§ 14-233-109 — Bonds - Issuance, public hearing, execution, and sale

(a) Sanitation authorities are authorized to use any available funds and revenues for the accomplishment of projects and may issue bonds, as authorized by this chapter, for the purpose of paying, financing, and refinancing project costs and accomplishing projects, either alone or together with other available funds and revenues. (b) (1) (A) Prior to a sanitation authority's proposed issuance of bonds, the sanitation authority shall publish one (1) time in a newspaper of general circulation in each county that is a member of the sanitation authority and in each county in which a member of the sanitation authority is located: (i) Notice of the proposed issuance of bonds; (ii) The maximum principal amount of bonds contemplated to be sold; (iii) A general description of the project contemplated to be financed or refinanced with bond proceeds; and (iv) The date, time, and location of a public hearing at which members of the public may obtain further information regarding the bonds and the development of the project. (B) (i) The location of the public hearing described in subdivision (b)(1)(A)(iv) of this section shall be in the county in which the project is located. (ii) If the project is located in more than one (1) county, the location of the public hearing shall be in the county that has the greatest amount of territory of the counties in which the project is located. (C) Notice under subdivision (b)(1)(A) of this section shall be published at least ten (10) days prior to the date of the hearing described in subdivision (b)(1)(A)(iv) of this section. (2) A sanitation authority chair or his or her designee shall be responsible for conducting the hearing and shall request all public comments that might pertain to the proposed issuance of bonds by the sanitation authority. (3) (A) Upon compliance with the provisions of this section, no other notice, hearing, or approval by any other entity or governmental unit shall be required as a condition to the issuance by a sanitation authority of its contemplated bonds. (B) The provisions of the Revenue Bond Act of 1987, § 19-9-601 et seq., do not apply to this section. (4) The requirements of this subsection shall not apply to the issuance of bonds to refund bonds of the sanitation authority for which a public hearing was held. (c) (1) The issuance of bonds shall be by resolution of the board of the sanitation authority. (2) The bonds may be coupon bonds payable to bearer, subject to registration as to principal or as to principal and interest, or fully registered bonds without coupons, may contain exchange privileges, may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, not exceeding forty (40) years from their respective dates, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable in such medium of payment, at such place or places, may be subject to such terms of redemption in advance of maturity at such prices, and may contain such terms, covenants, and conditions as the resolution may provide, including without limitation those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the investing and reinvesting of any moneys during periods not needed for authorized purposes, the nature and extent of the security, the rights, duties, and obligations of the authority and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds. (d) There may be successive bond issues for the purpose of financing the same project, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter. Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the sanitation authority's properties involved may be controlled by the resolution authorizing the issuance of the bonds. (e) Subject to the provisions of this chapter pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas. (f) The bonds may be sold at public or private sale for such price, including without limitation sale at a discount and in such manner the authority may determine by resolution. (g) Bonds issued under this chapter shall be executed by the manual or facsimile signatures of the chair and secretary of the board, but one (1) of such signatures must be manual. The coupons attached to the bonds may be executed by the facsimile signature of the chair of the board. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes. The seal of the sanitation authority shall be placed or printed on each bond in such manner as the board shall determine.

Legislative History

Acts 1979, No. 699, § 7; 1985, No. 678, § 3; A.S.A. 1947, § 82-2737; Acts 2007, No. 599, § 2.