Arkansas Code § 22-3-1216 - Authorizing Resolution As Enforceable Contract -- Covenants

Any authorizing resolution shall, together with this subchapter, constitute a contract between the Arkansas Building Authority, and the State Board of Finance, and the Treasurer of State, which contract and all covenants, agreements, and obligations therein shall be promptly performed in strict compliance with its terms and provisions, and the covenants, agreements, and obligations of the authority may be enforced by mandamus or other appropriate proceeding at law or in equity. In this regard, the authority is expressly authorized to include in any authorizing resolution all or part of the following covenants:

(1) That, to the fullest extent possible, it will continuously operate any and all facilities constructed pursuant to the authority of this subchapter as revenue-producing undertakings, including the maintenance, occupancy, and use of facilities and space so as to avoid any impairment of the security for the certificates of indebtedness; and

(2) That, to the fullest extent possible, it will always charge, impose, and collect sufficient revenues, including, without limitation, rentals to meet as due all debt service requirements, and otherwise comply with any provisions of authorizing resolutions concerning revenues and funds.

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Last modified: November 15, 2016