2019 Arkansas Code
Title 25 - State Government
Chapter 20 - Interlocal Cooperation Act
Subchapter 3 - Consolidated Waterworks Systems
§ 25-20-324. Interim Financing

(a) If the issuance of revenue bonds is authorized by resolution of the board of commissioners, any public body created under this subchapter is authorized to obtain interim financing pending the delivery of all or any part of the bonds from such sources and upon such terms as the board of commissioners of the public body shall determine.

(b)

• (1) As evidence of any indebtedness so incurred, the public body may execute and deliver its promissory note or notes and pledge to the payment thereof any revenues authorized by this subchapter to be pledged to revenue bonds and the proceeds of the revenue bonds when issued.

• (2) The public body may secure the notes in the same manner as revenue bonds issued under this subchapter.

(c) The notes shall not in any event constitute an indebtedness of, nor pledge the faith and credit of, the State of Arkansas or the participating public agencies of the public body within the meaning of any constitutional or statutory limitation.

(d) The public body may use, as distinguished from pledge, any available revenues to pay or to apply to the payment of the principal of and interest on the notes and may use the proceeds of revenue bonds, either alone or with other available revenues, to pay the principal and interest on the notes.

(e) The notes may bear such date or dates, may mature at such time or times, not exceeding thirty-six (36) months from their respective dates, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable at such place or places, may contain such provisions for prepayment prior to maturity and may contain such other terms, covenants, and conditions as the resolution may provide, not inconsistent with the provisions of this subchapter pertaining to revenue bonds.