§ 6-20-1227 - Issuance of bonds for funding nonbonded indebtedness. - Arkansas Statutes

6-20-1227. Issuance of bonds for funding nonbonded indebtedness.

(a) Any school district of Arkansas that has nonbonded indebtedness at the time of the passage of this act is authorized and empowered in the manner to be prescribed by regulations of the State Board of Education, upon written justification therefor approved by the state board, to issue bonds for the purpose of funding nonbonded indebtedness. These bonds shall not be for a period of more than ten (10) years. The board of directors of any school district issuing bonds under the provisions of this act shall pledge moneys in the general operating fund of the school district and moneys accruing to such school district from the Public School Fund of the State of Arkansas that are not otherwise pledged for teacher salaries or other dedicated purposes as collateral and security for the bonds.

(b) Before any school district shall request the state board for authority to issue bonds to fund the school district's nonbonded debt, the school district board of directors shall, by a resolution entered upon its records, declare the total amount of the nonbonded indebtedness of the district outstanding as of June 30 preceding the date of such notice, also stating the reasons and justification for issuing bonds to fund the nonbonded indebtedness. The resolution shall be published immediately, and at least two (2) weeks prior to the funding, for one (1) insertion in some newspaper published in the county in which the school district is domiciled. Anyone in the school district who is dissatisfied may, by a suit in the circuit court of the county, brought within thirty (30) days after the date of the publication, have a review of the correctness of the findings and justification made in the resolution. If no suit is brought within thirty (30) days after the date of publication, the findings in the resolution shall be conclusive both as to the total amount of the indebtedness and as to its validity and shall not be open to further attack. If the suit is brought, the adjudication shall settle the question, and any appeal taken therefor must be taken and perfected within thirty (30) days. The school district board of directors may request the Audit Section of the Division of Legislative Audit or the Commissioner of Education to cause an audit to be made of any and all records of the district or of the county treasurer's records in order to assist the school district board of directors in determining the exact amount of the nonbonded indebtedness outstanding on June 30 preceding the date on which the resolution is adopted.

(c) Any school district director who shall willfully make any false statement as to the amount of nonbonded indebtedness of the school district of which he or she is a director shall forfeit his or her office and be ineligible to hold any other office of profit or trust in the State of Arkansas.

(d) (1) Bonds issued under the provisions of this act to fund a school district's nonbonded debt shall be obligations of the school district and the individual members of the board of directors of such school district shall not be personally liable therefor unless such school district board members were guilty of fraud in the issuance of such bonds.

(2) No election by the electors of the school district shall be required to approve the issuance of bonds to fund the school district's nonbonded indebtedness under the provisions of this act.