Arkansas Code § 14-93-126 - Payment of Bonds and Interest

(a) (1) All bonds issued under the terms of this chapter shall be secured by a lien on all real property in the district.

(2) (A) The board shall see to it that a tax is levied annually and collected under the provisions of this chapter, so long as it may be necessary to pay any bond issued or obligation contracted under its authority.

(B) The making of an assessment or levy and collection may be enforced by mandamus.

(b) (1) (A) If any bond, or interest thereon, is not paid within thirty (30) days after its maturity, it shall be the duty of any court of competent jurisdiction, on application of any holder of the bond or interest coupon so overdue, to appoint a receiver to collect the taxes and an assessor to reassess the benefits, if necessary.

(B) The proceeds of the taxes and collections shall be applied, after payment of costs, first to overdue interest, and then to payment pro rata of all bonds issued by the board which are then due and payable.

(2) (A) The receiver may be directed, by suit, to foreclose the lien of the taxes on the real property.

(B) Suits brought by the receiver shall be conducted in all matters as are suits by the board as provided in this chapter and with like effect, and the decree and deeds therein shall have the same presumption in their favor.

(c) When all the sums have been paid, the receiver shall be discharged and the affairs of the district conducted by the board as provided in this chapter.

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Last modified: November 15, 2016