§ 12-41-712 — Bonds - Pledge of revenues - Funds

Arkansas § 12-41-712

• Jurisdiction: Arkansas
• Title: 12

Text

(a) (1) The principal, premiums, if any, interest on, and trustees' and paying agents' fees in connection with all bonds issued under this subchapter shall be secured by a lien on and pledge of: (A) The fee revenues and the gross revenues derived from revenues collected from fines or penalties for convictions of the offenses as defined in this subchapter; (B) All real property and personal property owned by the county jail board, municipal jail board, or public instrumentality jail board; and (C) All other collateral identified in the trust indenture pursuant to which the bonds are issued. (2) The pledged revenues and the principal and interest are specifically declared to be cash funds, restricted in their use and dedication, and to be used solely as provided in this subchapter. (3) Bonds may additionally be secured and collateralized by: (A) The board's pledge of contract revenue receivables realized through the execution of contracts with third parties for incarcerant housing; (B) Income received from supplying third parties with incarcerant services and labor; and (C) All other revenues and income that the board may realize through its operations that are otherwise expressly pledged and identified in the bonds' trust indenture or authorizing resolution. (b) There is created a fund designated the jail revenue bond fund, with respect to bonds issued under this subchapter to be maintained at such depository as shall be specified by the board. (c) The jail revenue fund shall be a trust fund and, after the issuance of any bonds pursuant to this subchapter, the moneys therein shall be applied for the payment of the principal of, premiums, if any, and interest on the bonds, trustees' fees, paying agents' fees, and any other fees in connection with the bonds at maturity and at redemption prior to maturity, except moneys that are withdrawn therefrom pursuant to § 12-41-709(b) , all as shall be specified and subject to the terms and conditions set forth in the authorizing resolution or trust indenture. (d) The pledged revenues shall not be deposited into the county treasury, municipal treasury, or public instrumentality treasury but, when received, shall be deposited into the appropriate jail revenue bond fund. (e) The principal, premiums, if any, and interest on the bonds and trustees' fees, paying agents' fees, and any other fees in connection with the bonds may be paid from the moneys in the jail revenue bond fund and the moneys required by this subchapter to be deposited into the jail revenue bond fund. (f) The board is directed to insert appropriate provisions in the authorizing resolution or trust indenture for the investment and reinvestment of moneys in the jail revenue bond fund in securities selected by the board, and all income derived from the investment shall be and become part of the jail revenue bond fund. (g) Any municipality, county, public instrumentality, or other governmental entity may pledge all or any portion of its fines, penalties, bonds against fines, court costs, filing fees, other court fees, and other sums payable by judicial order, statute, ordinance, or otherwise imposed by law and collected by the entity towards the repayment of any debt issued by a board or any public facilities board operating, owning, or administering a jail facility.

Legislative History

Acts 1983, No. 918, § 12; A.S.A. 1947, § 46-458; Acts 2003, No. 1772, § 1.