ORD NO 04-1963B ORDINANCE NO. 4 -1963
AN ORDINANCE AUTHCRIGIING THE ISSUANCE L CITY OF VAN DUREN,
A:ZKA JSAS ATck AND SE ER REFUNDING AND IMPROVE .ENT 0:VJJUE
,fNDS: SETTING UP CERTAIN FUNDS: ARD DECLARING AN Ei'";ERGEFJCY.
:HEREAS, the City of Van Duren, Arkansas, a city of the first
class„ proposes to extend and improve its municipally owned water
and sewer system in order to supply the domestic and commercial`.•
needs of the City's inhabitants and to protect thier health and-.
safety and
ffH[.EAS, the City has outstanding e halence of .:)79,500.00. of
3% water revenue bonds dated July 1, 1955, and maturing serially
on July'1 of the years 1964 to 1969, both inclusive, which it can
coil for payment on any interest paying date; and
.JNE EAS, the City has had John E. Mahaffey 8. Associates,
consulting Cngine-ars, of Fayetteville, Arkansas, prepare :plans, spec
fics•.tions, and astirates of cost for the improvements contemplated,
;:hich;are now on file in the office of the City Clerk, and the esti-
mates show c total cost of construction, interest during construction,
nd enf7inecring and legal fees, of .:1,673,506.00, which with the
refunding of the 79,500.00 outstanding 3'i bonds, will be paid by the
issu-nce of ',:931,500 in water and sewer revenue bonds by the city and
grents`of ;826,500 from the United States Government, and the City is
now ready to proceed with the issuance of revenue bonds; now, therefore,
f SE IT OR0RIED by the City Council of the city of Van Duren,
Arkansas:
SECTIGN 1. That the Council hereby finds and declares that
there is immediate need for the im1:rovement of the municipal water and
sewer system in order to serve the inhabitants of the city. The
proposed improvements to be constructed are line Fextdnsions, lift
stations, treatment facilities, interceptor lines, outfcll, repairs
to the system, and appurtenances, for the sewer system and
enlarging the treatment plant, constructing an impounding dam, providing
three million g:_llons additional ground storage, new distribution and
transmission mains, and appurtenances for the water system--at en
esti.m -a:ted cost to the City of :852,000.00 after applying grants by the
UnitedLStates. (The complete wcter and sever system, including the
pacts now in service and the new aetensions and i_:rovements, is some-
timesdiereinafter referred to as the "oyster::.
SECTION 2. That under the authority of the General statutes
of the state of Arkansas, and jarti_cuiarly Acts No. 131 and 132 of the
Gen.arel Assembly of the :state of Arkansas for the year 1933, as amended,
water and sewer refunding anU irnprovercnt revenue bends be issued in
the total account of S931,500; the proceeds of the sale of the first
:79.500. together with accrued interest and paying chi rges, shall
'3e deaosited with the Merchants National Dank of Fort .Smith, Arkansas,
and used to cell the bonds being refunded, and the proceeds of;the
3E1e of the 852,000.30 balance of said issue shall be used to pay
the cost of the construction of the improvements hcreinabove described,
S including engine_rinn and legal fees, interest on the bonds during the
period of construction, and othar nececs ry expenses; that said bonds
be designated "City of Van Duren, Arkansas, Yater and Sewer Refunding
and Irmtarovernant Revenue Bonds," he dated as of October 1, 1963, be
numbered from 1 to 932 both inclusive, be sometimes hereinafter referred
to es "Bonds," be in the denomination of .1000 each except No. 20
which shall be in the denomination of )500, be callable as hereinafter
set out, and mature in numbricel order on Cceohar 1 of each year as
follows:
Fnge 2
YEAR 3r.i1] NOS.
P,. ,7UT
(both inclusive)
1965 1 to 20 ;!!19,500
1966 21 to 40 20,000
1967 41 to 60 20,000
1968 61 to 80 20
1969 81 to 105 25,000
1970 106 to 131 26,000
1971 132 to 159 20,000
IMO 1972 160 to 189 30,000
1973 190 to 220 31,000
1974 221 to 253 33,000
1975 254 to 208 35,000
1976 289 to 325 37,000
1977 326 to 364 39,000
1978 365 to 405 41,000
1979 406 to 448 43,000
1980 449 to 493 45,000
1931 494 to 540 47,000
1982 541 to 589 49,000
1903 590 to 640 51,000
.1 1984 641 to 693 53,000
1985 694 to 748 55,000
1986 749 to 306 58,000
1987 807 to 867 61,000
1908 068 to 932 65,000
The Ponds shall be ncaoticble and shall he -r interest payable
semi annually on April 1 and October 1 e:_ch veer, beginning April 1,
1964,end will be sold with the privilege to the huyer of convdrting
to lower interest rates from 37j for the first .'79,500 end 4zi fpr
the bol nee of the issue. The -!onds shall be signed by the Ocyor
end City Clerk and sealed with the corporate seal of the City, the
interest upon the 3onds shall be evidenced by coupons attached
theretbt the coupons to be sinned by said Nryor by his facimile
signeture appearing on said ccueons. Beth the principal of and int-
erest on said ',lends shell be pey..ble in any coin or currency which on
the respective dates of a:yment thereof is legal tender for payment
of debts due the United States of /sn rjce. The buyer shall have the
right to name the Trustee and place of eeyment for the Ilonds.
The Oonds, together with interest thereon, shell Se pny:oble
solely out of the 'pater and Sewer Revenue Cond and Interest sinking
Fund, -s hereinafter defined, end shall be a valid cleim cf the holder
thereof: only egeinst such fun, enE the amount of revenues pledged to
scid fund, which amount of =cud revenues is heresy ::ledned and Mortgaged
for the. eeeel and retable eeyment of the 3onds End shell be used for
no othbr ;:ureese, except as hereinafter set out.
bECTILN 3. The _ands will ee sold :pith the ezuvisien that if
they ere converted to lower interest rates by the buyer, the city must
receive no less and pay no rare then it would receive or pay if the
onds bad not been converted, and the -_verege maturity of the converted
schedule must not be over nine months less than the average m_:turity
of the ?schedule before conversion, and the everege rote of interest of
the 'HOnds aftez conversion must not be more then 3/4 of 1% 1Ol!er than
the rate of interest bid and accepted. The conversion shall also be
subjectt to the c ;prove_L of the ke or end City Clark. The buyer may
also n&me some Eualified :irkans :es hen): or Cruet c :eidpeny es Trustee for
the is The Me or and City Clerk are herebe authorized, in their
discretion, to ceprove the conversion of the bends end the naming of
the Trustee.
,`CTICN 4. That _aid Lends and coupons shell be in substent -ally
the following form: (for form of bond end Corm of cou,on refer to
orieinol ordinance in book, pane 80)
SECTIOCN 5. In crder to Lee the .sonds and the int_- est thereon
cs they mature, the City Council by Ordinance No. 11 -1962, passed
end apRroved Novec:ber 12, 1962, fixed the w:cter end sewer rates and
Pace 3
the Council hereby finds tha r=tes so fixed to be re-,sone.ble and the
necessary minimum rotes to ha charged, and said rates are hereby 4aroved
and confirmed. The Council further 'Finds and declares that .•yid ureter
and sewer rates will produce 2 tot -1 revenue sufficient to :icy the
reasonable costs of the operation, repair and maintenance of the' :3ystem
and to r,rovide for adequate depreciation, and to provide an annual net
revenue; as herein;.ftc defined, equivalent to 150,, of the average annual
;principal and interest maturities of the T3onds. The rates se fixed
sip. 17. never be reduced to tc extent that tho System's not revenue' in
any year will be less than 150,: of the princi,:a.1, interest, and paying
charges'for that year, until all tha Bonds authorized by this ordinance
and all interest thereon shall have been paid in full, and shallrrhen
necessary be increasers in en ;mount sufficient to provide for the
maintenance of +s.- Js hereinafter described.
.y covenants and agrees to astrblish, and
ny of the Bends rare outstanding, the follow
.avenue Fund." into which shall be
evenues derived from t.;e operation of
h '3 and used only in the manner and order
,i' as permitted and defined _y applicable
1 and Faintenence Fund." into which shall
j and Semer 'avenue Fund, on or hefore the
ch su )S cs .re eat i cec to be required
1 G and maintenance e .tense of the titer;
Md.
'a. on and hnintenance Fund." into which shall
r end Sewer ';avenue Fund, on :_r before the
t_� °ouch sums as are Estimated to be required
j -9 J,glin and maintenance expense of the 3awer System
y aZ
"j ;;avenue fond rand Interest Sinino Fund."
Lied 'Hand Fund into ohich shill he deposited
ved From the sale of tha ends, any proceeds
L ,aemaininc after the completion of construction
by transfer from the afar end Se' er Zev:nue
:h day of each month, sums equal to at least
interest duo the next succeding interest
`:h of the principal due the next succeeding
:Ta ct payeno charges, until a debt service
S '50,00 ;U has been accumulated. Thereafter, it
such SUMS TO may be necessary to meet. the
a service rand maintain the raearve of ..50 D0'
=:t no f urth :r r :;gyn_nts need be made into
a lone as such amount of the _lands shall
;mount then held in such lend Fund,
=f- nu:a1_ to the entire amount of the interest :-and
corued and become due at tha time of the
l).
the ponds then remaining outstanding.
ns`or and pay the nreocr1 ued mounts from
ie Fund into said land Fund shall be cumulo-
the r v nu s dur'no or month are lnadc'uete
and 1. rent, or if for ny other reason
E tx 1 e"+3 uch transfer nsfer and payment, the ;amount of
up from the First available revenues
^„'xw -me shall be in additiEn to the amounts
(161ADTL,,Hte ue paid and transferred into said ;7ond Fund.
u r r depreciation n f,
(d): _,uMr and �z ;fe_ Fund.' (sometimes hereinafter
called "Ueprec' Fund"), into 'jhioh shall be transferred from the
.ar end Sparer revenue Fund, on or before the fifth day of each
month, sums equivalent to five par cantwa of the gross revenues of
Page 4
the system for the preceding month. Theloneys in this fund ere to
ire used to pay for necessary replacements or repe::_.rs to the f:.ci_'ities
of the System or for the cost of exonenicaily- iustifiable extensions
to the distribution and collection systems. However, in the event
funds in the Bond Fund should be reduced below the ?mount required to
meet the current debt service plus the reserve of 50,000, funds on
deeosit in the Oepreciction Fund may be transferred to the Bond Fund
to th; extent required to ell inrote the deficiency in that fund.
_ECTION 7. Subject to the foregoing, which are cumulative, any
b.sance in the te: end 'ewer Revenue Fund may be used for acquiring
outstanding Bonds for cancellation, for redeeming outstanding :Bends
on the next interest paying date in inverse numerical order, for
slaking extensions or improvements to the System, or for any othe
1=.: :'fu1 purpose.
5FCTIGN B. The City covenants and agrees that it will not
issue.-ny ponds on c,,__ity bith those ::ends
unLss the net revenues
of the System for the fiscal year immediately preceding such 'issuance
End sale of additional bonds he equal tc at least one and one-half
times the .average annual debt service re1uirce :tints of the t::en out
st;,nding Bonds as certified by an independent public .'cc :untant end
unlese the projected net revenues of the System fur the life of the
then Outstanding 'Bonds and Ike proposed additional revenue bonds be
-r;_,to at liast one sand one -half times the average ennuc_1 debt
sJ :cvice requirements of th:D then outstanding Bonds c with the
ev'eraoe annual debt service requirements of the proposed additional
revenue bonds, as prepared by a qualified recognized c nsultingg':angineer.
Provided, no bonds shall be issued having a lien on the revenues of
the System rrior to the lion of the lands :uthr.•r.ized by this ardirance,
tut nothing herein shall he construed to prevent the City from issuing
bonds to secure funds for extensions or i„provements to the System
subject to the prior lien of said D•onds.
',SECTION 9. The 'fond Fund shall be used solely and only and
is hereby pledged for the purpose of ray :_ng the inie est an ,and
accomplishing the retirement of the 'ands. It shall He the duty of
the City Treasurer to deposit in the :.and Fund on the fifth day of
each month after the issuance of 'these hinds the respective surds
which required to be withdrawn form the 'Eater :-and Sewer Revenue
Fund Hand paid into siad fond Fund, and the Pond Fund shall be cnd
remain in and on de;::osit as o trust account until e ied in payment
of eriih,cinal end interest of the Fund: es !gill be shown by the
sc; of the Oands after ec,nv.-_Tsion, copy of vl ich shall be
filed;; in the office of both the City Clerk and the City Treasurer,
Ce tiH.ed by the City Clerk under :•:a1 of the City.
SECTION 10. It shall be the duty of the City Treasurer to
deliver to the Trustee, not less than five days before the due dote
of any semi- annual savmont of interest or annual payment of crincipal,
cheek or voucher drawn on the _land Fund, to bo used to meetthe
payment then due, with the paying charges hereinafter set cut.
SECTION LL. The Navor and City Clerk are hereby authorized and
directed to execute the 3 end e-liver them to the buyers upon
payment of the full purchase :,rice and accrued interest to date of
delivlry of the ?ands. The r:oney received for accrued interest shall
be'dsoosited paid into the bond Fund. The sun of .79,500 shall be
deposited with the horchents Lotional flank of Fort J .th, Arkansas,
as !:rovaded in Section 2 of t is ordinance. The belonce of the
Q money t eceived for the Donds shall he deposited in a fend h000by
crootc4 and designated "Construction "account,° and, except for
enginerr;ring and legal services, shall be expended solely upon
certifucates form t!e engineers in charge of the construction, and
the de bunk or banks shall be advised of this restriction.
Any fur-ds remaining in the Construction Account after the completion
of the construction •cf the improvements shall be promptly used for
the red.emption of Bonds; provided, however, that if the funds.re-
mein.i,no .amount tc less than '1000, such funds shall be deposited in
the Pond Fund.
Page 5
SECTION 1:2. Upon request by the City, moneys on deposit to the
credit of accounts and funds established and maintained in conformity
with the provisions of this ordinance shall be invested by the'depository
bank in direct obligations of, or obligations the principal of and
interest on which are guaranteed by, the United States Government.
SECTION 13. In order to facilitate the construction of the new
improvements, the City Council does hereby create a Sewer Committee,
to be `known as the Board of Directors of Municipal Improvements
(sometimes hereinafter called the "Sewer Committee who shall:
hold :Office and exercise the powers conferred by Sections 19 -4103
and 19 -4104, Arkansas Statutes, 1947, and the Council does hereby
appoint N. D. Edwards, H. Zed Gant, Clym<nn Izard, Dean Woods,.and
C. J,- Franklin as the members thereof. Said appointees shall take
and file within ten days of their appointment the oath of office
prescribed by Section 20 of Article XIX of the Constitution of the
State of Arkansas. These Directors `shall oversee end dirict all
works 'to be paid by proceeds of the Bonds and grants, shall handle
all proceeds from the sale of the Bonds, and shall oversee the
contracts for the water and sewer work.
:Section 14. The Sewer Committee shall also serve as a City
Board.of Health, with power to ascertain whether improved and
occupied property which is not connected with the sewer system,
but can beeserved thereby, has adequate sanitary facilities so
thatethe public health is not impaired because of the failureito
connect said property to the sewer system.
''SECTION 15. Each owner of ieoroved property lying within the
arecethat can now he served by the sexier system or con be served
thereby after the completion of the extensions end improvements
thereto is directed and required to connect all toilet end taste water
.cilities of such is. :roved property ;ith said see ;er system within
one ye =_r after the service is :iveilable. Beginning with the end
of the first year that sewer service is available to any improved
property, such property must be connected to the server system
within three months after the miner has bean notified to make :such
connection, subject to the requirement of an eerlier connection if
the fail_urd to connect constitutes a threat to public health.
JECTION 16. In the event the Sewer Committee, proceedings as
the City Board of Health, finds that any improved end occupied
erops'ety not connected with the scucr system does nut have adequate
senit_ry sewano disposel facilities and that thereby the public
health is im;_:aried or threatened, it shell send 2 written noticd
to 'che ow er of such property, if it con be served by the sewer
system, to c_nnect said eroecrty to said system within three Months
froa,-.the dote of said notice. Any :roperty owner who fails oz•
refuuas to connect his ieeroved property with the sewer system
within three months ,cfter be_ni notified to do so sh:11 ha guilty
of a.misdemeneor end upon conviction shell ee fined in any sum not
less:than .2.e0 and not exceeding .10.LO, and ench c'!;;y's feilure
or refusal after expiration of the time fixed in the notice to make
the connection shall he a se offense, All fines collected under
this section shall be paid into the "',icier. and Sewer Revenue Fund
Provided, nothing in this ordinance shell be so cons rued as to compel
the building of a sewer line by one property owner over the prop_rty
of enother, or for a ere,ater distance fram his property through or into
any street or a ].ey than three hundred (300) feat to e ;:lace where a
connection can be made to the Sauer system.
SECTION 17. A statutory mortgage lien shall exist upon the
water system in favor of the holders of the :Bonds end eech of them
and to and in favor of the holders of the coupons ett ched to sold
Ponds and such improvements shall remain subject to ouch statutory
:or.tggge lien until payment in full of the interest on and principal
of the Ponds, provided, hcwevo that such statutory mortgage;lien
shell be interpreted according to the decision of the 'eupreme-Court
of Areensas cited as City of Harrison vs. Creswell, 209 Ark. 1094.
194 S:(2d4 12, and that said statutory lien shell not ;ee cssertod
or enforced eo es i lr.s or to resul� in n torso_. i_ �s o_ 5c :.;.o of any of the
eropatties constituting the munici. ;al uetarwork_;, ut said lien shall
ee _eocnnized and enforced only for tee .'uroose of .raventing the _ale
r se
le
,.ortgeee, 1:ese, or disecs,1 in any other mRnner of en inteerel
rt��.m, gad
_if said eater system.
Page 6
SE.CTIUP!' 18. All sewer charges thct are not paid when due
shall constitute a lien upon the fee title to the J.and and permanent
improvements served by the sewer system, even though the occupant
receiving the benefit of the service for which the charge is due has
me:cely'a leasehold interest or lesser interest in the erernises.
SECTION 19. A. Aftdr all the improvements have been completed,
the water system im rovements shall be turned oval' to the Yeter
Committee or Commission for operation and maintenance, who shall
have and exercise all the rights and duties which it now has,
subject only to the provisions of this ordinance.
I' After nil the improvements have been completed, the sewer
systemshall be operated by the Board of Directors of Municipal
Improvements (sometimes herein called the "Sewer Committee who
she1l- have exercise the duties ofcoPer,etion.and Maintenance
of s id 0e er.Systom; in addition-to the duties hereinabove conferred
on the Committee,
SECTION 20. The improvements described in Section 1 of
this ordinance are estimated to cost ap;-roximately :429,600, end
the seder improvements described in Section 1 ere estimated to
approximately 51,136,400 to which must be added interest during
construction, engineering and legal fees, and administrative costs, but
the City will receive government grants of .,;626,500.
SECTION 21. The terms "City" and "Bond Fund" as used in this section
shall :Mean, respectively, the Incorporated Town or the City issuing the
uonds-a'nd the Fund provided by this ordinance fey the payment of the ponds.
(a) None of the facilities or services afforded by the System shall be
furnished without a reasonable charge being inede therefor. In :the event
that the City or any department, agency, or instrumentality thereof shall
avail` itself of the facilities or services afforded by the System, the
reasonable v,elue of the Services and fecill
�tias so afforded shall be
cherged..g the City or such deportment, aoaincy, or instrumentality,
and shall be prid for es the charges therefor -accrue. The revenues
so received from the City shall be construed es requiring the City or
any derartment, agency, Cr instrumentality the: :eof to avail itself of
the facilities or s ervices afforded by the _'system.
(b) The City will maintain the System in toed condition and operate
the acme in an efficient manner :and at a reason able cost. So long as
any of..the Bonds are outstanding, the City egrets to maintain fire,
lightbing and tornado insurance on the System in en amount which normally
would be carried by e private company enon,7ec in e similar type of business.
These insurance policies are to be token with comocnies approved by the
Trustee, are to carry clause making thorn psychle to the Trustee as
its interest may epear, are to 'bo kept centinceesl.y in force, and either
the original policies of insurance shell be ;laced in the custody of the
Trustee'or the Trustee shall be furnished evidence satisfcctory to it
that the policies have been issued and carry the loss 'payable to the
Trustee: clause. In the event of loss, the rocceds of such insurance ere
to ie'4i' :?plied solely toward the reconstruction, replacement, or repair
of the .System. In such event the City will, with reasonable promptness,
cause to be commenced and completed the reconstruction replace end
repairs. Nothing herein shall he construed as reo,eiring the City to
expend any funds for premiums on its insurance On the System which are
derived from sources other than the operation of the System.
(c) The City Treasurer shall be the custodian of the revenues
derived.:: from the System, and shell give bond es such custodian. Such
bond shell be in an amount not lass than ..:10,000.00 and shell be
approved by the Trustee..
(d) The System shall be operated upon a fiscal year basis, beginning
Januaary 1 of each yoer and ending and including the Poll: wino December 31
(e) So long 3s any of the ;fonds ere outstcnding, -the City will not
mortnege, pledge, or otherwise encumber the ystem or any part thereof
or env i'dvenue's thereform, except as her._i :•rovided, and will not sell,
loose, or otherwise dispose of any subbStantia1 portion of the seme.
The obligations of the City set nut in this ordinance, the pledge of revenues
end the City'3 erroenent not to I! ortoa'ao, Wedge, or otherwise encumber
the stem shall be made a ::;attar of eubli.c record `y r� by having card -pied
copy of this ordinance recorded as mortg:rce in the office of the Circuit
Ctor':. County, ,_and ex- ofrlee „eeo ^der of Crawford ,a
d �oun2y, ;::::,n: te
Page 7
(f) All revenues from the System shall be deposited in such d
depository or depositories as may be lawfully designated from time to
tome,;subject, however, to the giving of security by each suchcbpository
as now or as hereafter may be required, and provided each such depository
shall hold membership in the Federal Deposit Insurance Corporation.
All deposits shall be made in the name of the City and be so designated
as to indicate the particular fund to which the revenues belong.
Payments from each fund set out in this ordinance shall be made by
check or voucher signed by two duly designated persons and drawn on the
depository in which the moneys in said fund shall have been deposited,
and each such check or voucher shall briefly spedify the purpose of the
expenditure.
'(g) The Bonds, together with interest thereon, are not general
obligations of the City nor do they constitute an indebtedness of
the City within the meaning of any constitutional or statutory provision
or limitation, but shall be payable solely out of the Bond Fund and
shall be a valid claim of the holders thereof only against said.Fund,
and the amount of the revenues pledged to said Fund, -which Fund
is hereby- pledged for the equal and ratable payment of the Bonds and
shall-be used for no other purpose than to pay the principal and
interest of the Bonds as the same mature, except as provided in this
ordinance.
(h) It is covenanted and agreed by the City with the holder or
holders of the Bonds, or any of them, that it will faithfully and
punctually perform all duties with reference to the System required by
the Constitution and statutes of the State of Arkansas, including the
making and collecting of reasonable and sufficient rates lawfully
established for services rendered by the System and applying the
revenues therefrom to the respective funds herein created.
(i) The City will keep proper books of records and accounts
(separate from all other records and accounts) in which complete and
correct entries shall be made of any trosactions relating to the System.
The City agrees to have these records audited by an independent certified
public accountant at least once each year, and it shall furnish the
Trustee a copy of this audit. In the event that the City fails or
refuses to make the audit, the Trustee may have the audit made, the
cost. thereof to be charged to the cost of operation.
(j) If there be any default in the payment tf either the principal
of or the interest on any of the Bonds, the holder or holders :thereof
may enforce any mortgage lien granted by statute and may by proper suit
compel the performance of the duties of the officials of the City, as
set forth in the statutes authorizing the Bonds. If there be'default
in the payment of the principal of or interest on the Bonds or if the
City shall fail to keep any other obligation which it herein assumes,
and such default shall continue for thirty days thereafter, any court
having jurisdiction in any proper action, which may be instituted either
by the Trustee on behalf of all the bondholders, or by the holder of a
Bond in default, may appoint a receiver to administer the System on
behalf of the City, with power to charge and collect rates sufficient
to provide for the expenses of the receivership, the payment of the
Bonds and interest thereon, and the payment of the operating expenses,
and to apply the income and revenues in conformity with said statutes
and this ordinance providing for the issuance of said Bonds, but when
ell defaults are cured, the receivership shall be ended and the manege-
rncnt and control of the System .restored to the City.
(k) The City further covenants and agrees that if default is
made in the payment of any Bond or coupon, or if the City fails to
meet any Bond Fund requirements, tha holder of such Bond may declare
that Bond immediately due and peyeble and in dof :Hult, and either the
Trustee on behalf of all the bondholders or any bondholder for himself
may institute suit to enforce the pledge lien herein granted. The
failure to exercise this option upon any default shall not be a waiver
of the right to exercise it upon any subsequent default.
'(1) The Bonds authorized hereby shall be callable for payment
before matutity according to the terms sit out in the bond form.
(m) The City hereby agrees to make all payments on Bonds and ie
interest only through the designated paying agent. Al]. Bonds paid
or purchased, either at or before maturity, shall be canceled when such
payment cr purchase is made, together with all unmetured coupons app
ert:ining thereto, shell be returned to the City -end shall not be reissued.
Page 8
All unpaid interest coupons maturing on or prior to the date of such
payment or purchase shall continue to be payable to the respective
bearers thereof.
(n) The charges for paying Bonds and interest coupons shall be
18 of to on principal and 50 par coupon; provided, the minimum fee
for ony semi annual payment shall be t5.00. No withdrawal from the
Bond'Fund shall be made for any purpose other than the payment of
Bonds and interest, and the monthly deposits in the Bond Fund or with
the Trustee shall be at the sole risk of the City and shall not operate
as c payment of the Bonds or coupons until so applied.
(o) Wherever reference is made in this ordinance to a,Trustee,
it shall refer to the bank or trust company to bo named by the:buyer.
The said Trustee shall be responsible only for wilful misconduct in
the %execution of this trust. The recitals of fact herein contained,
and contained in the Bonds, except the recitals in the Trustee's
cote, are statements of the City and shall not be construed g
mode by the Trustee. The Trustee shall not be required to effect ins-
urance against fire or damage to mortgaged property, nor to advnce
any ona -M to insurance premiums, nor to pay any charges br special
Y pay
assessments against said property, nor to see that this pledge: of
revenue is properly recorded and kept in force as o pledge, nor shall
it -be required to take noeiceternbeadeemed .:tonhei9eOha dhnotioevofbany
default of the City in the failure to perform any of the conditions of
this ordinance, unless said Trustee shall hove been specifically
notified in writing of said default; nor shall it ba required to toke
ony-action hereunder until it shall have bean indemnified to its satis-
faction by the holders of the Bonds, or some of them, against loss or
daMcge on account thereof. The Trustee is ,authorized in its discretion
to release any real or personal property no longer used in the operation
of the System. The holder or holders of a majority in value of the Bonds
at. eny time outstanding may at their option remove the Trustee, and may
appoint a successor trustee for one; either removed or resigned, by an
instrument duly acknowledged and filed for reccrd in the office of the
Circuit Clerk and ex- officio Recorder of Crawford County. The Trustee
m_.y resign at any time upon ten days' notice to the City Clerk. The
successor trustee shall have all the rights and powers of the originally
appointed Trustee.
(p) It is hereby declared that the provisions of this ordinance
are separable, and if any provision of this ordinance shall for any
reason be held illegal or invalid, it shall not effect the validity of
the remainder of the ordinance.
It is hereby declared thnt the provisions of this ordinance
constitute n contract by and between the City and the holders of the
Bonds and interest coupons issued by authority hereof; and after the
Bonds have been issued and paid for, the terms of said provisions shall
not be changed except uith the written consent of the holders'of all
Bonds and coupons then outstanding.
SECTION 22. The Mayor and City Clerk are hereby directed to
publish one time in the Press Argus, :zhich is hereby found and declared
to be a newspaper published and having general circulation in the City
of Van Buren, Arkansas, e certified copy of this ordinance, preceded
by h notice of hearing signed by them, the publication to be not less
than ten days before the hearing date, and the notice to be in sub-
stantially the following form: (refer to Book of City Ordinances page
80)
SECTION 23. All ordinances or ports of ordinances in conflict
with this ordinancu or any part of this ordinance °.re hereby spec
ifically repealed.
SECTION 24. It is hereby ascertained and declared thnt there
is immediate need, in order to protect the health and property of
the inhabitants of the City, for the construction of the improvements
for which the Bonds are being issued, therefore, on emergency exists
and this ordinance is necessary for the preservation of the public
peace., health and safety, and shall take effect and be in force
without delay from and after its passage.
Paige 9
Passed: September 9, 1963.
Approved:
1
Allen R. Tcotheker (s)
Mayor
Attest:
Geo. L Crofton (s)
City Clerk
CERTIFICATE
I, the undersigned, City Clerk of Von Buren, Arkansas, certify
the foregoing to be o true copy of an ordinance passed by the City
Council at a duly called and constitutud meeting at which more than
two thirds of the members -elect of the Council were present and voted
for said ordinance, which is now of record in Book
Page of the rdcords of said City.
.CERTIFIED UNDER MY hand and seal of said City, this 9
day ofSeptumbar, 1963.
Geo. L. Crofton (s)
City Clerk 1
(Beal)