§ 14-170-207 - Bonds generally.
14-170-207. Bonds generally.
(a) (1) The issuance of bonds shall be by ordinance of the municipality or order of the county court.
(2) As the ordinance or order authorizing their issuance may provide, the bonds may:
(A) Be coupon bonds payable to bearer, but subject to registration as to principal or as to principal and interest;
(B) Be exchangeable for bonds of another denomination;
(C) Be in such form and denominations;
(D) Be made payable at such place or places within or without the state;
(E) Be issued in one (1) or more series;
(F) Bear such date or dates;
(G) Mature at such time or times, not exceeding forty (40) years from their respective dates;
(H) Bear interest at such rate or rates;
(I) Be payable in such medium of payment;
(J) Be subject to such terms of redemption; and
(K) Contain such terms, covenants, and conditions including, without limitation, those pertaining to:
(i) The custody and application of the proceeds of the bonds;
(ii) The collection and disposition of revenues;
(iii) The maintenance and investment of various funds and reserves;
(iv) The nature and extent of the security and pledging of revenues;
(v) The rights, duties, and obligations of the municipality or county and the trustee for the holders and registered owners of the bonds; and
(vi) The rights of the holders and registered owners of the bonds.
(3) There may be successive bond issues for the purpose of financing the same tourism project. There may also be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping tourism projects already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.
(4) Priority between and among issues and successive issues as to security of the pledge of revenues and lien on the tourism project facilities involved may be controlled by the ordinance or order authorizing the issuance of bonds under this subchapter.
(5) Subject to the provisions of this section pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
(b) (1) (A) The ordinance or order authorizing the bonds may provide for the execution by the municipality or county of an indenture which defines the right of the holders and registered owners of the bonds and provides for the appointment of a trustee for the holders and registered owners of the bonds.
(B) The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to:
(i) The custody and application of the proceeds of the bonds;
(ii) The maintaining of rates and charges;
(iii) The collection and disposition of revenues;
(iv) The maintenance of various funds and reserves;
(v) The nature and extent of the security and pledging of revenues; and
(vi) The rights, duties, and obligations of the municipality and the trustee and the rights of the holders and registered owners of the bonds.
(2) It shall not be necessary for the municipality to publish any indenture or any lease if the ordinance authorizing an indenture or lease is published as required by law governing the publication of ordinances of a municipality and the ordinance advises that a copy of the indenture or a copy of the lease, as the case may be, is on file in the office of the clerk or recorder of the municipality for inspection by any interested person, and the copy of the indenture or the copy of the lease, as the case may be, is actually filed with the clerk or recorder of the municipality.
(c) The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality or county may determine by ordinance or county court order.
(d) (1) (A) The bonds shall be executed by the mayor and the city clerk or recorder of the municipality or the county judge and county clerk of the county, with either the facsimile or manual signature of the mayor or county judge, but with the manual signature of the clerk or recorder and of the county clerk.
(B) In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes.
(2) The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality or the county judge of the county.