15-5-207. Rights, powers, privileges, and duties of authority — Definitions.

15-5-207. Rights, powers, privileges, and duties of authority — Definitions. (a) The Arkansas Development Finance Authority shall have such rights, powers, and privileges and shall be subject to such duties as provided by this chapter. (b) Except as otherwise limited by this chapter, the authority shall have the following powers: (1) To sue; (2) To be sued; (3) To have a seal and alter the seal at its pleasure; (4) To make and alter bylaws for its organization and internal management; (5) To make and issue such rules as may be necessary or convenient in order to carry out the purposes of this chapter; (6) To acquire, hold, and dispose of real and personal property for its corporate purposes; (7) [Repealed.] (8) To borrow money and to issue notes, bonds, and other obligations, whether or not the interest on which is subject to federal income taxation, and to provide for the rights of the lenders or holders thereof; (9) To issue bonds on behalf of state agencies and political subdivisions; (10)(A) To issue bonds to provide financing for a specific activity or particular project authorized under this chapter or to provide on a pooled or consolidated basis financing for activities or projects authorized under this chapter that shall be secured by and payable solely from all or any portion of the following: (i) Proceeds of the bonds; (ii) Reserves established in connection with the bonds; (iii) Lease or loan payments; (iv) Revenues of the authority that are not derived from appropriations; and (v) Obligations issued by or payable to the state agencies, political subdivisions of the state, or others for whose benefit the authority may issue bonds, and the security and sources of payments of the obligations. (B)(i) The authority may also issue bonds for the purpose of generating investment earnings or other income. (ii) The investment earnings or other income shall thereafter be used to finance activities or projects authorized in this section. (C) Prior to the engagement of a financial institution to serve as trustee, paying agent, or in any fiduciary capacity in connection with any program, indenture, or general resolution of the authority, the authority shall request proposals for services, and the selection of the financial institution shall be made on the basis of the response to such a request that is the most economical and in the best interest of the authority; (11) To purchase notes or participations in notes evidencing loans that are secured by mortgages or security interests and to enter into contracts in that regard, or to purchase accounts to finance working capital; (12)(A) To make secured or unsecured loans, including loans made to financial institutions to secure loans made by the financial institutions for qualifying agricultural business enterprises, capital improvements, educational facilities, energy enterprises, healthcare facilities, housing developments, industrial enterprises, and short-term advance funding of local government obligations. (B) Prior to the making of any loan for qualifying agricultural business enterprises or industrial enterprises, the loan transaction shall be recommended to the authority by a financial institution or investment banker; (13) To sell mortgages and security interests at public or private sale, to negotiate modifications or alterations in mortgage and security interests, to foreclose on any mortgage or security interest in default or commence any action to protect or enforce any right conferred upon it by any law, mortgage, security agreement, contract, or other agreement, and to bid for and purchase property that was the subject of such a mortgage or security interest at any foreclosure or at any other sale, to acquire or take possession of any such property, and to exercise any and all rights as provided by law for the benefit or protection of the authority or mortgage holders; (14) To collect fees and charges in connection with its loans, bond guaranties, commitments, and servicing, including, but not limited to, reimbursement of costs of financing as the authority shall determine to be reasonable and as shall be approved by the authority; (15) To make and execute contracts for the servicing of mortgages acquired by the authority pursuant to this chapter and to pay the reasonable value of services rendered to the authority pursuant to those contracts; (16) To accept gifts, grants, loans, and other aid from the United States Government, the state or any state agency, or any political subdivision of the state, or any person or corporation, foundation, or legal entity and to agree to and comply with any conditions attached to federal and state financial assistance not inconsistent with the provisions of this chapter; (17) To invest moneys of the authority, including proceeds from the sale of any bonds, in such manner as the Board of Directors of the Arkansas Development Finance Authority shall determine, subject to any agreement with bondholders stated in the authorizing resolution, as defined in § 15-5-309, providing for the issuance of bonds; (18) To procure insurance against any loss in connection with its programs, property, and other assets; (19) To provide technical assistance and advice to the state, political subdivisions of the state, and local governing authorities and to enter into contracts with the state, political subdivisions of the state, and local governing authorities to provide such services. The state, political subdivisions of the state, and local governing authorities are authorized to enter into contracts with the authority for such services and to pay for such services as may be provided them; (20)(A) To contract, cooperate, or join with any one (1) or more other governments or public agencies or with any political subdivisions of the state or with the United States to perform any administrative service, activity, or undertaking that any such contracting party is authorized by law to perform, including the issuance of bonds. (B) An “intergovernmental agreement” is defined as any service contract entered into by a contracting party that establishes a permanent perpetual relationship thereby obligating the financial resources of the contracting party. (C) As used in this chapter, “permanent or perpetual relationship” means any agreement exhibiting an effective duration greater than one (1) year, twelve (12) calendar months, or an agreement exhibiting no fixed duration but when the apparent intent of such an agreement is to establish a permanent or perpetual relationship. Such intergovernmental agreements shall be authorized by ordinance or resolution of the contracting party. Any intergovernmental agreement enacted may provide for the contracting party to: (i) Cooperate in the exercise of any function, power, or responsibility; (ii) Share the services of any officer, department, board, employee, or facility; and (iii) Transfer or delegate any function, power, responsibility, or duty. (D) An intergovernmental agreement shall be authorized and approved by the governing body of each party to the intergovernmental agreement, shall set forth fully the purposes, powers, rights, obligations, and responsibilities of the contracting parties, and shall specify the following: (i) Its duration; (ii) The precise organization, composition, and nature of any separate legal entity created; (iii) The purpose or purposes of the intergovernmental agreement; (iv) The manner of financing the joint or cooperative undertaking and establishing and maintaining a budget; (v) The permissible method or methods to be employed in accomplishing the partial or complete termination of an intergovernmental agreement and for disposing of property upon partial or complete termination. The method or methods for termination shall include a requirement of six (6) months' written notification of the intent to withdraw by the governing body of the public agency wishing to withdraw; (vi) Provision for an administrator or a joint board responsible for administering the joint or cooperative undertaking, including representation of the contracting parties on the joint board; (vii) The manner of acquiring, holding, and disposing of real and personal property used in the joint or cooperative undertaking; and (viii) Any other necessary and proper matters. (E)(i) Every intergovernmental agreement prior to and as a condition precedent to its final adoption and performance shall be submitted to the Attorney General, who shall determine whether the intergovernmental agreement is in proper form and compatible with the laws of the State of Arkansas. (ii) The Attorney General shall approve any intergovernmental agreement submitted to him or her unless he or she finds it does not meet the conditions set forth in this section and shall detail in writing addressed to the governing bodies of the public agencies concerned the specific respects in which the proposed intergovernmental agreement fails to meet the requirements of law. (iii) Failure to disapprove an intergovernmental agreement within thirty (30) days of its submission shall constitute approval; (21) To undertake and carry out studies and analyses of agricultural business, industrial, health care, housing, energy, educational, capital improvement, and local governments' short-term advance funding needs within the state and ways of meeting such needs; (22) To establish accounts in one (1) or more depositories; (23) To lease, acquire, construct, sell, and otherwise deal in and contract concerning any facilities; (24) To accept funds for and participate in federal and other governmental programs established for the purpose of the promotion and development of agricultural business, industry, the provision of decent, safe, and sanitary housing, health care, education, tourism, capital improvements, and related matters; (25) To have and exercise all of the powers granted to the public housing authorities by the state, except that the authority shall not have the power of eminent domain; (26) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this chapter; (27)(A) To assist minority businesses in obtaining loans or other means of financial assistance. (B) The terms and conditions of such loans or financial assistance, including the charges for interest and other services, will be consistent with the provisions of this chapter. (C) In order to comply with this requirement, efforts must be made to solicit for review and analysis proposed minority business ventures. (D) Be it further provided that basic loan underwriting standards will not be waived to inconsistently favor minority persons or businesses from the intent of the authority's lending practices; (28) To create nonprofit corporations that shall have such purposes and powers as the board shall determine, to assist in carrying out the purposes of this chapter, and to provide technical, administrative, and financial assistance to those nonprofit corporations; (29) To make secured or unsecured loans to or to guarantee the payment of loans made to businesses for the purpose of financing the export of goods to foreign countries if the board shall first find that a substantial portion of the value of those goods prior to export has been or will be added in the state; (30) To make loans and enter into contracts with respect to, and issue bonds on behalf of, nonprofit organizations, including the issuance of qualified 501(c)(3) bonds as defined in the Internal Revenue Code, 26 U.S.C. § 1 et seq.; (31) To make loans and enter into contracts with respect to, and issue bonds on behalf of, scientific and technical services businesses, technology-based enterprises, and tourism enterprises; (32) To administer the allocation of the state ceiling of private activity bonds, as that term is defined in the Tax Reform Act of 1986, which are subject to volume limitations under federal law, including particularly the limitations under 26 U.S.C. § 146; (33) To enter into an interest rate exchange agreement or similar agreement or contract; (34) Make, acquire, take, or purchase guaranteed education loans and education loans with the proceeds of bonds, notes, or any other funds of the authority available or any interest or participation in it: (A) In any amount; (B) At any price; and (C) Upon any terms and conditions the authority determines necessary; (35) Sell guaranteed educational loans or educational loans held by the authority to governmental or private financial institutions; (36) Borrow from governmental or private financial institutions against the security of the guaranteed educational loans or education loans: (A) In any amount; (B) At any price; and (C) Upon any terms and conditions the authority determines necessary; (37) Consent to the modification with respect to security, rate of interest, time of payment of interest or principal, or any other terms of an obligation, bond, note, contract, or agreement between the authority and the recipient or maker of the loan, obligation, bond, note holder, agency, or institution guaranteeing the repayment, purchasing, or selling of a guaranteed educational loan or education loan, when the authority determines it is necessary, subject to a contract with the holders of the bond holders, note holders, or contractees; (38) Collect fees and charges in connection with loans, commitments, and servicing, including without limitation the reimbursement of the cost of financing, as determined reasonable and approved by the authority; (39) Service student loan programs administered by the authority or in which the authority participates or make and execute contracts with an agency, financial institution, or corporation organized under the laws of any state, where the agency, financial institution, or corporation shall service student loan programs administered by the authority or in which the authority participates; (40) Enter into contracts with schools, lenders, individuals, corporations, other agencies of the state, other states, the United States Department of Education, and other agencies of the United States Government to service educational loans or guaranteed educational loans, regardless of where the loans originated; (41) Conduct studies and analyses of student loan funding needs within the state and options for meeting student loan funding needs; (42) Participate in nonprofit and private programs and federal and other governmental programs established for the purpose of the promotion and development of higher education, student loans, and related matters; (43) Enter into contracts to guarantee educational loans, establish reserve accounts related to guaranty agreements, and adopt rules and criteria for guaranties; and (44) Enter into contracts with schools, lenders, individuals, corporations, other agencies of the state, other states, the United States Department of Education, and other agencies of the United States Government for the purpose of the promotion and development of higher education, student loans, and related matters. (c) Applications filed with the authority for direct loans, tax credits, qualified investments, and requests for proposals shall be treated, handled, and considered in the same manner as loan applications under § 15-5-409.