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14-235-216. Terms, execution, and sale of bonds.
Arkansas Code — all titles (historical 2020) · legal_authorities
14-235-216. Terms, execution, and sale of bonds.
(a)(1) Revenue bonds issued under this subchapter shall bear interest at such rate or rates, payable annually or at shorter intervals, and shall mature at such time or times as may be determined by ordinance.
(2) The bonds may be made redeemable before maturity, at the option of the municipality, to be exercised by the sewer committee, at not more than the par value thereof and a premium of five percent (5%), under such terms and conditions as may be fixed by the ordinance authorizing the issuance of the bonds.
(3) The principal and interest of the bonds may be made payable in any lawful medium.
(4) The ordinance shall determine the form of the bonds, including the interest coupons to be attached to them, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest of them, which may be at any bank or trust company within or without the state.
(5) The bonds shall contain a statement on their face that the municipality shall not be obligated to pay them or the interest on them except from the special fund provided from the net revenues of the works.
(6) All such bonds shall be, shall have, and are declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments laws of the state.
(7)(A) The bonds shall be exempt from all taxation, state, county, and municipal.
(B) This exemption shall include income taxation and inheritance taxation, as well as all forms of property taxation.
(8) Provisions may be made for the registration of any of the bonds in the name of the owner as to principal alone.
(b) Bonds shall be executed in the same manner as other bonds issued by municipalities are executed.
(c)(1)
Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-235-216
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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Stable record: arkansas_code:legal_authorities:14-235-216
Source file: gov.ar.code.title.14.odt
Pages: Not recorded – Not recorded
Passage SHA-256: f1cd7c866a1e078e5dc58bbf8629c5fc11d24cecc8abe7fe5c650599ca75c9c3
Source location: content.xml paragraph 49433
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14-235-216. Terms, execution, and sale of bonds.
(a)(1) Revenue bonds issued under this subchapter shall bear interest at such rate or rates, payable annually or at shorter intervals, and shall mature at such time or times as may be determined by ordinance.
(2) The bonds may be made redeemable before maturity, at the option of the municipality, to be exercised by the sewer committee, at not more than the par value thereof and a premium of five percent (5%), under such terms and conditions as may be fixed by the ordinance authorizing the issuance of the bonds.
(3) The principal and interest of the bonds may be made payable in any lawful medium.
(4) The ordinance shall determine the form of the bonds, including the interest coupons to be attached to them, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest of them, which may be at any bank or trust company within or without the state.
(5) The bonds shall contain a statement on their face that the municipality shall not be obligated to pay them or the interest on them except from the special fund provided from the net revenues of the works.
(6) All such bonds shall be, shall have, and are declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments laws of the state.
(7)(A) The bonds shall be exempt from all taxation, state, county, and municipal.
(B) This exemption shall include income taxation and inheritance taxation, as well as all forms of property taxation.
(8) Provisions may be made for the registration of any of the bonds in the name of the owner as to principal alone.
(b) Bonds shall be executed in the same manner as other bonds issued by municipalities are executed.
(c)(1) The bonds shall be sold by the sewer committee in such manner as may be determined to be for the best interests of the municipality and subject to the approval of the municipal council or the committee.
(2) Any surplus of bond proceeds over and above the cost of the works shall be paid into the sinking fund provided for in § 14-235-221.
(3) If the proceeds of the bonds, by error or calculation or otherwise, shall be less than the cost of the works, additional bonds may in like manner, be issued to provide the amount of the deficit and, unless otherwise provided in the ordinance authorizing the issuance of the bonds first issued or in the trust indenture executed in connection with them, shall be deemed to be the same issue as the antecedent bonds, secured by a lien of equal rank and in all other respects upon a parity with them.
(4) Prior to the preparation of the definitive bonds, temporary bonds may, under like restrictions, be issued with or without coupons, exchangeable for definitive bonds upon the issuance of the latter.
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Arkansas Code — all titles (historical 2020) · legal_authorities
14-235-221. Sinking fund to pay bonds and interest.
(a)(1) At or before the issuance of any bonds under this subchapter, the municipal council shall, by ordinance, create a sinking fund for the payment of the bonds and the interest on them and the payment of the charges of banks or trust companies for making payment of the bonds or interest and shall set aside and pledge a sufficient amount of the net revenues of the works, meaning the revenues of the works remaining after the payment of the reasonable expense of operation, repair, and maintenance.
(2)(A) This amount shall be paid by the sewer committee into the sinking fund at intervals to be determined by ordinance prior to issuance of the bonds, for:
(i) The interest upon the bonds as interest shall fall due;
(ii) The necessary fiscal agency charges for paying bonds and interest;
(iii) The payment of the bonds as they fall due, or, if all bonds mature at one time, the proper maintenance of a sinking fund sufficient for the payment of them at such time; and
(iv) A margin for safety and for the payment of premiums upon bonds retired by call or purchase as provided in this subchapter, which margin, together with any unused surplus of such margin carried forward from the preceding year, shall equal ten percent (10%) of all other amounts so required to be paid into the sinking fund.
(B) Required payments shall constitute a first charge upon all the net revenues of the works.
(b)(1) Prior to the issuance of the bonds, the committee, by ordinance, may be given the right to use or direct the trustee to use the sinking fund, or any part of it, in the purchase of any of the outstanding bonds payable from it at the market price of them but not exceeding the price, if any, at which they shall, in the same year, b
Source: Arkansas Code — historical release 78 (November 6, 2020) · 14-235-221
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 14-235-221. This identifies an authority to review, not proof of applicability.