§ 14-142-218 - Bonds generally -- Pledge and collection of ad valorem taxes. - Arkansas Statutes

14-142-218. Bonds generally -- Pledge and collection of ad valorem taxes.

(a) The ad valorem tax pledged for payment of bonds shall constitute a special fund pledged as security for the payment of such indebtedness.

(b) (1) The ad valorem tax shall never be extended for any other purpose nor collected for any greater length of time than necessary to retire such bonded indebtedness.

(2) However, tax collections in excess of the amount required to retire the debt according to its terms may, subject to covenants entered into with the owners of the bonds, be pledged as security for the issuance of additional bonds if authorized by the electors.

(3) The tax for the additional bonds shall terminate within the time provided for the tax originally imposed.

(c) Upon retirement on the bonded indebtedness, any surplus tax collections which may have accumulated shall be transferred to the general fund of the issuer, and shall be used for maintenance and operation of the public library.

(d) The collection of ad valorem taxes, or a portion thereof, may be suspended by the issuer when not required for the payment of the bonds, subject to any covenants with the owners of the bonds.

(e) Notwithstanding any other provision of this subchapter, a tax approved by the voters for the purpose of paying bonded indebtedness shall not be reduced or diminished, nor shall it be used for any other purpose than to pay principal of or premium or interest on the bonded indebtedness, and the reasonable fees of a trustee or paying agent so long as the bonded indebtedness shall remain outstanding and unpaid.

(f) Notwithstanding any other provision of this subchapter, a tax approved by the voters and levied for the purpose of paying bonded indebtedness authorized pursuant to this subchapter by a county shall not be levied against any real or personal property which is taxed by a municipality for the maintenance of a public library pursuant to Arkansas Constitution, Amendment 30, as amended by Arkansas Constitution, Amendment 72; provided, however, that no tax levied by a county for the purpose of paying bonded indebtedness authorized pursuant to this subchapter shall ever be diminished or reduced while such bonds are outstanding if a municipality within the county approves such a maintenance tax after the date on which the voters of a county approve a tax for the purpose of paying bonded indebtedness authorized pursuant to this subchapter.