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14-199-303. Payment — Bond.
Arkansas Code — all titles (historical 2020) · legal_authorities
14-199-303. Payment — Bond.
(a) Where the sale price is an amount greater than the outstanding secured indebtedness of the district, at least the excess over the amount of the secured indebtedness shall be paid in cash.
(b)(1) All deferred payments, if any, shall be secured by a bond for one and one-half (1½) times the total amount of the deferred payments. This bond shall be for the maintenance of the plant or system during the time of any outstanding secured indebtedness and for the prompt payment of any interest or principal on any secured indebtedness as and when the interest or principal shall fall due.
(2) The bond shall be further conditioned that the purchaser will maintain insurance upon the plant for an amount to be agreed upon, with a “loss payable” clause for the benefit of the town or city making the sale as its interest may appear.
(3) The bond shall be approved by the town or city council.
(4) The bond provided for in this section and § 14-199-301 shall be made by a corporate surety company authorized to do business in the State of Arkansas.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-199-303
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Record provenance
Stable record: arkansas_code:legal_authorities:14-199-303
Source file: gov.ar.code.title.14.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 8ad1eabdcf232946f5d32709a9d850f17fd4d07a9ef1adc6a741d3781530f2eb
Source location: content.xml paragraph 44579
Stored source content
14-199-303. Payment — Bond.
(a) Where the sale price is an amount greater than the outstanding secured indebtedness of the district, at least the excess over the amount of the secured indebtedness shall be paid in cash.
(b)(1) All deferred payments, if any, shall be secured by a bond for one and one-half (1½) times the total amount of the deferred payments. This bond shall be for the maintenance of the plant or system during the time of any outstanding secured indebtedness and for the prompt payment of any interest or principal on any secured indebtedness as and when the interest or principal shall fall due.
(2) The bond shall be further conditioned that the purchaser will maintain insurance upon the plant for an amount to be agreed upon, with a “loss payable” clause for the benefit of the town or city making the sale as its interest may appear.
(3) The bond shall be approved by the town or city council.
(4) The bond provided for in this section and § 14-199-301 shall be made by a corporate surety company authorized to do business in the State of Arkansas.
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Arkansas Code — all titles (historical 2020) · legal_authorities
14-199-301. Lease or contract.
(a) The council of any municipal corporation operating a system of waterworks or sewer or gas or electric plants belonging to and owned by any town or city may lease, or may contract for the operation of, the system of waterworks or sewer or gas or electric plants for such period of time and upon such terms and conditions as the council may deem for the best interest of the town or city.
(b) The lessees, or parties with which the town or city has contracted, shall be required to maintain, keep in repair, and return the plant to the town or city in as good condition as when received, ordinary wear and tear excepted, but the maintenance contemplated shall permit more modern or suitable machinery or equipment, equally as efficient to perform the service required, to be installed in place of machinery or equipment then in use.
(c) No lease shall be made, and no contract for the operation of any such system shall be entered into, except with persons, firms, or corporations, both for profit and nonprofit, holding a franchise to operate a system of waterworks or sewer or gas or electric plants in the city or town in which the plant or system to be leased or operated is situated.
(d) No plant shall be taken over for operation under the provisions of this subchapter unless and until the lessee, or the party with which the town or city contracts, has filed with the town or city an approved bond, in such sum as the council may require, for the faithful fulfillment of the terms of the lease or contract.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-199-301
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 14-199-301. This identifies an authority to review, not proof of applicability.