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RESOLUTION TO ISSUE CERTIFICATES OF INDEBTEDNESS FOR CONSTRUCTION FUNDS
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WHEREAS, Ordinance No. 999, followed by a vote of the electors of Jonesboro, Arkansas, and a subsequent Order approving the bond issue described in said Ordinance, provide a method of financing the construction of a factory building as provided in a Contract signed by the City of Jonesboro, pursuant to Resolution February 1, 1960, but interim construction funds will be required in order to effectuate said Ordinances and Contracts and to permit the City and other construction parties and agencies to fulfill the commitment to construct such factory building in the time contemplated; and
WHEREAS, temporary borrowings for such construction can be obtained by issuance of Certificates of Indebtedness, the principal and interest on such indebtedness being provided for payment out of the proceeds of the bond issue recited and described in said Ordinance and the issuance of Certificates of Indebtedness being essential to the performance of the contractual obligations of the City and to the benefit of the citizens of Jonesboro;
THEREFORE, BE IT RESOLVED that the Mayor and City clerk are authorized to execute and deliver, on behalf of the City of Jonesboro, Arkansas, Certificates of Indebtedness, in various amounts and dates, as shall be required for financing the construction and incidentals thereto pertaining to a factory building on a portion of the Airport property of the City of Jonesboro and as set out in Contract and Lease Agreement executed by the City pursuant to Resolution dated February 1, 1960.
Said Certificates to be in the following form and issued in such amounts as are required for the construction of such factory building prior to receipt of the proceeds of bonds that may be issued under Ordinance 999:
CERTIFICATE OF INDEBTEDNESS
CITY OF JONESBORO
CRAIGHEAD COUNTY ARKANSAS
KNOWN ALL MEN BY THESE PRESENTS:
That the City of Jonesboro, Craighead County, Arkansas, by its Mayor and City Clerk, being duly authorized by law and ordinances and resolutions of the City Council, hereby promises to pay to ___________________ OR ORDER, THE SUM OF ____________ Dollars, on or before August 1, 1960, together with interest thereon from date until paid at the rate of 4 ½ percent per annum.
This Certificate is executed and delivered pursuant to Resolution of the City Council approved February 1, 1960, and to Ordinance No.999, adopted January 4, 1960, and for the purpose of procuring funds to pay for material and labor required and due for construction of a building on the Jonesboro Municipal Airport.
This Certificate of Indebtedness is executed and delivered with the understanding, reservation and limitation that no part of the City of Jonesboro’s governmental funds shall ever be used or pledged for the payment hereof, but that the same shall be collected only from proprietary funds of the City and particularly funds of the City, and particularly from the proceeds of bonds to be insured under Ordinance No.999. The proceeds of bonds sold under said Ordinance are pledged to the payment hereof, together with all other proprietary funds received or to be received from rentals of the Airport property, described in said Ordinance No.999 and in Contract and Lease Agreement executed by City of Jonesboro pursuant to Resolution of February 1, 1960.
IN WITNESS WHEREOF, the City of Jonesboro has hereunto set its hand by signature of its Mayor and City Clerk and the Seal of said City on this ____ day of _______, 1960.
PASSED and ADOPTED this 1st day of February, 1960.