ORD NO 05-1969 ORDINUANCE NO. 5 -1969
AN ORDINANCE TO PROVIDE INTERIM FINANCING FOR THE PURCHASE OF
LANDS AND CONSTRUCTION OF A PLANT IN THE CITY'S UNDERTAKING _TO
ASSIST CEMENT ASBESTOS PRODUCTS COMPANY IN THE CONSTRUCTION AND
OPERATIONS OF A PLANT IN VAN BUREN, ARKANSAS, FOR THE PURPOSE
OF RANUF /ETURING PIPE AND FITTINGS AND SUCH OTHER PRODUCTS its
IT NAY BE AUTHORIZED TO MANUFACTURE, AS iUTHORIZED BY THE ELECTORS
OF THE CITY OF VAN BUREN, ARKANSAS, AT A SPECIAL ELECTION HELD
FOR THE PURPOSE ON OCTOBER 1, 1968.
'WHEREAS, at a special election in the City of Van Buren,
Arkansas, on the first day of October, 1968, under provisions
of Act No. 9 of the Special Session of the General Assembly of
the State of Arkansas for the year 1960, the electors of the
City, authorized the City uf Van Buren to issue its Industrial
Development Revenue Bonds to the extent if ;;1,000,000.00 to
assist Asbestos Products Company in the construction and operation
of a -plant in Van Buren, Arkansas for the purpose of manufacturin
pipe.end fittings and such other products as it may be authorized
to manufacture; and
WHEREAS, it is necessary and desirable that construction of
the plant should commence and proceed as expedotoously as possibl;
and
.WHEREAS, there is a need and it is desirable to proceed with
the purchase of the site and the construction of the plant prior
to the issuance and delivery of the bonds; and
`WHEREAS, the First National Bank of Birmingham, Birmingham,
Alabama, has agreed to purchasetthe Industrial Development Revenue
Promissory Notes of the City at an interest rate of 4..6°% per
annum in the form and with the terms herein provided;
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CIT'
OF VAN BUREN, ARKANSAS
;Section 1. That the City Cuuncil hereby finds that there is
a need and that it is desirable prior to the issuance and deliver;
cf theiperrnanent industrial Revenue Bonds of the City to provide
interim financing for the purpose uf the site and for constructio:
of the plant for the Cement Asbestos Products Company for the'
manufacturing of pipe and fittings and such other products as it
may be authurized to manufacture.
Section 2. That the City be and is hereby authorized to
issue'and to sell to the First National Bank of Birmingham,
Birmingham, Alabama, at par, its 4.6% Industrial Development
'Revenue Promissory Notes in the principal amount not to exceed
0 Nine Thousand Dollars, (000,000.00) in the denomination
of Fifty Thousand Dollars, (:'4;50,000.00) each, numbered from 1 to
18, inclusive boering interest frum date, and maturing on March
1, 1970, and subject to prepayment at the option of the City at
par and accrued interest to the date of the payment without,
penalty, substantially in the following form:
Page 2
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRAAWFORD
CITY OF VAN BUREN
4.6% INDUSTRIAL DEVELOPMENT REVENUE PROMISSORY
NOTE
N 250,000.00
FOR VALUE RECEIVED, the City of Van Buren, Arkansas,
-(ca_iled "City hereby promises to pay to hearer the
Sum of
FIFTY THOUSAND DOLLARS
ON'March 1, 1970, with interest from date until paid at the.
rate- of Four and Six- tenths per cent (4.6% per annum).
The principal hereof and the interest hereon shall be payable
from the proceeds of the sale of the Industrial Development
Revenue Bonds of the City dated as of December 1, 1968, in the
amount of .`,,:1,000,000.00 authorized by the electors of the City
of Van Buren, Arkansas, in a special election hold on the first
day of October, 1968.
At the option of the City, this Promissory Note may be paid'
prior to maturity at par plus accured interest to the date of
payment without penalty.
This is one of a series uf eighteen (18) Promissory Notes egg-
regc:ting Nine Hundred Thousand Dollars ('„900,000.00) all of like
tenor except as to date, numbered from 1 to 18 inclusive, issued
for the purpose of interim financing fur the purchase of a site
and construction of a plant to assist Cement -Asbestos Products
Company in the construction and operation of a plant for the
manufacture of pipe and fittings and such other products as it
may authorized to manufacture and are all equally secured by
a pledge of the proceeds from the sale of the said +,1,000,000.00
of Industrial Development Revenue Bonds of the City, dated as of
December 1, 1968, but do nut constitute general obligations of
the,City uf Van Buren Arkansas nor a pledge of its faith and
credit.
Soth :principal hereof and interest hereon are due and payable
at the office cf the First National Bank of Birmingham, Birmingha
Alabama.
IN WITNESS THEREOF, the City Council of the City of Van Buren,
Arkansas, has caused the Promissory Note to be executed by its
Mayor and attested with its seal this day of
1969
CITY OF VAN BUREN, ARKANSAS
BY
Mayor
ATTEST
City Clerk
Section 3. That from time to time as funds may become nec-
essary fur the said purpose, the mayor be and is hereby authorize
to execute and the City Clerk be and is hereby authorized to
attest and to deliver the said Notes to the said purchaser upon
the payment of the purchase price therefor.
Page 3
Section 4. That the Notes of said Series be and they are
hereby equally secured by a pledge uf and are equally payable from
the proceeds from the sale of the City's Industrial Development
Revenuo Bonds, dated as :,f December 1, 1968, in the amount of
,1,000;003.00 and do not constitute a general obligation of the
City of Van Buren nor a pledge of its faith and credit.
Section 5. It is ascertained and declared that the safety
and health of the City cf Van Buren arc jeupardizcd by the lack
of sufficient industry, and that only by action made possible
by this Ordinance can the City immediately undertake to secure
and develop industry and to promote the safety, health, and
welfare uf its citizens, IT IS, THEREFORE, declared that an
emergency exists, that this ordinance is necessary for the
immediate preservation of the public peace, health and safety,
and thet this ordinance shall take effect and be in force from
and after its passage.
Passed and Approved this 3rd day of February, 1969.
Allen R. Toothaker (s)
Mayor
Attest
Gee L Crofton (s)
City Clerk