(a) The board shall have the authority to issue negotiable bonds or certificates of indebtedness to secure funds for the expenses of the district including office supplies and salaries, the purchase of equipment, facilities, chemicals, and such other items as may be necessary to carry out the purposes of the district.
(1) Bonds issued by the board shall be for a term of not more than twenty (20) years and shall bear interest at a rate not to exceed ten percent (10%) per annum.
(2) To secure the bonds, the board may pledge all or a portion of the benefit assessed against real property in the district.
(b) Bonds of the districts shall be authorized by resolution of the board and may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest and may be made exchangeable for bonds of another denomination; may be in such form and denomination; may have such date or dates; may be stated to mature at such times; may bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding ten percent (10%) per annum; may be payable at such places within or without the State of Arkansas; may be made subject to such terms of redemption in advance of maturity at such prices; and may contain such terms and conditions, all as the board shall determine.
(1) The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth above.
(2) The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting in securities specified by the board of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the district, the board, and of the holders and registered owners of the bonds.
(c) The authorizing resolution may provide for the execution of a trust indenture by the district with a bank or trust company within or without the State of Arkansas. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge, parity or priority, in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting in securities specified by the board of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the board and the holders and registered owners of the bonds.
(d) The bonds shall be sold at public sale on sealed bids.
(1) Notice of the sale shall be published one (1) time a week for at least two (2) consecutive weeks in a newspaper having a general circulation throughout the State of Arkansas, with the first publication to be at least twenty (20) days prior to the date of sale and may be published in such other publications as the district may determine.
(2) The bonds may be sold at such price as the board may accept including sale at a discount, but in no event shall any bid be accepted which results in a net interest cost, which is determined by computing the aggregate interest cost from date to maturity at the rate or rates bid and deducting any premium or adding any amount of any discount, in excess of the interest cost computed at par for bonds bearing interest at the rate of ten percent (10%) per annum.
(3) The award, if made, shall be to the bidder whose bid results in the lowest net interest cost.
(e) (1) The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary-treasurer of the board.
(2) The coupons attached to the bonds shall be executed by the facsimile signature of the chairman of the board.
(3) In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
(f) The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.
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