Arkansas Code § 15-4-3207 - Maximum Ceiling on Bond Principal

(a) In determining the maximum amount of Amendment 82 bonds that may be issued, the sum of the outstanding bonded indebtedness plus the principal amount of the proposed Amendment 82 bonds shall not exceed five percent (5%) of the general revenues collected during the most recent fiscal year for which revenue calculations are available.

(b) It is not a violation of Arkansas Constitution, Amendment 82, or this subchapter and does not affect the validity of Amendment 82 bonds that were properly issued if:

(1) General revenues decline after Amendment 82 bonds are issued; and

(2) The outstanding bonded indebtedness exceeds five percent (5%) of the general revenues collected during the most recent fiscal year for which revenue calculations are available.

(c) Amendment 82 bonds that when issued complied with the five-percent limitation may be refunded under Arkansas Constitution, Amendment 82, and this subchapter even if the outstanding bonded indebtedness before or after the refunding exceeds five percent (5%) of the general revenues collected during the most recent fiscal year for which revenue calculations are available.

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Last modified: November 15, 2016