§ 22-3-1409 — Pledge of revenues to secure bonds

(a) The principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with all bonds issued under this subchapter shall be secured solely by a lien on and pledge of the gross revenues derived from the leasing or renting to state agencies or other tenants of space in the buildings and facilities acquired pursuant to this subchapter, and the pledging of such revenues, the pledged revenues, is hereby authorized. (b) All pledged revenues are hereby specifically declared to be cash funds restricted in their use and dedicated and to be used solely as provided and authorized in this subchapter. (c) Commencing the first day of the month succeeding the issuance of the bonds hereunder and so long as any bonds are outstanding hereunder, the pledged revenues shall not be deposited into the State Treasury and shall not be subject to legislative appropriation but, as and when received by the Arkansas Development Finance Authority or by any other state agency, as the case may be, shall be deposited into a bank or banks selected by the Arkansas Development Finance Authority to the credit of funds designated the "State Agencies Facilities Revenue Bond Fund", with appropriate identification for separate issues or series. (d) So long as any bonds are outstanding hereunder, all moneys in any bond fund shall be used solely for the payment of the principal of, premiums, if any, interest on, and trustees' and paying agents' fees in connection with the bonds, with the maintenance of necessary funds and reserves, except that the authorizing resolution or trust indenture may provide for the withdrawal, for other purposes, of surplus moneys, as defined in the authorizing resolution or trust indenture. (e) Nothing in this section is intended to prohibit the Arkansas Development Finance Authority from investing moneys received hereunder, as provided in this subchapter.

Legislative History

Acts 1991, No. 1173, § 7.