Arkansas Code § 14-139-107 - Terms of Authorizing Ordinance

(a) The ordinance authorizing the issuance of the revenue bonds may contain provisions for the acceleration of the maturities of all unmatured bonds in the event of default in the payment of any principal or interest maturing under the bond issue, or upon failure to meet any sinking fund requirements, or in any other event stipulated in the ordinance; and such provisions will be binding.

(b) The priorities as between successive issues of revenue bonds may also be controlled by the provisions of the ordinance.

(c) The ordinance may also, if deemed desirable, provide for:

(1) The execution, contemporaneously with the execution of bonds, by the municipality of an indenture defining the right of the bondholders' interests;

(2) Appointing a trustee for the bondholders, which trustee may be a domestic or foreign corporation;

(3) Vesting in the trustee, to such extent as is deemed advisable, all rights of action under the bonds;

(4) The priority of lien as between successive bond issues;

(5) The acceleration of bond maturities;

(6) Any covenants on the part of the municipality relating to the construction or acquisition of the project, or the application or safeguarding of the proceeds of the bonds, or other covenants intended for the protection of the bondholders; and

(7) Any other provisions, whether similar or dissimilar to the foregoing, which are consistent with the terms of this chapter and which may be deemed desirable.

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Last modified: November 15, 2016