Arkansas Code Title 14. Local Government § 14-234-508. Issuance of bonds--General provisions

(a) Bonds provided for in this subchapter shall be issued in whatever amounts may be necessary to provide sufficient funds to pay the total costs of acquisition or construction of the several waterworks systems to be provided for the several municipalities joining in the undertaking. The total costs shall include engineering, legal, and other expenses, together with interest to a date six (6) months subsequent to the estimated date of completion of all of the waterworks systems.

(b) Bonds issued under the provisions of this subchapter are declared to be negotiable instruments.

(c) Bonds shall be executed as provided in this subchapter and be sealed with the corporate seals of the municipalities. In the event any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before delivery of the bonds, the signatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until delivery.

(d) Bonds authorized under the provisions of this subchapter may be sold at not less than ninety cents (90¢) on the dollar and the proceeds derived therefrom shall be used exclusively for the purposes for which the bonds are issued. The bonds may be sold at one time or in parcels as funds are needed and may be sold at private sale or at public sale upon whatever notice and in whatever manner the municipalities may determine in their respective ordinances.

(e) In the issuance and sale of the bonds, the municipalities may employ a fiscal agent and shall pay for its services reasonable compensation, except that no fiscal agent may purchase, directly or indirectly, any bonds of the municipalities while it serves them in the capacity of fiscal agent.