§ 14-120-106 - Funding indebtedness other than bonded indebtedness. - Arkansas Statutes

14-120-106. Funding indebtedness other than bonded indebtedness.

(a) Any levee or drainage district in Arkansas, whether created under the general law or by special act of the General Assembly, which has outstanding certificates of indebtedness, notes, warrants, or any unsatisfied judgment against it is authorized and empowered to issue funding bonds for the purpose of paying the certificates of indebtedness, notes, or unsatisfied judgment against it.

(b) The funding bonds may be issued by the commissioners or directors of any levee or drainage improvement district under the terms and provisions of 14-120-107 and 14-120-108. All proceedings relating to the issuance of any such funding bonds for the purpose of paying outstanding certificates of indebtedness, notes, or for satisfying any judgment of record shall be had in the same manner as provided by 14-120-107 and 14-120-108.

(c) (1) When any outstanding certificate of indebtedness, note, or judgment is paid by the issuance of the funding bonds herein authorized, the certificate of indebtedness or note shall be plainly marked "CANCELLED" and deposited by the secretary of the district with the county clerk if the district embraces only land in the county.

(2) If the district embraces land in more than one (1) county, then the certificate of indebtedness or note shall be deposited with the clerk of the circuit court for the county or judicial division of the county in which is situated the largest part of the lands in the district.

(d) If an unsatisfied judgment is paid by the issuance of the funding bonds, it shall be the duty of the owner of the judgment to satisfy the judgment within ten (10) days after the payment of the amount due, which satisfaction shall be duly noted on the judgment record in the manner now provided by law.

(e) The commissioners or directors of any levee or drainage district in this state may issue and sell the funding bonds authorized and use the proceeds to take up outstanding certificates of indebtedness and notes or to pay unsatisfied judgments of the district, or they may exchange new bonds for the outstanding certificates of indebtedness, notes, or in payment of the unsatisfied judgments. All proceedings with reference to the issuance or exchange of such funding bonds shall be had in accordance with the provisions of 14-120-105, 14-120-107, and 14-120-108.