest therein; and
WHEREAS, the necessary arrangements have been made with Bekaert
Steel Wire Corporation, a New York corporation "Bekaert" or the "Company
whereby Bekaert is acquiring, constructing and equipping an industrial plant,
and certain machinery, equipment and facilities are necessary for the
operation thereof (the "Project is being acquired and installed therein and
will be owned by the City and sold to Bekaert pursuant to the terms of a
Sale Agreement subsequently identified herein and referred to as the "Sale
Agreement and
WHEREAS, Bekaert is a subsidiary of N. V. Bekaert S. A. (Zwevegem,
Belgium), a Belgian corporation "N. V. Bekaert"), and N. V. Bekaert has
agreed to unconditionally guarantee performance by Bekaert of its obligations
under the Sale Agreement by an instrument identified as the "N. V. Bekaert
Guaranty Agreement and
WHEREAS, permanent financing of the Project costs, necessary
costs and expenditures incidental thereto and expenses of authorizing and
issuing Bonds, is being furnished by the City issuing Industrial Development
Revenue Bonds under the provisions of Act No. 9 (the "Bonds and
WHEREAS, the Bonds will be dated, bearing interest, maturing and
subject to redemption as hereinafter set forth in the form of Indenture authorized
by this Ordinance;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City
of Van Buren, Arkansas:
Section 1. That there be, and there is hereby authorized and directed
the following:
(a) The sale of the Bonds to The First National Bank
of Fort Smith, Fort Smith, Arkansas, and the
execution by the Mayor and City Clerk of a
Commitment with such purchaser for the price and
pursuant to the terms recommended by Bekaert (a
copy of which shall be filed in the office of the
City Clerk);
(b) The acquiring, constructing and equipping of the
Project, and in connection therewith, the execution
of contracts, and the acceptance of assignments of
contracts, for the acquiring, constructing and
equipping of the Project;
(c) The performance of all obligations of the City under
the Sale Agreement pertaining to the acquiring,
constructing and equipping of the Project and the
performance of all obligations of the City under the
contracts referred to in (b) above; and
(d) The acceptance, execution and delivery of the N. V.
Bekaert Guaranty Agreement in substantially the form
presented to the City Council. After execution and
delivery a copy shall be filed in the office of the
City Clerk.
Section 2. That Industrial Development Revenue Bonds of the
City under Act No. 9 in the principal amount of $1,000,000 are hereby
authorized. To prescribe the terms and conditions upon which the Bonds
are to be executed, authenticated, issued, accepted, held and secured, the
Mayor is hereby authorized and directed to execute and acknowledge a Trust
Indenture (the "Indenture and the City Clerk is hereby authorized and
directed to execute and acknowledge the Indenture and to affix the seal of
the City thereto, and the Mayor and City Clerk are hereby authorized and
directed to cause the Indenture to be accepted, executed and acknowledged
by the Trustee. The Indenture, which constitutes and is hereby made a
part of this Ordinance, shall be in substantially the following form, to wit:
0
Section 3. That the Mayor and City Clerk, for and on behalf of the
City, be, and they are hereby, authorized and directed to do any and all
things necessary to effect the execution and delivery of the Indenture, its
execution and acceptance by the Trustee, the performance of all obligations
0
of the City under and pursuant to the Indenture, the execution and delivery
of the Bonds, the execution and delivery of an Official Statement, and the
performance of all acts of whatever nature necessary to effect and carry out
the authority conferred by the Indenture and by this Ordinance. That the
Mayor and City Clerk be, and they are hereby, further authorized and directed,
for and on behalf of the City, to execute all papers, documents, certificates
and other instruments that may be required for the carrying out of such authority
or to evidence the exercise thereof.
Section 4. That the City is here involved with the acquiring, con-
structing and equipping of industrial facilities, and therefore, pursuant to
applicable laws of the State of Arkansas, including particularly Act No. 9,
competitive bidding is waived.
Section 5. That the provisions of this Ordinance are hereby declared
to be separable, and if any section, phrase or provision shall for any reason
be declared to be invalid, such declaration shall not affect the validity of the
remainder of the sections, phrases and provisions.
Section 6. That all ordinances, resolutions and parts thereof in con-
flict herewith are hereby repealed to the extent of such conflict.
Section 7. That there is hereby found and declared to he an immediate
need for the securing and developing of industry in order to provide employment
and payrolls, alleviate unemployment and otherwise benefit the public health,
0 safety and welfare of the City and the inhabitants thereof, and the issuance of
the Bonds authorized hereby and the taking of the other action authorized
hereby are immediately necessary for the accomplishing of these public benefits
n f
and purposes. It is, therefore, declared that an emergency exists and this
Ordinance being necessary for the immediate preservation of the public peace,
health and safety shall be in force and effect immediately upon and after its
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passage.
PASSED: Mp`f`■ O 1976.
lI APPROVED:
ATTEST:
/e` s f
Mayor
City Clerk
(SEAL)
0
CERTIFICATE
The undersigned, City Clerk. of Van Buren, Arkansas, hereby
certifies that the foregoing pages are a true, correct and compared copy of
Ordinance No. -!T)0 of the City of Van Buren, Arkansas, passed at a
sp 1 session of the City Council of Van Buren, Arkansas, held
at the regular meeting place of the Council at 7',36 o'clock .m., on
the c. 6 day of i 1976, and that the Ordinance is of
g
record in Ordinance Record Book No. at Page S I now
in my possession.
GIVEN under my hand and the seal of the City this c; day of
A fpv l 1976.
%P
City Clerk
(SEAL;
e