§ 20-48-507 - Revenue bonds secured by pledge of gross charges and surplus charges. - Arkansas Statutes

20-48-507. Revenue bonds secured by pledge of gross charges and surplus charges.

(a) The principal of, interest on, and paying agent's fees in connection with the revenue bonds of each issue shall be secured by a pledge of and payable in the first instance from the gross charges imposed by the Board of Developmental Disabilities Services pursuant to the provisions of 20-48-411 applicable to the particular properties financed in whole or in part by the proceeds of the bonds of the particular issue involved.

(b) (1) In addition, the board is authorized to pledge and to use for the payment of the principal of and interest on the bonds of any issue, and paying agent's fees, surplus charges applicable to existing properties and any other properties operated by the board, whether or not the other properties were financed in whole or in part by bonds issued under this subchapter.

(2) "Surplus charges", as that term is used in this section, means gross charges which are not pledged to any bond issue and also that amount of any charges that are pledged which is in excess of the amount necessary to meet all requirements of resolutions securing bonds to finance the particular properties to the payment of which the charges are specifically pledged.

(c) As specified in this subchapter, the resolution of the board pledging specific charges can control priorities as to the lien on the charges between successive issues.

(d) In addition, the board is authorized to use, as distinguished from pledge, any available revenues and funds of the board, including, without limitation, appropriated and cash funds, if available.

(e) All charges assessed and collected by the board pursuant to the authority conferred by 20-48-411 are specifically declared to be cash funds and may be collected and deposited in such banks and depositories as shall be determined from time to time by the board.

(f) Furthermore, in connection with any charges which are pledged to the payment of any issue of bonds pursuant to this subchapter, the board is expressly authorized to make such agreements and contracts with the bondholders, or the trustee for the bondholders, embodied in a resolution or trust indenture, referred to above, authorizing and securing the particular issue of bonds, with reference to the maintenance of the maximum possible occupancy and the maintenance of charges at a specified level, as the board may determine to be necessary or desirable in connection with the issuance of bonds on the most favorable terms possible.