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AN ORDINANCE AUTHORIZING THE MODIFICATION OF A GENERAL REVENUE PROMISSORY NOTE (MIRACLE LEAGUE PARK PROJECT REFUNDING), SERIES 2016; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE NOTE; DECLARING AN EMERGENCY; AND PRESCRIBING OTHER MATTERS RELATING THERETO.
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WHEREAS, the City of Jonesboro, Arkansas (the “City”) is authorized and empowered under the provisions of Amendment 78 to the Arkansas Constitution and the provisions of Arkansas Code Annotated Section 14-78-1001 et seq (the “Act”) to issue notes and expend the proceeds thereof for purpose of acquiring, constructing, installing and renting real property; and
WHEREAS, the City is indebted to First Security Bank on a Note dated February 5, 2016 in the original principal amount of $400,000 issued pursuant to the Act (the “Note”) the proceeds of which were utilized to refund a loan made by Bancorp South made for certain improvements to Miracle League Park in the City (the “Miracle League Park Project”).
WHEREAS, the Note matures on February 5, 2017; and
WHEREAS, the City proposes to extend the maturity date of the Note for one (1) year until February 5, 2018; and
WHEREAS, the Note is secured by a pledge of a Certificate of Deposit account in the amount of $400,000.00 issued by the Lender.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
Section 1. The Mayor and City Clerk are hereby authorized to execute and deliver a modification agreement by which the maturity of the Note is extended until February 5, 2018 at the same rate of interest and the same security as provided in the Note.
Section 2. As provided in Amendment No. 78, the debt service payments on the Note in each fiscal year shall be charged against and paid from the general revenues of the City for such fiscal year. For the purpose of making the debt service payments, there is hereby, and shall be appropriated to pay the Note, an amount of general revenues of the City sufficie...
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