Arkansas Code § 14-93-124 - Negotiable Notes, Bonds, or Evidences of Debt

(a) (1) In order to meet preliminary expenses and to finance the cost of the improvements to be accomplished with cost incidental to the improvements and to the issuance of the bonds, the board may issue negotiable notes or bonds of the district and may pledge and mortgage all assessments of benefits to the district and all or any part of the profits of the district derived from its operation of any improvements of the district to the payment of the notes and bonds.

(2) The board may also issue to the contractors who do the work negotiable evidences of debt to bear interest at the rates prescribed by the board and secure them in the same manner.

(3) As for the security for the payment of any such indebtedness, the members of the board may, by resolution, establish the rates for use of the improvements to be collected from the users of such improvements and may mortgage any or all of its property, including improvements.

(b) (1) Bonds and notes issued under the authority of this chapter shall bear interest at such rate or rates, shall mature at such time or times, shall be payable, as to principal, premium, if any, and interest, at such places, within or without the State of Arkansas, shall be in such form, whether bearer or registered, shall be subject to such exchange privileges, and shall have such other details as may be set forth in the resolution of the board authorizing their issuance.

(2) The resolution may provide for the execution and delivery of a trust indenture or like instrument by the board securing the bonds and for the execution and delivery of other writings pertaining thereto.

(3) The bonds, and coupons, if any, may be executed by the manual or facsimile signatures of the members of the board.

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Last modified: November 15, 2016