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Arkansas Code Title 14. Local Government § 14-217-109. Bonds--Issuance--Use of funds

Current as of March 28, 2024 | Updated by Findlaw Staff

(a) Consolidated utility districts are authorized to use any available funds and revenues to pay and provide for costs of accomplishing any of the purposes authorized by this chapter and are authorized to sell and issue bonds and to use the proceeds thereof to pay and provide for costs of accomplishing construction under this chapter, either alone or with other available funds and revenues. The amount of bonds issued shall be sufficient to pay all costs of accomplishing the construction, all costs of issuing the bonds, amounts necessary for reserves, if desirable, the amount necessary to provide for debt service on the bonds until funds for the payment thereof are available, and any other costs of whatever nature necessary or appropriate to the accomplishment of the construction.

(b)(1) Bonds issued by the district may be assessment-secured bonds. The district may pledge for the security and payment of assessment-secured bonds all or any specified portion of the uncollected assessments of benefits levied by the district. As additional security, the district may pledge for the security and payment of assessment-secured bonds all or any specified portion of the revenues including, without limitation, lease rentals, derived or to be derived by the district from any systems owned or operated by the district.

(2) In the resolution or trust indenture authorizing or securing assessment-secured bonds, the district may provide for suspension of collection of assessments or taxes and the use of other funds or revenues for payment of such bonds, upon terms and conditions set forth in the resolution or trust indenture.

(c)(1) Bonds issued by the district may be revenue bonds. The district may pledge for the security and payment of revenue bonds all or any specified portion of the revenues including, without limitation, lease rentals derived or to be derived by the district from any systems owned or operated by the district.

(2) In this regard, but without limiting the generality of the foregoing, the district is authorized to issue revenue bonds for the purpose of financing construction of one (1) or more separate and distinct systems and to pledge to the revenue bonds, either by direct cross pledge or by pledge of surplus revenues, all or any specified portion of the revenues derived or to be derived from other systems owned or operated by the district.

(d) Subject to covenants and agreements entered into under the authority of this chapter or other laws, any district may use any of its revenues for any lawful purpose.

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Cite this article: FindLaw.com - Arkansas Code Title 14. Local Government § 14-217-109. Bonds--Issuance--Use of funds - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-14-local-government/ar-code-sect-14-217-109/

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