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Arkansas Code Title 15. Natural Resources and Economic Development § 15-5-1904. Cash funds--Sufficient redemption fund required

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

(a)(1) All moneys received by the Student Loan Authority Division of the Arkansas Development Finance Authority or its trustee as repayment of principal or interest on an education loan or as repayment of principal or interest on a guaranteed educational loan, including payments by the United States as subsidies, in payment of the guarantee on guaranteed educational loans made or purchased under this subchapter or as income on any other investment authorized by this subchapter are specifically declared to be cash funds.

(2) The moneys shall not be deposited into the State Treasury but shall be deposited as required by the agreement or trust indenture for each different series of obligations of the division.

(3) A sufficient amount of such money shall always be made available to any redemption fund securing outstanding obligations of the division to ensure their payment and interest thereon as they mature.

(b) All revenues received by the division, except revenues derived from a state appropriation, are declared to be restricted cash funds and shall be used as provided in this subchapter.

(c) The division may use the proceeds of any bond issues, together with any other available funds, for:

(1) Making loans;

(2) Purchasing loans and security interests in loan participations as authorized;

(3) Paying incidental expenses in connection with loans;

(4) Paying expenses of authorizing and issuing bonds;

(5) Paying interest on bonds until revenues are available in sufficient amounts from the bonds; and

(6) Funding reserves as necessary.

(d) Revenues received by the division shall not be deposited into the State Treasury except those revenues received by state appropriation.

(e) Funds of the division shall not inure to the benefit of or be distributed to employees, officers, or directors of the division except as authorized as reasonable compensation.

(f) The revenues not deposited into the State Treasury shall be deposited into an account or accounts specified by resolution of the division and used for carrying out the provisions of any resolution, indenture securing bonds of the division, or other agreement of the division under this subchapter.

(g) The division may establish one (1) or more special funds or accounts to secure bonds issued as necessary under this subchapter.

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Cite this article: FindLaw.com - Arkansas Code Title 15. Natural Resources and Economic Development § 15-5-1904. Cash funds--Sufficient redemption fund required - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-15-natural-resources-and-economic-development/ar-code-sect-15-5-1904/

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