§ 15-5-309 - Authorizing resolution and trust indenture -- Terms and qualities of bonds.
15-5-309. Authorizing resolution and trust indenture -- Terms and qualities of bonds.
(a) (1) Bonds issued in accordance with this subchapter shall be authorized by resolution of the Arkansas Development Finance Authority.
(2) The bonds may be issued as registered bonds or coupon bonds, payable to bearer, and if coupon bonds, may be registerable as to principal only or as to principal and interest and may be exchangeable for bonds of another denomination or in another form.
(3) The bonds may:
(A) Be in such form and denominations;
(B) Have such date or dates;
(C) Be stated to mature at such time or times;
(D) Bear interest payable at such times and at such rate or rates, including variable rates;
(E) Be zero coupon or capital appreciation bonds;
(F) Be payable at such places within or without the state;
(G) Be subject to such terms of redemption in advance of maturity at such prices; and
(H) Contain such terms and conditions,
all as the authority shall determine.
(4) The bonds shall be denominated in the currency of the United States unless the authority in its discretion determines that denominating the bonds in the currency of a foreign country is in the best interests of the authority. In that case, the bonds may be denominated in the currency of a foreign country.
(5) The bonds shall have all the qualities of and shall be deemed to be negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration as set forth in this subsection.
(6) The authorizing resolution may contain any other terms, covenants, and conditions that the authority deems reasonable and desirable, including, without limitation, those pertaining to the:
(A) Maintenance of various funds and reserves;
(B) Nature and extent of any security for payment of the bonds;
(C) Custody and application of the proceeds of the bonds;
(D) Collection and disposition of revenues;
(E) Investing for authorized purposes; and
(F) Rights, duties, and obligations of the authority and the holders and registered owners of the bonds.
(b) (1) The authorizing resolution may provide for the execution of a trust indenture between the authority and any financial institution within or without the State of Arkansas.
(2) The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the authority, including, without limitation, those pertaining to the:
(A) Maintenance of various funds and reserves;
(B) Nature and extent of any security for the payment of the bonds;
(C) Custody and application of the proceeds of the bonds;
(D) Collection and disposition of revenues;
(E) Investing and reinvesting of any moneys during periods not needed for authorized purposes;
(F) Credit enhancement and liquidity features; and
(G) Rights, duties, and obligations of the authority and the holders and registered owners of the bonds.
(c) (1) Any authorizing resolution and trust indenture relating to the issuance and security of the bonds shall constitute a contract between the authority and holders and registered owners of the bonds.
(2) The contract and all covenants, agreements, and obligations therein shall be promptly performed in strict compliance with the terms and provisions of the contract, and the covenants, agreements, and obligations of the authority may be enforced by mandamus or other appropriate proceeding at law or in equity.