§ 14-265-105 - Bonds -- Issuance, sale, and execution. - Arkansas Statutes

14-265-105. Bonds -- Issuance, sale, and execution.

(a) (1) The issuance of revenue bonds shall be by an ordinance of the municipality or an order of the county court, as the case may be.

(2) The bonds shall be coupon bonds payable to bearer but subject to registration as to principal or as to principal and interest.

(3) The bonds may be:

(A) Bonds registered as to principal or as to principal and interest;

(B) Exchangeable for bonds of another denomination; and

(C) Issued in one (1) or more series.

(4) The bonds may bear such date or dates, may mature at such time or times, not exceeding forty (40) years from their respective dates, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable in such medium of payment and at such place or places, 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 the proceeds of the bonds, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, 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.

(5) Priority between and among successive issues may be controlled by the ordinance or order.

(6) The bonds shall have all the qualities of negotiable instruments under the laws of this state, subject to the provisions for registration set forth in this section.

(b) (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 for the bondholders.

(2) The indenture may control the priority between successive issues and may contain any other terms, 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 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 or any lease or other security agreement or instrument if the ordinance authorizing the indenture or lease or other security agreement or instrument 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 or lease or other security agreement or instrument, 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 a copy of the indenture or lease or other security agreement or instrument, as the case may be, is filed with the clerk or recorder of the municipality.

(c) (1) The bonds may be sold at public or private sale, 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.

(2) The bonds may be sold with the privilege of conversion into an issue bearing another rate or rates of interest, upon such terms and conditions as the municipality or county shall specify but, in any event, such that the municipality or county receives no less and pays no more than it would receive and pay if the bonds were not converted; the conversion shall be subject to the approval of the governing body of the municipality or the county court.

(d) (1) The bonds shall be executed by the mayor and the clerk or recorder of the municipality, or by the county judge and county clerk of the county, as the case may be, and, in case any of the officers whose signatures appear on the bonds or coupons shall cease to be those officers before the delivery of the bonds or coupons, the signatures shall nevertheless be valid and sufficient for all purposes.

(2) The coupons attached to the bonds may be executed by the facsimile signature of the mayor or county judge.