HomeMy WebLinkAbout1995-06-01 ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
REFUNDING WATER AND SEWER SYSTEM REVENUE
BONDS; PROVIDING FOR THE PAYMENT OF THE
PRINCIPAL OF AND INTEREST ON THE BONDS;
PRESCRIBING OTHER MATTERS RELATING THERETO;
AND DECLARING AN EMERGENCY.
WHEREAS, the City of Batesville, Arkansas (the "City") ,
a city of the first class, owns and operates, by and through the
Batesville Utilities Commission (the "Commission") a Waterworks and
Sewer System ("System") ; and
WHEREAS, the City has outstanding an issue of Water and
Sewer Refunding and Improvement Revenue Bonds, Series 1991 A and
Series 1991 B (respectively herein the "Series 1991 A Bonds" and
the "Series 1991 B Bonds" ; and
WHEREAS, the City can realize substantial debt service
savings by discharging and refinancing the Series 1991 A Bonds; and
WHEREAS, the total estimated cost of the refinancing,
provision of required reserves and necessary expenses incidental
thereto and to the issuance of bonds is approximately $5, 320, 000;
and
WHEREAS, the City has funds available from the discharge
of the Series 1991 A Bonds for payment of a portion of the costs
involved; and
WHEREAS, the City has made arrangements for the sale of
its $4 , 500 , 000 in principal amount of Water and Sewer Revenue
Refunding Bonds, Series 1995 (the "Series 1995 Bonds") for the
purpose of financing, with other available funds, the refunding of
the Series 1991 A Bonds; and
WHEREAS, the requirements for the issuance of bonds on a
parity of pledge and security with the Series 1991 B Bonds have
been satisfied.
NOW THEREFORE, BE IT ORDAINED by the City Council of the
City of Batesville, Arkansas:
Section 1 . The sale of the Series 1995 Bonds to T.J.
Raney & Sons, a division of Morgan Keegan & Company, Inc. (the
"Underwriter") pursuant to the terms and conditions set out in the
Bond Purchase Agreement relating thereto, which has been submitted
to and is before the City Council, at a price of 98 . 70% of the
principal amount, less original issue discount in the amount of
i $8 , 069 , plus accrued interest for Series 1995 Bonds bearing
interest, maturing and otherwise subject to the terms and
provisions hereafter in this Ordinance set forth in detail are
hereby approved and confirmed. The Bond Purchase Agreement is
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approved and the Mayor is authorized to execute and deliver it on
behalf of the City.
Section 2 . Under the authority of the Constitution and
laws of the State of Arkansas, including particularly Arkansas Code
of 1987 Annotated, Title 14 , Chapter 164 , Subchapter 4 and Title
14 , Chapter 231, Subchapter 1 and decisions of the Supreme Court of
Arkansas, including City of Harrison v. Braswell , 209 Ark. 1094 ,
194 S.W. 2d 12 (1946) , City of Batesville, Arkansas Water and Sewer
Revenue Refunding Bonds, Series 1995 , are hereby authorized and
ordered issued in the principal amount of $4 , 500, 000 for the
purpose of refunding the Series 1991 A Bonds and paying necessary
expenses incidental thereto and to the issuance of the Series
1995 Bonds. The Bonds shall be dated July 1, 1995, with interest
payable semiannually on February 1 and August 1 of each
year, commencing February 1, 1996, shall be numbered
consecutively from 1 upward, in order of issuance, and shall be
in the denomination of $5, 000 or an integral multiple thereof.
The Series 1995 Bonds shall mature (on February 1) and bear
interest, and principal and interest is payable on the Series 1995
Bonds, as follows:
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Interest
Date Principal Rate M Interest Total
02/01/96 $60, 000 . 00 4 . 00 $132 , 794 . 38 $192 , 794 . 38
08/01/96 112 , 623 . 75 112 , 623 . 75
01/01/97 190, 000 . 00 4 . 20 112 , 623 . 75 302 , 623 . 75
08/01/97 108 , 633 . 75 108 , 633 . 75
02/01/98 200, 000 . 00 4 . 35 108 , 633 . 75 308 , 633 . 75
08/01/98 104 , 283 . 75 104 , 283 . 75
02/01/99 210, 000 . 00 4 . 45 104 , 283 . 75 314 , 283 . 75
08/01/99 99 , 611 . 25 99 , 611 . 25
02/01/00 220, 000 . 00 4 . 55 99 , 611 . 25 319 , 611. 25
08/01/00 94 , 606 . 25 94 , 606 . 25
02/01/01 225 , 000 . 00 4 . 65 94 , 606 . 25 319 , 606. 25
08/01/01 89 , 375 . 00 89, 375 . 00
02/01/02 240, 000 . 00 4 . 75 89, 375 . 00 329, 375. 00
08/01/02 83 , 675 . 00 83 , 675 . 00
02/01/03 250, 000 . 00 4 . 85 83 , 675 . 00 333 , 675 . 00
08/01/03 77 , 612 . 50 77 , 612 . 50
02/01/04 260, 000 . 00 4 . 95 77 , 612 . 50 337 , 612 . 50
08/01/04 71, 177 . 50 71, 177 . 50
02/01/05 270, 000. 00 5. 05 71, 177 . 50 341, 177 . 50
08/01/05 64 , 360 . 00 64 , 360 . 00
02/01/06 290, 000. 00 5 . 20 64 , 360 . 00 354 , 360. 00
08/01/06 56, 820 . 00 56, 820 . 00
02/01/07 305, 000 . 00 5 . 25 56 , 820 . 00 361, 820. 00
08/01/07 48 , 813 . 75 48 , 813 . 75
02/01/08 320, 000 . 00 5 . 35 48 , 813 . 75 368 , 813 . 75
08/01/08 40, 253 . 75 40, 253 . 75
02/01/09 335 , 000. 00 5 . 45 40 , 253 . 75 375 , 253 . 75
08/01/09 31, 125 . 00 31, 125 . 00
02/01/10 355, 000 . 00 5 . 55 31 , 125 . 00 386, 125. 00
08/01/10 21, 273 . 75 21, 273 . 75
02/01/11 375 , 000 . 00 5 . 50 21, 273 . 75 396, 273 . 75
08/01/11 10, 961 . 25 10, 961 . 25
02/01/12 395 , 000. 00 5 . 55 10 , 961 . 25 405 , 961 . 25
The Series 1995 Bonds shall be registered as to principal
and interest. Principal is payable at the principal office of Bank
of the Ozarks, wca (the "Trustee" and "Paying Agent") in the City
of Ozark, Arkansas. Payment of interest shall be by check or draft
mailed to the registered owner at the address shown on the
registration book of the City maintained by the Trustee. Interest
on each Series 1995 Bond shall accrue as hereinafter set forth.
The Series 1995 Bonds shall be subject to redemption prior to
maturity as hereinafter set forth.
Section 3 . The Series 1995 Bonds shall be executed on
behalf of the City by the Mayor and City Clerk and shall have
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impressed thereon the seal of the City. The Series 1995 Bonds may
be signed by the facsimile signature of the Mayor and the facsimile
signature of the City Clerk. The Series 1995 Bonds are secured on
a parity of lien, pledge and security with the City' s Series 1991
B Bonds and other Additional Bonds, as defined herein, and the term
"Bonds" refers to and includes the Series 1995 Bonds, the Series
1991 B Bonds and any Additional Bonds outstanding hereunder. The
Bonds, together with interest thereon, shall be payable solely out
of the Water and Sewer Revenue Bond Fund, hereafter described, and
shall be a valid claim of the holders thereof only against such
fund and the amount of revenues pledged thereto or deposited
therein, which revenues are hereby pledged and mortgaged for the
equal and ratable payment of the Bonds and shall be used for no
other purpose than to pay the principal, premium, if any, interest
and Trustee's and Paying Agent' s fees on and in connection with the
Bonds. The Bonds shall not constitute an indebtedness of the City
within any constitutional or statutory limitation.
Section 4 . The Series 1995 Bonds shall be in
substantially the following form and the Mayor and City Clerk are
hereby expressly authorized and directed to make all recitals
contained therein:
(W
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0
(Form of Bond)
REGISTERED REGISTERED
No.
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF INDEPENDENCE
CITY OF BATESVILLE, ARKANSAS
WATER AND SEWER REVENUE REFUNDING BONDS
SERIES 1995
Interest Rate: % Maturity Date:
Dated Date:
Registered•Owner:
Principal Amount: Dollars ($ )
CUSIP No.
KNOW ALL MEN BY THESE PRESENTS:
That the City of Batesville, Arkansas (the "City") , for
value received, hereby promises to pay, but solely from the source
as hereinafter provided and not otherwise, to the Registered Owner
shown above, upon the presentation and surrender hereof at the
principal corporate office of Bank of the Ozarks, wca in the City
of Ozark, Arkansas, or its successor or successors, as Trustee and
as Paying Agent (herein referred to as the "Trustee") , on the
Maturity Date shown above, the Principal Amount shown above, in
such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public
and private debts and to pay by check or draft interest thereon,
but solely from the source as hereinafter provided and not
otherwise, in like coin or currency from the Dated Date shown above
at the Interest Rate per annum shown above, payable semiannually on
the 1st days of February and August of each year, until payment of
such principal sum or, if this Series 1995 Bond or a portion
thereof shall be duly called for redemption, until the date fixed
for redemption, and to pay interest on overdue principal and
interest (to the extent legally enforceable) at the rate borne by
this Series 1995 Bond. Payment of each installment of interest
shall be made to the person in whose name this Series 1995 Bond is
registered on the registration books of the City maintained by the
Trustee at the close of business on the fifteenth day of the month
(whether or not a business day) next preceding each interest
payment date (the "Record Date") , irrespective of any transfer or
exchange of this Series 1995 Bond subsequent to such Record Date
and prior to such interest payment date.
Interest in this Series 1995 Bond shall be payable from
the interest payment date next preceding the date on which this
Series 1995 Bond is authenticated unless this Series 1995 Bond is
authenticated on an interest payment date, in which case it shall
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bear interest from such date, or unless this Series 1995 Bond is
authenticated prior to February 1, 1996 , in which case it shall
bear interest from the Dated Date, or unless this Bond is
authenticated during the period from the Record Date to the next
interest payment date, in which case it shall bear interest from
such interest payment date, or unless at the time of authentication
of this Series 1995 Bond interest is in default hereon, in which
case it shall bear interest from the date to which interest has
been paid.
This Series 1995 Bond is one of an issue of City of
Batesville, Arkansas Water and Sewer Revenue Refunding Bonds,
Series 1995 , aggregating Four Million Five Hundred Thousand Dollars
($4 , 500, 000) , in principal amount (the "Series 1995 Bonds") , issued
for the purpose of refinancing outstanding indebtedness secured by
revenues derived from the City's municipal water and sewer system
(the "System") .
THE SERIES 1995 BONDS ARE ISSUED PURSUANT TO AND IN FULL
COMPLIANCE WITH THE CONSTITUTION AND LAWS OF THE STATE OF ARKANSAS,
INCLUDING PARTICULARLY TITLE 14 , CHAPTER 164 , SUBCHAPTER 4 , AND
TITLE 14 , CHAPTER 231, SUBCHAPTER 1 OF THE ARKANSAS CODE OF 1987
ANNOTATED AND DECISIONS OF THE SUPREME COURT OF ARKANSAS, INCLUDING
CITY OF HARRISON V. BRASWELL 209 ARK. 1094 , 194 S.W. 2d 12 (1946) ,
AND PURSUANT TO ORDINANCE NO. , DULY ADOPTED AND APPROVED ON
' 1995 AND ORDINANCE NO. 91-11-1, DULY ADOPTED AND
APPROVED ON NOVEMBER 12 , 1991 (collectively, THE "AUTHORIZING
ORDINANCE") , AND DO NOT CONSTITUTE AN INDEBTEDNESS OF THE CITY
WITHIN ANY CONSTITUTIONAL OR STATUTORY LIMITATION. The Series 1995
Bonds are secured on a parity of lien, pledge and security with the
City's outstanding Refunding and Improvement Water and Sewer
Revenue Bonds, Series 1991 B (the "Series 1991 B Bonds") and with
any Additional Bonds, if any, issued under the Authorizing
Ordinance, and the term "Bonds" herein includes the Series 1995
Bonds, the Series 1991 B Bonds and any Additional Bonds
outstanding. The Bonds are not general obligations of the City but
are special obligations secured by a pledge of revenues derived
from the operation of the System. An amount of revenues of the
System sufficient to pay the principal of and interest on the Bonds
has been duly pledged for the payment of principal of, premium, if
any, on and interest on the Bonds. Reference is hereby made to the
Authorizing Ordinance for a detailed statement of the terms and
conditions upon which the Bonds are issued, of the nature and
extent of the security for the Bonds, and the rights and
obligations of the City, the Trustee and the bondholders.
(REFERENCE IS HEREBY MADE TO FURTHER PROVISIONS OF THIS
BOND ON THE REVERSE SIDE HEREOF WHICH HAVE THE SAME EFFECT AS IF
SET FORTH IN THIS PLACE. )
THE CITY HAS DESIGNATED THIS SERIES 1995 BOND AS A
"QUALIFIED TAX-EXEMPT OBLIGATION" WITHIN THE MEANING OF SECTION 265
OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED.
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IN WITNESS WHEREOF, the City of Batesville, Arkansas has
caused this Series 1995 Bond to be executed by its Mayor and City
Clerk, their facsimile signatures thereunto duly authorized and its
corporate seal to be impressed, lithographed or imprinted on this
Series 1995 Bond.
CITY OF BATESVILLE, ARKANSAS
ATTEST:
By (facsimile signature)
(facsimile signature) Mayor
City Clerk
(SEAL)
(Reverse Side of Bond)
CITY OF BATESVILLE, ARKANSAS
WATER AND SEWER REVENUE REFUNDING BONDS
SERIES 1995
The Series 1995 Bonds or portions thereof may be redeemed
at the option of the City, from funds from any source, in inverse
order of maturity (and by lot within a maturity in such manner as
the Trustee shall determine) , in whole on any date and in part (in
integral multiples of $5000) on any interest payment date, on and
after February 1, 2001, at a redemption price equal to the
principal amount being redeemed plus accrued interest to the
redemption date.
Notice of redemption identifying the Series 1995 Bonds or
portions thereof (which shall be $5, 000 or a multiple thereof) to
be redeemed shall be given by the Trustee, not less than thirty
(30) days prior to the date fixed for redemption, by mailing a copy
of the redemption notice by first class mail, postage prepaid, to
all registered owners of Series 1995 Bonds to be redeemed. Failure
to mail an appropriate notice or any such notice to one or more
registered owners of Series 1995 Bonds to be redeemed shall not
affect the validity of the proceedings for redemption of other
Series 1995 Bonds as to which notice of redemption is duly given in
proper and timely fashion. All such Series 1995 Bonds or portions
thereof thus called for redemption and for the retirement of which
funds are duly provided in accordance with the Authorizing
Ordinance prior to the date fixed for redemption will cease to bear
interest on such redemption date.
With respect to notice of redemption of Series 1995 Bonds
at the option of the City, unless moneys sufficient to pay the
principal of the premium, if any, and interest on the Series 1995
Bonds to be redeemed shall have been received by the Trustee prior
to the giving of such notice, the notice shall state that
redemption shall be conditional upon the receipt of such moneys by
the Trustee on or prior to the date fixed for such redemption. If
( such moneys shall not have been so received, such notice shall be
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of no force and effect, the City shall not redeem such Series 1995
Bonds and the Trustee shall give notice, in the manner in which the
notice of redemption was given, that such moneys were not so
received.
This Series 1995 Bond is transferable by the registered
owner hereof in person or by his attorney-in-fact duly authorized
in writing at the principal corporate trust office of the Trustee,
but only in the manner, subject to the limitations and upon payment
of the charges provided in the Authorizing Ordinance, and upon
surrender and cancellation of this Series 1995 Bond. Upon such
transfer a new fully registered Series 1995 Bond or Bonds of the
same series and maturity, of authorized denomination or
denominations, for the same aggregate principal amount, will be
issued to the transferee in exchange therefor. This Series 1995
Bond is issued with the intent that the laws of the State of
Arkansas shall govern its construction.
The City and the Trustee may deem and treat the
registered owner hereof as the absolute owner hereof for the
purpose of receiving payment of or on account of principal hereof
and premium, if any, hereon and interest due hereon and for all
other purposes, and neither the City nor the Trustee nor any paying
agent shall be affected by any notice to the contrary.
The Series 1995 Bonds are issuable only as fully
registered bonds in the denomination of $5, 000 and any integral
multiple thereof . Subject to the limitations and upon payment of
the charges provided in the Authorizing Ordinance, Series 1995
Bonds may be exchanged for a like aggregate principal amount of
Series 1995 Bonds of the same maturity of other authorized
denominations.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required to exist, happen and be
performed precedent to and in the issuance of the Series 1995 Bonds
do exist, have happened and have been performed in due time, form
and manner as required by law; that the indebtedness represented by
the Series 1995 Bonds, together with all obligations of the City,
does not exceed any constitutional or statutory limitation; and
that the above referred to revenues pledged to the payment of the
principal of and premium, if any, and interest on the Series 1995
Bonds as the same become due and payable will be sufficient in
amount for that purpose.
This Series 1995 Bond shall not be valid or become
obligatory for any purpose or be entitled to any security or
benefit under the Authorizing Ordinance until the Certificate of
Authentication hereon shall have been signed by the Trustee.
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® (Form of Trustee's Certificate)
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This Series 1995 Bond is one of the Bonds designated
Water and Sewer Revenue Refunding Bonds, Series 1995 , in and issued
under the provisions of the within mentioned Authorizing Ordinance.
BANK OF THE OZARKS, wca
Ozark, Arkansas
TRUSTEE
By
Authorized Signature
DATE OF AUTHENTICATION:
(Form of Assignment)
ASSIGNMENT
FOR VALUE RECEIVED,
("Transferor") , hereby sells, assigns and transfers unto
, the within bond and all rights
thereunder, and hereby irrevocably constitutes and appoints
as attorney to transfer the within bond on the
books kept for registration thereof with full power of substitution
in the premises.
DATE:
Transferor
GUARANTEED BY:
NOTICE: Signature(s) must be guaranteed by a financial
institution acceptable to the Trustee.
Section 5 . The rates charged for services of the
System heretofore fixed by ordinances the City, duly adopted,
and the conditions, rights and obligations pertaining thereto,
as set out in those ordinances, are hereby ratified, confirmed
and continued.
Section 6 . The Series 1995 Bonds are being issued on a
parity of lien, pledge and security with the City' s Series 1991 B
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Bonds, which are issued and secured under Ordinance No. 91-11-1,
adopted and approved November 12 , 1991 (the "Basic Ordinance") .
The Series 1995 Bonds are issued as "Additional Bonds" under the
Basic Ordinance. Accordingly, the provisions of the Basic
Ordinance are incorporated herein to secure and provide for the
payment and enforcement of the Series 1995 Bonds, including without
limitation, those pertaining to the maintenance of rates (Section
7) , the maintenance of various funds and a Debt Service Reserve
(Sections 9 to 12 , inclusive) , the issuance of Additional Bonds
(Section 14) , default and remedies consequent thereon (Section 20) ,
amendment (Section 21) and investment of funds (Section 22) . The
Series 1995 Bonds shall be secured pursuant to the Basic Ordinance,
regardless of the discharge of the Series 1991 B Bonds.
Section 7 . Section 14 of the Basic Ordinance is hereby
amended to read as follows:
"Section 14 . So long as any Bonds are outstanding under
the provisions of this Ordinance, the City shall not issue or
attempt to issue any bonds claimed to be entitled to a priority of
lien on System Revenues over the lien securing such Bonds.
The City reserves the right to issue Additional Bonds to
finance or refinance the cost of constructing any future
extensions, betterments or improvements to the System, but the City
shall not authorize or issue any such Additional Bonds ranking on
a parity with the outstanding Bonds unless and until there shall
have been procured and filed with the Trustee a statement by an
independent certified public accountant not in the regular employ
of the City reciting the opinion, based upon necessary
investigation, that Net Revenues for the fiscal year immediately
preceding the fiscal year in which it is proposed to issue such
Additional Bonds shall equal not less than 120% of the maximum
annual principal and interest requirements on all the then
outstanding Bonds payable from System Revenues and the Additional
Bonds then proposed to be issued. For the purposes of the
computation required by this paragraph, additional amounts may be
added to the Net Revenues of the completed fiscal year immediately
preceding the issuance of Additional Bonds, as follows: If, prior
to the issuance of the Additional Bonds and subsequent to the first
day of such preceding fiscal year, the City shall have increased
its rates or charges imposed for services of the System there may
be added to the Net Revenues of such fiscal year the additional Net
Revenues which would have been received from the operation of the
System during such fiscal year had such increase been in effect
throughout such fiscal year, as reflected by a certificate of a
duly qualified consulting engineer not in the regular employ of the
City and approved by the Trustee. "
Section 8 . When the Series 1995 Bonds have been executed
and the seal of the City impressed as herein provided, they shall
be delivered to the Trustee, and the Trustee shall authenticate
them and deliver them to the Underwriter upon payment in cash of
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the purchase price of $4 , 433 , 431 plus accrued interest from
July 1, 1995, to the date of delivery ("total sale proceeds") plus
funds provided by the Commission. The Trustee shall disburse such
funds as set forth in detail in a letter of delivery instructions
and delivered to the Trustee as follows:
(1) The Trustee shall deposit the amount of the accrued
interest in the Bond Fund.
(2) The Trustee shall deposit the amount necessary to
refund Series 1991 A Bonds into a special trust account for the
retirement of the Series 1991 A Bonds.
(3) The Trustee shall deposit the sum of $450 , 000 into
the Debt Service Reserve.
(4) The Trustee shall pay such costs of issuance of the
Series 1995 Bonds as shall be specified in the letter of delivery
instructions.
Section 9 . (a) The City covenants that it shall not
take any action or suffer or permit any action to be taken or
condition to exist which causes or may cause the interest payable
on the Bonds to be subject to federal income taxation. Without
limiting the generality of the foregoing, the City represents and
covenants that the proceeds of the Bonds and System revenues will
not be used directly or indirectly in such manner as to cause the
Bonds to be treated as "arbitrage bonds" within the meaning of
Section 148 of the Internal Revenue Code of 1986 , as amended (the
"Code") . The City covenants to pay to the United States Treasury
any arbitrage rebate due under Section 148 of the Code at the times
required by Section 148 of the Code, if any be required.
(b) The City shall assure that (1) not in excess of ten
percent (10%) of the Net Proceeds of the Bonds is used for Private
Business Use if, in addition, the payment of more than ten percent
(10%) of the principal or ten percent (10%) of the interest due on
the Bonds during the term thereof is, under the terms of the Bonds
or any underlying arrangement, directly or indirectly secured by
any interest in property used or to be used for a Private Business
Use or in payments in respect of property used or to be used for a
Private Business Use or is to be derived from payments, whether or
not to the City, in respect of property or borrowed moneys used or
to be used for a Private Business Use; and ( ii) that, in the event
that both (A) in excess of five percent (5%) of the Net Proceeds of
the Bonds are used for a Private Business Use, and (B) an amount in
excess of five percent (5%) of the principal or five percent (5%)
of the interest due on the Bonds during the term thereof is, under
the terms of the Bonds or any underlying arrangement, directly or
indirectly, secured by any interest in property used or to be used
for a Private Business Use or in payments in respect of property
used or to be used for a Private Business Use or is to be derived
from payments, whether or not to the City, in respect of property
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or borrowed money used or to be used for a Private Business Use,
the excess over such five percent (5%) of Net Proceeds of the Bonds
used for a Private Business Use shall be used for a Private
Business Use related to the governmental use of the System.
The City shall assure that not in excess of five percent
(5%) of the Net Proceeds of the Bonds is used, directly or
indirectly, to make or finance a loan to persons other than state
or local governmental units.
As used in this subsection (b) , the following terms shall
have the following meanings:
"Net Proceeds" means the face amount of the Bonds, plus
accrued interest and premium, if any, less original issue discount,
if any, less any amount deposited into the Debt Service Reserve
which is derived from the sale proceeds of the Bonds.
"Private Business Use" means use directly or indirectly
in a trade or business carried on by a natural person or in any
activity carried on by a person other than a natural person,
excluding, however, use by a state or local governmental unit and
use as a member of the general public.
(c) The Series 1995 Bonds are hereby designated as
"qualified tax-exempt obligations" within the meaning of Section
265 of the Code. The City represents and covenants that the
aggregate principal amount of its qualified tax-exempt obligations
(excluding "private activity bonds" within the meaning of Section
141 of the Code which are not "qualified 501 (c) (3) bonds" within
the meaning of Section 145 of the Code) , including those of its
subordinate entities, to be issued in the current calendar year
does not and will not exceed $10, 000, 000 .
The City further represents that (i) it does not
reasonably expect that the aggregate principal amount of its
tax-exempt obligations (including the Series 1995 Bonds but not
including "private activity bonds" within the meaning of Section
141 of the Code) , including those of its subordinate entities,
issued in the current calendar year will exceed $5, 000, 000 and (ii)
the Series 1991 A Bonds were treated as meeting the requirements of
Section 148 (f) (2) and (f) (3) by virtue of Section 148 (f) (4) (D) of
the Code and (iv) the average maturity date of the Series 1995
Bonds does not exceed that of the Series 1991 A Bonds and (v) the
aggregate principal amount of the tax-exempt obligations issued by
the City (including subordinate entities) during the year 1991 (not
including "private activity bonds" within the meaning of 141 of the
Code, and not including the Series 1991 B Bonds, did not exceed
$5, 000, 000 .
(d) The City covenants that it will take no action which
would cause the Series 1995 Bonds to be "federally guaranteed"
within the meaning of Section 149 (b) of the Code; specifically, (A)
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the payment of any portion of principal or interest with respect to
the Series 1995 Bonds will not be guaranteed (directly or
indirectly) by the United States or any agency or instrumentality
thereof and (B) not more than 5% of the proceeds of the Series 1995
Bonds (exclusive of proceeds invested for an initial temporary
period until needed for the purpose for which the Series 1995 Bonds
were issued and proceeds deposited into the Bond Fund) will be
invested (directly or indirectly) in federally insured deposits or
accounts. Nothing in this Section shall prohibit investments in
obligations issued by the United States Treasury.
(e) The City covenants that it will submit to the
Secretary of the Treasury of the United States, not later than the
15th day of the second calendar month after the close of the
calendar quarter in which the Series 1995 Bonds are issued, the
statement required by Section 149 (e) of the Code.
Section 10. Nothing in this Ordinance expressed or
implied is intended or shall be construed to confer upon, or to
give to, any person or entity, other than the City, the Trustee,
and the registered owners of the Bonds, any right, remedy or claim
under or by reason of this Ordinance or any covenant, condition or
stipulation hereof, and all covenants, stipulations, promises and
agreements in this Ordinance contained by and on behalf of the City
shall be for the sole and exclusive benefit of the City, the
Trustee, and the registered owners of the Bonds .
(W Section 11. The provisions of this Ordinance are hereby
declared to be separable and if any provision shall for any reason
be held illegal or invalid, such holding shall not affect the
validity of the remainder of the Ordinance.
Section 12 . This Ordinance shall not create any right of
any kind and no right of any kind shall arise hereunder pursuant to
it until the Series 1995 Bonds shall be issued and delivered.
Section 13 . All ordinances and resolutions or parts
thereof, in conflict herewith are hereby repealed to the extent of
such conflict.
Section 14 . It is hereby ascertained and declared that
the refunding of the Series 1991 A Bonds is subject to interest
rate fluctuations, which are unpredictable, and that the issuance
of the Series 1995 Bonds and the taking of the other action
authorized by this Ordinance is necessary for the accomplishment
thereof. 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 take effect and be in
force from and after its passage.
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PASSED: 1995 .
(W
APPROVED:
ATTEST:
10(,)A �,� �1 .��'1� ayor
City Clerk
(SEAL)
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(w, CERTIFICATE
The undersigned, City Clerk of the City of Batesville,
Arkansas, hereby certifies that the foregoing pages are a true and
correct copy of Ordinance , adopted at a z_ session
of the Council of the City of Batesville, Arkans s, held at the
regular meeting place of the Council in the City at m. ,
on the ` 9 day of _i` C( 1995 , and that said Ordinance is of
record in Ordinance Record Book No. C- Page now in my
possession.
GIVEN under my hand and seal this day of
1995.
City Clerk
(SEAL)
jw�my\b.te95.0o
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