§ 15-22-715 - Payment of debt service -- Transfer and use of funds.
15-22-715. Payment of debt service -- Transfer and use of funds.
(a) (1) On or before commencement of each fiscal year, the Chief Fiscal Officer of the State shall determine the estimated amount required for payment for all or a part of debt service on the bonds issued under this subchapter during that fiscal year, after making deductions therefrom of estimated moneys to be available to the Arkansas Natural Resources Commission from other sources therefor, and shall certify the estimated amount to the Treasurer of State.
(2) The Treasurer of State shall then make monthly transfers from the State Apportionment Fund to the bond fund of such amount of general revenues for allocation, as that term is defined in the Revenue Stabilization Law, 19-5-101 et seq., as shall be required to pay the maturing debt service on bonds issued under this subchapter.
(b) (1) (A) The Treasurer of State shall make such additional monthly transfer or transfers of general revenues for allocation as the Chief Fiscal Officer of the State shall certify to him or her as being required to enable the commission to establish and thereafter maintain the Debt Service Reserve Fund to provide a reserve or reserves for payment of debt service on the bonds.
(B) The obligation to make monthly transfers of general revenues for allocation from the State Apportionment Fund to the bond fund and to the Debt Service Reserve Fund shall constitute a first charge against the general revenues for allocation prior to all other uses to which the general revenues for allocation are devoted, either under present law or under any laws that may be enacted in the future.
(2) However, to the extent other general obligation bonds of the state may subsequently be issued, all such general obligation bonds shall rank on a parity of security with respect to payment from general revenues for allocation.
(c) Moneys credited to the bond fund and the Debt Service Reserve Fund shall be used only for the purpose of paying debt service on the bonds, either at maturity or upon redemption prior to maturity, and for that purpose the Treasurer of State is designated disbursing officer to administer the funds in accordance with the provisions of this subchapter.
(d) The Debt Service Reserve Fund shall be held and used to ensure prompt payment of debt service on the bonds in such manner and pursuant to such conditions as may be specified by the commission in the resolution or trust indenture authorizing or securing the bonds.
(e) Moneys in the bond fund and the Debt Service Reserve Fund over and above the amount necessary to ensure the prompt payment of debt service on the bonds, and the establishment and maintenance of a reserve fund, if any, may be used for the redemption of bonds prior to maturity in the manner and in accordance with the provisions pertaining to redemption prior to maturity as set forth in the resolution or trust indenture authorizing or securing the bonds.