§ 14-138-114 - Issuance of bonds. - Arkansas Statutes

14-138-114. Issuance of bonds.

(a) (1) The corporation is authorized at any time and from time to time to issue its interest-bearing revenue bonds for the purpose of acquiring, constructing, improving, enlarging, completing, and equipping one (1) or more projects.

(2) The principal of and the interest on any bonds shall be payable solely out of the revenues derived from the projects with respect to which the bonds are issued.

(3) None of the bonds of the corporation shall ever constitute an obligation or debt of the state or the lessee, or a charge against the credit or taxing powers of the state or the lessee.

(b) As the corporation shall determine, bonds of the corporation may:

(1) Be issued at any time and from time to time;

(2) Be coupon bonds, payable to bearer, or may be registrable as to principal and interest without coupons, and may be made exchangeable for bonds of another denomination, which bonds of another denomination may in turn be either coupon bonds, bonds payable to bearer or bonds registrable as to principal only with coupons, or bonds registrable as to both principal and interest without coupons;

(3) Be in such form and denominations;

(4) Have such date or dates;

(5) Mature at such time or times and in such amount or amounts, provided that no bonds may mature more than forty (40) years from date;

(6) Bear interest payable at such times and at such rate or rates;

(7) Be payable at such place or places within or without the State of Arkansas;

(8) Be subject to such terms of redemption in advance of maturity at such prices, including such premiums; and

(9) Contain such other terms and provisions.

(c) (1) Bonds of the corporation may be sold at either public or private sale in such manner and from time to time as may be determined by the board to be most advantageous.

(2) The corporation may pay all expenses, premiums, and commissions that the board may deem necessary or advantageous in connection with the authorization, sale, and issuance of its bonds.

(d) All bonds shall contain a recital that they are issued pursuant to the provisions of this chapter which recital shall be conclusive that they have been duly authorized pursuant to the provisions of this chapter.

(e) All bonds issued under the provisions of this chapter shall be and are declared to be negotiable instruments within the meaning of the negotiable instruments law of the state.