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® AN ORDINANCE AUTHORIZING WATER AND SEWER
<br /> REVENUE REFUNDING BONDS FOR THE PURPOSE OF
<br /> SAVING INTEREST COSTS; PROVIDING FOR THE
<br /> PAYMENT AND SECURITY OF THE BONDS; AMENDING
<br /> AND CONFIRMING, AS AMENDED, ORDINANCE NO.
<br /> 2002-6-02, ADOPTED JUNE 25, 2002; DECLARING AN
<br /> EMERGENCY; AND FOR RELATED PURPOSES.
<br /> WHEREAS, the City of Batesville, Arkansas (the "City")
<br /> has issued its Water and Sewer Revenue Bonds, Series 2002, in the
<br /> principal amount of $1, 600, 000 (the "Improvement Bonds") for the
<br /> purpose of financing certain improvements to the City's water and
<br /> sewer system (the "System") ; and
<br /> WHEREAS, the Improvement Bonds are not general
<br /> obligations but are special obligations of the City, secured by a
<br /> pledge of revenues of the System, and are issued pursuant to
<br /> Arkansas Code of 1987 Annotated, Title 14, Chapter 164, Subchapter
<br /> 4 (the "Authorizing Legislation") and Ordinance No. 2002-6-02 of
<br /> the City, adopted June 25, 2002 (the "Outstanding Ordinance") ; and
<br /> WHEREAS, the Improvement Bonds may be refunded by bonds
<br /> bearing lower rates of interest, resulting in interest cost savings
<br /> to the City and, accordingly, the City proposes to issue its Water
<br /> and Sewer Revenue Refunding Bonds, Series 2002, in the principal
<br /> • amount of $1, 600, 000 (the "Refunding Bonds") ;
<br /> NOW, THEREFORE, BE IT ORDAINED by the City Council of the
<br /> City of Batesville, Arkansas:
<br /> Section 1. (a) Under the authority of the Constitution
<br /> and laws of the State of Arkansas, including the Authorizing
<br /> Legislation, and applicable decisions of the Supreme Court of
<br /> Arkansas including City of Harrison v. Braswell, 209 Ark. 1094, 194
<br /> S.W.2d 12 (1946) , the Refunding Bonds, on the terms set forth
<br /> herein and in the Bond Purchase Agreement, are hereby authorized
<br /> and ordered sold to The Citizens Bank, Batesville, Arkansas, at a
<br /> price of the principal amount thereof, plus accrued interest, if
<br /> any, from the date thereof.
<br /> (b) The Bond Purchase Agreement is hereby approved in
<br /> substantially the form presented at the meeting at which this
<br /> Ordinance is considered, and the Mayor is authorized to execute the
<br /> Bond Purchase Agreement on behalf of the City, with such changes as
<br /> he may approve, consistent with the terms of this Ordinance.
<br /> (c) Principal and interest on the Refunding Bonds shall
<br /> be payable, in monthly installments, and the unpaid balance on the
<br /> Refunding Bonds shall bear interest as set forth in Exhibit A
<br /> hereto.
<br /> Section 2. (a) The Refunding Bonds shall be secured by
<br /> • a pledge of revenues of the System, as the Improvement Bonds are
<br />
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