(a) (1) The Arkansas Natural Resources Commission is authorized to pledge or sell loans or undivided interests in pools of loans to investors in consideration for the payment to the commission of cash or cash equivalents.
(2) The commission is further authorized to:
(A) Sell the loans or undivided interests in pools of loans to investors at par, a premium, or a discount;
(B) Pledge the loans or undivided interests in pools of loans to investors as security for repayment of commission indebtedness to the investors; or
(C) Otherwise use the loans or undivided interests in pools of loans to collateralize or secure other financial relationships with investors as the commission may deem appropriate.
(b) (1) The commission is authorized to supplement its sale, pledge, or other use of the loans with any form of transaction enhancement that the commission may deem appropriate and that the financial advisor deems fair and reasonable.
(2) Specifically, the commission may:
(A) Establish a cash reserve against which defaulting loans may be offset;
(B) Agree to replace defaulted loans with other loans that the commission subsequently originates or otherwise possesses;
(C) Agree to repurchase defaulted loans;
(D) Sell to investors loans having a collective face value in excess of the par value of the consideration received from the pool sale or pledge in order to provide a pool of loans from which defaulting loans can be offset or replaced; or
(E) Purchase or provide any other form of transaction enhancement as the commission may deem necessary.
(c) The commission is authorized to:
(1) Sell participation certificates or other indicia of ownership to investors that shall evidence the investor's ownership of undivided interests in loans or pools of the loans sold pursuant to the provisions of this subchapter;
(2) Sell bonds to investors that shall evidence the commission's obligation to repay principal, interest, and redemption premium, if any, to those investors purchasing bonds secured by the loans pursuant to the provisions of this subchapter; or
(3) Sell or place any other form of security involving or secured by the loans or pools that the commission may structure or determine to be appropriate.
(d) The commission is authorized to retain the services of bond counsel, financial advisors, underwriters, investment bankers, indenture trustees, portfolio servicers, and other professionals in structuring, documenting, selling, and servicing the loans and securities contemplated to be issued under this subchapter.
(e) (1) The commission is authorized to use the proceeds received from the sale or pledge of the loans:
(A) To fund water, sewer, solid waste, flood control, drainage, water pollution abatement, prevention, or control, wetlands, irrigation, or other projects that the commission may fund under the financial assistance programs that it administers from time to time;
(B) To provide the matching funding for programs sponsored by state or federal governmental agencies or entities that provide assistance for the types of projects listed in this subdivision (e)(1); or
(C) For any other lawful purpose that the commission may identify from time to time.
(2) All proceeds from the sale or pledge of the loans or pools of loans under this subchapter shall be deposited into:
(A) The Arkansas Water Development Fund;
(B) The Water Resources and Waste Disposal Revolving Loan Fund;
(C) The Water, Sewer, and Solid Waste Systems Revolving Fund;
(D) The Arkansas Water Resources Cost Share Revolving Fund; or
(E) Any other fund or account or combination of funds or accounts that the commission shall direct.
(f) The commission is authorized and empowered to sell or pledge single or multiple series or pools of loans with those amortization and payment schedules and other terms and conditions that the commission may specify from time to time, including, without limitation, the establishment of debt service reserve funds, capitalized interest funds, cost of issuance funds, defaulted loan reserve accounts, and all other forms of accounts or funds that the commission may deem appropriate.
Section: 15-20-802 15-20-803 15-20-804 NextLast modified: November 15, 2016