§ 14-186-405 - Provisions in authorizing ordinance or order. - Arkansas Statutes

14-186-405. Provisions in authorizing ordinance or order.

(a) The ordinances or orders authorizing the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of the unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, or part failure to meet any sinking fund requirements, or in any other stipulated event, and these provisions will be binding.

(b) The priorities as between successive issues of revenue bonds may also be controlled by the provisions of the ordinances or orders.

(c) The ordinances or orders may also, if deemed desirable, provide for:

(1) The issuance, contemporaneously with the execution of the bonds, of an indenture defining the rights of the bondholders inter sese;

(2) Appointing a trustee for the bondholders, which trustee may be a domestic or foreign corporation;

(3) Vesting in the trustee, to such extent as is deemed advisable, all rights of action under the bonds, providing for the priority of lien as between successive bond issues;

(4) The acceleration of bond maturities;

(5) Any covenants on the part of the municipalities or counties relating to:

(A) The construction or acquisition of the port;

(B) The application or safeguard of the proceeds of the bonds; or

(C) Other covenants intended for the protection of the bondholders; and

(6) Any other provisions, whether similar or dissimilar to the foregoing, which are consistent with the terms of this subchapter and which may be deemed desirable.