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RESOLUTION FOR MEMORANDUM TO CONTRACT WITH THE CHAMBER OF COMMERCE TO PURCHASE, FINANCE AND OPERATE BUSES IN JONESBORO.
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This memorandum concerning the purchasing, financing and operation of buses in Jonesboro, shall be a contract between the City of Jonesboro and the Chamber of Commerce of Jonesboro, when approved by the governing bodies of the organization.
It is found that many and long efforts to continue the operation of buses in Jonesboro have failed except and unless the bus facilities are acquired by the City of Jonesboro and that the public interest and welfare require and demand the continuance of the operation of buses. Further, that the acquisition of the transportation facilities is possible only through the cooperation of citizens through the Chamber of Commerce of Jonesboro and according to the terms and provisions of this Memorandum.
The City of Jonesboro shall:
1. Purchase the seven buses and the parts and equipment of the City Transit Company from C.A. Johnson.
2. Authorize execution and delivery of bonds or evidences of indebtedness in the total sum of $10,000 for the purchase of such equipment and for operating capital. Such bonds to bear 4% interest, payable annually and be in denominations of $50,100 secured by mortgage on the buses and equipment, and payable only from net operation revenues after payment or provision for payment of all operating expenses and establishment of reserves for depreciation, according to standard accounting practices and as determined by the commissioners herein provided.
3. The bonds and mortgages shall be in a form and shall contain provisions as shall be approved by attorneys chosen by the Chamber of Commerce and shall provide that payments when made shall be appointed ratably among all holders of bonds and that the entire principal shall be due in five years. Also, that in the event the bus operations fail to show any net profit for three consecutive months the Chamber of Commerce or holder...
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