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## ~ I >- ApplicabilityofTax: Generalsales&usetax-Appliestoallgoodsandservicestaxableunderstatelaw. AdministrativeCosts: 3%ofgrosscollectionswithheldbythestateforadministrationofthetax. CreditsorExemptions:Taxsubjecttosamecredits&exemptionsavailableunderstatesales&usetaxlaw SubsequentAmendmentsandAmendmentPurpose: 1. Date: 

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- ------ PurposeofAmendment:
-------------- ----------- 4. Date: --------- AmendingOrdinanceNo.---------
-- PurposeofAmendment: ------------------------- Isthetaxonaviationfueldistributedforairportrelatedpurposes: Yes

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# c.ka'je. ThestateofArkansasadministerslocaltaxesforallcitiesandcountiesinthisstateandcommitsthatthe ArkansasDepartmentofFinanceandAdministrationwillnotifytheFAAofanysubsequentamendments tothistaxthatcouldaffectgrandfatheredstatus.

ohnH.Theis,AssistantRevenueCommissioner 

# J?;/4/15 DateORDINANCE NO. 861 AN ORDINANCE PROVIDING FOR THE LEVY OF A LOCAL SALES TAX AND USE TAX AT THE RATE OF ONE PERCENT (1%} ON RECEIPTS FROM RETAIL SALES WITHIN THE CITY OF NEWPORT, ARKANSAS! PROVIDING FOR THE REBATE OF TAXES IN EXCESS OF TWENTY FIVE DOLLARS ($25.00) PAID TO THE CITY ON A SINGLE TRANSACTION; PROVIDING FOR A SPECIAL ELECTION ON NOVEMBER 23, 1982; PROVIDING THE EMERGENCY CLAUSE AND FOR OTHER PURPOSES.
BE IT ORDAINED by the City Council of the City of Newport, Arkansas, in regular session assembled, as follows: Section 1. That pursuant to Section Two, Act 990 of the 1975 Acts of Arkansas, as amended by Act 133 of 1981, a local sales and use tax in the amount of one percent (1%) he levied on the receipts from the sale at retail within the City of Newport, Arkansas, on all items which are subject to taxation under the ARKANSAS GROSS RECEIPTS TAX ACT, Act 336 of 1941 of the Acts of Arkansas, as amended, or may be hereinafter, amended. Section 2. As authorized by State Statutes, the City of Newport, Arkansas, shall rebate, on an individual claim basis, taxes paid to the City under thi-s ordinance which amount to be more than Twenty-Five Dollars ($25.00) as paid on a single transaction which exceeds Twenty-Five Hundred Dollars ($2500.00}. section 3. Said question of the levee of a sales tax and use tax as provided in Section One heEof shall be submitted to a vote of the citizens of Newport, Arkansas, by special election to be held on November 23, 1982. Section 4. That the City Council of the City of Newport, Arkansa.s, has determined that there is a great need to establish a stable source of revenue to finance vital municipal services, and this Ordinance being necessary for the preservation of the health, safety and welfare of the citizens of Newport, Arkansas, shall become law immediately upOn its passage, approval and publication.

..,.. PP,S'SED A!'ID AJ?P·ROVED 0;!.'\,,?

### c t"o"b'e'<JJ';·

"MAY"OR

### ORDINANCE NO. 1002 AN ORDINANCE AUTHORIZING THE REFUNDING OF OUTSTANDING SALES AND USE TAX BONDS OF THE CITY OF NEWPORT, ARKANSAS; AUTHORIZING BONDS 

### FOR THE FINANCING THEREOF; DECLARING AN EMERGENCY; AND FOR RELATED PURPOSES. WHEREAS, therewas submittedtothequalifiedelectors of the City of Newport, Arkansas (the "City"), at a special election held June 26, 1990, the questions of issuing bonds of the 

### City, in the aggregate principal amount of $4,900,000 (the 11Bonds11), under Amendment No. 62 to the constitution of the state of Arkansas and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation11 ), for the following purposes: 1. $3,600,000 for the outstanding Sewer Revenue Imprqvement December 15, 1986; refunding of and Refunding the City'S Bonds dated 2. $600,000 for the acquisition of a building 

### toT municipal administrative offices, with modifications incidental thereto and necessarymodification of and improvements to the City Halli 3. $700,000 for the purpose of the-'construction (including the acquisition of necessary land and facilities} of a fire station and the acquisition of firefighting apparatus; and WHEREAS, at the special election the qualified electors of the city approved the issuance of Bonds (the 11Refunded Bonds11) for all the proposed purposes, and the pledge to the payment and security of the Bonds of collections of an ad valorem

**ta~** 

### at the rate of o.8 mills and·'collections of the City's 1% sales and use tax; and WHEREAS, it has been found and determined that significant savings can be effected by the refunding of the Refunded Bonds and, to that end, the 

### City proposes to issue its Sales and Use Tax Refunding Bonds, series 1997 (the 11Series 1997 Bonds") in the principal amount of $3,320,000 and to apply the proceeds of the series 1997 Bonds, with funds presently held in connection with the Refunded Bonds, to the refunding of the Refunded Bonds (the 11Refunding11); and WHEREAS, the city has made arrangements to" se-ll the Series 1997BondstoT.J. Raney/MorganKeegan (the "Underwriter"} at a price of 98.25% of the principal amount thereof pursuant to a


## 8Bond Purchase Agreement (the "Agreement11 ) copies of which have been presented to the City Council of the City and are before the City Council at the meeting of which this Ordinance is adoptedi and WHEREAS, copiesof thePreliminaryOfficialStatementfor the 'offering of the Bonds (the "Preliminary Official statement11 ) have been presented to the City Council and are before the city Council at the meeting at which this Ordinance is adopted; NOW THEREFORE Be It Ordained By the Ci.t.y

**Cou~cil** of the City of Newport, Arkansas: Section 1. The Refunding shall be accomplished, and the Mayor of the City is hereby authorized to take all action necessa:roy. in connection therewith and to execute all required contracts and documents. Section 2. The sale to the Underwriter of $3,320,000 in principal amount of Series 1997 Bonds by the City at a price of 98.25% of par, plus accrued interest, for Series 1993 Bonds bearing interest at the rates per annum, maturing and otherwise subject to the terms and provisions hereafter in'this Ordinance set forth in detail be, and is hereby apcepted, and the Agreement, in substantially the form submitted to this meeting, is approved and confirmed and the Bonds are hereby sold to the Underwriter. The Mayor is hereby authorized and directed to execute and deliver

**t~e·** Agreement on behalf of the City and to take all action required on the part of the cityto fulfill its obligations under the Agreement (including, without limitation, the execution of an agreement for required_continuing disclosure). section 3. The Preliminary Official Statement ishereby approved and the previous use

**of~the** Preliminary Official Statement by the Underwriter in connection with the sale of the Series 1997 Bonds ishereby in all respects authorized, approved and confirmed, and the Mayor 

### is hereby authorized, empowered and directed, for and onbehalfoftheCity,.toexeoutethePreliminaryOfficial Statement and to execute the fin,al Official statement in the name of,tbe City to be delivered to the Underwriter for use in connection with the sale of the Series 1997 Bonds as set forth in the Agreement. The PreliminaryOfficial is "deemed final11 for thepurpose ofcompliance with Securities and Exchange Commission Rule 15 c2-12. Section 4. Under the authority of the Constitution and laws of the state of Arkansas, includingparticularlyAmendment No. 62 to the constitution of the State ofArkansas and the Authorizing Legislation, City of Newport, Arkansas Sales and Use Tax Refunding Bonds, Series 1997, arehereby authorized and ordered issued in the total principal amount of $3,320,000, the proceeds of the sale of which are necessary to provide sufficient funds for accomplishing, withother funds, theRefunding, payingexpenses

**incident~!** thereto,

2



## 9establishing a debt service reserve and paying expenses of issuing the Series 1997 Bonds. The Series 1997 Bonds shall bear interest at the rates and principal and interest shall be payable at the times in the amounts as follows:

Date 06/01/97 12/01/97 06/01/98 12/01/98 06/01/99 12(01/99 06/01/00 12/01/00 06(01/01 12/01/01 06/01/02 12/01/02 06(01/03 12/01/03 06/01/04 12(01/04 06(01(05 12/01/05 06(01/06 12/01/06 06(01/07 12/01/07 06/01/08 12/01/08 06/01/09 121011o9 06/01/10 12/01/10 06/01/11 12/01/11 06(01/12 Principal (:une 2.)
$ 270,000 275,000 290,000 300,000 310,000 320,000 335,000 345,000 370,000 385,000

20,000 25,000 Interest F;at:es(%'

3.80 4.20 4.30 4.40 4.45 4.55 4.65 4.75 4.80 4.90 

### s.....oo 5.10 5.15 5.20 5.25 Interest $37,650.00

75,300.00 75,300.00 70,170.00 70,170.00 64,395.00 64,395.00 58,190.00 58,160.00 51,560.00 51,560.00 44,662.50 44,662.50 37,382.50 37,382.50 29,593.75 29,593.75 21,400.00 21,400.00 12,520.00 12,520.00

3,087.50 3,087.50 2,587.50 2,587.50 1,950.00 1,950.00 1,306.25 1,306.25 656.25 656.25 Total $37,650.00 420,600,00 415,340.00 ,. 418,790.00 416,320.00 413,120.00 409,325.00 409,765.00 404,187.50 412,800.00 ,410,040.00

27,612

### ;so 26,312.50 The Series 1997 Bonds shall be issuable only as fully registered bonds without coupons in the denomination of $5,000 or any integral multiple thereof. Unless the City shall otherwise direct, the Series 1997 Bonds shall. be numbered from 1 upward in order of issuance. Each Series 1997 Bond shall have a CUSIP number but the failure of a CUSIP number to appear on any series 1997 Bond shall not affect its validity.

**f:~.-1** l'cibNurII,19'11



## 1.0 3Interest on the Series 1997 Bonds shall be payable on June 1, 1997, and semiannually thereafter on June 1 and December 1 of each year. Payment of each installment of interest shall be made to the person inwhose name the series 1997 Bond isregistered on the registration books of the city maintained by Farmers Bank & Trust company, Magnolia, Arkansas, as Trustee and Paying Agent (the "Trustee11 ), at the close of business on the fifteenth day of the month {whether or not a business day) next preceding each interest payment date (the 11Record Date"), irrespective of anytransferor exchangeof any such Series 1997 Bond subsequent to such Record Date and prior to such interest payment date, by check or draft mailed by the Trustee to such owner at his address on such registration books. Principal of the Series 1997 Bonds shall bepayable at thecorporate trustoffice of the Trustee in Magnolia1 Arkansas.

,. TheCityhas reservedthepowerto issueAdditional Bonds on a parity of security with the series 1997 Bonds, as set forth hereinbeloW1 and references hereinto 11Bonds11 aretoand includethe series 1997 Bonds and any Additional Bonds. Only such Bonds as shall have endorsed thereon a CertificateofAuthentication substantiallyinthe form setforth in Section 6 hereof duly executed by the Trustee shall be entitled to any right or benefit under this Ordinance. No Bond shall be valid and obligatory for anypurpose unless and until such Certificate of Authentication shall have been duly executed by the Trustee, and such certificate of the:,·Trustee upon any such Bond shall l;ieconclusive evidence that such Bond has been authenticated and delivered under this Ordinance. The Trustee's Certificate of Authentication on any Bond shall be deemed to have been executed 

### if signedby an authorized officer of the Trustee, but it shall not be necessary that the same officer sign the cel:-tificate of Authentication on all of the Bonds.

**~** In case any Bond shall become mutilated or be destroyed or lost, the city shall, 

### if not then prohibited by law, cause to be executed and the Trusteemay authenticate and deliver a new Bond of like

**da~e,** number, matprity and tenor in exchange and substitution for and upon cancellation of such mutilated Bond, or in

**li~u,of** and in substitution for sUch Bond destroyed or lost1 upon the owner's paying the reasonable expenses and charges of the City and Trustee in connection therewith, and, 

### in the case of a Bond destroyed or lost1 his filing with the Trustee evidence satisfactory to it that suchBondswere destroyedor lost, and of his ownership thereof, and furnishing theCityandTrusteewith indemnity satisfactorytothem. The Trustee is hereby authorized to authenticate any such newBond. In the event that any such Bond shall have matured, instead of issuinga newBond, the Citymaypay the same without the surrender thereof. Upon the issuance of a new Bond underthis Section4, the Citymayrequirethepayment ofa sum sufficient'·to coverany taxor other governmental charge that may be imposed in relation thereto
4


## 1.1

### and any other expenses {including the fees and expenses of the Trustee) connected therewith. The City shall cause books for the registration and for the transfer of the Bonds as provided herein and in the Bonds. The Trustee shall act as the bond registrar. Each Bond is transferable by the registered owner thereof or by his attorney duly authorized in writing at the principal office of the Trustee. Upon such transfer a new fully registered Bond or Bonds of the same maturity, of authcrize::i 

### de:-Jomine.-::.ion or denominations, for 

### ::he same 

### aggre:;rate principal amount will be issued to the transferee in exchange therefor. Bonds may be exchanged at the principal office of the Trustee for an equal aggregate principal amount of Bonds of

**an~t** 

### other authorized denomination or denominations. The City shall execute and the Trustee shall authenticate and deliver Bonds which the registered owner making the exchange is entitled to receive. The execution by the city of any Bond of any denomination shall constitute full and due authorization of such denomination and the Trustee shall betherebyauthorized toauthenticate anddeliversuch Bond. No charge shall be

**mad~** 

### to any owner of any Bond for the privilege of transfer or exchange, but any owner of any Bond requesting any such transfer or exchange shall pay any tax or other; governmental charge required to be paid with respect theretoExcept as otherwise provided inthe immediatelypreceding sentence, the cost of preparing each new Bond upon each exchange or transfer and any other expenses of the City or the Trustee incurred in connection therewith shall be paid by the City. The

**C~ty** 

### shall not be required 

### (i) to issue, transfer or exchange any Bond during a period beginning at the opening

....of business 15 days before any selectionofBonds ofthatmaturityforredemption andendingatthe close of business on the day of the first mailing of the relevant notice of redemption, or (ii} to transfer or exchange any Bonds selected for redemption 

### in whole or 

### in part.



# . ' The person in whose name any Bond shall be registered shall be regarded as tfie absolute owner thereof for all purposes, and payment of or onaccount oftheprincipalorpremium, 

### ifany, or interest on any Bond shall be made only to or upon the order of the registered owner thereof or his legal representative, but such registration may be changed as hereinabove provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. If any date of maturity of interest on or principal of the Bonds or

**a~y** 

### date fixed for redemption of any Bonds shall be a Saturday or Sunday or shall be 

### in the state of Arkansas a legal holidayora dayonwhichbanking institutions are authorizedby law

5



## :12 

# ..to close, payment of interest or principal need not be made on such date but may be made on the next succeeding business day not a Saturday or sunday or a legal holiday or a day upon which banking institutions are authorized by law toclose, with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after the date of maturity or date fixed for redemption. Section 5. The Bonds shall be executed on behalf of the City by th12 :r.anL.al or facsimile signatures of the Mayer and City Clerk and shall have impressed, imprinted, engraved or lithographed thereon the seal of the City. Section 6. The Bonds and the Trustee's Certificate of Authentication shall be in substantially the following form (wi-ttl appropriate changes in the event of the issuance of Additional Bonds) and the Mayor and city Clerk are hereby expressly authorized and directed to make all recitals contained therein:

6



## 1.3REGISTERED No. (Form of Bond)

UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF JACKSON

CITY OF NEWPORT SALES AND USE TAX REFUNDING BOND SERIES 1997 REGISTERED

Interest Rate: % Maturity Date: June 1 Dated Date: March 1, 1997 Registered Owner ------------ Principal Amount CUSIP NO: KNOW ALL MEN BY THESE PRESENTS: The City of Newport, Arkansas (the 11City11), for value received, hereby promises to pay to the Registered owner shown above, upon the presentation and surrender hereof at the principal corporate trust office of Farmers Bank 

### &Trust Company, Magnolia, Arkansas, or its successor or successors, as Trustee and as Paying Agent (herein referred to as the "Trustee"), on the Maturity Date shown above, the Principal Amount shown above, in su,ch coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts and to pay by check or draft interest thereon, in like coin or currency, from the Dated Date shown above, at the Interest Rate per annum shownabove, payableJune 1, 1997 and semiannuallythereafter, on the 1st days of June and December, until payment of such PrincipalAmount or, iftbis Bond ora portionthereof shallbeduly called for redemption, until the date fixed for redemption,

**~nd·to** pay

**i::te~est** on overdue' principal and interest (to the extent legally enforceable) at the rate borne by this Bond. Payment of each installment of interest shall be made to the person 

### in whose name this Bond is registered on the registration books of the City maintained by the Trustee at the close of business on the fifteenth day of themonth (whetheror nota businessday) nextpreceding each interest payment date (the 11Record Date11) , irrespective of any transfer or exchange of the Bond subsequent to such Record Date and priorto such interest paymentdate. Interest on this series 1997 Bond shall be payable from the interestpaymentdate next preceding the date on which this Series 1997 Bond is authenticated, unless this Series 1997 Bond is authenticated on an interestpayment date, inwhich case it shall bear interest from suchdate, or unless·'this
7



# . 

# 14Series 1997 Bond is authenticated prior to June 1, 1997, in which case it shall bear interest from the Dated Date, or unless this Series 1997 Bond is authenticated during the period from the Record Date to the next interestpayment date, in which case it shall bear interest from such interest payment date, or unless at the time of authentication of this Series 1997 Bond interest is in default hereon, in which case it shall bear interest from the date to which interest has been paid. This Bond is one of an issue of Cityof Newport, Arkansas Sales and Use Tax Refunding Bonds, Series 1997 (the "Series 1997 Bonds11 ), in an aggregate principal amount of $3,320,000, issued for the purpose of financing, with other funds, the cost of

**refundin~** outstanding bonds of the City, funding a debt service reserve, paying necessary expenses incidental thereto and paying expenses of authorizing and issuing the Series 1997 Bonds. The Series 1997 Bonds are issued pursuant to and in full compliance with the constitution and laws of the state of Arkansas, particularly Amendment No. 62 to the Constitution of the state of Arkansas andArkansas Code of 1987Annotated, Title 14, Chapter 164, Subchapter 3 {the "Authorizing. Legislation11), and pursuant to Ordinance No. of the City duly passed and approved on

, 1990 (the "Authorizing Ordinance"), and ai)

**"e~l~e~c~t~i~o~n~d~u"'l yc.h~e~l~d**  at which the majority of the legal voters of the City voting on the question voted in favor of the issuance of the Bonds refunded by the Series 1997 Bonds. Thecityhasreservedthepowerto issueAdditional Bonds on a parity of security with the Series 1997 Bonds, as'set forth in the Authorizing Ordinance, and references herein to "Bonds" are to and include the Series 1997 BondS and any Additional Bonds. Reference isherebymadetotheAuthorizingOrdinancefor the details of the nature and extent of the security and of the rights and obligationspf the1City, the Trustee and the Registered Owners of the Bonds. The Bonds are special obligations, of· the City. The Bonds are

**~Secured** by a pledge of collections of the City's one percent sales and use tax (the "Sales and Use Tax") and by a pledge of collections of a continuing ad valorem tax levied by the City at the rate of 0.8 mills on the dollar Qf the assessed value ofthetaxablereal andpersonalproperty in theCity (the uAd Valorem Tax"). 

### (REFERENCE IS HEREBY MADE TO FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF WHICH HAVE THE SAME EFFECT AS IF SET FORTH IN THIS PLACE.)



## ,,.......,_,..,

.,...,ll,1997 8 

## :15THE CITY HAS DESIGNATED THTS BOND AS A "QUALIFIED TAX-EXEMPT OBLIGATION" WITHIN THE MEANING OF SECTION 265 OF THE 

### INTERNAL REVENUE CODE OF 1986, AS AMENDED. IN WITNESS WHEREOF, the City has caused this Series 1997 Bond to be executed by the facsimile signature of its Mayor and attested by the facsimile signature of its City Clerk and the corporate seal of the City or facsimile thereof to be duly impressed or imprinted or lithographed on this Series 1997 Bond, as of the Dated Date shown above. 

### ATTEST:

(SEAL) (facsimile) 

### City Clerk

.-,, 

## :16 CITY OF NEWPORT, ARKANSAS**~** 

### By

_____**(~f~a~c~s~i~m~idl~eul~-------** Ma)ror

9(FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION) TRUSTEE'S CERTIFICATE OF AUTHENTICATION This is to certifythat this Bond UseTaxRefunding Bonds, Series 1997, issued 

### Arkansas under the provisions of within 

### Ordinance. is one of the Sales and by the City of Newport1 mentioned Authorizing

as Trustee



### Date of Authentication:



## .. 1.7 By
__ 

### ~~~~~~~~~----­

Author1zed Officer



### '



### .

10(Back of Bond) The Series 1997 Bonds shall be subject to optional redemption as follows: The series 1997 Bonds are subject to redemption at the option of the City, on any afterJune 1, 2002, in whole at any time and inpart, in inverse order of maturity (Series 1997 Bonds within a maturity to be selected by lot in such manner as the Trustee may determine), on any interest payment date, at a redemption price equal to the principal amount being redeemed plus accrued interest to the redemption date. IncaseanyoutstandingBond is ina denominationgreater than $5,ooo, each $5,000 of face amount of such Bond shall be treated as a separate Bond of the denomination of $5,000. NoticeofredemptionidentifyingtheSeries 1997Bondsor portions thereof (which shall be $5,000 or an integral multiple thereof) to be redeemed shall begiven by the Trustee, not less than thirty (30) nor more than sixty {60) days prior to the date fixed for redemption, by mailing a copy of the redemption noticeby first classmail, postageprepaid, to allRegisteredowners of series 199-.7 Bonds to be redeemed. Failure to mail an appropriate notice or any such notice to one ormoreRegistered Owners of Bonds to beredeemed shall not affect the validity of the proceedings for redemption of other Series 1997 Bonds as to which notice of redemption is duly given inproper andtimely fashion. All such Series 1997 Bondsthus calledfor redemptionand fortheAretirementofwhich funds areduly provided in accordancewith theAuthorizingOrdinance priorto the date fixed for redemption will cease to bear interest on such redemption date. With respect to notice of redemption of the Series 1997 Bonds at the option ofthe city, unlessmoneys sufficientto.paythe principal of and premiUm, if any, and interest on·the Series2:1997 Bonds to be redeemed shall have been receiVed by the Trustee·prior to the giving of such notice, such notice shall state that redemption shall be conditional upon the receipt of such moneys by the Trustee on or prior to the date fixed 

### tor such redemption. If suchmoneys shallnothavebeen soreceived, suchnotice shallbeof no force and effect, the city shall not redeem such Series 1997 Bonds and the Trustee shall give notice, in the manner 

### in which the notice of redemption was given, that such moneys were not so received. This Series 1997 Bond is transferable by the Registered Owner shown above 

### in person or by his attorney-in-fact duly

11 • 

# 18 ..authorized inwritingattheprincipal corporatetrust office of the Trustee, but only inthemanner, subjectto the limitations and upon payment of the charges provided in the Authorizing Ordinance, and upon surrender andcancellationof this Series 1997Bond. Upon such transfer a new fully registered Series 1997 Bond or Bonds of the same maturitv, of authorized denomina;::ion or denominations, for the same aggregateprincipal amount, will be issued to the transferee in exchange therefor. This Series 1997 Bond is issued with the intent that the laws of the State of Arkansas shall govern its construction. The City and the Trustee may treat the Registered owner hereof as the absolute owner hereof for the purpose of receiving payment of or onaccountofprincipalhereof and interestdue hereon andfor all otherpurposes, and neitherthe Citynor theTrustee nor any paying agent shall be affected by any notice to the contrary. The Bonds are issuable only as fully registered Bonds in the denomination of $5,000, and any integral multiple thereof. Subject to the limitations and upon payment ofthe charges provided 'in the Authorizing ·ordinance, fully registered Bonds may be exchanged for a like aggregate principal amount of fully

**register~d,** Bonds of the same maturity of other authorized denominations. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and be performed, undertheConstitution and laws ofthe

**Stat~** ofArkansas, particularly Amendment No. 62 to the Constitution of the state of Arkansas and the Authorizing Legislation, precedent to and in the issuance of the se·ries 1997 Bonds do exist, have happened and have been performed in due time, form and manner as required by law; and thatthe indebtednessrepresented bytheSeries 1997Bonds, together withall obligationsoftheCity, does notexceedanyconstitutional or statutory limitation. ' This SerieS' 1997 Bond shall not be valid until it shall have been authenticated by the Trustee by the execution of the Certificate of Authentication endorsed hereon.

12 

### 1_9

## * * * * (Form of Assignment)

FORM OF ASSIGNMENT VALUE RECEIVED, hereby sells, assignS--ancc--traTiSters--untO FOR ("Transferor"),
, thewithinBondandallrightsthereunder,

**~a~n"ct"h"e::cr=e"b"y"i-:r"r"e"v;;::o:;c;:a"b"'l"yc-:::c::::o**n s

### tit utes andappoints ("Transferee") as attorney to transfer the

**with~l,.,.** n=-"s-=o::n::d;--co;;n:::-•t-.:h::e:.b::-o=o=k-=s kept for registrationthereof with full power of substitution inthe premises. 

### DATE:

Transferor 

### GUARANTEED BY:

NOTICE: Signature(s) must be guaranteed by a financial institution acceptable to the Trustee.

'


### .

13 

# zo

### Section 9. (a) The Bonds shall constitute special obligations of the City to the payment of the principal of and interestonwhich, withTrustee's and PayingAgent's fees, the city hereby pledges the Ad Valorem Tax, which Ad Valorem Tax, is hereby levied and extended e.nC shall be collected annually until all

**~he** 

### principal of and interest on

**~he** 

### Bonds are paid in full, with Trustee's and Paying Agent's fees, or until adequate provision 

### is made for such payment. The city agrees that at all times while any ofthe Bonds are outstandingthere will bepaid intothe "Ad Valorem Tax Account11 

### of the "Bond Fund11 

### (hereinafter defined} al...l. collections oftheAd valoremTax (the "AdValoremTax Revenues") as and when received. (b) The cityhereby confirms and relevies its city-wide 1% sales and use tax levied pursuant to Ordinance No. 861 of the City, adopted october 4, 1982 and approved by a majority of the electors voting on the question at the special election held for that purpose. Thecityherebyexpres.slypledgesandappropriatesall of the revenues derived by the City from the Ad Valorem Tax and;, subjectto the terms hereof, the Sales and UseTax to thepayment of· the principa1 of and interest on the Bonds when due and to the payment of the fees and charges of the Trustee and Paying Agent. The citycovenantsthat neithertheAd ValoremTax nor theSales and UseTax shall ever

# berepealed orreduced while any of,theBonds are outstanding. The City further covenants to use due diligence in collecting the Ad Valorem Tax and the Sales and Use Tax

. 

### • Section 10. (a) There is hereby created with the Trustee a special fund in the name of the City which is hereby designated "Sales and Use Tax· Bond Fund" (the 11

### Bond Fund"). The Bond Fund shall be composed

**~f** 

### three accounts, the Ad Valorem Tax Account, the Sales and Use Tax Account and the Debt

**Servic~** 

### Reserve Account. So long as

**~any** 

### of the Bonds are outstanding, the city Treasurer shall deposit into the Ad Valorem Tax Account the Ad Valorem Tax Revenues, as and when received (or the City may apply suchRevenues toreimburseotheraccounts fromwhich funds havebeen transferred to the Ad Valorem Tax Account), and shall deposit into the Sales and Use Tax Account, from Sales and Use Tax Revenues, as and when received, the sums in the amounts and at the times described below for the purpose of providing funds for the payment of theprincipal of and intereston the Bonds, as theymature, with Trustee's and Paying Agent's fees, and as a debt service reserve. There shall be deposited into the Sales and Use Tax Account on the first day of each month, commencing the month next following issuance of any Bonds, from the Sales andUseTax Revenues received
14 

# 21during the then preceding month, until all outstanding Bonds, with interest thereon, have been paid in full orprovision made for such payment, a sum equal to 1/6 of the next installment of interest due on the Bonds and 1/12 of the principal due on the Bonds during the then next twelve months (except that the monthly payments for the period preceding the first interest and principal.

**::;~y~er,t** dates shall be equal to the amounts of such interest and principal payments dividedbythenumberof complete orpartialmonths between issuance of Bonds and such payment dates). The City shall also pay into the Sales and Use Ta>t Account such additional sums as necessary to provide for the Trustee's and Paying Agent's fees and expenses. The City shall receive a credit agai"nst monthly payments to the extent of (i) collectedAd valorem Tax Revenues, (ii) moneys deposited in the Sales and Use Tax Account from City sewer system revenues or other sources, (iii) interest earnings onmoneys in the Sales and Use Tax Account and the Ad Valorem Tax Account and (iv) transfers of earnings from the De.bt Service Reserve Account. (b) The Debt Service Reserve Account shall

**b~** established, upon issuanceof each series of Bonds andmaintained in an amount equal to the least of (i) 10% of the principal amount of Bonds, as issued, or (ii) the maximum annual principal of and intereston such Bonds or (iii) 125% ofthe average annual principal and interest on such Bonds (the "Required Level11 )., Should any amount be withdrawn from the Debt Service Reserve-Account, the deficiency shall be cured by t!J.e deposit therein of the first available Sales and use Tax Revenues until the reduction is corrected. Moneys in the Debt Service Reserve Account over and above the Required Level shall be immediately transferred from the Debt Service Reserve Account into the Sales and Use Tax Account. (c) The amounts required to be paid into the Sqles and use Ta:x Account shall be paid before any of the Sales and Use Tax Revenues are used for any other purpose. If the Sales and Use Tax Revenues are insufficient to make the required payment on the first day ofthe following month, the amount of any such.deficiency inthe payment made shall be added to the amount otherwise required to be paid intotheSales and Use TaxAccounton the first dayof the next month. If for any reason there shall be a deficiency in the payments made into the Bond Fund so that there are unavailable sufficient moneys therein to pay the principal of and interest on the Bonds as the same become due, any sums then held in the Debt ServiceReserveAccount shallbeusedtotheertentnecessary··topay
15 

# 22suchprincipal, interest, andTrustee's and PayingAgent's fees, but the Debt Service Reserve Account shall be reimbursed in the amount of any such payment as described above. (d) When themoneys in the Bond Fund, including the Debt Service Reserve Account, shall be and remain sufficient to pay (1) the

**princ~?al** of all theBonds then out$tanding, (2) interest on the Bonds until maturityor redemption, and (3) theTrustee1s andPaying Agent1s fees and expenses, there shall be no obligation to make any further payments into the Bond Fund and any moneys remaining in the Bond Fund after theprincipal of and interest on the Bonds have

**be~n** paid or have been provided for as set forth in section 11 belowmaY be used by the City for any lawful purpose. (e) All moneys in theBond Fund shall be used solelyfor the purpose of paying the principal of and interest on the Bonds 1 and Trustee's and Paying Agent1s fees, as the same become due. (f) The Trustee is authorized and directed to withdraw moneys from the Bond Fund (the first withdrawals to be from the Ad ValoremTaxAccount1 to the extent of funds held therein) from time to time as necessary for paying principal of a-nd interest on the Bonds when due at maturity or at redemption prior to maturity

**~hd** for making other authorized Bond Fund expenditures. (g) The Bonds shall be specifically secured by pledges of the Ad Valorem Tax Revenues and the Sales and Use Tax Revenues, which pledges 

### in favor of the Bonds are hereby irrevocably made according to the terms of this Ordinance, and the city, and the officers andemployees ofthecity, shall execute, performandcarry out the terms thereof in strict conformity with the provisions of this Ordinance. (h)

**Noth~ng** in ,this Ordinance shall be construed as prohibiting the City from appropriating funds to the extept that they may be legally·' appropriated and used for the pS.yment Of principal of and interest on the Bonds if moneys in the Bond Fund (including the Debt service Reserve Account) are not sufficient on any interestpaymentdatetomaketheprincipal and interestpayment then due, and such amounts legally appropriated and available tor thatpurpose shall be paid to the Trustee for deposit into the Bond Fund and used for that purpose. (i) Sales and Use Tax Revenues not required by this Ordinance to be deposited into the Sales and Use Tax Account are regarded as released from the pledge in favor of the Bonds and may be used or pledged by the City for any lawful municipal purPose.

16

., 

# 23 .,**Sec~ion** 11. Any Bond shall be deemed to be paid within the meaning of this Ordinance when payment of the principal of and interest on such Bond {whether at maturity or upon redemption as provided herein, or otherwise), either (i) shall have been made or caused to be made in accordance with the terms thereof, or {ii) shall have been provided for by irrevocably depositing with the 'Trustee, in 7-.rust and irrevocably set aside exclusively for such payment (1) moneys sufficienttomake suchpayment or {2) Government Securities as defined in Section 19 hereof {provided that such deposit will not, in the opinion of counsel nationally recognized with respect to state and local government obligations and the exemption from federal income tax for interest thereon, acceptable to the Trustee, cause any of the Bonds to be classified as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"}}, maturing as to principal and interest in such amounts and at such times as will provide sufficient moneys to make such payment, and all necessary and proper fees, compensation and expenses of the Trustee with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of the Trustee. On the payment of all the Bonds within the meaning of this section, the Trustee shall hold in trust, for the benefit of the owners of such Bonds, all such moneys andjor Government Securities.When all the Bonds shall have been paid. within the meaning of this Section, and if the Trustee has been·paid its fees andexpenses, theTrusteeshall tQke all appropriateactiontocause (i) the pledge and lien of this Ordinance to be discharged and canceled, and (ii) all moneys held by itpursuant to this Ordinance and which are not required for the payment of such Bonds to bepaid over or delivered to or at the direction of the City. section 12. TheCitycovenantsthat itwill

**not~** so·long as any of the Bonds

**ar~** outstanding, issue any bonds, or incur any obligation, secured by a lien on or pledge of the Ad Valorem Tax Revenues or the Sales and Use Tax Revenues superior to the lien and pledge securing the Bonds. The City may issue bonds or incur obligations subordinatetothe lienon Sales andUseTaxRevenues in favor of the Bonds. The City reserves the power to issue Additional Bonds. Additional Bonds will, as set forth below, rank on a parity of pledge and security with the Series 1997 Bonds and any Additional Bonds previously issued, provided that one of the following conditions is met:



### 17 

# 241. Bonds may be issued upon there being filed with the Trustee thecertificateof theMayorof the Cityreflecting that the tota1 of Sales and Use Tax Revenues for the then preceding twelve months equalled not less than 135% of the maximum annual principal and interest requirements for all Bonds then outstanding and the A

de:.:;.::io:tal Bonds ; -::>t:>csed to !::e issue::., settinc;: forth the amounts of sucn sa::.es and Lse

**·~::..:,.** R.eve:n'Jes by month. sucn

**Add~Lional** Bonds will rank on a parity as to Sales and Use Tax Revenues only. 2. Bonds may be issued upon there being filed with the Trusteethe certificateof theMayorof the Cityreflecting thatthe total of Sales and Use Tax Revenues and Ad Valorem Tax Revenues for the then preceding twelve months equalled not less than 135% of the maximum annual principal and interest requirements for all Bonds then outstanding and the Additional Bonds proposed to be issued, setting forth the amounts of Sales and Use Tax Revenues by month. such Additional Bonds will rank on a parity as to Sales and Use Tax Revenues and Ad Valorem Tax Revenues. Uponthe issuanceofany suchAdditional Bonds 1 the level of the Debt Service Reserve AccoUnt shall equal not less than the Required Level (for all Bonds to be outstanding following

**th~** issuance of such Additional Bonds). section 13. The series 1997 Bonds shall be callable for payment prior to maturity in accordance with the terms set out in the bond form in Section 6 of this Ordinance. Section 14. It ishereby covenantedby the Citywith the owners of the Bonds that the Ci!y will faithfully and punctually perform all duties with reference to the Bonds and the Ad Valorem Tax and the Sales and Use Tax required by the Constitution and laws of the state of Arkansas and by this Ordinance1 including the collection of theAd

**Va~orem** TaxRevenues andthe Sales andUseTax 1 as herein specified and covenanted and the applying of,the Ad Valorem Tax Revenues arld the Sales and Use Tax Revenues as herein provided. section 15. The cityTreasurer will keep or cause to be kept proper books of accounts and records (separate from all other accounts and records) inwhichcompleteandcorrectentriesshallbe made ofalltransactionsrelatingtotheAdValoremTaxRevenues and Sales and Use Tax Revenues and such books shall be available for inspection by the Trustee and the owner of any of the Bonds at reasonable times and under reasonable circumstances. Upon written request by the Trustee, the City shall furnish a report to the Trustee on a monthly basis of all receipts and transfers of the Ad ValoremTax Revenues and Sales and UseTax Revenues receiyed.by the
18 • 

# 25City Treasurer. The Trustee shall provide the City with semiannual reports of all transactions relating to the Bond Fund (and Debt ServiceReserveAccount therein}, which semiannual reports shall be presented on or before January 1 and July 1 of each year, and shall coverthe thenprecedingperiod ending, respectively, November 30 or May 31 (or such other period as may be mutually acceptable to the City and the Trustee). Section 16. (a) If there be any default in the payment of the principal of and interest on any of the Bonds, or 

### if the City defaults 

### in the performance of any covenant contained 

### in this Ordinance, the Trustee may, and shall, upon the written request of the owners of not less than ten percent (10%) inprincipal amount of the Bonds then outstanding, byproper suitcompel theperformanceof the duties of the officials of the City under the Constitution and laws of the State ofArkansas and under this Ordinance, and to take any action or obtain any proper relief in law or equity available under the Constitution and laws of the state of Arkansas. (b) No owner of any Bond shall have any right to institute any suit, action, mandamus or other proceeding in equity or in law for the protection or enforcement of any right under this Ordinance or under the Constitution and laws of the State a_f Arkansas unless such owner previously shall have given to the Trusteewritten notice of thedefault on account of which such suit, action or proceeding is to be taken, and unless the owners of not less than ten percent (10%) in principal amount of the Bonds then outstanding shallhavemadewrittenrequest of theTruSteeafterthe right to exercise such powers or right of action, as the case may be, shall have accrued, and sfiall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers herein granted or grantedby the Constitution and laws of the State of Arkansas, or to institute such action, suit or proceeding in its name, andunless, also,,there shallhavebeenoffered to theTrustee reasonable security and indemnity against the cost,

**exp~nffe** and liabilities to be incurred therein or thereby and the Trustee shall have refused or neglected to comply with such request within a reasonable time, and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers and trustof thisOrdinanceorto anyotherremedyhereunder. It is understood and intended that no one or more owners of the Bonds shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Ordinance, or to enforce any right hereunder except in the manner herein provided, that all proceedings at law or in equity shall be instituted, had andmaintained inthemannerhereinprovidedand for the benefit of all owners of the outstanding Bonds and that any
19individual rights of action or other right given to one or more of such owners by law are restricted by this Ordinance to the rights and remedies herein provided. (c) All rights of action under this Ordinance or under any of the Bonds, enforceable by the Trustee1 may be enforced by it without the possession of any of the Bonds, and any such suit,· action or proceeding instituted by the Trustee shall be brought in its name and for the benefit of all the owners of the Bonds, subject to the provisions of this Ordinance. {d) No remedy herein conferred upon or reserved to the Trustee or to the owners of the Bonds is intended to be exclusive of any other remedy or remedies herein provided, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or given by any law or by the Constitution of the State of Arkansas. (e) No delay oromission of theTrustee or of any owners of the Bonds to exercise anyright orpoweraccrued upon anydefault shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every_ power and remedy given by this Ordinance to the Trustee and to ttre owners of the Bonds 1 respectively, may be exercised from time to time and as often as may be deemed expedient. (f) TheTrusteemay, andupon thewrittenJ;equestof the owners of not lessthan a majority of the owners inprincipal amount of the Bonds then outstanding sQall waive any default which shall have been remedied·before the entry of final judgment or decree in any suit, action or proceeding instituted under the provisions of this ordinance or before the completion of the enforcement of any otherremedy, but no suchwaiver shall extend to or affectany other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon.
,, Section 17. When the Bonds, of any series, have been executed by the Mayor and City Clerk and the seal of the City im- pressed as herein provided, they shall be delivered to the Trustee, which shall authenticate them and deliver them to the Underwriter upon payment of the purchase·price as provided herein ("total sale proceeds"). The accrued interest shall be deposited in the Bond Fund, in the Sales and Use Tax Account. The balance of the total sale proceeds, together with other funds if elected, shall be 

### deposited as follows (but as set forth in detail in a letter of delivery instructions signedby theMayor):

20

### 1. The sum sufficient to accomplish any refunding shall be deposited in trust to accomplish such Refunding. 2. 

### Account at the Amounts sufficient to fund the Debt Service Required Level shall be deposited therein. Reserve

.3. Costs of issuance of such Bonds may be paid as directed. 4. Any balance to be applied to the acquisition or construction of a financed project (the ''Project11 ) 

### shall be deposited in a special account of the City in a bank that is a member of the Federal Deposit Insurance Corporation designated "Construction Fund" (the 11

### Construction Fund11 ). 

### Moneys in the Construction Fund shall be used for accomplishingtheProjectandpayingexpenses incidentaltheretoand paying the expenses of issuing such Bonds, with any unexpended balance to be deposited in the Sales and Use Tax Account. Disbursement shall be made from the Construction Fund on the basis of checks accompanied byrequisitions which shall.specify: the name of the person, firm or corporation to whom payment is to be made;. the amount of the payment; the purpose of the payment; and that th? payment is a proper charge on the construction Fund. Each requisition must be signed by two persons designated by the City Council of the City. The depository of the Construction Fund shall berequired tokeep a copy ofeach requisition for a period of three years. When all required expenditures have been made from the construction Fund, this fact shall be evidenced by a certificate signed by the Mayor, which certificate shall state, among other thingsi the date ofthe completion and that all obligationspayable from such Construction,Fund have been discharged. A copy of the certificate shall be filed with the depository of such

**Cons~ruotion** 

### Fund, and a copywith the Trustee, andupon receiptthereof theCity shall transfer any remaining balance to the Sales and Use Tax Account. 

### section 18. (a) Moneys held for the credit of the Debt service Reserve Account in the Bond Fund shall be invested and reinvested in (i} direct or fully guaranteed obligations of the United States of America (including any such securities issued or held in book-entry form on the books of the Department of the Treasury ofthe United statesofAmerica) ("Government Securities11 ) 

### or (ii) in time deposits or certificates of deposit of banks, including the Trustee, which are insured by the Federal Deposit Insurance Corporation (the 11

### FDIC"), or, 

### if in excess of inSurance
21



### ., 

# 28

### coverage, collateralized by Government Securities, or (iii) obligations issued by the Government National Mortgage Association or {iv) money market funds comprised exclusively of investments described 

### in (i) or (iii) above which are registered with the

**S~curities** 

### and Exchange Commissionandmeettherequirements ofRule 2a-7 under the Investment Company Act of 1940 (collectively, "Permitted Investments11 ) 

### all of which.shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the final maturity date of the outstanding bonds, whichever 

### is earlier. The Trustee shall so invest and reinvestpursuantto the directionof the City and in the Trustee's discretion 

### in the absence of any direct instructions from the City. (b) Moneys held for the creditof the Construction Fund maybe investedandreinvestedpursuanttothedirection ofthe City in Permitted Investments which shall mature, or which shall be subject to redemption by the hOlder thereof, at the option of such holder, not later than the date or dates when such money will be required for the purposes

**intend~d.** 

### (c) Moneys held for the credit of the Bond Fund (other than the Debt Service Reserve Account) shall be invested an.O. reinvested in Permitted Investments, which shall mature, or which shall be subjectto redemption by the holder thereof, atthe option of such holder, not later than the date or dates when the moneys will berequired for payment of the principal of and interestonthe bonds when due. The Trustee shall invest and reinvest pursuant to the direction of the city and in the Trustee's discretion in the absence of any direct instructiofls from the City. (d) Obligations so purchased as an investment of moneys in any fund shall be deemed at all times to be a part of such fund and the.interest accruipg

**the~eon** 

### and anyprofit realized from such investments shall be credited to such fund, and any loss

**r~sulting** 

### from such investment Shall be charged to such fund, except that moneys in the Debt Service Reserve Account in the Bond Fund in excess of the Required Level shall be transferred from time to time out of the Debt Service Reserve Account into the Sales and Use Tax Account. (e) Investments of moneys in all funds shall be valued in terms of current market value at least annually. section 19. In the event the office of Mayor, City Treasurer, city Clerk or City Council shall be abolished or any two or more of such offices shall be merged or consolidated or in the event the duties of a particular office shall be transferred to
22
•



# ...

### another office or offices, or in the event of a vacancy in any such office by reason of death, resignation, removal from office or otherWise, or in the event any such officer shall become incapable of performing the duties of his office by reason of sickness, absence from the City or otherwise, all powers conferred and all obligations and duties imposed upon such office or officer shall be performed by the office or officers succeeding to the principal functions thereof, or by the office or officer upon whom such powers, obligations and duties shall be imposed by law. section 20. Farmers Bank & 

### Trust company, Magnolia,

.. Arkansas is hereby appointed to act as Trustee and Paying Agent**pursu~nt** 

### to this Ordinance. TheTrustee shallbe responsible forthe exerc1se of good faith and reasonable prudence in the execution of itstrusts. The recitals inthisOrdinance and in the Bonds are the recitals of the city and not of the Trustee. The Trustee shall not be required to take any.action as Trustee unless it shall have been requested to do so in writing by the owners of not less than ten percent (10%) in principal amount of Bonds then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign by giving sixty (60) days' notice in writing to the City Clerk and tothe owners of the Bonds, and**th~** 

### majority in principal amount of the owners of the outstanding Bonds at any time, with or without cause, may remove the Trustee. In the event of a vacancy in the office of Trustee, the majority in principal amount of the owners of the outstanding Bonds may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed

... with the City Clerk. If the majority in principal amount of the owners of the outstandingBonds shall fail to fill a vacancy within thirty (30) days after the same shall occur, then the City shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. The new Trustee shall be a. bank or a trust company in good standing located in or incorporafedunder the laws of the Stateof**A~kansas,** 

### duly authorized to exerCise trustpowers and subject to examination by federal orStateofArkansas authority, having a reported capital and surplus of not less than $5,000,000. The Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trusts imposed upon it by this Ordinance, but only upon the terms and conditions set forth in this Ordinance and subjectto the provisions of this Ordinance, to all of which the respective owners of the Bonds agree4 Such written acceptance ·Shall be filed with the City Clerk, and a copy thereof shall be placed in the bond transcript. Any successorTrustee shallhave all the powers·herein granted to the original Trustee. The Trustee's resignation shall take effect upon the acceptance of the trusts by the successor Trustee.
23



# .. 30 

# ..Section 21. (a) The terms of this Ordinance shall constitute a contract between the City and the owners of the Bonds and novariation or change in the undertakingherein set forth shall be made while any of the Bonds are outstanding, except as hereinafter set forth in subsections (b) and (c), and the owner of any Bonds may at any time for and on his own behalf or for and on behalf of all bondholders enforce the obligations of the City by a proper suit for that purpose. (b) The Trustee may consent to any variation or change in thisOrdinance in ordertocureanyambiguity, defect oromissiofl in thisordinance orany amendmentheretowithout theconsent of the owners of the outstanding Bonds. (c) The owners of not less than seventy-five percent (75%) in aggregate principal amount of the Bonds then outstanding shall have the right, from time to time, anything contained in this Ordinancetothecontrarynotwithstanding, toconsenttoandapprove the adoption by the City of such ordinance supplemental hereto as shall be necessary or

**desirabl~** for the purpose of modifying, altering, amending, adding to orrescinding, in any particular, any of the terms or provisions contained in this Ordinance or in any supplemental ordinance; provided, however, thatnothingcontainedin this Section shall permit or be construed as permitting (1) an extension ofthe maturity of the principal of or the intereston any Bond, or (2) a reduction in the principal amount of any Bond or the rate of interest thereon, pr (3) the creation of a plepge of the Ad Valorem Tax Revenues or the Sales and Use Tax Revenues superior to the pledges created by this

**O~dinance,** or (4) a privilege or priority of any Bond or Bonds over any other Bond or Bonds, or (5) a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental ordinance. Section 22. , (a) The City covenants that it shall not take any action or suffer or permit any action to be taklen or conditiontoexistwhich causes ormay causethe interestpayableon the Series 1997 Bonds to be included in gross income for federal income tax purposes. Without limiting the generality of the foregoing, the City covenants that the proceeds of the sale of the Series 1997 Bonds and the Ad Valorem Tax Revenues or the Sales and Use Tax Revenues will not be used directly or indirectly in such manneras to causethe Series 1997 Bonds tobetreatedas "arbitrage bonds" within the meaning of section 148 of the Code. (b) The City represents that it has not used or permitted the use of, and covenants that it will not use or permit the use of the facilities financed by the Bonds Refunded or the proceeds of the Bonds or the Refunded Bonds, in such manner· as to
24 

## 31.cause the Bonds to be 11private activitybonds 11 within the meaningof Section 141 of the Code. In this regard, the City shall assure that (1) not in excess of 10% of the Net Proceeds of the Series 1997 bonds is used for Private Business use if, in addition, the payment of more than 10% of the principal or 10% of the interest due on the Series 1997 Bonds during the

**~erm** thereof is, under the terms of the Series 1997 Bonds or any underlying arrangement, directly or indirectly secured by any interest in property used or to be used for a Private Business Use or in payments in respect of property used or to be used for a Private Business Use or is to be derived from payments,·whether or not to the City, inrespect of property

**o~** borrowed moneys used or to be used for a Private Business Use; and (2) in the event that both (A) in excess of 5% of the Net Proceeds of the Series 1997 Bonds are used for a Private Business Use, and (B) an amount in excess of 5% of the principal or 5% of the interest due on the Series 1997 Bonds dUring the term thereof is, under the terms of the Series 1997 Bonds or any underlying arrangement, directly or indirectly, securedby any interest in property used or to be used for such Private Business Use or in payments in respect of property used or to be used fqr such Private Business Use or is to be derived from payments, whether or not to the City, in respect of property or borrowed money used or to be used for such

**Privat~** Business Use, then such excess over five percent (5%) of Ne·t Proceeds of the bonds used for a Private Business Use shall be used for a Private Business use related to the governmental use of the improvements financed by the Series 1997 Bonds. As used in this subsection: "Net Proceeds11 means fhe face amount of the Series 1997 Bonds plus accrued interestandpremium, if any, less original issue discount, if any, less any proceeds deposited into the Debt Service Reserve Account. "Private Business Use11 means use directly or indirectly in a trade or businesS carried on by a natural person or in any activity carried on by a person other than a natural person, excluding, however, use by a state or local governmental unit and use as a member of the general public. (c) The Series 1997 Bonds are hereby designated as "qualifiedtax-exemptobligations11 withinthemeaningofSection265 of the Code. The Cityrepresents that itdoes not reasonably expect that the aggregate principal amount of its qualified tax-exempt obligations (excluding "private activity bonds" within the meaning of section 141 ofthe Codewhich are not "qualified501(c)(3) bonds11 within the meaning of section 145 of the Code), including those of

25 

## 3Z

### i1:s subordinate entities, issued in the ·current calendar year will exceed $10,000,000. (d) 

### Section 148 of therein): The City covenants the 

### Code (and within as follows the meaning with respect to of the terms used (1) The average maturity of the series 1997 Bonds does not exceed the average maturity of the Refunded Bonds. (2) 

### None of the Refunded .Bonds is a 

### "private activity bond11 • (3) 

### Bonds was At least 95% of the "net proceeds" of the Refunded used for governmental activities of the City. {4) The Refunded Bonds were treated as meeting the requirements fo Section 148(f)(2) an (3) 

### by virtue of Section _, 148(f) (4) (D) (v). 

### (5) The aggregate principal amount of all bonds issued by the City (other than 11

### private activity bonds") during**th~** 

### years 1990 and 1991 did not exceed $5,000,ooo (in**eith~r** 

### year)

. Section 23. The City covenants that it will take no action which would cause the Series 1997 Bonds to be 11

### federally guaranteed11 

### within the meaning .of Section 149(b) .'of the Code; specifically, (A} the payment of any portion of principal or interest with respect to the_,Series 1997 Bonds will not be guaranteed (directly or indirectly) by the United States or any agency or instrumentality thereof and (B) none of the proceeds of theSeries 1997 Bonds (exclusiveofproceeds investedfor an initial temporary period until,needed for the purpose for which the bonds were issued and proceeds deposited into the Bond Fund)**w~l~** 

### be invested (directly or 'lndirectly) in federally insured dep'osits or accounts. Nothing in this Section shall prohibit investments in obligations issued by the United States Treasury. Section 24. The City covenants that it will submit to the Secretary of the Treasury of the United States, not later than the 15th day of the second calendar month after the close of the calendar quarter in which the Bonds are issued, a statement concerning the Bonds which contains the information required by Section 149(e) of the Code. Section 25. The provisions of severable and in the event that any section or

• 

## 33 this Ordinance are part hereof shall be
26held to be invalid, such invalidity shall not affect the remainder of this Ordinance. Section 26. All ordinances and resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 27. ThisOrdinance shall not createanyright of any character and no right of any character shall arise under or pursuant hereto until the Bonds authorized hereby shall be issued and delivered. Section 28. It is hereby ascertained and declared that the Refunding will result in savings to the City from the date that it is effected and that issuance of the series 1997 Bonds is dependentuponeconomicconditions (whicharecontinuallychanging). These purposes cannot be accomplished without the issuance of the Series 1997 Bonds, and therefore it is declared that an emergency exists and this Ordinance being necessary for the preservation of the public peace, health and**saf~ty** shall be in force immediately upon and after its passage. 

### PASSED: ---------------' 1997.


### ATTEST:

# ~J;2 

# d£:;- City clerk

## ~ APPRO\tED: (\

# ~~IYtr'cJ _. Mayor

. (SEAL)
'

.

27
• 

## 34CERTIFICATE The undersigned, City Clerk of the City of Newport, Arkansas, hereby certifies that the foregoing pages are a true and correct copy of Ordinance No. 1002 , passed at a regular session of the City Council c: the City, held at the

**~eau~ar ~eeti~~**  p:ace of the Council on the 18th .day ofFebruar\· l99'7, ar.d that the Ordinance is of record in Ordinance Record Book No. 

### at Page now in my possession. 

### GIVEN under my hand and seal this February, 1997. 18th 

### day of



# ~r~.;:~ City 

### CleT (SEAL)

. f:1homo\by\no:wpl:l,ord

Fcbn-.1)·

**1~.** IWI • 

# ..

28 

# 35