§ 12-50-109 - Financing -- Contracts with Arkansas Development Finance Authority. - Arkansas Statutes

12-50-109. Financing -- Contracts with Arkansas Development Finance Authority.

(a) (1) The Board of Corrections and any regional corrections commission are authorized and empowered to cooperate and contract with the Arkansas Development Finance Authority to provide for the payment of the principal of, premium, if any, interest on, and trustee's and paying agent's fees in connection with bonds issued to finance the acquisition, construction, and operation of prison facilities authorized under this chapter to be secured by a lien on and pledge of one (1) or more of the following:

(A) All revenues derived from payments to be made by the Department of Correction for the housing of prisoners;

(B) All revenues derived from payments to be made by political subdivisions for the housing of prisoners; or

(C) Any other revenues authorized by the General Assembly or the governing body of any political subdivision.

(2) (A) Any documents relating to those pledges shall state that the pledge is subject to annual appropriation by the governing body or biennial appropriation of the General Assembly, respectively.

(B) It shall not be necessary to the perfection of the lien and pledge for those purposes that the trustee in connection with the bond issue or the holders of the bonds take possession of the collateral security.

(b) In addition to any other approved method of financing, counties may utilize the provisions of the County Jail Revenue Bond Act of 1981, 12-41-601 et seq. as a permissible means of financing correctional facilities to be used pursuant to the contracts entered into under the provisions of this chapter.