Sixteen HOPE f.\RK.) STAR LEGAL NOTICE 1 t'nnltruird from City b'T«-h\ nts on !)}'• and interest shall b<- made only as provided HI if,i< Ordinance All bonds paid <,r purchased either al or before maturity be canceled when such payment or pur chase is rnadc and hHd by the and 'hall not be re All unpaid interest payments maturing on or prior '" fh" dn'e "f ^'l r h nflyfnent nr ifurcJittse shall continue to IK- payable (o the \ if •» rers thereof Section 20. The- bonds shall be callable for payment prior lo maturity in accordance with the terms set oui in the bond form Srction zi. As long as any (»f the bonds authorized hereby ore outstanding, the Cily shall not issue or attempt to issue any bonds claimed to be en titled to a priority of lien on the revenue* of the .System over the lien securing the bonds of this issue, including the- herein authorize! and riny and oil future extensions, betterments and improvements. Nothing herein (.hall be const rued in any manner (o prevent Ihe issuance by Ihe City of additional revenue bonds to finance or pay the cost of constructing extensions, hot- torments and improvements lo the System; however, «ny such additional bonds shall not IK- issued on n parity with the outstanding bonds of this issue unless and until there Khali have been procured and filed in Ihe office of the City Clerk a stalmenl by a certified public- accountant not in the regular employ of the City reciting the opinion that the net revenues (net revenues lw.'ing gross revenues of the System less operation and maintenance expenses) of the System for the fiscal year preceding the year in which such parity bonds are to be issued were not less than 120% of the average annual debt service requirements (principal, interest and trustee's and paying agent's fees) on all outstanding bonds lo which the revenues of Ihe System are pledged and the bonds then proposed to be issued, For purposes of computation required herein, there may be added to the net revenues of the fiscal year immediately preceding the fiscal year in which it is proposed io issue additional bonds the following: if prior lo the issuance of Ihe additional bonds and subsequent to the first day of such preceding fiscal year the City shall have increased the rales charged for Syatem services, the additional net revenues which would have been received from the operation of the System had the 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 Ihe City and approved by (he Trustee. Section 22. It is covenanted and agreed by the City with the holders and registered owners of the bonds (sometimes collectively referred to as "holder" or "holders"), or any of them, that it will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Arkansas, including making and collecting of reasonable and sufficient rates lawfully established for services rendered by (he System, segregating Ihe revenues of Ihe System and applying them to the respective funds herein created. Section 2:1. The City will keep proper books of accounts and records (separate from all other records and accounts) in which complete and correct entries shall be made of all transactions relating lo the operation of the System, and such books shall be available for inspection by the holder of any of the bonds at reasonable- times and under reasonable circumstances. The Cily agree.s to have these records audited by an independent certified public accountant at least once each year. The City further covenants that it will cause lo be prepared by an independent certified public accountant at least once each year an audit reflecting in reasonable detail the financial condition and record of operation of the City. Copies of both audits shall be delievered to any bondholder who shall request the same not later than ninety (90) days after the close of each fiscal year. In the event the City fails or refuses to make either audit, any holder of (he !•'• ( ti.it S.;< ' >\» r .-llMiti . r'un-i cov-nsnt 1 - and ;ij ^•ili maintain !b< Sv-c-rn ir KIV*\ condition and <ij>( ra!< i| jr . '•--uric in ;,r> cf/Ki'-nt manner and at rf-,T--oriah!< any t*onds arc- out City agrees thai n will mM , r ,. the amounl of ihr arlual value i hereof, m a responsible m si/r/ince company or companies authorized and qualified under the laws of Ihr- stale of Arkansas io assume the risk .'m'-ffi'i'. '•'•' properties oi me System against loss or damage thereto from fire, lightning. tornndo. winds, riot, slnkf', civil commotion, malicious damage, explosion ;>n<) against loss or damage from any other causes customarily insured against by private companies engaged in n similar type of business, So long r.s the"bonds are held by Ihe Government, Ihe insurance policies are lo be taken with companies approved I'.V the Government jind arc cither (o be placed in Ihe custody of I be Government or .satisfactory evidence of said insurance shall be filed with Ihe Government. In the cvenl of loss, the proceeds of such insurance shall be applied solely toward Ihe reconstruction, replacement or repair of (he System, and in such event the Cily will, with reasonable promptness, cause io be commenced and completed Ihe reconstruction, replacement and repair work, if such proceeds are more than sufficient for such purposes, Unbalance remaining shall be deposited to the credit of the Water and Electric 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 available moneys in the Revenue Fund. Nothing herein shall be con slrued as requiring Ihe City to expend any funds for operation and maintenance of the System or for premiums on iis in- surancc which are derived from sources other than the operation of Ihe System, but nothing herein shall be construed as prevenling the City from doing so. Section 25. So long as any of the bonds are outstanding, the Cily covenants and agree.s that it will not mortgage, pledge or otherwise encumber the System or any part (hereof, including any and all betterments and improvements thereto or any revenues therefrom, except as herein provided, and will not sell, lease or otherwise dispose of any substantial portion of the same. To the end that a record of the pledge of the revenues and of the agreement not to mortgage the System may be preserved, the City Clerk is hereby authorized and directed to file with the Circuit Clerk of Hempstead County, Arkansas, a copy of this ordinance duly certified, with instructions that the same be recorded in the office of the Circuit Clerk as in the case of deeds and mortgages. Section 26. The City con- venants that it will not take any action, or permit any action to be taken, which would cause Ihe interest on the bonds to be subject to federal income taxation. Without limiting the generality of (he foregoing the City covenants that the proceeds of the bonds will not be used in such manner to cause Ihe bonds to be "arbitrage bonds" within Unmeaning of Section 103 (e> of the Internal Revenue Code of 1U54, as amended. Section 27. When the bonds herein authorised to be issued have been executed by the Mayor and Cily Clerk anil Unseal of the Cily impressed, as herein provided, they shall be delivered to the Government upon the payment of the purchase price. The purchase price shall be remitted to the Treasurer and deposited in trust with a bank that is a member of the Federal Deposit Insurance Corporation, said deposit to be secured by bonds or other direct or fully guaranteed obligations of the United States of America, or by a corporate surely bond satisfactory lo Ihe trustee, and said deposit shall be disbursed solely in payment of the cost of constructing the improvements, including engineering, legal and other ••( rmber IB. 1977 .i institute , m J>A7Kf> this IT; 7 da\ in a , s < hot) Uia! ,,n Maif-d .-(mount -d and lo -Ahoiri thai no f-h rcriilit an- -.hall b<- b"(orr payment of and the expense ,,\ inning Ihe Ixifids When (he construction of the herein authorized irn provements to the System has been completed, the project audit required by the Govern mem Has l>ccn completed and approved by (he Government and the final and approved amounl of Ihe granl has been determined, these facts shall be evidenced by the filing with the depository in which the Con strut-lion Fund is deposited of a certificate signed by Ihe manager and by the Chairman of the Commission and by the engineer in charge of Ihe construction. Upon receipt O f the above described certificate, the depository with which the Construction Fund is deposited shall pay or transfer to the Bond Fund any remaining balance of the proceeds from the sale of (he bonds. The balance of grant funds, if any, remaining on hand shall be accounted for and disposed of according lo the provision of Ihe Granl Agreement between the City and the Government. MM Moneys invested as described above need not be secured. Sec-lion 2K. (ai Moneys held for the credit of the Construction Fund which exceed Ihe estimated disbursements on account of the project for UK- next ninety <<Ki) days shall, as nearly as may be practicable, be. continuously invested and reinvested by the City in direct obligation of, or obligations the principal of and interest on which are unconditionally guaranteed by the United states Goverment, or in bank cer- lificales of deposit, which mature not later than eighteen (1H) months after the date of such investment. ' b > Moneys held for (he credit of Ihe debt service reserve in the Bond Fund shall be continuously invested and reinvested pursuant to (he direction of the City In direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United Slates Government, which shall mature, or which shall be subject to redemption by Ihe holder (hereof, at (he option of such holder, not later than ten (10) years after the date of such investment. (c) Moneys held for the credit of any other fund may. at the option of the Cily, be'invested and reinvested by the City in direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States Government, or in bank certificates of deposit, which shall mature, or which shall be subject to redemption by the holder thereof at (he option of such holder, not later than the date or dates when (he moneys held for the credit of the particular fund will be required for the purposes intended. (d) Obligations so purchased as an investment of moneys in any such fund shall be placed in the custody of the City Treasurer and shall be deemed al all times to be a part of such fund, and the interest accruing thereon and any profit realized from such investment shall be credited lo such fund, and any loss resulting from such investment shall be charged to such fund; provided, however, earnings on investments of moneys in the debt service reserve which increase Ihe amount thereof above the required level may be transferred lo the Water and Kleclric Revenue Fund Sei-tion :•!). The Mayor is hereby directed to publish for one insertion in a newspaper published in the City, this Ordinance, to which shall be attached a Notice signed by him in substantially the following form: \OTICK necessary expenses incidental thereto, and to the issuance of the bonds, but only on warrants, checks or vouchers signed by persons occupying the chief managerial position of Notice is hereby given lhat the Hoard of Directors of the City of Hope, Arkansas, has adopted the Ordiance hereinafter set out: that the City contemplates the issuance of Ihe Waler and Electric- Revenue Bonds described in the Ordinance; that any person interested may appear before Ihe Board of the day of , 1«JV7, at .in., at the usual meeting place of the Board, and present protests. At such hearing, all objections and suggest KIDS will be heard, and M,nor of Mope. Ark an-a- Srrlirm .1(1. The provisions of (his Ordinance shall constitute ;i binding contract between th* ( tt\ and the holders of tbe bonds hereunder. and the City •A ill at all times strictly adhere i'' the terms and provisions hereof and fully discharge all of Us obligations hereunder Subject to the terms and provisions contained in (his Section and not otherwise. Ihe imlilers of not less than seventy five percent (75%) in aggregate principal amounl of the bonds then outstanding shall have the right, from time to lime, anything contained in Ibis Ordinance to the contrary notwithstanding, to consent to and approve the adoption by the City of such ordinance supplemental heretp 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 herein shall permit or be construed as permitting (a) an extension of the maturity of the principal of or interest on any bond issued hereunder, or (b) a reduction in the principal •amount of any bond or the rate' of interest therin, or (c) the creation of a lien upon or pledge of revenues other than as expressly authorized by the appropriate provisions of the Ordinance as now adopted, or (d) the creation of a privilege or priority of any bond or bonds over any other bond or bonds, or (o a reduction in the "Kgregatc principal amount of the bonds required for consent to such supplemental ordinance. Section :ti. (a) If there beany default in the payment of the principal of or interest on any bond, or if the City defaults in the performance of any covenant contained and set forth in this Ordinance, the Trustee may, and upon the written request of the holders of not less than ten percent (10%) in principal amounl of, bonds then outstanding shall,! by proper suit, compel the performance of the duties of the officials of the City as set forth in the Ordinance. In the case of a default by the City in the performance of any obligation hereunder, and such default shall continue for thirty (30) days, the Trustee may, and upon the written request of holders of not less than ten percent (10%) in principal amount of bonds then outstanding 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 bondholders 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 operation and maintenance expenses and to pay outstanding principal and interest, and to apply the revenue in conformity with the provisions of 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) In the event of a default in the payment of principal of or interest on any bond, the Truslce may, and upon Ihe written request of holders of not less than ten percent (10%) in principal amount of the bonds outstanding shall, upon continuation of such default for thirty (30) days, after written notice to the City, declare the principal of all bonds hereunder, with accrued interest, to be immediately due and payable. (c) No bondholder shall have any right (o instituter any suite, action, mandamus or other proceeding in equity or at law for Ihe protection or enforcement of any right under this Ordinance, unless such holder previously shall have given to ihe Trustee written notice of the default on account of which such suit, action or proceeding is to be taken, and unless the holders 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 (o exercise such powers 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 herein granted or granted by the laws of the State '•', Ark,!.T-;iv • ..i !:''',. -'lit <IT _ n;irne. and unl'-^s. also. ih'Tf -•hall have hr-'-n offered to the Trustee r«-.Tionahle se<.-unt> and mdemnitv against tho COMS. expenses and liabilities to be incurred therein or thorchv and the Trustee shall have refused or neglected to comply with such request within a reasonable time, and such notification, request and offer of indemnity are hereby declared in every such case, al the option of the Trustee, to be conditions precedent to Ihe execution of the powers and trusts of this Ordinance or (o any niher remedy hereunder. !! is understood and intended thai no one or more holders of Ihe tends hereby secured shall have any right in any manner whatever by his or their action lo affect, disturb or prejudice the security of this Ordinance, or to enforce any right hereunder, except in (he manner herein provided, (hat all proceedings at law or in equity shall be instituted, had and maintained in the manner herein provided and for the benefit of all holders of the outstanding bonds and coupons, and that any individual rights of action or o(her right given to one or more of such holders by law are restricted by this Ordinance to the rights and remedies herein provided. (d) All righ(s of action Aider (his Ordinance or under any of (he bonds secured hereby, enforceable by the Trustee, may be enforced by i( without the possession of any of the bonds or coupons appertaining thereto, and any such suit, action or proceeding ins(ituted by the Trustee shall be brought in its name for the benefit of all the holders of such bonds and coupons, subject (o the provisions of this Ordinance. (e) No remedy conferred upon or reserved to the Trustee or (o (he bondholders is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder. (f) No delay or omission of the Trustee or of any bondholders 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 acquiescene therein; and every power and remedy given by this Ordinance to the Trustee and to the bondholders, respectively, may be exercised from time to time and as often as may be deemed expedient. (g) The Trustee may, and upon the written request of the holders of not less than ten percent (10%) in principal amount of the bonds (hen outstanding shall, waiver any i 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 defauK or defaults or impair any rights or remedies consequen( (hereon. Section 32. (a) The Firs( National Bank of Hope, Hope, Arkansas is hereby named Trustee for (he bonds. The Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execution of it trust. The recitals in this Ordinance and in the face of the bonds are the recitals of (he Ci(y and not of (he Trustee. The Trustee shall nol be required to take any action as Trustee unless it shall have been requested (o do so in writing by the holders 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. (b) The Trustee or the Paying Agent may resign at any time by ten (10) days' notice in writing to the City, and such resignation shall be effective thirty (30) days after receipt of such notice. Such notice may be served personally or sent by registered or certified mail. (c) The Trustee or the Paying Agent may be removed at any time by an instrument or concurrent instruments in writing delivered to the Trustee or the Paying Agent and to the City and signed by the holders of a majority in aggregate principal amount of outstanding bonds hereunder. id) In case the Trustee or the Paying Agent shall resign or be removed, or be dissolved, or shall !>e in course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case it shall be '.'iK'-n uridi-r :ii, [ 'if'hr 'iffu cr • ; -itfict-rv ; • recci\er aj-;.ii!n!p'j )>• -; ; ,. court, a via. c»iir si;,n i>" appointed h\ the ;..ilder«' oi ,1 majontv in aggregate principal amount of outstanding bonds hereunder. In an mMrmient or concurrent instruments in writing signed by such holder-, or by their attorneys in fart, duly authorized, prmidcd. nevertheless, thai in case of such vacancy and failure of the required majority o) Ihe holders of (he bonds lo act within thirty t:w> days. Ihe City by an instrument executed and signed by its Mayor and attested by iu City Clerk under its seal, shall appoint a successor trustee or paying agent, as the case may be. to fill such vacancy. <e) The Trustee shall not be required to lake notice or be deemed lo have notice of any default hereunder unless the Trustee shall be specifically notified in writing of such default by the City or by (he holders of a( least ten percent <10%) in aggregate principal amoun( of oulstanding bonds hereunder and all notices or other instruments required by this Indenture (o be delivered to the Trustee must, in order to be effective, be delivered (o the office of the Trus(ee. and in the absence of such notice so delivered the Trustee may conclusively assume there is no default. (f) The Trustee and (he Paying Agent shall be entitled to payment and/or reimbursement for reasonable fees for services rendered hereunder and all advances, counsel fees and other expenses reasonably and necessarily made or incurred in (he execution of their trusts, powers and duties hereunder, and for all reasonable and necessary costs and expenses incurred in defending any liability in the premises of any character whatsoever (unless such liability is adjudicated to have resulted from negligence or willful default). All such fees, costs and expenses must be consistent with those charged under similar circumstances at the times involved. • Section X}. This Ordinance shall not create any right of any .kind, and no right of any kind shall arise hereunder pursuant to it, until the bonds authorized by this Ordinance shall be issued and delivered. Section 34. The provisions of this Ordinance are hereby declared to be separable, and if any provision shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the Ordinance. Section as. All ordinances and resolutions and parts thereof in conflict herewHh are hereby repealed to the extent of such conflicy. Section 36. It is hereby ascertained and declared that the System serving the City is inadequate for the needs of the City and the inhabitants thereof, thus endangering the life, health and safety of the inhabitants and their property, and that the improvements required to alleviate said hazards can be obtained only by the issuance of the bonds authorized hereby. It is, therefore, declared that an emergency exists, and this Ordinance being necessary for the immediate preservation of (he public peace, health and safety, shall take effect and be in force from and af(er its passage. PASSED: Dec. 14,1977. APPROVED: Melvin C. Thrash Mayor ATTEST: Sally Andrews City Clerk (SEAL) CERTIFICATE The undersigned, City Clerk of the City of Hope, Arkansas, hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No. 965, passed at a regular session of the Board of Directors of Hope, Arkansas, held at the regular meeting place of the Board at 7:00 p.m., on the 14 day of Dec. 1977, and that the Ordinance is of record in Ordinance Record Book No. 2 at Page 10, now in my possession. GIVEN under my hand and seal this 15 day of Dec., 1977. Sally Andrews (SEAL) Dec. 16.1977 City Clerk T V PREVIEWS By JERRY BUCK AP Television Writer LOS ANGELES (AP) - Michael Brockman says one reason he likes working in children's programming Is that it is so difficult — and satisfying. Brockman went to work for ABC in New York virtually right out of high school, and stayed with them through college and until a few weeks ago when he was named NBC's vice president for daytime programming. In that job he has overall charge of both daytime and children's programs. "Working in the children's area has always been the most satisfying part of my career because of the difficulty of searching out good material," said Brockman, who helped pioneer the concept of specials for children while at ABC. "We designed those programs so that the mothers would watch, too," he said. "We wanted them to provoke a dialogue between the mother and child." Brockman, who's been in his new job such a short period he hardly knows how to find his way around the NBC complex in Burbank, said: "The challenge at NBC is to improve the ratings, which are somewhat weak, and to find new shows that are both entertaining and informative. It will take some research. I've got to examine the shows first to find a way to go that's both innovative and constructive." He was asked what he felt was wrong with children's programming, one of the most criticized areas of television. Brockman paused for a long time, then said: "I don't know of anything that's wrong with it. There are a lot of false beliefs. A lot of people complain about Saturday morning and what's there — or actually what they mink's there. The violence has been removed. It's mostly comedy. "They complain about animation. But I don't think the form matters. It's an art form that's well established, and it's really the content of a program that matters." Brockman, who said he also looks at children's shows from the viewpoint of a father, said of his move to NBC: "This is a large corporation with a public identity and it has an obligation to develop the children's programming area. You're dealing with the minds of the next generation, "But this is an entertainment medium. You've got to get them into the theater before they can appreciate what's on the stage. We're not educators, yet there are areas where we can be effective. "All three networks are looking for ways to improve their programs, but at the same time they are trying to deliver a large audience. I see no reason to apologize for that." Brockman said one area he will be exploring is the development of children-oriented specials to play in prime time. tf/ PEOPLE WASHINGTON (AP) - Sen. Kaneaster Hodges, D-Ark., Arkansas's new junior senator, cast his first vote Thursday in favor of the Social Security conference report supported by President Carter. Hodges was introduced to the Senate by his Arkansas colleague, Dale Bumpers. Bumpers later joined Hodges in voting in favor of the Social Security bill, which is considered a victory for Carter. Hodges' also made his first speech on the Senate floor Thursday. It was in support of a bill introduced by Bumpers to name the proposed Veterans Administration Hospital after the late Sen. John. Lm McClellan, who died Nov. 28. Hodges also presided over the Senate for a while Thursday afternoon. That is a custom for all new members of the Senate. LOS ANGELES (AP) - Robert Hegyes, "sweathog" Juan Epstein in the the ABC television series "Welcome Back Kotter," has filed for a divorce from his wife of four years. No reason was given for the split-up between the 25-year-old actor and his wife, Mary. The divorce was filed in Municipal Court on Wednesday. "We have agreed to separate under the most amicable conditions," the couple was quoted as saying in a press release issued by their public relations firm Thursday. The couple, who recently purchased a home in Studio City, has no children. MONTGOMERY, Ala. (AP) — Fourteen people have been subpoenaed by Gov. George Wallace's attorneys to give depositions in connection with the governor's divorce suit against his wife, Cornelia. The governor's attorneys plan to take the depositions in their Montgomery offices next week in preparation for the Jan. 4 trial of the Wallaces' divorce suitsm Among those subpoenaed by the governor's attorneys were Mrs. Wallace; her mother, Ruby Ellis Folsom; her cousin, Rachel Litchenstein; the governor's brothers, Gerald and Jack; Montgomery Advertiser Journal editor-publisher Harold Martin; and Advertiser reporter Bruce Maulden. Also subpoenaed were a number of Wallace political associates. NEW YORK (AP) — Evanjge^ list Billy Graham says former President Richard M. Nixon acted during the Watergate scandal as if "he was on some sort of drug, under some evil spell." In an interview in the January issue of McCalFs magazine, Graham said, "I never heard him use the kind of language that was on those tapes, and none of his friends I've talked to ever heard him use those words, either. Graham told interviewer James Michael Beam he has known Nixon for 20 years as a close friend. "I feel that I didn't misjudge him, but that I misjudged what he would do under certain pressures. I think there came a point when he cracked under all those pressures and was no longer the Nixon I had known and admired." But Graham added that he has "never been privy to what happened and he has never seen fit to tell me." Artichokes thrive in farmlands that get shrouded in fog. What's up in poets Louis Coxe, 1977 Fellow of The Academy of American Poets, is hardly a well known figure. In fact, the man who nominated Coxe for the prestigious award calls him "one of our best and least- laureled poets." But a glance at the following list of previous AAP fellows indicates that we may be hearing a lot more from Coxe. Edgar Lee Masters (19-16) e.e. cumminga (1950) Robert Frost (1953) William Carlos Williams (1956) Conrd Aiken (1957) Louise Bogan (1959) Ezra Pound (1963) Marianne Moore (1965) Archibald MacLeish (1966) Mark Van Doren (1967) Coxe is not a household word - yer with it a $10.000 prize — twice the amount that thp pre-1969 fellows received.
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