Arkansas Code Title 14. Local Government § 14-120-105. Outstanding indebtedness--Funding, etc.

(a) Any and all levee and drainage improvement districts of this state, whether organized and created under general law or by special act of the General Assembly, shall have power to fund and refund their outstanding indebtedness including bonded indebtedness, certificates of indebtedness, and accrued matured interest on such indebtedness, and to extend the maturity of the indebtedness on such terms as the commissioners or directors of the districts shall deem for the best interest of the districts. To that end the commissioners or directors may issue the negotiable bonds of the districts, with interest coupons attached; these refunding bonds are to run for a period of not exceeding fifty (50) years from date of issue.

(b) The commissioners or directors of the districts may exchange new bonds for outstanding bonds and certificates of indebtedness, including accrued matured interest coupons, or they may issue and sell new bonds and use the proceeds to take up any of the outstanding bonds or other indebtedness of the districts in the refunding thereof.

(c) These refunding bonds shall not be issued in a greater amount than is necessary to pay the outstanding bonds and certificate of indebtedness and accrued interest coupons then being refunded, with interest to the date such new bonds are delivered plus expenses incurred in connection with the issuance of the new bonds.

(d) The refunding bonds shall be negotiable instruments and may have coupons evidencing interest payable at annual or semiannual periods and shall have all the rights of security, including liens on assessments of benefits and levy of taxes on the lands, together with all remedies for their collection that are provided for the original bonds issued by the district. The refunding bonds may be further secured by a pledge and mortgage of the assessment of benefits and taxes in the district to be executed by the directors or commissioners.