§ 4-35-301 - Issuance of bonds.
4-35-301. Issuance of bonds.
(a) A water authority is authorized at any time and from time to time to issue its interest-bearing bonds for the purpose of acquiring, constructing, improving, enlarging, completing, and equipping one (1) or more projects.
(b) (1) (A) Prior to a water authority's proposed issuance of bonds, the water authority shall publish one (1) time in a newspaper of general circulation in the affected county or counties in which the project or projects are or will be located:
(i) Notice of the proposed issuance of bonds;
(ii) The maximum principal amount of bonds contemplated to be sold;
(iii) A general description of the project contemplated to be financed or refinanced with bond proceeds; and
(iv) The date, time, and location of a public meeting at which members of the public may obtain further information regarding the bonds and the development of the project.
(B) Notice under subdivision (b)(1)(A) of this section shall be published at least ten (10) days prior to the date of the hearing described in subdivision (b)(1)(A)(iv) of this section.
(2) A water authority president or his or her designee shall be responsible for conducting the hearing and shall require all public comments that might pertain to the proposed issuance of bonds by the water authority.
(3) (A) Upon compliance with the provisions of this section, no other notice, hearing, or approval by any other entity or governmental unit shall be required as a condition to the issuance by a water authority of its contemplated bonds.
(B) The provisions of the Revenue Bond Act of 1987, 19-9-601 et seq., do not apply to this section.
(4) The requirements of this subsection shall not apply to the issuance of bonds to refund bonds of the water authority for which a public hearing was held.
(c) The principal of and the interest on any bonds may be payable out of the revenues derived from the projects with respect to which the bonds are issued or from any other source available to a water authority.
(d) None of the bonds of a water authority shall ever constitute an obligation or debt of the state, the city, the county in which the water authority operates, the Arkansas Natural Resources Commission, or any officer or director of the water authority or a charge against the credit or taxing powers of the state.
(e) As the water authority shall determine, bonds of the water authority may:
(1) Be issued at any time and from time to time as may be appropriate and necessary;
(2) Be in such form and denominations as may be appropriate and necessary;
(3) Have such date or dates as may be appropriate and necessary;
(4) Mature at such time or times and in such amount or amounts as may be appropriate and necessary, provided that no bonds may mature more than forty (40) years after the date of issuance;
(5) Bear interest payable at such times and at such rate or rates as may be established by the board, as may be appropriate and necessary;
(6) Be payable at such place or places within or without the State of Arkansas as may be appropriate and necessary;
(7) Be subject to such terms of redemption in advance of maturity at such prices, including such premiums, as may be appropriate and necessary; and
(8) Contain other terms and provisions as may be appropriate or necessary.
(f) (1) Bonds of a water authority may be sold at either public or private sale in such manner and from time to time as may be determined by the board to be most advantageous.
(2) The water authority may pay all expenses, premiums, and commissions that the board may deem necessary or advantageous in connection with the authorization, sale, and issuance of its bonds.
(g) (1) All bonds shall contain a recital that they are issued pursuant to the provisions of this chapter.
(2) The recital shall be conclusive that the bonds have been authorized pursuant to the provisions of this chapter.
(h) Other than financing leases, all bonds issued under the provisions of this chapter shall be negotiable instruments within the meaning of the negotiable instruments law of the state and shall be in registered form.
(i) All bonds issued under this chapter shall be approved by resolution adopted by the board of the water authority.