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A RESOLUTION APPROVING A LEASE AND AGREEMENT BETWEEN THE CITY OF JONESBORO, ARKANSAS, AS LESSOR, AND ASSOCIATED PLASTICS, INC., AS LESSEE; AUTHORIZING THE EXECUTION AND DELIVERY OF THE LEASE AND AGREEMENT IN SUBSTANTIALLY THE FORM AND WITH SUBSTANTIALLY THE CONTENT SET FORTH IN AND MADE A PART OF THIS RESOLUTION; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY
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WHEREAS, the City of Jonesboro, Arkansas (the “City”) has outstanding an issue of its Industrial Development Revenue Bonds - Flintrol Project, Series C, dated February 1, 1978 (the “Bonds”), issued under the authority of Act No.9 of the First Extraordinary Session of the 62nd General Assembly of the State of Arkansas, approved January 21st, 1960, as amended (“Act No.9”); and
WHEREAS, the Bonds were issued pursuant to a Trust Indenture dated as of July 1, 1974, as amended and supplemented by a First Supplemental Trust Indenture dated as of July 1, 1975, and a Second Supplemental Trust Indenture dated as of February 1, 1978, (the “Indenture”), by and between the City and Mercantile Bank, in the City of Jonesboro, Arkansas, as trustee (the “Trustee”); and
WHEREAS, the Bonds were issued to finance the acquisition, construction, and equipment of lands, buildings, improvements, machinery, equipment, and facilities (the “1978 Project”) located within the boundaries of the City; and
WHEREAS, the City leased the 1978 Project to Flintrol, Inc., an Arkansas corporation (“Flintrol”), pursuant to a Lease and Agreement dated February 1, 1978, by and between the City Flintrol (the “1978 Lease”); and
WHEREAS, Flintrol has defaulted in its covenants and agreements with the City under the 1978 Lease, and has abandoned the 1978 Project; and
WHEREAS, a trustee in bankruptcy for Flintrol has been appointed by the United States Bankruptcy Court and that trustee has formally agreed to abandon the 1978 Project to the City; and
WHEREAS, the payment of principal of and interest on the Bonds ...
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