§ 14-94-123 — Negotiable notes, bonds, or evidence of debt

(a) (1) In order to meet preliminary expenses and to finance the cost of the improvements to be accomplished, with costs incidental to them and to the issuance of the bonds, the board may issue bonds of the district and may pledge all assessments of benefits to the district and all or any part of the profits of the district derived from its operation of any improvements of the district to the payment of the bonds. (2) The board may also issue to the contractors who do the work evidences of debt bearing interest at the rate or rates prescribed by the board and secure them in the same manner. (3) As for the security for the payment of any indebtedness, the members of the board may, by resolution, establish the rates for use of the improvements to be collected from the users of the improvements and may mortgage any or all of its property, including improvements. (b) (1) Bonds issued under the authority of this chapter shall: (A) Bear interest at such rate or rates; (B) Mature at such time or times; (C) Be payable, as to principal, premium, if any, and interest, at such places, within or without the State of Arkansas; (D) Be in such form, whether bearer or registered, negotiable or nonnegotiable; (E) Be subject to such exchange privileges; and (F) Have such other details as may be set forth in the resolution of the board authorizing their issuance. (2) The resolution may provide for the execution and delivery of a trust indenture or like instrument by the board securing the bonds and for the execution and delivery of other writings pertaining thereto. (3) The bonds, and coupons, if any, may be executed by the manual or facsimile signatures of the members of the board.

Legislative History

Acts 1987, No. 113, § 15.