Ordinance No. 2019-9
An Ordinance Authorizing The Acquisition And Construction Of Extensions, Betterments And Improvements To The Sewer Facilities Of The City Of Portland, Arkansas; Authorizing The Issuance And Sale Of A Sewer Revenue Bond, Series 2020 For The Purpose Of Financing A Portion Of The Cost Of The Acquisition And Construction; Providing For The Payment Of The Principal Of And Interest On The Bond; And Prescribing Other Matters Relating Thereto.
Be It Ordained by the City Council of the City of Portland, Arkansas that:
Section 1. Certain terms used herein are defined in the bond form appearing in Section 5 of this Ordinance; other terms used herein shall have the following definitions:
“Accountant” means an independent certified public accountant not in the regular employ of the Issuer.
“Agreement” means the Memorandum of Agreement between the Issuer and the Commission Loan No. 01230-CGO-L, dated December 9, 2019, as now or hereafter revised.
“Authorized Officers” means Gary Morgan, Mayor, and Kathy Coulter, Recorder-Treasurer, or successors.
“Bond” means City of Portland, Arkansas Sewer Revenue Bond, Series 2020 authorized by this Ordinance in the Principal Amount.
“Code” means the Internal Revenue Code of 1986, as amended. “Commission” means the Arkansas Natural Resources Commission.
“Construction Fund” means a special fund created by this Ordinance and designated “2020 Sewer Revenue Bond Construction Fund.”
“Depreciation Fund” means a special fund which has been heretofore created and designated “ Sewer Depreciation Fund.”
“Operation and Maintenance Fund” means a special fund which has been heretofore created and designated “ Sewer Operation and Maintenance Fund.”
“Project Consultant” means Crist Engineers, Inc. or other professional engineering firm reasonably acceptable to the Commission.
“Purchase Price” means an amount equal to the Principal Amount.
“Revenue Fund” means a special fund which has been heretofore created and designated “Sewer System Revenue Fund.”
Section 2. The Improvements shall be accomplished. Acquiring and constructing the Improvements as more specifically described in the report prepared by the Project Consultant are hereby approved, authorized and directed. The Authorized Officers are hereby authorized to take, or cause to be taken, all action necessary to accomplish the Improvements and to execute all required contracts and documents, including, but not limited to, the Agreement. The City Council hereby finds and declares that the period of usefulness of the System will be more than 40 years, which is longer than the term of the Bond.
Section 3. (a) Under the authority of the laws of the State, including particularly the Acts, the issuance of the Bond is hereby authorized and the Bond is ordered issued for the purpose of accomplishing the Improvements and paying necessary expenses incidental thereto and to the issuance of the Bond.
(b) The Bond shall be initially dated the date of original issuance and delivery, shall mature on the Maturity Date and shall bear interest from the Date of Issue at the Interest Rate. Principal of and interest on the Bond shall be payable according to the Payment Schedule attached to the form of the Bond.
(c) The Bond shall be issuable as a fully registered Bond in one denomination and shall be numbered “R-1.”
(d) The Bond, upon subsequent transfer, shall be exchanged for a new Bond dated as of the Payment Date to which interest has been paid, or if it is transferred prior to a date on which any interest has been paid, it shall be dated the Date of Issue. Principal and interest on the Bond shall be payable on the Payment Dates. Payment of each installment of principal and interest shall be made to the Commission as the registered owner of the Bond. Final payment of principal of the Bond shall be payable at the principal office of the Commission as the registered owner of the Bond.
(e) The Commission shall be deemed and regarded as the absolute Registered Owner of the Bond for all purposes, and payment of or on account of the principal or interest on the Bond shall be made only to or upon the order of the Commission or its legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. The Issuer shall not be affected by any notice to the contrary.
(f) When a Payment Date of the Bond shall be a Saturday or Sunday or shall be in the State a legal holiday or a day on which banking institutions are authorized by law to close, then payment of principal or interest need not be made on such date but may be made the next succeeding business day with the same force and effect as if made on the Payment Date and no interest shall accrue for the period after the final Payment Date or date fixed for final redemption of the Bond.
(g) The Bond shall be executed on behalf of the Issuer by the manual signatures of the Authorized Officers and the seal of the Issuer shall be affixed thereto.
Section 4. The sale of the Bond to the Commission for the Purchase Price pursuant to the Agreement is hereby authorized subject to the Interest Rate, Maturity Date and other terms and provisions set forth in detail herein. The Agreement, in substantially the form submitted to this meeting, is hereby approved. The Mayor is hereby authorized and directed to execute and deliver the Agreement on behalf of the Issuer and to take all action required on the part of the Issuer to fulfill its obligations under the Agreement. The Mayor is further authorized and directed to execute and deliver any necessary revision to the Agreement on behalf of the Issuer in order to modify any provisions thereof to conform to the terms of this Ordinance.
Section 5. The Bond shall be in substantially the following form and the Authorized Officers are hereby expressly authorized and directed to make all recitals on behalf of the Issuer contained therein:
(Form of Bond)
No. R-1 $1,545,000
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF ASHLEY
CITY OF PORTLAND
SEWER REVENUE BOND, SERIES 2020
As used in this Bond the following terms shall have the following definitions:
“Act” or “Acts” whether one or more means Title 14, Chapter 235, Subchapter 2, Title 14, Chapter 164, Subchapter 4 and Title 19, Chapter 9, Subchapter 6, of the Arkansas Code of 1987 Annotated.
“Authorizing Ordinance” means Ordinance No. 2019-9 of the Issuer duly adopted on December 9, 2019.
“Bond Fund” means a special fund which has been created by the Authorizing Ordinance and is designated “2020 Sewer Revenue Bond Fund.”
“Dated Date” means the Date of Issue or, if this Bond is exchanged and registered to a subsequent Registered Owner, the Payment Date immediately prior to such exchange or registration.
“Date of Issue” means the date this Bond is issued and delivered to the original purchaser, which is _________________, 2020.
“Improvements” means extensions, betterments and improvements to the sewer facilities of the System.
“Interest Rate” means 2.85%.
“Issuer” means City of Portland, Arkansas.
“Maturity Date” means March 1, 2050.
“Payment Date” means the first day of each month commencing April 1, 2020 and continuing through and including March 1, 2050, or as may be otherwise set forth in the Payment Schedule attached to the Bond upon delivery of and acceptance of the Bond by the Commission, unless the Bond shall be sooner paid.
“Payment Schedule” means the schedule of payments attached hereto as Exhibit “A.”
“Principal Amount” means $1,545,000.
“Project Consultant” means Crist Engineers, Inc., or other professional engineering firm reasonably acceptable to the Commission.
“Redemption Schedule” means the following schedule for optionally redeeming this Bond on the Redemption Dates at the Redemption Price (expressed as percentages of the Principal Amount) set forth in the following schedule, together with accrued interest to the Redemption Date:
(Dates Inclusive) Redemption Price
Prior to March 1, 2030 No Redemption
January 1, 2029 and thereafter Par
“State” means the State of Arkansas.
“System” means the sewer system of the Issuer.
KNOW ALL MEN BY THESE PRESENTS:
That the Issuer, for value received, hereby promises to pay, by check or draft, to the order of Arkansas Natural Resources Commission or registered assigns (collectively, the “Registered Owner”), at the principal office of the Commission, the Principal Amount with interest thereon, at the Interest Rate per annum shown above, in such coin or currency from the Dated Date hereof, payable as provided in the Payment Schedule until payment in full of such Principal Amount or, if this Bond or a portion hereof shall be duly called for redemption, until the date fixed for redemption, and to pay interest on overdue principal and interest (to the extent allowed by law) at the rate borne by this Bond. Payments shall be first applied to accrued interest and the balance thereof shall be applied to principal. Payment shall be made to the Arkansas Natural Resource Commission (the “Commission”)
This Bond is issued for the purpose of financing the costs of the construction of the Improvements, and paying necessary expenses incidental thereto and to the issuance of this Bond.
This Bond is issued pursuant to and in full compliance with provisions of the Constitution and laws of the State, including particularly the Acts, and pursuant to the Authorizing Ordinance, and does not constitute an indebtedness of the Issuer within any constitutional or statutory limitation.
This Bond is not a general obligation of the Issuer, but is a special obligation of the Issuer payable solely from receipts received from the operation of the System (the “Revenues”). This Bond is secured by a pledge by the Issuer of the Revenues pursuant to the provisions of the Acts in favor of the Commission.
An amount of Revenues sufficient to pay the principal of and interest on this Bond has been duly pledged and set aside as a special fund for that purpose, and will be deposited from time to time into the Bond Fund. Reference is hereby made to the Authorizing Ordinance for a detailed statement of the terms and conditions upon which this Bond is issued, of the terms and conditions for the issuance of additional bonds, of the nature and extent of the security for this Bond, and of the rights and obligations of the Issuer and the Commission.
This Bond is subject to mandatory redemption at par from bond proceeds not used to pay the cost of the Improvements on the first Payment Date following the date of the Project Consultant’s completion certificate, and to redemption at the option of the Issuer, pursuant to the Redemption Schedule. Notice of redemption identifying portions of this Bond to be redeemed shall be given by the Issuer, not less than 15 days prior to the date fixed for redemption, by mailing a copy of the redemption notice by first class mail, postage prepaid, to the Commission. In the event of partial redemption, prepayments shall be applied in inverse order of maturity, the length of the Payment Schedule shall be reduced accordingly and the amount due on each Payment Date shall not be reduced.
The Issuer has fixed and has covenanted and agreed to maintain rates for the services of the System which shall be sufficient at all times to provide for the proper and reasonable expenses of operation and maintenance of the System, to make the required deposit for the depreciation of the System and for the payment of the principal of and interest on this Bond, including Trustee’s fees, if any, as the same become due and payable, and to maintain any required debt service reserves.
This Bond is transferable by the Commission hereof only as provided in the Authorizing Ordinance. The Issuer may deem and treat the Commission as the absolute owner hereof for the purpose of receiving payment of principal and interest due hereon and for all other purposes, and the Issuer shall not be affected by any notice to the contrary.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Authorizing Ordinance until it shall have been accepted by execution of the Certificate of Acceptance hereon duly signed by the Commission. This Bond is issued with the intent that the laws of the State shall govern its construction.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and be performed under the Constitution and laws of the State, precedent to and in the issuance of this Bond have existed, have happened and have been performed in due time, form and manner as required by law; and that the Revenues have been pledged in accordance with the Acts sufficient to pay this Bond and interest hereon until this Bond and interest hereon have been fully paid and discharged.
IN WITNESS WHEREOF, the Issuer has caused this Bond to be executed by the undersigned Authorized Officers and its corporate seal to be affixed hereto, all as of the Dated Date shown above.
CITY OF PORTLAND, ARKANSAS
COMMISSION’S CERTIFICATE OF ACCEPTANCE
This Bond is issued under the provisions of the within mentioned Authorizing Ordinance and hereby accepted as of ____________________, 2020.
ARKANSAS NATURAL RESOURCES COMMISSION
By: Authorized Signature
Section 6. Principal of and interest on the Bond shall be payable according to the Payment Schedule.
Section 7. (a) The rates charged for services of the System heretofore fixed by ordinances of the Issuer and the conditions, rights and obligations pertaining thereto, as set out in those ordinances, are ratified, confirmed and continued.
(b) The Issuer hereby expressly pledges to the Commission all of the receipts received from the operation of the System (the “Revenues”) to secure the payment of the principal of and interest on the Bond when due at maturity or at redemption prior to maturity, and as security for the performance of all other obligations of the Issuer hereunder; and the Bond is hereby secured by the lien of such pledge; and the Revenues shall be used for no other purpose than to pay the principal of and interest on the Bond except as otherwise specifically provided herein. The Bond and interest thereon shall not constitute an indebtedness of the Issuer within any constitutional or statutory limitation. The Bond is not a general obligation of the Issuer but is a special obligation of the Issuer payable solely from Revenues. Nothing herein shall be construed as requiring the Issuer to use any funds or revenues from any sources other than the Revenues for the payment of the Bond, but nothing herein shall be construed as prohibiting the Issuer from doing so.
(c) The Issuer, and the officers and employees of the Issuer, shall execute, perform and carry out the terms of this pledge in strict conformity with the provisions of this Ordinance.
Section 8. All Revenues shall be paid as and when received into the Revenue Fund. All moneys at any time in the Revenue Fund shall be applied to the payment of the reasonable and necessary expenses of operation and maintenance of the System, to the maintenance of the Depreciation Fund in the required amount, to the payment of the principal of and interest on the Bond, and bonds subsequently issued secured by Revenues (collectively, “System Bonds”), to the maintenance of any required debt service reserves at the required levels, and otherwise as described herein.
Section 9. (a) The Bond Fund is hereby established and created as a trust fund with the Commission. Moneys in the Bond Fund shall be used in the following order of priority as and when necessary solely to pay principal and interest on the Bond.
(b) After making the required monthly deposit into the Operation and Maintenance Fund to pay the reasonable and necessary expenses of operation, repair and maintenance of the System for such month, there shall be paid from the Revenue Fund, pro rata, the required monthly payments as set forth in the Payment Schedule attached to the Bond, into the Bond Fund and any additional bonds issued on a parity with the Bond under Section 15(f) of this Ordinance (collectively, the “Parity Bond Funds”). There shall be paid into the Bond Fund, beginning on the first business day of the month as shown in the Payment Schedule and continuing on or before the first business day of each month thereafter until the Bond with interest thereon have been paid in full, or provision made for such payment, a sum equal to the amount specified in the Payment Schedule for that Payment Date.
(c) If the Revenues are insufficient to make the required payment on a Payment Date into the Bond Fund, the amount of any such deficiency in the payment made shall be added to the amount otherwise required to be paid into the Bond Fund on the next Payment Date.
(d) When the moneys held in the Bond Fund shall be and remain sufficient to pay the outstanding principal of and interest on the Bond, there shall be no obligation to make further payments into the Bond Fund.
(e) If a surplus shall exist in the Bond Fund over and above the amount required for making all principal and interest payments, such surplus may be applied to the payment of the principal of the Bond to the extent that it may be called for redemption prior to maturity.
(f) In addition to other security pledged herein, the Bond shall be specifically secured by a pledge of all moneys and Revenues required to be placed into the Bond Fund. The pledge in favor of the Bond is hereby irrevocably made according to the terms hereof, and the Issuer and its officers and employees shall execute, perform and carry out the terms thereof in strict conformity with the provisions hereof.
(g) When the Bond shall have been paid in full within the meaning hereof, the Commission shall take all appropriate action to cause (i) the pledge and lien hereof to be discharged and canceled, and (ii) all moneys held by it pursuant hereto and which are not required for the payment of the Bond to be paid over or delivered to or at the direction of the Issuer.
Section 10. There shall be paid from the Revenue Fund into the Depreciation Fund, on the first day of each month, an amount equal to 3% of the Revenues for the previous month. The moneys in the Depreciation Fund shall be used for the purpose of paying the costs of major maintenance or repairs, renewals or replacements of any part of the System or for other purposes approved by the Issuer and the Commission.
Section 11. Any surplus in the Revenue Fund after making all disbursements for the operation and maintenance of the System and providing for all funds described above may be used, at the option of the Issuer, for any lawful governmental purpose authorized by the Issuer.
Section 12. (a) When the Bond has been executed and sealed by the Authorized Officers, it shall be delivered to the Commission upon payment of the Purchase Price which shall be deposited in the Construction Fund to be established with the Issuer. There shall be paid from the Construction Fund to the Commission a servicing fee in the amount of $45,000.
(b) The moneys in the Construction Fund shall be used for accomplishing the Improvements, paying expenses incidental thereto and paying expenses of issuing the Bond, with any unexpended balance to be deposited in the Bond Fund. Except as set forth in subsection (a), disbursements shall be made from the Construction Fund on the basis of consecutively numbered written requisitions 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 the payment is a proper charge on the Construction Fund. If any such payment is a reimbursement to the Issuer for funds expended prior to the Date of Issue, the Issuer shall certify that it has complied with the United States Treasury Regulation No. 1.150-2. Each requisition must be signed by an agent of the Commission, an Authorized Officer and, in case of work over which the Project Consultant shall exercise supervision, an agent of the Project Consultant, and the check drawn upon the Construction Fund shall be payable to the person, firm or corporation designated in the requisition. The Issuer shall be required to keep records of all requisitions reflecting all payments made from the Construction Fund.
(c) When the Improvements have been completed and all required expenses paid and expenditures made from the Construction Fund for and in connection with the accomplishment of the Improvements and the financing thereof, this fact shall be evidenced by a certificate signed by an Authorized Officer and an agent of the Project Consultant which certificate shall state, among other things, the date of the completion and that all obligations payable from the Construction Fund have been discharged (the “Completion Certificate”). A copy of the Completion Certificate shall be filed with the Commission and upon receipt thereof the Commission shall transfer any remaining balance to the Bond Fund.
Section 13. Reserved.
Section 14. (a) The Bond shall be subject to redemption prior to maturity in accordance with the terms set out in the bond form herein. The Issuer hereby covenants to use moneys in the Construction Fund not necessary to pay the cost of the Improvements to redeem the Bond at par on the first Payment Date following the date of the Completion Certificate.
(b) The Bond shall be deemed paid when (1) there has been deposited with the Commission an amount sufficient to pay the principal or redemption price of and interest on the Bond to the Maturity Date or redemption, or (2) there has been deposited with the Commission, Government Securities (which for purposes hereof are hereby defined to mean direct or fully guaranteed obligations of the United States of America), that mature according to their terms and are non-callable or redeemable at the option of the holder thereof on or prior to the Maturity Date or redemption of the Bond and the principal or redemption price of and interest on which will provide an amount sufficient to pay in full the principal or redemption price of and interest on the Bond when due; provided that such deposit will not affect the tax exempt status of the interest on the Bond or cause the Bond to be classified as an arbitrage bond within the meaning of Section 148 of the Code, and provided further, that if the Bond is to be redeemed prior to the maturity thereof, notice of such redemption shall have been duly given to the Commission as provided in the Bond Form. If the Bond is called for redemption and funds are duly provided in accordance with this Ordinance prior to the date fixed for redemption, the Bond will cease to bear interest on such redemption date. Prepayment of less than all outstanding principal shall be applied in inverse order of maturity.
(c) In determining the sufficiency of the deposit there shall be considered the principal amount of such Government Securities and interest to be earned thereon until the maturity of such Government Securities.
(d) On the payment in full of the Bond within the meaning hereof, the Commission shall hold in trust, for the benefit of the Registered Owner, all such moneys and/or Government Securities.
(e) The Bond paid either at or before maturity shall be cancelled and shall not be reissued.
Section 15. So long as the Bond is outstanding, it is hereby covenanted and agreed by the Issuer with the Registered Owner that:
(a) The Issuer covenants and agrees that the rates charged for services of the System hereby fixed and established are not less than the minimum necessary to produce and will hereafter produce, and shall be maintained in amounts necessary to produce, total Revenues at all times at least sufficient to: pay operation and maintenance expenses of the System; make the required deposits into the Depreciation Fund; pay the principal of and interest on outstanding System Bonds as the same become due; and maintain any required debt service reserves in the required amounts. The Issuer further covenants that the rates for water and sewer services shall never be reduced while the Bond is outstanding unless (1) there is obtained from an Accountant a certificate that the net revenues of the System that will be derived from the proposed new rates, based upon the previous twelve months of consumption, will be sufficient in amount for making the required deposit into the Depreciation Fund, and for maintenance of any required debt service reserves in the required amounts, and leave a balance equal to at least 120% of the average annual principal and interest requirements on all outstanding System Bonds and (2) the Issuer is not in default hereunder. The Issuer further covenants and agrees that the rates shall be maintained in such manner as will provide net revenues at least sufficient to provide the required deposits into the Depreciation Fund, and to leave a balance amount equal to not less than 110% of the maximum annual principal and interest requirements for all System Bonds outstanding. The term “net revenues” as used in this Section, means all Revenues, less the expenses of operation and maintenance of the System, including all expense items properly attributable to the operation and maintenance of the System determined in accordance with generally accepted accounting principles applicable to government owned facilities similar to the System, other than depreciation above the requirement to be funded in the Depreciation Fund and excluding debt service expenses.
(b) The Issuer covenants and agrees that it will diligently collect the Revenues and continuously operate the System as a revenue producing undertaking.
(c) The Issuer covenants that so long as the Bond is outstanding, that it will not mortgage, pledge or otherwise encumber the System, or any part thereof or any Revenues, except as herein provided, and will not sell, lease or otherwise dispose of any substantial portion of the same. Nothing herein shall be construed to prohibit the Issuer from disposing of worn out or obsolete System properties or from disposing of properties not being used and not useful in the operation of the System, provided that all receipts derived from the disposition of such properties shall be deposited in the Revenue Fund.
(d) The Issuer covenants and agrees that it will duly observe and comply with all valid requirements of any governmental authority relative to the System, that it will not create or suffer to be created any lien or charge upon the System or any part thereof or upon the Revenues, except in accordance with the provision hereof, and that, from such Revenues, it will pay or cause to be discharged, or will make adequate provision to satisfy and discharge, within 60 days after the same shall accrue, all lawful claims and demands for labor, materials, supplies or other objects which, if unpaid, might by law become a lien upon the System or any part thereof or upon the Revenues therefrom; provided, however that nothing in this Section contained shall require the Issuer to pay or cause to be discharged, or make provision for, any such lien or charge so long as the validity thereof shall be contested in good faith and by appropriate legal proceedings.
(e) To the extent comparable protection is not otherwise provided to the satisfaction of the Commission, the Issuer covenants and agrees that it will keep the System facilities insured against loss or damage, and maintain public liability and property damage insurance against claims for bodily injury or death and damage to property occurring upon, in or about the System facilities, in each case in an amount and against such risks as are usually insured against in connection with similar facilities and undertakings as the System. The Issuer further covenants, to the extent comparable protection is not otherwise provided to the satisfaction of the Commission, that it will maintain adequate fidelity insurance or bonds on all officers or employees responsible for handling funds of the System. All insurance required by this subsection shall be effected with reputable insurance companies selected by the Issuer, which usually insure risks similar in nature and monetary exposure. Policies of insurance provided for herein shall name the Commission as a beneficiary to the extent of its interest hereunder. Copies of certificates of the insurance provided for herein, or summaries thereof, shall be placed on file with the Commission.
(f) The Issuer reserves the right to issue additional bonds to finance or pay the cost of acquiring and constructing any future extensions, betterments or improvements to the System or to refund System Bonds, but the Issuer shall not authorize or issue any such additional bonds secured by a lien or pledge of Revenues senior to the lien and pledge in favor of the Bond. The Issuer shall not authorize or issue any such additional bonds secured by a lien or pledge of Revenues on a parity with the lien and pledge in favor of the Bond unless and until there has been procured and filed with the Issuer and the Commission a statement by an Accountant stating, based upon necessary investigation, that the net revenues of the System (as defined in Section 15(a) of this Ordinance) for the fiscal year immediately preceding the fiscal year in which it is proposed to issue such additional bonds shall equal not less than 120% of the maximum annual principal and interest requirements on all the then outstanding System Bonds and the additional bonds then proposed to be issued. For the purposes of the computation required by this Section, if, prior to the issuance of the additional bonds and subsequent to the first day of such preceding fiscal year, the Issuer shall have increased its rates or charges imposed for services of the System, there may be added to the net revenues of such fiscal year the additional net revenues which would have been received from the operation of the System during such fiscal year had such increase been in effect throughout such fiscal year, as reflected by a certificate of a duly qualified consulting engineer not in the regular employ of the Issuer.
(g) The Issuer covenants and agrees that it will faithfully and punctually perform all duties with reference to the Revenues and the Bond, and apply the Revenues as required herein and by the Constitution and laws of the State.
(h) The Issuer covenants and agrees that it will forthwith proceed to acquire and construct the Improvements for which the Bond shall be issued in accordance with plans and specifications which shall have been approved by the Project Consultant, and in conformity with law and all requirements of all governmental authorities having jurisdiction thereover, and that it will expeditiously complete such construction.
Section 16. The Issuer shall cause proper books of accounts and records to be kept (separate from all other accounts and records) in which complete and correct entries shall be made of all transactions relating to the operation of the System, and such books shall be available for inspection by the Commission at reasonable times and under reasonable circumstances. The Issuer agrees to provide the Commission with management reports and quarterly financial statements in accordance with the Agreement plus an annual financial statement for the System no later than 60 days after the end of the year. The Issuer agrees to have the System records audited by an Accountant at least once each year, and a copy of the audit shall be delivered to the Commission no later than 120 days after the end of the year. In the event the Issuer fails or refuses to make the report, the Commission may have the audit made, and the cost thereof shall be charged against the Operation and Maintenance Fund.
Section 17. (a) If there be any default in the payment of the principal of and interest on the Bond, or if the Issuer defaults in the performance of any covenant contained herein, or the Commission may, by proper suit compel the performance of the duties of the officials of the Issuer hereunder and under the Constitution and laws of the State, and may take any action or obtain any proper relief in law or equity available under the Constitution and laws of the State, including any action for the appointment of a receiver to administer the System on behalf of the Issuer and the Commission with power to charge and collect (or by mandatory injunction or otherwise to cause to be charged and collected) rates sufficient to provide for the payment of the expenses of operation, maintenance and repair of the System and to pay the Bond and interest outstanding and to apply the Revenues in conformity herewith and with the laws of the State. When all defaults in principal and interest payments have been cured, the custody and operation of the System shall revert to the Issuer.
(b) No remedy herein conferred upon or reserved to the to the Commission 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.
(c) No delay or omission of the Commission to exercise any right or power accrued upon any default 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 hereby to the Commission may be exercised from time to time and as often as may be deemed expedient.
(d) The Commission may 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 hereof or before the completion of the enforcement of any other remedy, but no such waiver shall extend to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon.
(e) Any costs of enforcement of the obligations of the Issuer hereunder, including reasonable attorney’s fees, shall be paid by the Issuer and shall constitute obligations of the Issuer hereunder.
Section 18. Reserved.
Section 19. The terms hereof shall constitute a contract between the Issuer and the Commission and no variation or change in the undertaking herein set forth shall be made while the Bond is outstanding without the written consent of the Commission and the Commission may at any time for and on its own behalf enforce the obligations of the Issuer by a proper suit for that purpose.
Section 20. (a) The Issuer covenants with the Commission, who otherwise might qualify by law to treat interest on the Bond as tax-exempt, that it shall not take any action or suffer or permit any action to be taken or condition to exist which causes or may cause the interest payable on the Bond to be subject to federal income taxation pursuant to existing laws at the time of issuance; and it shall at all times do and perform all acts and things permitted by law and necessary or desirable in order to assure that interest payable on the Bond shall be exempt from federal income taxation pursuant to existing laws at the time of issuance. Without limiting the generality of the foregoing, the Issuer covenants that the proceeds of the sale of the Bond will not be used directly or indirectly in such manner as to cause the Bond to be treated as an “arbitrage bond” within the meaning of Section 148 of the Code.
(b) The Issuer represents and covenants that it has not used or permitted the use of, and covenants that it will not use or permit the use of the Improvements or the proceeds of the Bond, in such a manner as to cause the Bond to be a “private activity bond” within the meaning of Section 141 of the Code. In this regard, the Issuer covenants that (i) it will not use (directly or indirectly) the proceeds of the Bond to make or finance loans to any person, and (ii) that while the Bond is outstanding the sewer facilities of the System will only be used by State or local governmental units and by persons on a basis which is the same as members of the general public.
(c) The Issuer represents and covenants that it will take no action which would cause the Bond to be “federally guaranteed” within the meaning of Section 149(b) of the Code. Nothing in this Section prohibits investments in bonds issued by the United States Treasury.
(d) The Issuer certifies that (i) it is a governmental unit of the State, (ii) 95% of the net proceeds of the sale of the Bond will be used for governmental activities of the Issuer within its jurisdiction and (iii) it and its subordinate entities, if any, have not issued and will not issue tax exempt obligations (other than private activity bonds) having an aggregate face amount in excess of $5,000,000 during 2020.
(e) The Issuer agrees to make all filings with the Internal Revenue Service (specifically including Form 8038G) that are required from time to time to assure that the Bond is and will remain an obligation on which the interest is excludable from gross income of the holder under Section 103(a) of the Code.
(f) Neither the Issuer nor any related person (as defined in Section 147(a)(2) of the Code) shall acquire the Bond or the general obligation bond issued by the Registered Owner in order to provide loans to finance the Improvements.
(g) The City does hereby adopt, approve and covenant to implement the provisions of the “Post Issuance Compliance Policy Manual,” a copy of which is presented to and before the meeting of the City Council at which the Ordinance has been presented and approved.
Section 21. The provisions hereof are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder hereof.
Section 22. All actions, ordinances and resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
ADOPTED THIS DATE: December 9, 2019.
/s/Gary Morgan, Mayor
Gary Morgan, Mayor
/s/Kathy Coulter, Recorder-Treasurer
Kathy Coulter, Recorder-Treasurer
The undersigned, Recorder-Treasurer of the City of Portland, Arkansas hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No. 2019-9, adopted at a regular session of the City Council of the City of Portland, Arkansas, held at the regular meeting place in said City at 6:00 o’clock p.m., on the 9th day of December, 2019.
GIVEN under my hand and seal on this 9th day of December, 2019.
/s/Kathy Coulter, Recorder-Treasurer
Notice Of Default And Intention To Sell You May Lose Your Property If You Do Not Take Immediate Action If This Property Is Sold You Will Remain Liable For Any Deficiency Which Then Exists And An Action To Collect It May Be Brought Against You This Is An Attempt To Collect A Debt And Any Information Obtained Will Be Used For Such Purpose Notice Is Hereby Given that on January 9, 2020 at or about 11:00AM, the subject real property described herein below will be sold at of the Ashley County Courthouse, 205 East Jefferson, Hamburg, AR 71646 to the highest bidder for cash. The sale will extinguish all interests, including those of existing lien holders or previous owners in the property. The Terms Of Sale Are Cash The Time Of Sale And All Transfer Taxes Will Be The Responsibility Of The Purchaser. Whereas, the property secured under the Deed of Trust is located in Ashley County, Arkansas more particularly described as follows: Lot 14, Block 17, Forest Park Addition To The City Of Crossett, Arkansas, Filed For Record In The Office Of The Circuit Clerk And Recorder For Ashley County, Arkansas, In Plat Book 1 At Page 5. Street Address: 1306 Elm St Crossett AR 71635 WHEREAS on December 19, 2012, James D. Henslee and Marcy D. Henslee, husband and wife, executed a Deed of Trust in favor of G. Gene Crawford, President, as trustee for Mortgage Electronic Registration Systems, Inc., as nominee for First National Bank of Crossett. Said Deed of Trust was recorded on December 26, 2012 in Book MR2012 at Page 6251 in the real property records of Ashley County, Arkansas. The Deed of Trust was subsequently assigned to Lakeview Loan Servicing, LLC by virtue of an assignment dated October 11, 2019 and recorded October 16, 2019 in Book MS 2019 at Page 2135 and as instrument number L201903077 in the real property records of Ashley County, Arkansas. The party initiating foreclosure can be contacted at or in care of its servicer initiating foreclosure at: Lakeview Loan Servicing, LLC. 3637 Sentara Way Virginia Beach VA 23452 at Telephone No. 800-274-6600; and WHEREAS, there may be tenants that claim an interest in the real property herein based upon said tenancy; and WHEREAS, the undersigned is the substitute trustee and is acting on and with the consent and authority of the lender who is exercising its power of sale under Ark, Code Ann, Section 18-50-115 which implies a power of sale in every Deed of Trust of real property situated in this state that is duly acknowledged and recorded; and default has occurred in the payment of said indebtedness, and the same is now therefore wholly due; and the holder of the debt has requested the undersigned to sell the property to satisfy said indebtedness. This sale is subject to all matters shown on any applicable recorded plat or bill(s) of assurance; any restrictive covenants, easements, set back liens or encroachments: any unpaid and/or delinquent taxes or special assessments; any statutory’ redemption rights of any governmental entity: any prior liens or encumbrances as well as any priority created by a UCC or fixture filing; and, to any matter that an accurate survey of the property might disclose. This property is being sold “as is” with no representation as the condition of any structure(s) thereon or the accuracy of the above legal description. Transfer taxes and recording fees are the responsibility of the purchaser. WITNESS my hand this 21st day of October, 2019 Albertelli Law James McPherson. Esq., AR2011038 1 Information Way, Suite 201 Little Rock, AR 72202 501-406-0855 A LAW No. 19-021705 A-4709169 12/11/2019, 12/18/2019, 12/25/2019, 01/01/2020
I Jessica Hartley want a divorce from Alvin Brad Boykin and will not be responsible for his debts.