15-5-1906. Trust indenture funds and accounts.

Arkansas Code — all titles (historical 2020) · legal_authorities

15-5-1906. Trust indenture funds and accounts.

15-5-1906. Trust indenture funds and accounts. (a) All proceeds derived from a particular obligation under this subchapter shall be deposited into funds or accounts to be created pursuant to a trust indenture with a trustee as shall be determined by the Arkansas Development Finance Authority. (b) Funds credited to an account or fund created by a trust indenture may be used for any or all of the following purposes: (1) The payment of the necessary expenses, including without limitation, the costs of issuing the authority's obligations incurred by the authority in carrying out its responsibilities under this subchapter; (2) The establishment of a debt service reserve account to secure the payment of obligations; (3) The making of guaranteed educational loans to qualified borrowers; (4) The purchase or acquisition, either directly or acting through a bank with trust powers for its account, of guaranteed educational loan notes executed after March 30, 1977, by qualified borrowers or of education loan notes; (5) The acquisition of an investment contract or contracts or any other investments permitted under an indenture of the authority securing its obligations. However, the income from the contract, contracts, or investments, after payment of the obligations and all expenses associated therewith, shall be used by the authority to assist in carrying out its purposes under this subchapter; and (6) The making of education loans.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-5-1906

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.