§ 14-204-106 - Revenue bonds generally. - Arkansas Statutes

14-204-106. Revenue bonds generally.

(a) (1) Revenue bonds authorized in this chapter may be issued by a municipality upon the adoption of an ordinance therefor by the governing body of the municipality. Revenue bonds authorized by this chapter may be issued by a county upon order of the county court of the county.

(2) The ordinance or order shall state the purpose for which the revenue bonds are to be issued and the total amount of the issue.

(3) The bonds may be in such form, may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, not exceeding thirty (30) years from their respective dates, may bear interest at such rate or rates, may be executed in such manner, may be payable in such medium of payment, at such place or places, within or without this state, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the ordinance or order may provide including, without limitation, those pertaining to the custody and application of proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investment of moneys held thereunder, the nature and extent of the security, the rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.

(4) There may be successive bond issues for the purpose of financing the same project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.

(5) Priority between and among issues and successive issues as to security of the pledge of revenues and mortgage liens on the land, buildings, and facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds hereunder.

(b) The bonds shall have all the qualities of negotiable instruments under the negotiable instruments laws of this state but may be issued in registered form or may be subject to registration as to principal or as to principal and interest.

(c) (1) The ordinance or order may provide for the execution by the municipality or county of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee, within or without this state, for the bondholders.

(2) The indenture may control the priority between successive issues and may contain any other items, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investment of moneys held thereunder, the nature and extent of the security, the rights, duties, and obligations of the municipality or county and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.

(3) It shall not be necessary for the municipality to publish any indenture, lease, or any other agreement if the ordinance authorizing an indenture, the ordinance authorizing a lease, or the ordinance authorizing any other agreement is published as required by the law governing the publication of ordinances of a municipality, and the ordinance advises that a copy of the indenture, lease, or other agreement, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by any interested person, and the copy of the indenture, lease, or other agreement, as the case may be, is filed with the clerk or recorder of the municipality.

(d) The bonds may be sold for such price including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or order.

(e) The bonds shall be executed by the mayor and the city clerk or recorder of the municipality; or by the county judge and county clerk of the county; one (1) signature may be facsimile but one (1) must be manual. The coupons attached to the bonds may be executed by the facsimile signature of the mayor or county judge. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall nevertheless be valid and sufficient for all purposes.