§ 14-232-105 - Revenue bonds -- Terms -- Indenture -- Execution.
14-232-105. Revenue bonds -- Terms -- Indenture -- Execution.
(a) The issuance of revenue bonds shall be by order of the county court or by ordinance of the municipality.
(b) The bonds may be coupon bonds payable to bearer but subject to registration as to principal and interest, may be made exchangeable for bonds of another denomination, may be in such form and denominations, may be made payable at such places within or without the state, may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, not exceeding forty (40) years from their respective dates, may bear interest at such rate or rates, may be payable in such medium of payment, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the order or ordinance authorizing their issuance may provide, including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the maintaining of rates and charges, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the county or municipality and the trustee for the holders and registered owners of the bonds, and the rights of the holders and registered owners of the bonds.
(c) There may be successive bond issues for the purpose of financing the same project and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects already in existence, whether or not originally financed by bonds issued under this chapter, with each successive issue to be authorized as provided by this chapter.
(d) Priority between and among issues and successive issues as to security of the pledge of revenues may be controlled by the order or ordinance authorizing the issuance of bonds hereunder.
(e) Subject to the provisions hereof pertaining to registration, the bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
(f) (1) The order or ordinance authorizing the bonds may provide for the execution by the county or municipality of an indenture which defines the rights 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.
(2) 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 the custody and application of the proceeds of the bonds, the maintaining of rates and charges, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the county or municipality and the trustee, and the rights of the holders and registered owners of the bonds.
(g) The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the county or municipality may determine by order or ordinance.
(h) The bonds shall be executed by the county judge and county clerk of the county or by the mayor and the city clerk or recorder of the municipality, with either the manual or facsimile signature of the county judge or mayor but with the manual signature of the clerk or recorder. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall nevertheless be valid and sufficient for all purposes. The coupons attached to the bonds may be executed by the facsimile signature of the county judge of the county or the mayor of the municipality.