Arkansas Code § 15-5-405 - When Bonds May Be Guaranteed

Amortization payments on qualified bonds may be guaranteed in instances when:

(1) The Arkansas Development Finance Authority deems the utilization of the guaranty is in the best interest of the economic development of the State of Arkansas;

(2) The total amount of qualified bonds guaranteed at any time under this subchapter will be the lesser of:

(A) One hundred fifty million dollars ($150,000,000); or

(B) An amount equal to ten (10) times the amount on deposit at that time in the Bond Guaranty Reserve Account;

(3) The borrower involved is not permitted to purchase or own at any time any of such bonds;

(4) The borrower is found to be financially responsible and that sufficient income may reasonably be expected to amortize in an orderly manner amortization payments of the qualified bonds; and

(5) (A) A financial institution participates in the financing necessary to accomplish the project.

(B) However, the authority may waive this requirement, in the exercise of its sound discretion, upon a sufficient showing by the borrower that such participation cannot be obtained or is not feasible because of justifiable circumstances and that the project involved otherwise meets the other conditions of this section and ยง 15-5-406.

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Last modified: November 15, 2016