§ 15-5-407 — Bond Guaranty Reserve Account - Investment of funds

Arkansas § 15-5-407

• Jurisdiction: Arkansas
• Title: 15

Text

(a) (1) The Arkansas Development Finance Authority may establish a Bond Guaranty Reserve Account in an Arkansas financial institution or institutions that are members of the Federal Deposit Insurance Corporation. (2) The account shall be in the name of the authority, and the amount in the account in excess of that insured by the Federal Deposit Insurance Corporation shall be secured by, and the authority may invest account funds in: (A) Direct obligations of, or obligations which are guaranteed by, the United States; (B) Obligations, debentures, notes, or other evidences of indebtedness issued or guaranteed by any of the following: (i) Bank for Cooperatives; (ii) Export-Import Bank of the United States; (iii) Federal Financing Bank; (iv) Federal Home Loan Bank System; (v) Federal Home Loan Mortgage Corporation; (vi) Federal Housing Administration; (vii) Federal Intermediate Credit Bank; (viii) Federal Land Bank; (ix) Federal National Mortgage Association; or (x) Government National Mortgage Association; (C) Repurchase agreements with financial institutions acting as principal or agent for securities described in this subsection if the securities are delivered to the authority or trustee on its behalf; (D) Obligations issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by a pledge of annual contributions under an annual contributions contract or contracts with the United States or temporary notes, preliminary loan notes, or project notes issued by public agencies or municipalities, in each case fully secured as to the payment of both principal and interest by a requisition or payment agreement with the United States; (E) Certificates of deposit or time deposits or similar banking arrangements with a bank or banks or savings and loan association or associations, insured by the Federal Deposit Insurance Corporation; and (F) Investment agreements, capital notes, or banking arrangements with financial institutions or holding companies of financial institutions approved by the Board of Directors of the Arkansas Development Finance Authority, and to provide for the sale of any such investment agreements, capital notes, or banking arrangements and for the reinvestment of the proceeds of the sale. (b) (1) All moneys received by the authority under and pursuant to the provisions of this subchapter shall be deposited as and when received into the account. (2) It is the intent of this subchapter that idle funds in the account shall be invested as provided in this section in order that maximum interest return may be received by the account. (c) All moneys now or hereafter deposited into or paid to the authority for deposit into the account are specifically declared to be cash funds, received from sources other than taxes, restricted in their use and shall not be deposited into the State Treasury but shall be deposited into one (1) or more banks, as set forth in this section.

Legislative History

Amended by Act 2017, No. 374,§ 18, eff. 8/1/2017. Amended by Act 2017, No. 374,§ 17, eff. 8/1/2017. Acts 1985, No. 340, § 6; 1985, No. 505, § 6; A.S.A. 1947, § 13-2929.