§ 14-267-107 - Bonds -- Issuance, sale, and execution. - Arkansas Statutes

14-267-107. Bonds -- Issuance, sale, and execution.

(a) (1) The issuance of bonds shall be by ordinance of the municipality or by order of the county court.

(2) The bonds may be coupon bonds payable to bearer, but subject to registration as to principal only or as to principal and interest; may be exchangeable for bonds of another denomination; may be in such form and denominations; may be made payable at such places within or without the state; may be issued in one (1) or more series; 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 payable in such medium of payment; may be subject to such terms of redemption; and may contain such terms, covenants, and conditions as the ordinance or order authorizing their issuance 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 of various funds and reserves, the nature and extent of the security and pledging of revenues, the rights, duties, and obligations of the municipality or county and the trustee for the holders and registered owners of the bonds, and the rights of the holders and registered owners of the bonds.

(3) There may be successive bond issues for the purpose of financing the same pollution control project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping pollution control 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.

(4) Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the pollution control project facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds under this chapter.

(5) Subject to the provisions of this subsection pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.

(b) (1) The ordinance or order authorizing the bonds may provide for the execution by the municipality or county of an indenture which defines the rights of the holders and registered owners of the bonds and which provides for the appointment of a trustee for the holders and registered owners of the bonds.

(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 maintaining of rates and charges, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security and pledging of revenues, the rights, duties, and obligations of the municipality and the trustee, and the rights of the holders and registered owners of the bonds.

(3) It shall not be necessary for the municipality to publish any indenture, lease, or other agreement if the ordinance authorizing an indenture, lease, or other agreement is published as required by the law governing the publication of ordinances of a municipality; if 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 if the copy of the indenture, lease, or other agreement, as the case may be, is actually filed with the clerk or recorder of the municipality.

(c) 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 county court order.

(d) (1) The bonds shall be executed by the mayor and the city clerk or recorder of the municipality or 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 officers before the delivery of the bonds or coupons, the signatures shall, nevertheless, be valid and sufficient for all purposes.

(2) One (1) signature may be facsimile, but one (1) must be manual.

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