(a) It shall be plainly stated on the face of each bond that it has been issued under this subchapter, that the bonds shall be obligations only of the Arkansas Development Finance Authority, and that in no event shall the bonds constitute an indebtedness of the State of Arkansas or an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged or an indebtedness secured by lien on or a security interest in any property of the state.
(b) The payment of the bonds' principal, redemption premium, if any, interest, and trustee's and paying agent's fees may be secured by any combination of:
(1) A lien on any security interest in facilities financed by bonds issued under this subchapter;
(2) A lien encumbering or pledge of loans made or mortgages purchased by the authority;
(3) A pledge of revenues of the authority that are not derived from appropriations;
(4) Collateral security received by the authority, including without limitation, the authority's interest in and revenue derived from loan agreements; and
(5) A lien encumbering or pledge of the proceeds of the bonds and any reserves established in connection with the bonds.
(c) It shall not be necessary to the perfection of the lien and pledge for such purposes that the trustee in connection with the bond issue or the holders of the bonds take possession of the loans, mortgages, and collateral security.
Section: Previous 15-5-305 15-5-306 15-5-307 15-5-308 15-5-309 15-5-310 15-5-311 15-5-312 15-5-313 15-5-314 15-5-315 15-5-316 15-5-317 15-5-318 NextLast modified: November 15, 2016