§ 13-5-316 - Administration of debt-servicing provisions -- Bond guaranty fund. - Arkansas Statutes

13-5-316. Administration of debt-servicing provisions -- Bond guaranty fund.

(a) The Director of the Department of Parks and Tourism shall notify the State Board of Finance or the appropriate officer, board, or agency then having jurisdiction over the moneys involved when the director has determined to issue bonds under this subchapter and the amount of investment earnings pledged.

(b) (1) Thereafter, the director shall constantly keep advised of revenues derived from the Arkansas Musuem and Cultural Center.

(2) If it develops that all or any portion of the investment earnings pledged will actually be needed to satisfy the terms of the pledge, the director shall promptly notify the board of the amount that will be actually needed each month to provide for the payment of interest, principal, and paying agents' fees and for the maintenance of reserves as specified by the director in the resolution or trust indenture authorizing and securing the bonds, which monthly amount is designated the "debt service amount".

(c) At the receipt of the notice, the board or the appropriate officer, board, or agency then having jurisdiction over the moneys involved shall set aside the debt service amount of the investment earnings and, subject to first complying with any pledge heretofore or any time hereafter made of investment earnings authorized by the Industrial Development Guaranty Bond Act, 15-4-701 et seq., shall pay the debt service amount directly to the director in a bank or banks selected by the director and designated the "Arkansas Museum and Cultural Center Bond Guaranty Fund", also known as the "Center Guaranty Fund".

(d) (1) Moneys in the fund shall be used to pay the principal of, interest on, and paying agent's fees in connection with the bonds and to maintain reserves as authorized by this subchapter.

(2) (A) The payments shall continue until the director shall determine that center revenues in the future will be sufficient and shall notify the board to cease paying the debt service amount.

(B) The payments, within the limits of outstanding pledges made pursuant to the provisions of this subchapter, shall be resumed and discontinued as required.

(e) The debt service amount and all moneys deposited or to be deposited in the fund are declared to be cash funds, restricted in their use and dedicated and to be used solely as authorized in this subchapter.

(f) So long as any bonds authorized by this subchapter are outstanding, the authorization made shall not be repealed or diminished without providing an alternate source of funds sufficient to satisfy all revenue pledges made to bonds issued under this subchapter.