2015 Arkansas Code
Title 14 - Local Government
Subtitle 13 - Public Utility Improvement Districts
Chapter 217 - General Consolidated Public Utility System Improvement Districts
§ 14-217-110 - Bonds generally.

(a) Bonds of the district shall be authorized by resolution of the board of commissioners.

(b) The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest, and may be made exchangeable for bonds of another denomination, may be in such form and denominations, may have such date or dates, may be stated to mature at such time or times, may bear interest payable at such times and at such rate or rates, may be made subject to such terms of redemption in advance of maturity at such prices, and may contain such terms and conditions, all as the board shall determine.

(c) The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration as set forth above.

(d) The authorizing resolution may contain any of the terms, covenants, and conditions that are deemed desirable by the board, including, without limitation, those pertaining to the maintenance and investment of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the priority of pledges in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting in securities specified by the board) of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the district, the board, and of the holders and the registered owners of the bonds.

(e) The authorizing resolution may provide for the execution of a trust indenture by the district with a bank or trust company within or without the State of Arkansas. The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board including, without limitation, those pertaining to the maintenance and investment of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the priority of pledges in that event, the custody and application of the proceeds of the bonds, the collection and disposition of assessments and of revenues, the investing and reinvesting in securities specified by the board of any moneys during periods not needed for authorized purposes, and the rights, duties, and obligations of the board, the trustee, and the holders and registered owners of the bonds.

(f) The bonds shall be executed by the manual or facsimile signature of the chairman of the board and by the manual signature of the secretary of the board. The coupons attached to the bonds may be executed by the facsimile signature of the chairman of the board. 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, their signatures shall, nevertheless, be valid and sufficient for all purposes. The district shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the district.

(g) The bonds may be sold for such price, including, without limitation, sale at a discount and may be sold in such manner as the district may determine.

(h) It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter, that the bonds are obligations only of the district, and that in no event do they constitute any indebtedness for which the faith and credit of any municipality is pledged.

(i) No member of the board of commissioners shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this chapter, unless he shall have acted with corrupt intent.