§ 15-5-421 - Bond debt service amount. - Arkansas Statutes

15-5-421. Bond debt service amount.

(a) The Arkansas Development Finance Authority shall notify the Treasurer of State when it has determined to issue bonds under this subchapter and the amount that will be needed each month after the bonds are issued to provide for the payment, when due, of interest, principal, trustee's and paying agent's fees, and any other necessary expenses, and to provide for the establishing and maintaining of reserves, if the authority determines to establish reserves, which monthly amount is referred to in this section as the "bond debt service amount".

(b) Excluding the interest income classified as special revenue as authorized by 15-41-110 and 27-70-204, interest income derived from investment of state funds pursuant to the State Treasury Management Law, 19-3-201 et seq. [repealed], received by the Treasurer of State from and after receipt of the bond debt service amount notice from the authority are declared to be cash funds restricted in their use and dedicated and are to be used solely as authorized in this subchapter.

(c) (1) The cash funds shall not be placed in the State Treasury or be deemed to be a part of the State Treasury for purposes of Arkansas Constitution, Article 5, 29; Arkansas Constitution, Article 16, 12; Arkansas Constitution, Amendment 20; or any other constitutional or statutory provision.

(2) The Treasurer of State shall deposit the cash funds in a depository other than the State Treasury to the credit of the State Board of Finance Trust Fund Account, a trust fund which shall be maintained by the State Board of Finance so long as any bonds authorized by this section and 15-5-414 -- 15-5-420 are outstanding.

(d) From the moneys deposited in the account, the Secretary of the State Board of Finance shall from the first moneys accruing to the benefit of the account pay to the authority the amounts of money required for the bond debt service amount, when needed, if any, and the remaining moneys shall be paid to the Treasurer of State for deposit into the State Treasury as trust funds income to the credit of the Securities Reserve Fund, there to be used for the purposes as authorized by law.

(e) The bond debt service amounts as paid by the Secretary of the Board of Finance to the authority shall be paid directly to the authority for deposit in a special fund of the authority designated the "Guaranty Bond Fund" in a financial institution selected by the authority.

(f) Moneys in the fund shall be used to pay interest on, premium, if any, and principal of the bonds, trustee's and paying agent's fees and to establish and maintain reserves all as shall be specified by the authority in the resolution or trust indenture authorizing and securing the bonds.

(g) The interest earnings, the bond debt service amount, transferred directly to the authority are declared to be cash funds restricted in their use and dedicated and to be used solely as authorized in this subchapter.

(h) So long as any bonds issued under this subsection are unpaid, no changes shall be made in laws of the State of Arkansas which would or could result in the authority not receiving as cash funds amounts of interest equaling the bond debt service amount.