§ 26-78-113 - Issuance of bonds. - Arkansas Statutes

26-78-113. Issuance of bonds.

(a) The bonds may be issued in one (1) or more series, and there may be successive bond issues for the purpose of accomplishing the authorized purposes, subject however, to the provisions and restrictions set forth in the authorizing order or ordinance, as the case may be, controlling priority between and among issues and successive issues as to security.

(b) The order or ordinance may provide for the execution by the county or municipality of an indenture which, among other matters, defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders.

(c) The indenture may control the priority between and among issues and successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to:

(1) The custody and application of the proceeds of the bonds;

(2) The disposition of pledged revenues;

(3) The maintenance of various funds and reserves;

(4) The nature and extent of the security;

(5) The rights, duties, and obligations of the county or the municipality and the trustee for the holders and registered owners of the bonds; and

(6) The rights of the holders and registered owners of the bonds.

(d) In the event the county court of the county or the governing body of the municipality, as the case may be, determines that an indenture is not necessary or desirable, then the details set forth in this section which may be included in the indenture in lieu of the indenture may be included in the authorizing order of the county court or the authorizing ordinance of the municipality, as the case may be.

(e) It shall not be necessary for any municipality to publish any indenture if the ordinance authorizing the indenture is published as required by law governing the publication of ordinances of a municipality and the ordinance advises that a copy of the indenture is on file in the office of the clerk or recorder of the municipality for inspection by any interested person, and the copy of the indenture is filed with the clerk or recorder of the municipality.