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AN ORDINANCE APPROVING DEED OF TRUST AND DIRECTING ITS EXECUTION AND DELIVERY
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BE IT ORDAINED by the City of Jonesboro, Arkansas:
SECTION 1: To accomplish the purposes as set out in Ordinances 933 and 942 of the City of Jonesboro, the words and figures of the following Deed of Trust, Pledge and Assignment, are approved, and the Mayor and City Clerk directed to execute and deliver said instrument and the bonds and coupons described therein, and to do and perform all the requirements thereof.
DEED OF TRUST, PLEDGE AND ASSIGNMENT
This Pledge, by and between the City of Jonesboro, Arkansas, and the Mercantile Bank, of Jonesboro, Arkansas, TRUSTEE, WITNESSETH:
WHEREAS, the City, in full compliance with ordinances, duly and lawfully adopted, and in full compliance with laws of the State of Arkansas for the improvement of public property, has authorized and directed that revenues for said property be pledged and interests and title therein be assigned, conveyed and pledged to the payment of such bonds; and
WHEREAS, pursuant to such laws and ordinances and in strict compliance with the terms thereof, the City of Jonesboro has, by signature of its Mayor and City Clerk, issued its negotiable serial bonds dated as of November 1, 1957, with interest payable semi-annually on May 1 and November 1 of each year, in denominations of $1,000.00, $500.00, and $100.00, and maturing serially on May 1 and November 1 of each year, as follows:
May 1, 1958 $ 9,100 May 1, 1967 $12,600
Nov. 1, 1958 9,400 Nov. 1, 1967 12,800
May 1, 1959 9,500 May 1, 1968 13,000
Nov. 1, 1959 9,700 Nov. 1, 1968 13,200
May 1, 1960 9,800 May 1, 1969 13,400
Nov. 1, 1960 10,100 Nov. 1, 1969 13,600
May 1, 1961 10,200 May 1, 1970 13,800
Nov. 1, 1961 10,300 Nov. 1, 1970 14,200
May 1, 1962 10,500 May 1, 1971 14,400
Nov. 1, 1962 10,800 Nov. 1, 1971 14,600
May 1, 1963 10,900 May 1, 1972 14,900
Nov. 1, 1963 11,100 Nov. 1, 1972 15,200
May 1, 1964 11,300 May 1, 1973 15,500
Nov. 1, 1964 11,600 Nov. 1, 1973 15,700
May 1, 1965 11,700 May 1, 1974 16,000
Nov. 1, 1965 11,900 Nov. 1, 1974 16,300
May 1, 1966 12,100 May 1, 1975 8,600
Nov. 1, 1966 12,400
The bonds bear interest at the following rates per annum: Bonds Nos. 1 through 506 at 3 ½ per cent and Bonds Nos. 507 through 576 bear 1 ½ per cent interest.
The bonds have been executed by the Mayor and the City Clerk, and the coupons attached to certain of the bonds, by the facsimile signature of the Mayor, who, by his execution of the bonds, adopts as and for his own signature such facsimile signature on the coupons. The bonds are callable and payable before maturity, as hereinafter set out, and are substantially the following form, differing as to amounts, dates of maturity and interest rate.
CITY OF JONESBORO
COUNTY OF CRAIGHEAD
STATE OF ARKANSAS
No.___________ 3 ½ % Revenue Bond $1,000.00
KNOW ALL MEN BY THESE PRESENTS: That the City of Jonesboro, in the County of Craighead, State of Arkansas, acknowledges itself to owe, and, for value received, promises to pay to the bearer the sum of One Thousand Dollars ($1,000.00) in lawful money of the Unites States of America, on the first day of May, 19___, with interest thereon form date hereof at the rate of 3 ½ per cent per annum until paid, interest payable semi-annually on the first day of May and of November of each year, commencing November 1, 1957, on presentation and surrender of the annexed coupons as they severally mature. Both the principal and interest of this bond are hereby made payable at the office of any bank in Jonesboro, Arkansas.
This is one of a series of bonds aggregating Five Hundred Thousand Dollars ($500,000.00), all of like tenor and effect, except as to number, maturity and interest rate, issued for the purpose of improving a site and constructing a building on property owned by the City adjacent to the Municipal Airport, and the City hereby warrants and covenants that in issuing this bond it has proceeded in accordance with the provisions of applicable law and under ordinances duly adopted by the City Council, and all conditions, facts and things required to exist, to be performed, and to happen, precedent to and in the issuance of this bond have existed, have been performed and have happened in due time, form and manner as required by law and ordinance, and that the issuance, execution, delivery and payment of this bond and the interest coupons attached are not prohibited by any provision of the Constitution or laws of the State of Arkansas, and that no part of the City’s tax or governmental funds are used, to be used, or pledged for the payment thereof.
All income, rents and profits, and amounts received or to be received from the use or ownership of the premises improved by this issue are assigned to payment of the bonds and interest and paying charges of this issue, and cannot be used for any other purpose.
The bonds of this issue are callable for payment prior to maturity either in whole or in inverse numerical order, beginning with Bond No.506, on any ate after 30 days’ notice which shall be published once a week for two weeks in a newspaper published in Jonesboro, Arkansas. All bonds so called shall cease to bear interest after the date fixed for their redemption, provided finds for their payment are on deposit with the paying agents at that time.
IN WITNESS WHEREOF, the City of Jonesboro, Arkansas, has executed this bond by the hands of its Mayor and City Clerk, and attested it with its Corporate Seal, and has caused the coupons attached to be authenticated by the facsimile signature of its Mayor as of the first day of November, 1957.
SEAL
To each of Bonds Nos. 1 through 506 there shall be attached coupons for semi-annual interest in the following form:
BOND NO.______
COUPON NO.________ $17.50
On the first day of ____________, 19____, unless the bond to which this coupon is attached is paid prior thereto, the City of Jonesboro promises to pay to the bearer Seventeen and 50/100 Dollars ($17.50) at the office of any bank in Jonesboro, Arkansas, being six months’ interest then due.
CITY OF JONESBORO, ARKANSAS
By ______________________________
Mayor
NOW, THEREFORE, in consideration of the sum of One Dollar ($1.00) and other good and sufficient considerations, and for the purpose of securing the payment of each and all of the aforesaid bonds and interest thereon, the City of Jonesboro, Arkansas, as Trustee, and to its successors in trust and their assigns, all revenue, rents, income, or profits derived or to be derived from the following lands and improvements now or here after placed thereon, and does hereby grant, bargain, sell and convey unto said Trustee the following described lands and improvements thereon in the City of Jonesboro, Craighead County, Arkansas:
Part of Tract No.1 of Jonesboro Municipal Airport, more particularly described as follows: Begin at the ¼ corner of Section 21 and 22 in Township 14 North, Range 4 East; thence run South on ¼ Section line 150.5 feet to the St. Louis San Francisco Railroad right-of-way line; thence North 44 degrees 08 minutes West along said right-of-way line 917.2 feet; thence North 46 degrees 49 minutes East 400 feet; thence North 42 degrees 27 minutes West 1222.6 feet to St. Louis Southwestern Railroad right-of-way; thence North 88 degrees 27 minutes East 1601.0 feet to point of beginning proper containing 12.96 acres.
Begin at the ¼ corner Section 21 and 22, Township 14 North, Range 4 East: thence, South on ¼ Section Line 150.5 feet to St. Louis San Francisco Railroad right-of-way line; thence North 44 degrees 08 minutes west along said right-of-way line 917.2 feet; thence North 46 degrees 49 minutes East 659.1 feet to point of beginning proper; thence continue North 42 degrees 27 minutes West 1601.0 feet to St. Louis Southwestern Railroad right-of-way; thence North 88 degrees 55 minutes West along said right-of-way 255.9 feet; thence South 42 degrees 27 minutes East 1782.0 feet more or less, to point of beginning proper, containing 7.04 acres, more or less.
TO HAVE AND TO HOLD by said Trustee in trust for the purpose of securing payment of the bonds and interest after said and the performance of all other undertakings and agreements described herein, and when so paid and performed the lien herein established and conveyed shall be released.
The City covenants and agrees:
(1) That the property described herein has been leased to the Jonesboro Industrial Development Corporation, with the right and privilege in the Lessee to sublease or to assign same, and the premises are leased for an amount of monthly payments, to continue for sufficient time to pay the principal and interest of bonds secured by this Pledge and described above.
(2) No part of the rents, issues, profits or gain from or growing out of said tract under the lease described above, or any other lease, or obtained in any other manner from said tract, shall be used for any other purpose than the payment of the bonds secured by this Pledge, together with interest and paying agents’ charges. Such revenues shall be deposited in Jonesboro banks, subject to withdrawal only for such purposes so long as any of said bonds or interest coupons remains outstanding.
(3) The Lease Contract and any subsequent such contract shall provide, in addition to payments necessary to amortize the principal and pay the interest and paying agents’ charges of this issue, that the properties will be kept fully insured as to fire, windstorm and the casualties generally denoted as and covered by policies of extended coverage for amounts not less than the principal amount of said bonds at the time outstanding and unpaid. Said policies shall be written by Companies approved by the Trustee named herein, and standard loss payable clauses shall be attached to said policies and the original thereof delivered to said Trustee to secure the holders of said bonds. Proceeds of such insurance shall be used only for repair of casualty damage to the premises, or for payment of the bonds and coupons aforesaid, so long as any of them remain unpaid.
(4) Any lease of the premises shall provide that the Lessee shall keep the same in a useable state of repair and shall do all inside and outside maintenance necessary to so maintain the premises.
(5) The bonds of this issue shall be callable at any time before maturity for payment, according to the terms set out in the bond forms. No payments shall be made on said bonds or interest except to the designated paying agents. All bonds and all interest coupons that are either paid or called shall be cancelled and returned to the City and shall not be reissued. The charges for paying bonds and interest coupons shall be one-eighth of one percent on the principal, and five cents per interest coupon paid. Deposit of amounts in the bond payment funds shall not operate as a payment of bonds or coupons until so applied.
(5) It is hereby declared that the provisions of this Pledge constitute a contract by an between the City and the holders of the bonds and interest coupons issued hereunder, and after said bonds have been issued and paid for the purchases, the terms of this Pledge shall not be changed except with the written consent of the holders of all said bonds and coupons then outstanding.
(6) It is hereby declared that the provisions of this pledge are separable and if any provision hereof shall, for any reason, be held illegal or invalid, it shall not affect the validity of the remainder of the Pledge, and, in any event, the holders of said bonds and coupons shall be entitled to the income, gain, or profit from the trust described above and any improvements now or hereafter located thereon, and, if default occur, the Trustee named herein, or any successor Trustee, shall be entitled to foreclose the lien hereby created and have possession, ownership and control of said property, and shall be entitled to a Receiver to take charge thereof, and to take any and all other steps to collect amounts due on said bonds and interest coupons. The holder of any bond or interest coupon that is in default shall have like powers, and no delay or failure to exercise such powers shall act as any waiver of any rights or privileges to collect the amount due or to enforce the terms of this Pledge.
(7) The Mercantile Bank, of Jonesboro, Arkansas, is designated as Trustee and authorized to act for and on behalf of the bondholders, but it shall be responsible only for willful wrong in the execution of its trust, and recitals of facts contained herein and in the bonds are statements of the City and not the Trustees. The Trustee shall not be required to take notice of any default or to take any action hereunder until it shall have been notified in writing of such default and indemnified to its satisfaction against any loss, expense or cost that it may incur by taking action. The holders of the majority in value of the outstanding bonds may, and any time, by an instrument duly executed and recorded in the office of the City Clerk, appoint a new trustee, who shall have all the powers of the Trustee originally named. The Trustee is authorized, in its discretion, to release any lien on real or personal property or any assignments or pledges made to secure the obligations described herein.
IN WITNESS WHEREOF, the City of Jonesboro, Arkansas, has caused this instrument to be executed under the hands of their designated officers and under the Corporate Seal of said City, this 1ST day of November, 1957