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AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE PURPOSE OF PROVIDING PERMANENT FINANCING FOR INDUSTRIAL FACILITIES; AUTHORIZING A TRUST INDENTURE SECURING THE BONDS; AUTHORIZING A LOAN AGREEMENT BETWEEN THE CITY OF JONESBORO, ARKANSAS AND McNEIL CORPORATION; AUTHORIZING THE SALE OF THE BONDS AND THE EXECUTION OF A BOND PURCHASE AGREEMENT IN CONNECTION THEREWITH; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY
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WHEREAS, the City of Jonesboro, Arkansas (the “City”), is authorized and empowered under the provisions of Act No.9 of the First Extraordinary Session of the Sixty-second General Assembly of the State of Arkansas, approved January 21, 1960, as amended (the “Act”), to issue revenue bonds and to expend the proceeds thereof to finance the acquisition, construction and equipment of land, buildings or facilities which can be used in securing or developing industry; and
WHEREAS, it is proposed that the City issue its revenue bonds under the Act and loan the proceeds thereof to McNeil Corporation, an Ohio corporation (the “Company”), for the purpose of financing the cost of acquiring all of the right, title and interest of Tenneco Inc., a Delaware corporation, in and to an existing industrial plant at the City (the lands, buildings and improvements comprising such plant, together with certain machinery, equipment and other personal property are owned by the City and leased to Tenneco Inc. pursuant to a Lease and Agreement dated as of October 1, 1970), and constructing and equipping additional industrial facilities as a part thereof; and
WHEREAS, pursuant to and in accordance with the provisions of the Act, the City is now prepared to proceed with financing the Project and to issue and sell $4,000,000 in principal amount of its Industrial Development Revenue Bonds - McNeil Corporation Project, Series 1981 (the “Bonds”), to provide such financing; and
WHEREAS, copies of t...
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