§ 14-125-804 - Court order approving proceedings. - Arkansas Statutes

14-125-804. Court order approving proceedings.

(a) After issuing any bonds or other evidences of indebtedness and before their sale, exchange, or hypothecation, the board may petition the chancery court for an order approving the legality and regularity of all proceedings leading up to the issuance of the bonds or other evidences of indebtedness. This order shall have the force and effect of a judgment from which an appeal may be taken within thirty (30) days by the board or by any owner of land against which assessments of benefits by the district have been confirmed.

(b) If the order of the court shall specify that the bonds or other evidences of indebtedness shall be made payable from revenues, the order shall declare specifically the revenues or portion thereof that shall be pledged to secure the payment of the principal and interest thereon. This order shall constitute a sufficient pledge to secure all such payments of all bonds or other evidences of indebtedness that may be issued in pursuance thereof. All revenues so designated shall be applied, except for a reasonable amount for annual operation and maintenance costs, first to the payment of such principal and interest. No tax shall be levied by or on behalf of the district against any land within the project area to pay any part of the principal or interest of the bonds or other evidence of indebtedness.

(c) If the order of the court authorizing the borrowing of money and the issuance of notes, bonds, or other evidences of indebtedness shall specify that they shall be made payable from the proceeds of assessments, that order shall provide for the levying of a tax against the benefited land within the project area in the proportion to the amount of the assessment of benefits thereon in the same manner and with the same effect as provided in 14-125-708.