Arkansas Code Title 14. Local Government § 14-184-207. Funds to make loans--Security

(a) For the purpose of providing funds to make loans including any reserve for contingencies deemed desirable, a central business improvement district may issue negotiable bonds or certificates of indebtedness bearing a rate of interest not to exceed the maximum rate allowed by law.

(b) In order to secure the bonds, the district may pledge, assign, or otherwise encumber any notes, debentures, evidences of indebtedness, mortgages, security interests, or other instrument of security or guaranty which may have been obtained to evidence a loan from the district to property owners within the district to accomplish the purposes of this subchapter.

(c) Assessments of benefits against the property owners in the district may not be pledged to secure the payment of the bonds authorized by this subchapter.