In The Circuit Court Of Ashley County, Arkansas

Civil Division

Timberline Federal Credit Union,                                                Plaintiff

Vs.

Joanne Herron,                                                                      Defendant

No.: CV-2018-269-3

Notice Pursuant To Arkansas

Code Annotated § 18-60-808

This Notice on the Defendant herein is being published based on the Complaint for

Replevin and for recovery of personal property and the Summons that has been issued in this cause and served by way of “Warning Order” according to the Arkansas Rules of Civil Procedure. Notice is provided pursuant to A.C.A. § 18-60-808, that the Defendant will have five (5) days from the date of service of these documents, excluding Sundays and legal holidays, within which to prepare and serve a written response and objection to an Order of Delivery of the personal property, which is the subject of this action and more particularly described as follows:

2015 Chevrolet Colorado Z71, VIN #1GCGTCE37F1142276.

In the event that the Defendant fails to provide a written objection to the Order of Replevin within the applicable five (5) day period then the Clerk of this Court, shall upon the request of the Plaintiff or its attorney, issue a Writ of Possession in compliance with the Replevin Statute.

This Notice of Replevin and request for Order of Delivery of personal property is submitted along with the Complaint and Summons, Affidavit for Replevin and other documents herein this 8th day of January, 2019.

Respectfully Submitted:

Timberline Federal Credit Union, Plaintiff

Byrd Law Firm, P.A., Its Attorneys

John Richard Byrd, Sr.

P.O. Drawer 270

Hamburg, AR 71646

(870) 853-8225

Arkansas Bar Number 82027

2t.1/16-23

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 In The Circuit Court Of Ashley County, Arkansas

Civil Division

Timberline Federal Credit Union,                                                Plaintiff

V.S.

Joanne Herron,                                                                      Defendant

No.: C.V.-2018-269-3

Warning Order

The Defendant, Joanne Herron, is hereby warned to appear before this Court within thirty (30) days of the date of first publication of this Notice to answer the Complaint for Replevin filed by Plaintiff, Timberline Federal Credit Union. Failure to appear before this Court within thirty (30) days from the date of first publication shall result in the Court awarding an absolute Decree of Replevin to the Plaintiff. The property to be effected by the Judgment, or Order of the Court, is replevin /repossession of a 2015 Chevrolet Colorado Z71, VIN #1GCGTCE37F1142276, and a personal Judgment against the Defendant for money damages for any deficiency.

Witness my hand as Ashley County Circuit Clerk this 8 day of January 2019.

VICKIE STELL, CIRCUIT CLERK

DEPUTY CLERK: Kim Lauhon

BYRD LAW FIRM, “P.A.”

Attorneys for Plaintiff

Mr. John Richard Byrd, SR.

P.O. Drawer 270

Hamburg, AR 71646

(870) 853-8225

Arkansas Bar Number: 82027

2t1/16-23

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In The District Court Of Riley County, Kansas

In the Matter of the Adoption of       MRD,     ) Case No. 18 AD 31

WVWM, ) Case No. 18 AD 32

Minor children )

Notice Of Hearing

The State Of Kansas To Shelby Martin

You are hereby notified that a Petition for Adoption has been filed in said Court praying for an order terminating the rights of Shelby Martin, mother of MRD and WVWM, minor males and granting the Petitioner’s petition for Adoption. You are hereby required to file your written defenses thereto on or before the 6th day of February, 2019, at 4:30 p.m. on said day in the District Court of Riley County, 100 Courthouse Plaza, Manhattan, Kansas,66502, before the Honorable James R. Kepple, District Magistrate Judge presiding, at which time and place and cause will be heard. Should you fail therein, judgment and decree will be entered in the due course upon said petition. Rebecca Rookstool (785) 410-3826, a licensed attorney, has been appointed to represent Ms. Martin.

Caffey, Johnson & Ingles, P.A.

/s/ Miranda B. Johnson

Miranda B. Johnson, #22704

121 S 4th, Suite 209

Manhattan, KS 66502

(785) 776-1000

(785) 776-1043-FAX

Attorney for Petitioner

2t 1-16-23

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In The Circuit Court Of Ashley County, Arkansas

Civil Division

Arlandra King And Leon Morris,

Plaintiffs

V.

Marzell Morris And Spouse, If Married, Angela Faye Brown, Harvest Moore And Spouse If Married, Billy Ray Moore And Spouse, If Married, Don Moore And Spouse, If Married, Robert Moore, Jr. And Spouse, If Married, Charles Moore, And Spouse, If Married, Earl Moore And Spouse If Married, Henry Moore, And Spouse, If Married, James Moore, And Spouse, If Married, Joe Louis Moore, And Spouse If Married, Versie Houston, And Spouse, If Married, Tommie Lee Moore And Spouse, If Married, Ruth Everette And Spouse, If Married, And Katie Allison And Spouse, If Married,

Defendants

No.: CV-2019-004-3

Warning Order

To:  Marzell Morris

       Post Office Box 1182

       Glenmora, Louisiana 71433

   Angela Faye Brown

   4907 6th Street North

   Minneapolis, Minnesota 55430

Harvest Moore, and spouse, if married

Billy Ray Moore, and spouse, if married

Don Moore, and spouse, if married

Robert Moore, Jr., and spouse, if married

Charles Moore, and spouse, if married

Earl Moore, and spouse, if married

Henry Moore, and spouse, if married

James Moore, and spouse, if married

Joe Louis Moore, and spouse, if married

Versie Houston, and spouse, if married

Tommie Lee Moore, and spouse, if married

Ruth Everette, and spouse, if married

Katie Allison, and spouse, if married

You are hereby notified that a case has been filed in the Circuit Court of Ashley County, Arkansas, Civil Division, which may affect your rights. You are hereby warned to appear in this Court within thirty (30) days and answer the Petition For Partition and Sale of Land.

Upon failure of Defendants to do so, the Petition For Partition and Sale of Land filed herein will be deemed to be admitted. The above mentioned Defendants, or any other interested person desiring to be heard concerning this action is hereby notified.

The Ashley County, Arkansas property involved in this case is as follows:

Beginning at the corner of Section 25, 26, 35, and 36, Township 18 South, Range 5 West, running thence South 42 degrees East 30 chains and 25 links more or less, thence South 46 Chains to Bayou Bartholomew, thence Northwest with meanderings of Bayou Bartholomew to fractional corner of Section 35 and Section 36, thence North on Section line 24 chains 55 links to point of beginning; also, beginning at a point on the West Bank of Bayou on the South boundary line of the Northeast Quarter of the Southwest Quarter of Section 36, Township 18 South, Range 5 West, thence running West 952 links to the Southwest corner of said 40 acre tract, thence North 39 chains, thence East 14 chains, thence South 65 degrees East 6 chains, thence South 7.36 chains, thence South 65 degrees East 650 links, intersecting Bayou Bartholomew, thence Southwest with meanderings of said Bayou to point of beginning, containing in all 137 acres, more or less.

This notice first published January 16, 2019.

Vickie Stell

Ashley County Circuit Clerk

By: Araceli Pachees

2t.1/16-23

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In The Circuit Court Of Ashley County, Arkansas

Civil Division

Timberline Federal Credit Union,                                                Plaintiff

Vs.

Vivian Laverne Keys-Scott, State Of Arkansas, Commissioner Of Lands And Capital One Bank (Usa), N.A. F/K/A Capital One Bank,

Defendants

No.: CV-2018-232-3

Notice Of Commissioner’s Sale

Notice Is Hereby Given, that pursuant to the authority and directions contained in the order of the Circuit Court of Ashley County, Arkansas, entered on the 8th day of January, 2019, in a certain cause no. CV-2018-232-3, then pending between the above-named Plaintiff and Defendants, the undersigned, as Commissioner of said court, will offer for sale at public auction to highest bidder, at the south door or entrance of the Ashley County Courthouse, at 10:00 o’clock A.M. on Monday the 28th day of January, 2019, the following described real property:

Lot 5 and the E ½ of lot 4, Block 39, Forest Park Addition to the City of Crossett, Ashley County, Arkansas, LESS AND EXCEPT: A parcel of land in Lot 5 of Block 39 of the Forest Park Addition of Crossett, Arkansas as shown on the Plat filed in the Office of the Ashley County Circuit Clerk and Recorded in Plat Book 4, at page 29, more particularly described as follows:

Beginning at the Northeast corner of Lot 5 of said Block 39, run South 37 Degrees 03 minutes East along the East boundary of said Lot 5 a distance of 237.6 feet to the Southeast Corner of said Lot 5; thence South 46 degrees 26 minutes West along the South boundary of said Lot 5 a distance of 5.0 feet; thence North 35 degrees 51 minutes 18 seconds West a distance of 238.39 feet, back to the point of beginning.

The purchaser at said sale will be required to pay cash or certified funds for said property.

Said property is being sold as is, where is, with all faults.

The sale will be by the undersigned Commissioner reported to the Circuit Court of Ashley County, Arkansas, at the next session of said Court and will be at such time subject to approval and confirmation by the Court.

Given under my hand as such Commissioner this 8 day of Jan., 2019.

Vickie Stell, Commissioner 

2t.1/16-23

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Ordinance No. 2019-1

An Ordinance Authorizing The Refunding Of Certain Outstanding Obligations Of The City Of Hamburg, Arkansas Water And Sewer System; Authorizing The Issuance And Sale Of Water And Sewer Revenue Refunding Bonds, Series 2019, In One Or More Series; Providing For The Payment Of The Principal Of And Interest On The Bonds; Prescribing Other Matters Relating Thereto; And Declaring An Emergency.

WHEREAS, the City of Hamburg, Arkansas (the “City”) owns a municipal water and sewer system (the “System”);

WHEREAS, the City Council has determined that the City should currently refund its Water and Sewer Revenue Refunding Bonds, Series 2012 (the “Bonds Refunded”) authorized by Ordinance No. 2012-5 of the City, adopted September 24, 2012 (the “Series 2012 Ordinance”);

WHEREAS, the City can refund the Bonds Refunded by the issuance of Water and Sewer Revenue Refunding Bonds (in the aggregate principal amount of Three Million One Hundred Sixty-Five Thousand Dollars ($3,165,000);

WHEREAS, the City has made arrangements for the sale of the bonds to Stephens Inc. (the “Purchaser”), at a price of $3,149,724.05 (representing the par amount of the Bonds plus original issue premium of $19,539.05 and less Underwriter’s discount of $34,815.00) (the “Purchase Price”), on a negotiated basis pursuant to a Bond Purchase Agreement (the “Agreement”) which has been presented to and is before this meeting;

WHEREAS, the Preliminary Official Statement dated January 2, 2019, offering the bonds for sale (the “Preliminary Official Statement”) has been presented to and is before this meeting;

WHEREAS, in order to comply with the applicable securities laws, it is necessary that the City enter into a Continuing Disclosure Agreement between the City and Simmons Bank, Pine Bluff, Arkansas, as Dissemination Agent (the “Disclosure Agreement”), providing for the ongoing disclosure obligations of the City with respect to the bonds, and a copy of the Disclosure Agreement has been presented to and is before this meeting;

WHEREAS, the City is authorized, under the provisions of Amendment No. 65 to the Arkansas Constitution and A.C.A. §14-164-401 et seq., A.C.A. §14-234-201 et seq. and A.C.A. §14-235-201 et seq. (together, the “Authorizing Legislation”), to issue and sell the bonds.

Now, Therefore, Be It Ordained By The City Council Of The City Of Hamburg, Arkansas:

Section 1. The current refunding of the Bonds Refunded shall be accomplished. The Mayor and City Clerk are hereby authorized to take, or cause to be taken, all action necessary to accomplish the refunding of the Bonds Refunded and to execute all required contracts in connection therewith. The Bonds Refunded shall be redeemed in the amount of the outstanding principal and accrued interest to the date of redemption.

Section 2. The offer of the Purchaser for the purchase of the bonds from the City at the Purchase Price for 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 accepted, and the Agreement, in substantially the form submitted to this meeting, is approved and the bonds are hereby sold to the Purchaser. The Mayor’s approval and execution of the Agreement is hereby ratified, and the Mayor is hereby authorized to deliver the Agreement on behalf of the City and to take all action required on the part of the City to fulfill its obligations under the Agreement.

Section 3. The Preliminary Official Statement is hereby approved and the previous use of the Preliminary Official Statement by the Purchaser in connection with the sale of the bonds is hereby in all respects authorized and approved, and the Mayor be, and he is hereby authorized and directed, for and on behalf of the City, to execute the Preliminary Official Statement and the final Official Statement as set forth in the Agreement.

Section 4. The Disclosure Agreement, in substantially the form submitted to this meeting, is approved, and the Mayor is hereby authorized and directed to execute and deliver the Disclosure Agreement on behalf of the City. The Mayor and the Director of Public Works are each authorized and directed to take all action required on the part of the City to fulfill the City’s obligations under the Disclosure Agreement.

Section 5. Under the authority of the Constitution and laws of the State of Arkansas (the “State”), including particularly Title 14, Chapter 164, Subchapter 4; Title 14, Chapter 234, Subchapter 2 of the Arkansas Code of 1987 Annotated; and Title 14, Chapter 235, Subchapter 2 of the Arkansas Code of 1987 Annotated, City of Hamburg, Arkansas Water and Sewer Revenue Refunding Bonds, Series 2019 (the “Bonds” or “bonds”) are hereby authorized and ordered issued in the principal amount of Three Million One Hundred Sixty-Five Thousand Dollars ($3,165,000) for the purpose of refunding the Bonds Refunded, funding a debt service reserve and paying costs incidental thereto and expenses of issuing the Bonds. The Bonds shall bear interest at the rates and shall mature on the dates and in the amounts as follows:

Serial Bonds

Maturity

(November 1)     Principal Amount                 Interest Rate (%)

2019                    $   75,000                             3.000%

2020                       130,000                             3.000%

2021                       135,000                             3.000%

2022                       135,000                             3.000%

2023                       140,000                             3.000%

2024                       145,000                             3.000%

2025                       150,000                             3.000%

2026                       155,000                             3.000%

2027                       160,000                             3.000%

2028                       165,000                             3.000%

Term Bonds

$325,000 3.125% Term Bond due November 1, 2030

$500,000 3.375% Term Bond due November 1, 2033

$555,000 3.625% Term Bond due November 1, 2036

$395,000 3.750% Term Bond due November 1, 2038

The 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 bonds shall be numbered from 1 upward in order of issuance. Each bond shall have a CUSIP number but the failure of a CUSIP number to appear on any bond shall not affect its validity.

The bonds shall be registered initially in the name of Cede & Co., as nominee for the Depository Trust Company (“DTC”), which shall be considered to be the registered owner of the bonds for all purposes under this Ordinance, including, without limitation, payment by the City of principal of, redemption price, premium, if any, and interest on the bonds, and receipt of notices and exercise of rights of registered owners. There shall be one certificated, typewritten bond for each stated maturity date which shall be immobilized in the custody of DTC with the beneficial owners having no right to receive the bonds in the form of physical securities or certificates. DTC and its participants shall be responsible for maintenance of records of the ownership of beneficial interests in the bonds by book-entry on the system maintained and operated by DTC and its participants, and transfers of ownership of beneficial interests shall be made only by DTC and its participants, by book-entry, the City having no responsibility therefor. DTC is expected to maintain records of the positions of participants in the bonds, and the participants and persons acting through participants are expected to maintain records of the purchasers of beneficial interests in the bonds. The bonds as such shall not be transferable or exchangeable, except for transfer to another securities depository or to another nominee of a securities depository, without further action by the City.

If any securities depository determines not to continue to act as a securities depository for the bonds for use in a book-entry system, the City may establish a securities depository/book-entry system relationship with another securities depository. If the City does not or is unable to do so, or upon request of the beneficial owners of all outstanding bonds, the City and the Trustee (hereinafter identified), after the Trustee has made provision for notification of the beneficial owners by the then securities depository, shall permit withdrawal of the bonds from the securities depository, and authenticate and deliver bond certificates in fully registered form (in denominations of $5,000 or integral multiples thereof) to the assigns of the securities depository or its nominee, all at the cost and expense (including costs of printing definitive bonds) of the City, if the City fails to maintain a securities depository/book-entry system, or of the beneficial owners, if they request termination of the system.

Prior to issuance of the bonds; the City shall have executed and delivered to DTC a written agreement (the “Representation Letter”) setting forth (or incorporating therein by reference) certain undertakings and responsibilities of the City with respect to the bonds so long as the bonds or a portion thereof are registered in the name of Cede & Co. (or a substitute nominee) and held by DTC. Notwithstanding such execution and delivery of the Representation Letter, the terms thereof shall not in any way limit the provisions of this Section or in any other way impose upon the City any obligation whatsoever with respect to persons having interests in the bonds other than the registered owners, as shown on the registration books kept by the Trustee. The Trustee shall take all action necessary for all representations of the City in the Representation Letter with respect to the Trustee to at all times be complied with.

The authorized officers of the Trustee and the City shall do or perform such acts and execute all such certificates, documents and other instruments as they or any of them deem necessary or advisable to facilitate the efficient use of a securities depository for all or any portion of the bonds; provided that neither the Trustee nor the City may assume any obligations to such securities depository or beneficial owners of bonds that are inconsistent with their obligations to any registered owner under this Ordinance.

Each bond shall be dated as of the date of delivery. Interest on the bonds shall be payable on May 1, 2019 and semiannually thereafter on May 1 and November 1 of each year. Payment of each installment of interest shall be made to the person in whose name the bond is registered on the registration books of the City maintained by Simmons Bank, Pine Bluff, Arkansas, as Trustee and Paying Agent (the “Trustee”), 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 “Record Date”), irrespective of any transfer or exchange of any such 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 bonds shall be payable at the corporate trust office of the Trustee.

Each bond shall bear interest from the payment date next preceding the date on which it is authenticated unless it is authenticated on an interest payment date, in which event it shall bear interest from such date, or unless it is authenticated prior to the first interest payment date, in which event it shall bear interest from its dated date, or unless it is authenticated during the period from the Record Date to the next interest payment date, in which case it shall bear interest from such interest payment date, or unless at the time of authentication thereof interest is in default thereon, in which event it shall bear interest from the date to which interest has been paid.

Only such bonds as shall have endorsed thereon a Certificate of Authentication substantially in the form set forth in Section 5 hereof (the “Certificate”) duly executed by the Trustee shall be entitled to any right or benefit under this Ordinance. No bond shall be valid and obligatory for any purpose unless and until the Certificate shall have been duly executed by the Trustee, and the Certificate of the Trustee upon any such bond shall be conclusive evidence that such bond has been authenticated and delivered under this Ordinance. The Certificate on any bond shall be deemed to have been executed if signed by an authorized officer of the Trustee, but it shall not be necessary that the same officer sign the Certificate 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 Trustee may authenticate and deliver a new bond of like date, maturity and tenor in exchange and substitution for and upon cancellation of such mutilated bond, or in lieu of and in substitution for such bond destroyed or lost, upon the owner paying the reasonable expenses and charges of the City and Trustee in connection therewith, and, in the case of a bond destroyed or lost, his filing with the Trustee evidence satisfactory to it that such bond was destroyed or lost, and of his ownership thereof, and furnishing the City and Trustee with indemnity satisfactory to them. The Trustee is hereby authorized to authenticate any such new bond. In the event any such bond shall have matured, instead of issuing a new bond, the City may pay the same without the surrender thereof. Upon the issuance of a new bond under this Section, the City may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

The City shall cause books to be maintained 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 authorized denomination or denominations, for the same aggregate principal amount will be issued to the transferee in exchange therefor.

Bonds may be exchanged at the principal corporate trust office of the Trustee for an equal aggregate principal amount of bonds of any 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.

No charge shall be made 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 thereto. Except as otherwise provided in the immediately preceding 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. Neither the Trustee nor the City shall be required 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 deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal or premium, if any, 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.

In any case where the date of maturity of interest on or principal of the bonds or the date fixed for redemption of any bonds 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 interest or principal need not be made on such date but may be made on the next succeeding business day 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 6. The bonds shall be executed on behalf of the City by the manual or facsimile signatures of the Mayor and City Clerk/Treasurer and shall have impressed or imprinted thereon the seal of the City. The bonds, together with interest thereon, are secured by and are payable solely from the revenues derived from the System (“System Revenues”) which are hereby pledged and mortgaged for the equal and ratable payment of the bonds.

Section 7. The bonds and the Certificate shall be in substantially the following form and the Mayor and City Clerk/Treasurer are hereby expressly authorized and directed to make all recitals contained therein:

[Remainder of page intentionally left blank]

 

 

(Form of Series 2019 Bond)

REGISTERED                                                REGISTERED

No. R - ____________

UNITED STATES OF AMERICA

STATE OF ARKANSAS

COUNTY OF ASHLEY

CITY OF HAMBURG

WATER AND SEWER REVENUE

REFUNDING BONDS, SERIES 2019

Maturity Date: November 1, ____       Interest Rate:____________%

Dated Date: February 19, 2019               CUSIP No.: ____________

Registered Owner: Cede & Co.

Principal Amount: _______________________________________

                                                                                                             

KNOW ALL MEN BY THESE PRESENTS:

That the City of Hamburg, County of Ashley, State of Arkansas (the “City”), for value received, hereby promises to pay, but solely from the source as hereinafter provided and not otherwise, to the Registered Owner shown above upon the presentation and surrender hereof at the principal corporate office of Simmons Bank, Pine Bluff, Arkansas, or its successor or successors, as Trustee and Paying Agent (the “Trustee”), on the Maturity Date shown above, the Principal Amount shown above, in such 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, but solely from the source as hereinafter provided and not otherwise, in like coin or currency from the interest commencement date specified below at the Interest Rate per annum shown above, payable May 1, 2019, and semiannually thereafter on the first days of May 1 and November 1 of each year, until payment of such Principal Amount or, if this bond or a portion thereof shall be duly called for redemption, until the date fixed for redemption, and to pay interest 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 the month (whether or not a business day) next preceding each interest payment date (the “Record Date”), irrespective of any transfer or exchange of this bond subsequent to such Record Date and prior to such interest payment date.

Unless this bond is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Trustee for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is required by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

This bond shall bear interest from the payment date next preceding the date on which it is authenticated unless it is authenticated on an interest payment date, in which event it shall bear interest from such date, or unless it is authenticated prior to the first interest payment date, in which event it shall bear interest from the Dated Date shown above, or unless it is authenticated during the period from the Record Date to the next authenticated payment date, in which case it shall bear interest from such interest payment date, or unless at the time of authentication hereof interest is in default hereon, in which event it shall bear interest from the date to which interest has been paid.

This bond is one of an issue of City of Hamburg, Arkansas Water and Sewer Revenue Refunding Bonds, Series 2019, aggregating Three Million One Hundred Sixty-Five Thousand Dollars ($3,165,000) in principal amount (the “bonds”), and is issued for the purposes of refunding certain outstanding indebtedness of the City, funding a debt service reserve, and paying expenses incidental thereto and to the authorization and issuance of the Series 2019 Bonds.

The bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas (the “State”), including particularly Title 14, Chapter 164, Subchapter 4, Title 14, Chapter 234, Subchapter 2 and Title 14, Chapter 235, Subchapter 2 of the Arkansas Code of 1987 Annotated and pursuant to Ordinance No. 2019-1 duly adopted on January 8, 2019 (the “Authorizing Ordinance”), and do not constitute an indebtedness of the City within any constitutional or statutory limitation. The bonds are not general obligations of the City, but are special obligations payable solely from the Revenues (“System Revenues”) derived from the operation of the City’s water and sewer system (the “System”). An amount of System Revenues sufficient to pay the principal of and interest on the bonds has been duly pledged and set aside into the Series 2019 Water Revenue Refunding Bond Fund created by the Authorizing Ordinance. Reference is hereby made to the Authorizing Ordinance for a detailed statement of the terms and conditions upon which the bonds are issued, of the nature and extent of the security for the bonds, and the rights and obligations of the City, the Trustee and the registered owners of the bonds. The City 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, for the payment of the principal of and interest on the bonds, including Trustee’s fees, as the same become due and payable, to establish and maintain a debt service reserve and to make the required deposits for the depreciation of the System.

The bonds shall be subject to optional and mandatory sinking fund redemption as follows:

1.          Optional Redemption. The Bonds are subject to redemption at the option of the City from funds from any source, in whole at any time or in part on any interest payment date on and after November 1, 2023, at a redemption price equal to the principal amount being redeemed plus accrued interest to the redemption date. If fewer than all of the Bonds shall be called for redemption, the particular maturities of the Bonds to be redeemed shall be selected by the City in its discretion. If fewer than all of the Bonds of any one maturity shall be called for redemption, the particular Bonds or portion thereof to be redeemed from such maturity shall be selected by lot by the Trustee.

2.          Mandatory Sinking Fund Redemption. To the extent not previously redeemed, the Bonds maturing on November 1 in the years 2031, 2034, 2037, and 2039, are subject to mandatory sinking fund redemption by lot in such manner as the Trustee shall determine, on November 1 in the years and in the amounts set forth below, at a redemption price equal to the principal amount being redeemed plus accrued interest to the date of redemption:

Bonds Maturing November 1, 2030

                            Year                      Principal Amount

                            2029                      $  170,000

                            2030 (Maturity)         155,000

Bonds Maturing November 1, 2033

                            Year                      Principal Amount

                            2031                      $  160,000

                            2032                          165,000

                            2033 (Maturity)         175,000

Bonds Maturing November 1, 2036

                            Year                      Principal Amount

                            2034                      $  180,000

                            2035                          185,000

                            2036 (Maturity)         190,000

Bonds Maturing November 1, 2038

                            Year                      Principal Amount

                            2037                      $  195,000

                            2038 (Maturity)         200,000

The provisions for mandatory sinking fund redemption of the Bonds are subject to the provisions of the Authorizing Ordinance which permit the City to receive credit for Bonds previously redeemed or for Bonds acquired by the City and surrendered to the Trustee.

In case any outstanding Bond is in a denomination greater than $5,000, each $5,000 of face value of such Bond shall be treated as a separate Bond of the denomination of $5,000.

The Trustee shall give notice of the call for redemption by first class mail placed in the mail not less than thirty (30), nor more than sixty (60) days prior to the date fixed for redemption, to the registered owner of any Bond called for redemption, addressed to such registered owner’s registered address. After the date for redemption no further interest shall accrue on any Bond called for redemption if funds for their redemption have been deposited with the Trustee as provided in the Authorizing Ordinance.

Notwithstanding the above, so long as the Bonds are issued in book-entry only form, if fewer than all the Bonds of an issue are called for redemption, the particular Bonds to be redeemed will be selected pursuant to the procedures established by DTC. So long as the Bonds are issued in book-entry only form, notice of redemption will be given only to Cede & Co., as nominee for DTC. The Trustee will not give any notice of redemption to the Beneficial Owners of the Bonds.

This bond is transferable by the registered owner hereof in person or by his attorney-in-fact duly authorized in writing at the principal corporate trust office of the Trustee, but only in the manner, subject to the limitations and upon payment of the charges provided in the Authorizing Ordinance, and upon surrender and cancellation of this bond. Upon such transfer a new fully registered bond or bonds of the same maturity, of authorized denomination or denominations, for the same aggregate principal amount, will be issued to the transferee in exchange therefor. This bond is issued with the intent that the laws of the State shall govern its construction.

No charge shall be made to the owner of any bond for the privilege of registration, but any owner requesting any such registration shall pay any tax or governmental charge required to be paid with respect thereto. Except as otherwise provided in the immediately preceding 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, neither the City nor the Trustee shall be required to transfer or exchange any bond selected for redemption in whole or in part.

The City and the Trustee may deem and treat the registered owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and premium, if any, hereon and interest due hereon and for all other purposes, and neither the City nor the Trustee shall be affected by any notice to the contrary.

The bonds are issuable only as fully registered bonds in the denomination of Five Thousand Dollars ($5,000.00) and any integral multiple thereof. Subject to the limitations and upon payment of the charges provided in the Authorizing Ordinance, fully registered bonds may be exchanged for a like aggregate principal amount of fully registered 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 precedent to and in the issuance of the bonds do exist, have happened and have been performed in due time, form and manner as required by law; that the indebtedness represented by the bonds, together with all obligations of the City, does not exceed any constitutional or statutory limitation; and that the above referred to revenues pledged to the payment of the principal of and premium, if any, and interest on the bonds as the same become due and payable will be sufficient in amount for that purpose.

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 the Certificate of Authentication hereon shall have been signed by the Trustee.

IN WITNESS WHEREOF, the City of Hamburg, Arkansas has caused this bond to be executed by its Mayor and City Clerk/Treasurer and its corporate seal to be impressed or imprinted on this bond, all as of the Dated Date shown above.

CITY OF HAMBURG, ARKANSAS

_____________________________

             Dane Weindorf, Mayor

ATTEST:

_________________________________

Peggy Akers, City Clerk/Treasurer

(SEAL)

(Form of Trustee’s Certificate)

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This bond is one of the bonds designated Water and Sewer Revenue Refunding Bonds, Series 2019 in and issued under the provisions of the within mentioned Authorizing Ordinance.

             Date of Authentication: ___________________________

SIMMONS BANK

Pine Bluff, Arkansas, as Trustee

By ____________________________________

             Authorized Signature

(Form of Assignment)

ASSIGNMENT

FOR VALUE RECEIVED, _______________________________ (“Transferor”), hereby sells, assigns and transfers unto _____________________________, the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints ______________________ as attorney to transfer the within bond on the books kept for registration thereof with full power of substitution in the premises.

DATE: __________________

_____________________

Transferor

 

GUARANTEED BY:

________________________________

NOTICE: Signature(s) must be guaranteed by a member of or participant in the Securities Transfer Agents Medallion Program (STAMP), or in another signature guaranty program recognized by the Trustee.

(End of Bond Form)

Section 8. The rates charged for services of the System heretofore fixed by ordinances of the City and the conditions, rights and obligations pertaining thereto, as set out in those Ordinances, are hereby ratified, confirmed and continued. None of the facilities or services afforded by the System shall be furnished without a charge being made therefor. In the event that the City or any department, agency, or instrumentality thereof shall avail itself of the facilities and services afforded by the System, the reasonable value of the service or facilities so afforded shall be charged against the City or such department, agency, or instrumentality and shall be paid for as the charges accrue. The revenues so received shall be deemed to be revenues derived from the operation of the System and shall be used and accounted for in the same manner as the other revenues derived from the operation of the System.

The City covenants that the rates established will produce System Revenues at least sufficient to pay principal of and interest on all outstanding bonds and other debt obligations to which System Revenues are pledged (“System Bonds”), maintain debt service reserves at the required levels, provide the amount required to be set aside for the Depreciation Fund (described below), and pay the expenses of operation and maintenance of the System, including all expense items properly attributable to operation and maintenance under generally accepted accounting principles applicable to municipal water and sewer facilities (other than depreciation, interest and amortization of deferred bond discount expenses). The City further covenants that the rates shall, if and when necessary from time to time, be increased in such manner as will produce System Revenues at least sufficient to comply with the previous sentence.

The City covenants and agrees that the rates shall never be reduced while any of the bonds are outstanding unless there is obtained from an independent certified public accountant (“Accountant”) a certificate that the Net Revenues of the System (“Net Revenues” being defined as gross 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 under generally accepted accounting principles applicable to municipal water and sewer facilities, excluding depreciation, interest and amortization of deferred bond discount expenses), with the reduced rates, will always be equal to the amount required to be set aside for the Depreciation Fund (hereinafter identified), and leave a balance equal to at least One Hundred Twenty-five Percent (125%) of the average annual principal and interest requirements on all outstanding bonds payable from Revenues (“System Bonds”). The City further covenants and agrees that the rates shall, if and when necessary, from time to time, be increased in such manner as will produce Revenues at least sufficient to pay the principal and interest on all System Bonds when due, to pay the operation and maintenance expenses of the System, and to deposit the amounts required to be paid into the Depreciation Fund and the Debt Service Reserve in accordance herewith.

Section 9. The System shall be continuously operated as a revenue producing undertaking and all Revenues shall be paid into a special fund heretofore created and designated “Water and Sewer Revenue Fund” (the “Revenue Fund”). The Revenues so deposited in the Revenue Fund are hereby pledged and shall be applied to the payment of the reasonable and necessary expenses of operation, repair and maintenance of the System, to the payment of the principal of and premium, if any, and interest on System Bonds, to the establishment and maintenance of a Debt Service Reserve, and to the providing of a Depreciation Fund, as hereafter set forth. The Revenue Fund, and the other special funds hereafter in this Ordinance provided for or referred to, shall be maintained in such depositories of the City as shall from time to time be designated by the City, with all such depositories to hold membership in the Federal Deposit Insurance Corporation (the “FDIC”), to be located in Arkansas and to have a capital and surplus of not less than Ten Million Dollars ($10,000,000.00), and with all deposits in any depository in excess of the amount insured by the FDIC to be secured by bonds or other direct or fully guaranteed obligations of the United States of America unless invested in accordance with Section 25 hereof.

Section 10. There shall be paid from the Revenue Fund into a fund heretofore created and designated “Water and Sewer Operation and Maintenance Fund” (the “Operation and Maintenance Fund”) on or before the tenth day of each month while any bonds are outstanding, an amount sufficient to pay the reasonable and necessary monthly expenses of operation, repair and maintenance of the System for such month and from which disbursements shall be made only for those purposes. Fixed annual charges such as insurance premiums and the cost of major repair and maintenance expenses may be computed and set up on an annual basis, and one twelfth (1/12) of the amount thereof may be paid into the Operation and Maintenance Fund each month.

If in any month for any reason there shall be a failure to transfer and pay the required amount into the Operation and Maintenance Fund, the amount of any deficiency shall be added to the amount otherwise required to be transferred and paid into such fund in the next succeeding month. If in any fiscal year a surplus shall be accumulated in the Operation and Maintenance Fund over and above the amount which shall be necessary to defray the reasonable and necessary cost of operation, repair and maintenance of the System during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred and deposited in the Revenue Fund.

Section 11. (a) After making the required monthly deposits into the Operation and Maintenance Fund, there shall be paid from the Revenue Fund, into a special fund in the name of the City which is hereby created and designated the “Series 2019 Water and Sewer Revenue Refunding Bond Fund” (the “Bond Fund”) on or before the fifteenth day of each month, commencing in March, 2019, until all outstanding bonds, with interest thereon, have been paid in full or provision made for such payment a sum equal to one-sixth (1/6th) of the next installment of interest due on the bonds and one-twelfth (1/12th) of the next installment of principal due on the bonds.

The City shall also pay into the Bond Fund such additional sums as necessary to provide for the Trustee’s fees and expenses and any arbitrage rebate due the United States Treasury under Section 148(f) of the Internal Revenue Code of 1986, as amended (the “Code”). The City shall realize a credit against monthly deposits into the Bond Fund from bond proceeds deposited therein, all interest earnings on moneys in the Bond Fund and all transfers made from the Debt Service Reserve during the preceding month.

There is hereby created, as a part of the Bond Fund, a Debt Service Reserve which shall be maintained by the City in an amount equal to one-half of the maximum annual principal and interest requirements on the Bonds (the “Required Level”). Should the Debt Service Reserve become impaired or be reduced below the Required Level, the City shall make additional monthly payments from the Revenue Fund until the impairment or reduction is corrected within a twenty-four month period.

If for any reason the City should fail at any time to make any of the required payments into the Bond Fund, any sums then held in the Debt Service Reserve shall be used to the extent necessary for the payment of principal of or interest on the bonds, but the Debt Service Reserve shall be reimbursed from the Revenue Fund before any moneys in the Revenue Fund shall be used for any other purpose other than the making of payments required to be made into the Operation and Maintenance Fund and the Bond Fund. The Debt Service Reserve shall be used solely as provided herein.

If System Revenues are insufficient to make the required payment on the first business day of the following month 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 first business day of the next month.

When the moneys held in the Bond Fund shall be and remain sufficient to pay the principal of and interest on all of the bonds then outstanding plus Trustee’s fees and any arbitrage rebate due as provided above, the City shall not be obligated to make any further payments into the Bond Fund.

It shall be the duty of the City to cause to be withdrawn from the Bond Fund and deposited with the Trustee at least one (1) business day before the due date of any principal and/or interest on any bond, at maturity or redemption prior to maturity, and deposited with the Trustee an amount equal to the amount of such bond and interest due thereon for the sole purpose of paying the same, together with the Trustee’s fee. There shall also be withdrawn and paid to the United States Treasury any arbitrage rebate due at the times and in the amounts required by Section 148(f) of the Code. No withdrawal of funds from the Bond Fund shall be made for any other purpose except as otherwise authorized in this Ordinance.

The bonds shall be specifically secured by a pledge of all System Revenues. This pledge in favor of the bonds is hereby irrevocably made according to the terms of this Ordinance, and the City and its officers and employees shall execute, perform and carry out the terms thereof in strict conformity with the provisions of this Ordinance.

Section 12. After making the required payments into the Operation and Maintenance Fund and the Bond Fund, there shall be paid from the Revenue Fund into a fund heretofore created and designated the “Water and Sewer Depreciation Fund” (the “Depreciation Fund”) on or before the 15th day of each month while any bonds are outstanding, three percent (3%) of the Revenues which remain after the required payment into the Operation and Maintenance Fund has been made. The moneys in the Depreciation Fund shall be used solely for the purpose of paying the cost of replacements made necessary by the depreciation of the System. If in any fiscal year a surplus shall be accumulated in the Depreciation Fund over and above the amount necessary to defray the cost of the probable replacements during the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred and paid into the Revenue Fund.

Section 13. Any surplus in the Revenue Fund, after making the required monthly deposits into the other funds as set forth above, may be used, at the option of the City, for any lawful purpose of the System, as approved by the City.

Section 14. So long as any of the bonds are outstanding, the City shall not issue or attempt to issue any bonds claimed to be entitled to a priority of lien on System Revenues over the lien securing the Bonds. The City reserves the right to issue additional bonds to finance or pay the cost of making any future extensions, betterments or improvements to the System, or to refund bonds issued for such purposes, but the City shall not authorize or issue any such additional bonds ranking on a parity with the Bonds unless and until there has been procured and filed with the City Clerk and the Trustee a statement by an independent certified public accountant not in the regular employ of the City (the “Accountant”) reciting the opinion, based upon necessary investigation, that either: (1) Net Revenues of the System for the fiscal year immediately preceding the fiscal year in which it is proposed to issue such additional bonds were not less than One Hundred Twenty-Five Percent (125%) of the average annual principal and interest requirements on all the then outstanding System Bonds and the additional parity bonds then proposed to be issued; or, (2) Net Revenues of the System for the ensuing fiscal year, including any increase in revenues attributable to the proposed extensions, betterments and improvements as reflected by the written opinion of a duly qualified consulting engineer not in the regular employ of the City and including any additional revenues expected to be received as a result of a rate increase effective during such year or the prior fiscal year, shall be equal to not less than One Hundred Twenty-Five Percent (125%) of the average annual principal and interest requirements on all the then outstanding System Bonds and the additional parity bonds then proposed to be issued.

For the purposes of the computation required by (1) above, additional amounts may be added to the Net Revenues of the completed fiscal year immediately preceding the issuance of the additional bonds, as follows: if, prior to the issuance of the additional bonds, and subsequent to the first day of such preceding fiscal year, the City 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 operations of the System during such fiscal year had such increase been in effect throughout such fiscal year.

Notwithstanding satisfaction of the other conditions to the issuance of additional bonds as set forth in this Section, no issuance may occur if a default or breach (or any event which, once all notice or grace periods have passed, would constitute a breach) exists unless such breach shall be cured upon such issuance.

The term “Net Revenues” as used in this section, means gross System Revenues less operation and maintenance expenses (other than depreciation, interest and amortization of deferred bond discount expenses of the System), determined in accordance with generally accepted accounting principles applicable to municipal water and sewer facilities.

Section 15. The City covenants and agrees that it will maintain the System in good condition and operate the same in an efficient manner and at reasonable cost. While any of the bonds are outstanding, the City agrees that it will insure and at all times keep insured, in the amount of the full insurable value thereof, in a responsible insurance company or companies selected by the City and authorized and qualified under the laws of the State to assume the risk thereof, all aboveground structures of the System, to the extent that such structures would be covered by insurance by private companies engaged in similar types of businesses, against loss or damage thereto from fire, lightning, tornados, winds, riot, strike, civil commotion, malicious damage, explosion and against any other loss or damage from any other causes customarily insured against by private companies engaged in similar types of business. The insurance policies are to carry a clause making them payable to the City and the Trustee as their interests may appear, and satisfactory evidence of said insurance shall be filed with the Trustee. In the event of loss, the proceeds of such insurance shall be applied solely toward the reconstruction, replacement or repair of the System, and in such event the City will, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement and repair work. If such proceeds are more than sufficient for such purposes, the balance remaining shall be deposited to the credit of the Revenue Fund, and if such proceeds shall be insufficient for such purposes the deficiency shall be supplied first from moneys in the Depreciation Fund and second from moneys in the Operation and Maintenance Fund and third from surplus moneys in the Revenue Fund. Nothing shall be construed as requiring the City to expend any moneys for operation and maintenance of the System or for premiums on its insurance which are derived from sources other than the operation of the System, but nothing shall be construed as preventing the City from doing so.

Section 16. The bonds shall be subject to redemption prior to maturity in accordance with the terms set out in the bond form. The City may acquire bonds by purchase at a price not in excess of par plus accrued interest, inclusive of brokerage fees, and surrender to the Trustee any bonds so acquired, in exchange for which the City shall receive a credit under this Ordinance in an amount equal to the principal amount of the bonds so acquired and surrendered, for and of the then next date for mandatory sinking fund redemption of bonds of the same maturity.

Section 17. The City will keep proper books of accounts and records (separate from all other records and accounts of the City) 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 registered owner of any of the bonds at reasonable times and under reasonable circumstances. The City agrees to have these records audited by an Accountant at least once each year, and a copy of the audit shall be delivered to the Trustee and made available to interested registered owners requesting the same in writing. In the event that the City shall fail or refuse to make the audit, the Trustee, or any registered owner of the Bonds, may have the audit made, and the cost thereof shall be charged against the Operation and Maintenance Fund.

Section 18. 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 trust and irrevocably set aside exclusively for such payment, (1) cash fully insured by the FDIC and/or collateralized sufficient to make such payment and/or, (2) direct obligations of (including obligations issued or held in book entry form on the books of) the Department of the Treasury of the United States of America (“Government Securities”) (provided that such deposit will not affect the tax exempt status of the interest on any of the bonds or cause any of the bonds to be classified as “arbitrage bonds” within the meaning of Section 148 of 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 shall have been paid or the payment thereof provided for to the satisfaction of the Trustee.

On the payment of any such bonds within the meaning of this Ordinance, the Trustee shall hold in trust, for the benefit of the owners of such bonds, all such moneys and/or Government Securities.

When all the bonds shall have been paid within the meaning of this Ordinance, if the Trustee has been paid its fees and expenses and if any arbitrage rebate due the United States Treasury has been paid or provided for to the satisfaction of the Trustee, the Trustee shall take all appropriate action to cause: (i) the pledge and lien of this Ordinance to be discharged and cancelled; and, (ii) all moneys held by it pursuant to this Ordinance and which are not required for the payment of such bonds to be paid over or delivered to or at the direction of the City. In determining the sufficiency of the deposit of Government Securities there shall be considered the principal amount of such Government Securities and interest to be earned thereon until the maturity of such Government Securities.

Section 19. (a) If there be any default in the payment of the principal of or interest on any of the bonds, or if the City defaults in any Bond Fund requirement or in the performance of any of the other covenants contained in this Ordinance and such failure continues unremedied for thirty (30) days, or if the City declares bankruptcy or seeks relief from its creditors under the provisions of any other similar state or federal law, the Trustee may, and upon the written request of the registered owners of not less than Ten Percent (10%) in principal amount of the then outstanding bonds, shall, by proper suit, compel the performance of the duties of the officials of the City under the laws of Arkansas. And in the case of a default in the payment of the principal of and interest on any of the bonds, the Trustee may and upon written request of the registered owners of not less than Ten Percent (10%) in principal amount of the then outstanding bonds, shall apply in a proper action to a court of competent jurisdiction for the appointment of a receiver to administer the System on behalf of the City and the registered owners of the bonds 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 and to pay any bonds and interest outstanding and to apply the System Revenues in conformity with the laws of Arkansas and with this Ordinance. When all defaults in principal and interest payments have been cured, the custody and operation of the System shall revert to the City.

(b) No registered owner of any of the outstanding bonds shall have any right to institute any suit, action, mandamus or other proceeding in equity or at law for the protection or enforcement of any power or right unless such owner previously shall have given to the Trustee written notice of the default on account of which such suit, action or proceeding is to be taken, and unless the registered owners of not less than Ten Percent (10%) in principal amount of the bonds then outstanding shall have made written request of the Trustee after the right to exercise such power or right of action, as the case may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers granted to the Trustee, or to institute such action, suit or proceeding in its name, and unless, also, there shall have been offered to the Trustee reasonable security and indemnity against the costs, expenses 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. Such notification, request and offer of indemnity are, at the option of the Trustee, conditions precedent to the execution of any remedy. No one or more registered 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 thereunder except in the manner herein described. All proceedings at law or in equity shall be instituted, had and maintained in the manner herein described and for the benefit of all registered owners of the outstanding bonds.

(c)        No remedy conferred upon or reserved to the Trustee or to the registered owners of the bonds is intended to be exclusive of any other remedy or remedies, and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Ordinance or given by any law or by the Constitution of the State of Arkansas.

(d)        The Trustee may, and upon the written request of the registered owners of not less than a majority in principal amount of the bonds then outstanding shall, 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 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)        All rights of action under this Ordinance or under any of the bonds, enforceable by the Trustee, 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 for the benefit of all the registered owners of such bonds, subject to the provisions of this Ordinance.

(f)         No delay or omission of the Trustee or of any registered owners of the bonds 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 by this ordinance to the Trustee and to the registered owners of the bonds, respectively, may be exercised from time to time and as often as may be deemed expedient.

(g)        After payment of reasonable expenses of the Trustee, the application of funds realized upon default shall be applied to the payment of expenses of the City or arbitrage rebate only after payment of past due and current debt service on the bonds and amounts required to restore the Debt Service Reserve to the Required Level.

Section 20. (a) The terms of this Ordinance shall constitute a contract between the City and the registered owners of the bonds and no variation or change in the undertaking herein set forth shall be made while any of these bonds are outstanding, except as hereinafter set forth in subsections (b) and (c).

(b)        The Trustee, may consent to any variation or change in this Ordinance without the consent of the owners of the outstanding bonds: (i) in connection with the issuance of additional parity bonds under this Ordinance; (ii) in order to cure any ambiguity, defect or omission herein or to correct or supplement any defective or inconsistent provisions contained herein as the City may deem necessary or desirable and not inconsistent herewith; or, (iii) in order to make any other variation or change which the Trustee determines shall not adversely affect the interests of the owners of the 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 ordinance to the contrary notwithstanding to consent to and approve the adoption by the City of such ordinance supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this ordinance or in any supplemental ordinance; provided, however, that nothing contained in this Section shall permit or be construed as permitting: (i) an extension of the maturity of the principal of or the interest on any bond; (ii) a reduction in the principal amount of any bond or the rate of interest thereon; (iii) the creation of a lien or pledge superior to the lien and pledge created by this Ordinance; (iv) a privilege or priority of any bond or bonds over any other bond or bonds; or, (v) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance.

Section 21. When the bonds have been executed and sealed as herein provided, they shall be authenticated by the Trustee, and the Trustee shall deliver the bonds to the Purchaser upon payment in cash of the Purchase Price. The expenses of issuing the bonds and accomplishing the refunding as set forth in the delivery instructions to the Trustee signed by the Mayor and City Clerk/Treasurer shall also be paid from the Purchase Price (the “Delivery Instructions”). The amount necessary from the Purchase Price to refund the Bonds Refunded as set forth in the Delivery Instructions shall be delivered to the Trustee of the Bonds Refunded and immediately applied to the full payment thereof. The remainder of the Purchase Price, if any, shall be deposited to the Bond Fund and used for the purpose of redeeming the Bonds.

Section 22. In the event the office of Mayor, City Clerk/Treasurer, 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 another office or officer, 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 officer 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 23. (a) The City covenants 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 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 Bonds and System Revenues will not be used directly or indirectly in such manner as to cause the Bonds to be treated as “arbitrage bonds” within the meaning of Section 148 of the Code. The City covenants to pay to the United States Treasury any arbitrage rebate due under Section 148 of the Code at the times required by Section 148 of the Code.

(b)        The City shall assure that: (i) not in excess of Ten Percent (10%) of the Net Proceeds of the Bonds is used for Private Business Use if, in addition, the payment of more than Ten Percent (10%) of the principal or Ten Percent (10%) of the interest due on the Bonds during the term thereof is, under the terms of the 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, in respect of property or borrowed moneys used or to be used for a Private Business Use; and, (ii) in the event that both (A) in excess of Five Percent (5%) of the Net Proceeds of the Bonds are used for a Private Business Use; and, (B) an amount in excess of Five Percent (5%) of the principal or Five Percent (5%) of the interest due on the Bonds during the term thereof is, under the terms of the Bonds or any underlying arrangement, directly or indirectly, secured by any interest in property used or to be used for said Private Business Use or in payments in respect of property used or to be used for said 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 said Private Business Use, then said excess over said Five Percent (5%) of Net 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 or the improvements financed by the Bonds.

The City shall assure that not in excess of Five Percent (5%) of the Net Proceeds of the Bonds are used, directly or indirectly, to make or finance a loan to persons other than state or local governmental units.

As used in this subsection (b), the following terms shall have the following meanings:

“Net Proceeds” means the face amount of the Bonds, plus accrued interest and premium, if any, less original issue discount, if any, less any amounts deposited into the Debt Service Reserve.

“Private Business Use” 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 City covenants that it will take no action which would cause the Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Code. Nothing in this Section shall prohibit investments in bonds issued by the United States Treasury.

(d)        The City covenants that it will submit to the Secretary of the Treasury of the United States, not later than the Fifteenth (15th) day of the second calendar month after the close of the calendar quarter in which the Bonds are issued, a statement required by Section 149(e) of the Code.

(e)        The City covenants that it will not reimburse itself from proceeds of the Bonds for costs paid prior to August 20, 2018, the date the City approved Resolution No. 2018-15 except in compliance with United States Treasury Regulation No.1.150-2 (the “Regulation”). Resolution No. 2012-10 shall constitute an “official intent” for the purpose of the Regulation.

(f)         The City covenants that it will, in compliance with the requirements of Section 148(f) of the Code, pay with moneys in the Bond Fund to the United States Government in accordance with the requirements of Section 148(f) of the Code, from time to time, an amount equal to the sum of (1) the excess of (A) the amount earned on all Non purpose Investments (as therein defined) attributable to the Bonds, other than investments attributable to such excess over (B) the amount which would have been earned if such Non purpose Investments attributable to the Bonds were invested at a rate equal to the Yield (as defined in the Code) on the Bonds, plus (2) any income attributable to the excess described in (1), subject to the exceptions set forth in Section 148 of the Code. The City further covenants that in order to assure compliance with its covenants herein, it will employ a qualified consultant to advise the City in making the determination required to comply with this subsection (f). Anything herein to the contrary notwithstanding this provision may be modified or rescinded if in the opinion of Bond Counsel such modification or rescission will not affect the tax-exempt status of the Series 2019 Bonds for federal income tax purposes.

(g)        The City hereby designates the Bonds as “qualified tax-exempt obligations” within the meaning of the Code. The City represents that the aggregate principal amount of its qualified tax-exempt obligations (excluding “private activity bonds” within the meaning of Section 141 of the Code), including those of its subordinate entities, issued in calendar year 2019 will not exceed Ten Million Dollars ($10,000,000.00).

Section 24. The Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execution of its trust. The recitals in this Ordinance and in the face of 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 the 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 at any time by sixty (60) days notice in writing to the City Clerk, to the registered owners of the bonds and the City or the majority in value of the registered 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, either by resignation or by removal, the City shall appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. Every successor Trustee appointed pursuant to this Section shall be a trust company or bank in good standing, duly authorized to exercise trust powers, subject to examination by federal or state authority. The original Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trust imposed upon it or them by this Ordinance, but only upon the terms and conditions set forth in this Ordinance and subject to the provisions of this Ordinance, to all of which the respective owners of the bonds agree. Such written acceptance shall be filed with the City Clerk and a copy thereof shall be placed in the bond transcript. Any successor Trustee shall have all the powers herein granted to the original Trustee. The Trustee’s resignation shall become effective upon the acceptance of the trusts by the successor Trustee.

Section 25. (a) Moneys held for the credit of all funds created by this Ordinance may be invested and reinvested in Permitted Investments.

(b)        Obligations purchased as an investment of any fund or account shall be deemed at all times a part of such fund. Any profit or loss realized on investments of moneys in any fund shall be charged to said fund.

(c)        The Trustee shall so invest and reinvest pursuant to the direction of the City and in the Trustee’s discretion in the absence of any direct instructions from the City.

(d)        “Permitted Investments” are defined to mean:

(1)        Direct or fully guaranteed obligations of the United States of America (“Government Securities”);

(2)        Obligations guaranteed as a payment of principal and interest by the United States of America (“Government Guaranteed Securities”);

(3)        Cash (insured at all times by the FDIC or otherwise collateralized with obligations described in clauses (1) or (2) above; and

(4)        Time deposits or certificates of deposit of banks, including the Trustee, which are insured by the FDIC, or if in excess of insurance coverage, collateralized by Government Securities, Government Guaranteed Securities or other securities authorized by State law to secure public funds.

Permitted investments shall mature, or shall be subject to redemption by the holder thereof, at the option of such holder, not later than (A) the payment date for interest or principal and interest in the case of the Bond Fund, and (B) Five (5) years for the Debt Service Reserve. The Trustee shall follow any investment instructions of the City which are not inconsistent with the foregoing provisions of this paragraph.

(e)        Moneys held for the credit of any other fund shall be continuously invested and reinvested in Permitted Investments or other investments as may, from time to time, be permitted by law, 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 the moneys held for the credit of the particular fund will be required for purposes intended.

Section 26. All moneys, if any, in any fund or account created in connection with the Bonds Refunded together with all other funds of the City so designated to be paid to accomplish the refunding of the Bonds Refunded, if any, are hereby appropriated and shall be transferred to the Trustee of the Bonds Refunded and used to refund the Bonds Refunded, or shall be deposited into the Debt Service Reserve or other account designated for payment of the Bonds Refunded, on the date of issuance and delivery of the Bonds, and any balance shall be deposited into the Bond Fund.

Section 27. It is covenanted and agreed by the City with the registered owners of the bonds, or any of them, that the City will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State, including the charging and collecting of reasonable and sufficient rates lawfully established for services rendered by the System, the segregating of Revenues as herein required, and the applying of Revenues to the respective funds herein created or referred to.

Section 28. The City covenants that it will not sell or lease the System, or any substantial portion thereof; provided, however, that nothing herein shall be construed to prohibit the City from making such dispositions of properties of the System and such replacements and substitutions for properties of the System as shall be necessary or incidental to the efficient operation of the System as a revenue-producing undertaking. All revenues derived from such dispositions shall be deposited into the Revenue Fund. Proceeds of any sale, lease or other disposition of the System pursuant to this Section that are deposited into the Revenue Fund shall not be offset from amounts for which the City is obligated to establish rates under Section 8 of this Ordinance.

Section 29. The provisions of this Ordinance 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 of this Ordinance.

Section 30. All ordinances and resolutions or parts thereof, in conflict herewith are hereby repealed to the extent of such conflict.

Section 31. It is hereby ascertained and declared that the refunding must be accomplished as soon as possible in order to achieve interest cost savings and other valuable benefits for the City and its inhabitants, without which the life, health, safety and welfare thereof are jeopardized, and that the issuance of the bonds and the taking of the other action authorized by this Ordinance is necessary for the accomplishment thereof. It is, therefore, declared that an emergency exists and this Ordinance being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage.

APPROVED AND ADOPTED this 8th day of January, 2019.

CITY OF HAMBURG, ARKANSAS

By: /s/Dane Weindorf, Mayor                                       

Dane Weindorf, Mayor

ATTEST:

By: /s/Peggy Akers, City Clerk/Treasurer                       

        Peggy Akers, City Clerk/Treasurer

APPROVED AS TO FORM:

By: /s/Paul K. Keith, City Attorney                    

        Paul W. Keith, City Attorney

CERTIFICATE

STATE OF ARKANSAS   )

                                           )

COUNTY OF ASHLEY     )

I, Peggy Akers, City Clerk/Treasurer, within and for the City of Hamburg, Arkansas do hereby certify that the foregoing is a true and correct copy of Ordinance No. 2019-1 of the Ordinances of the City of Hamburg, Arkansas entitled: “AN ORDINANCE AUTHORIZING THE REFUNDING OF CERTAIN OUTSTANDING OBLIGATIONS OF THE CITY OF HAMBURG, ARKANSAS WATER AND SEWER SYSTEM; AUTHORIZING THE ISSUANCE AND SALE OF WATER AND SEWER REVENUE REFUNDING BONDS, SERIES 2019, IN ONE OR MORE SERIES; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY;” passed by the City Council of the City on January 8, 2019.

IN WITNESS WHEREOF, I have hereunto set my hand and seal this 8th day of January, 2019.

/s/Peggy Akers, City Clerk/Treasurer

Peggy Akers, City Clerk/Treasurer

1t.1/16

-

In The Circuit Court Of Ashley County, Arkansas

Probate Division

In The Matter Of The Estate Of

Vasia Togia Runion Honeck, Deceased

NO. P-2018-112-3

Last known address of decedent:       120 Miles Road

                Crossett, AR 71635

Date of Death: March 17, 2018

Notice Of Appointment

Of Executor

And Notice To Creditors

The undersigned was appointed Executor of the estate of the above –named decedent on the 3rd day of December, 2018.

All persons having claims against the estate must exhibit them, duly verified, to the undersigned within three (3) months from the date of the first publication of this notice, or they shall be forever barred and precluded from any benefit in the estate. Provided, that claims for injury or death caused by the negligence of the decedent shall be filed within six (6) months from the date of the first publication of this notice, or they shall be forever barred and precluded from any benefit in the estate.

This notice first published the 9th day of January 2019.

Patrick Runion, Executor

c/o Bruce D. Switzer, Attorney for the Estate

Post Office Box 777

Crossett, AR 71635

(870) 364-5161

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