§ 27-64-410 — Sources of repayment

(a) The State of Arkansas Federal Grant Anticipation and Tax Revenue Bonds or GARVEE bonds shall be general obligations of the State of Arkansas secured and payable from the designated revenues, as defined herein, and the general revenues of the state. (b) The bonds will be payable first from certain designated revenues, specifically: (1) That portion designated by the State Highway Commission of funds received or to be received from the United States Government as federal highway assistance funding allocated to the state designated as federal highway interstate maintenance funds; and (2) Revenues derived from the increase in taxes levied on distillate special fuels pursuant to § 2 of the Arkansas Distillate Special Fuel Excise Tax Act of 1999 and the Motor Fuel Excise Tax Act of 1999, §§ 26-55-1005 , 26-55-1006 , 26-56-201 , and 27-72-305 , and transferred to the State Highway and Transportation Department Fund pursuant to § 27-70-207(d) in accordance with § 26-55-1006(d) . (c) (1) To the extent that designated revenues are insufficient to make timely payment of debt service on the bonds, such payment shall be made from the general revenues of the State of Arkansas. (2) In order to secure the payment of debt service, any trust instrument, resolution, or other document setting forth the security for the bondholders may provide for the direct payment of the federal highway assistance funds that are designated revenues directly into a trust fund, or to a paying agent, for the payment of debt service on the bonds, and it shall not be necessary for such funds to be deposited into the State Treasury.

Legislative History

Acts 2007, No. 511, § 1; 2011, No. 752, § 8.