§ 14-137-116 - Issuance, sale, and execution of bonds. - Arkansas Statutes

14-137-116. Issuance, sale, and execution of bonds.

(a) (1) The issuance of bonds shall be by resolution of the public facilities board.

(2) As the resolution authorizing their issuance may provide, the bonds may:

(A) Be coupon bonds payable to bearer, but subject to registration as to principal or as to principal and interest;

(B) Be exchangeable for bonds of another denomination;

(C) Be in such form and denominations;

(D) Be made payable at such places within or without the state;

(E) Be issued in one (1) or more series;

(F) Bear such date or dates, and mature at such time or times, not exceeding forty (40) years from the respective dates;

(G) Bear interest at such rate or rates;

(H) Be payable in such medium of payment;

(I) Be subject to such terms of redemption; and

(J) Contain such terms, covenants, and conditions including, without limitation, those pertaining to:

(i) The custody and application of the proceeds of the bonds;

(ii) The collection and disposition of revenues;

(iii) The maintenance of various funds and reserves;

(iv) The nature and extent of the security and pledging of revenues;

(v) The rights, duties, and obligations of the board and the trustee for the holders and registered owners of the bonds; and

(vi) 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 public facilities project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping public facilities 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 public facilities project involved may be controlled by the resolution authorizing the issuance of the bonds.

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

(6) Without limiting the generality of the foregoing, the resolution may provide for the investment of a major portion of the proceeds of the bonds in consideration of a contract to make payment or payments at least sufficient, alone or with other revenues pledged, to provide for principal, premium, if any, and interest on the bonds, as due.

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

(2) The indenture may control the priority between and among successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to:

(A) The custody and application of proceeds of the bonds;

(B) The maintaining of rates and charges;

(C) The collection and disposition of revenues;

(D) The maintenance of various funds and reserves;

(E) The nature and extent of the security and pledging of revenues;

(F) The rights, duties, and obligations of the board and the trustee; and

(G) The rights of the holders and registered owners of the bonds.

(c) 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 board may determine by resolution.

(d) (1) The bonds shall be executed by the manual or facsimile signature of the chairman and by the manual or facsimile signature of the secretary of the board.

(2) The coupons attached to the bonds may be executed by the facsimile signature of the chairman of the board.

(3) In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.