Arkansas Code § 14-334-110 - Security for Bonds

(a) The principal of and interest on all bonds issued under the authority of this chapter may be secured by a pledge of, and shall be payable from, transit system revenues or liens on real and personal property of the authority.

(b) (1) Each resolution authorizing the issuance of bonds, and this chapter, shall constitute a contract by and between the authority and the holders and registered owners of all bonds issued under the authority of this chapter.

(2) The contract and all covenants, agreements, and obligations therein, including, without limitation, an obligation on the part of the authority to properly maintain the transit system and to charge and collect transit system revenues in required amounts, all as specified in detail in the authorizing resolution, the trust indenture, and in this chapter, shall be promptly performed in strict accordance with the terms and provisions of the contract.

(3) The contract and all rights of the trustee and holders and registered owners of the bonds and the obligations of the authority may be enforced by mandamus or any other appropriate proceeding at law or in equity.

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Last modified: November 15, 2016