State Codes and Statutes

Statutes > Arkansas > Title-22 > Chapter-3 > Subchapter-9 > 22-3-908

22-3-908. Bonds -- Issuance and terms.

(a) In evidence of loans of funds, the Arkansas Development Finance Authority is authorized and empowered to issue its bonds at one (1) time or in series from time to time, as provided in this section, and to use the proceeds thereof, together with other available funds, for defraying the costs of accomplishing the construction of the Arkansas Justice Building, together with all expenses incidental to and reasonably necessary in connection therewith, for paying the expenses of the issuance of the bonds; for the creation of a reserve for contingencies to secure the payment of the bonds, if the authority deems it necessary or desirable; and for providing for the payment of interest on the bonds, if necessary, until sufficient funds are available.

(b) (1) The bonds shall be authorized by resolution of the authority.

(2) The bonds may be issued at one (1) time or in series from time to time, and the authorizing resolution may control any priority between or among successive series or issues.

(3) The bonds:

(A) May be coupon bonds, payable to bearer, or may be registrable as to principal only or as to both principal and interest;

(B) May be in such form and denomination;

(C) May have such date or dates;

(D) May be stated to mature at such times, not exceeding forty (40) years from the date thereof;

(E) May bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding eight percent (8%) per annum;

(F) May be made payable at such place or places within or without the State of Arkansas;

(G) May be made subject to such terms of redemption in advance of maturity at such prices; and

(H) May contain such other terms and conditions, all as the commission shall determine.

(4) The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration of ownership, as set forth in subdivision (3) of this subsection.

(c) The authorizing resolution may contain any other terms, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the issuance of additional bonds, and the nature of the pledge and security, whether parity or priority, in that event, and the rights, duties, and obligations of the authority and of the holders and registered owners of the bonds as the authority shall determine.