§ 14-92-234 - Notes, bonds, or evidences of debt. - Arkansas Statutes

14-92-234. Notes, bonds, or evidences of debt.

(a) (1) In order to meet preliminary expenses and to do the work, the board of commissioners may issue negotiable notes or bonds of the suburban improvement district signed by the chair and secretary of the board and bearing such rate or rates of interest as shall be determined by the board and may pledge and mortgage all assessments of benefits of the district and all or any part of the profits of the district derived from its operation of any waterworks, sewer system, gas system, recreational facilities, or hospital to the payment of the notes and bonds.

(2) The board may also issue to the contractors who do the work negotiable evidences of debt bearing interest at the same rate or rates prescribed by the board and secure them in the same manner.

(3) With the consent of the sellers of improvements, as provided in this chapter, it may issue to the sellers negotiable notes or bonds of the district bearing interest at the rate or rates prescribed by the board covering all or a portion of the purchase price of the improvements and secure the notes or bonds in the same manner as provided in this section.

(4) As further security for the payment of any such indebtedness, the members of the board of any district organized for the construction of waterworks or water pipes, tanks, and wells, sewer systems, gas pipelines, recreational facilities, or hospitals may be resolved to establish the water or sewer rates, rates for use of gas pipelines, rates for use of recreational facilities, or rates for use of the hospitals to be collected from the users thereof. The board may mortgage any or all of its property, including the system, buildings, equipment, lands, leases, easements, and rights-of-way.

(b) No bonds issued under the terms of this subchapter shall run for more than thirty (30) years, and all issues of bonds may be divided so that a portion thereof may mature each year as the assessments, revenues, or profits from the systems are collected, or they may all be made payable at the same time, with proper provision for a sinking fund.

(c) The bonds shall not be sold for less than par without the unanimous vote of the board.