§ 15-5-312 - Statement on face of bond -- Security. - Arkansas Statutes

15-5-312. Statement on face of bond -- Security.

(a) It shall be plainly stated on the face of each bond that it has been issued under this subchapter, that the bonds shall be obligations only of the Arkansas Development Finance Authority, and that in no event shall the bonds constitute an indebtedness of the State of Arkansas or an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged or an indebtedness secured by lien on or a security interest in any property of the state.

(b) The payment of the principal of, redemption premium, if any, and interest on the trustee's and paying agent's fees in connection with the bonds may be secured by a lien on any security interest in facilities financed by bonds issued hereunder, by lien or pledge of loans made or mortgages purchased by the authority, and any collateral security received by the authority, including, without limitation, the authority's interest in and any revenue derived from any loan agreements.

(c) It shall not be necessary to the perfection of the lien and pledge for such purposes that the trustee in connection with the bond issue or the holders of the bonds take possession of the loans, mortgages, and collateral security.