Arkansas Code Title 14. Local Government § 14-218-131. Issuance of bonds

(a) In order to hasten the work provided for in the original or any additional or supplementary plans and to pay the indebtedness owed by any separate district whose plant or system is acquired by such consolidated district, the board may borrow money at a rate or rates of interest as provided by the resolution authorizing issuance of bonds.

(b) In order to carry out any of the above purposes, the board may sell bonds which may be secured by a mortgage of uncollected assessments or a part of same and by a mortgage on the consolidated plant and system. The sale of all bonds shall be at public auction after notice of such sale has been published one (1) time a week for two (2) weeks in some newspaper published and having a bona fide circulation in the county in which the district is located.

(c) Mortgages given by the board shall have priority in the order of their recording.

(d) The total outstanding indebtedness of the district, excluding interest, shall never exceed fifty percent (50%) of the assessed value of the real estate in the district, as shown by the last county assessment.