27-76-604. Bond resolution required.

27-76-604. Bond resolution required. (a) Bonds issued in accordance with this chapter shall be authorized by resolution of the board of directors of the regional mobility authority. (b) The bonds may be issued as registered bonds and may be exchangeable for bonds of another denomination or in another form. (c) As determined in the bond resolution, the bonds of each issue shall: (1) Be dated; (2) Bear interest at the rate or rates provided by the bond resolution beginning on the dates provided by the bond resolution as authorized by law or bear no interest; (3) Mature at the time or times provided by the bond resolution, not exceeding forty (40) years from their date or dates; and (4) Be made redeemable before maturity at the price or prices and under the terms provided by the bond resolution. (d) As determined in the bond resolution, the bonds of each issue may: (1) Be in the form and denominations determined by the board of directors of the regional mobility authority; (2) Be payable at the places within or without the state determined by the board of directors of the regional mobility authority; or (3) Contain the terms and conditions determined by the board of directors of the regional mobility authority. (e) The bonds shall have all of the qualities of and shall be deemed to be negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration as set forth in this section. (f) The authorizing resolution may contain any other terms, covenants, and conditions that the board of directors of the regional mobility authority deem to be reasonable and desirable, including without limitation those pertaining to the: (1) Maintenance of various funds and reserves; (2) Nature and extent of any security for payment of the bonds; (3) Custody and application of the proceeds of the bonds; (4) Collection and disposition of revenues; (5) Investment for authorized purposes; and (6) Rights, duties, and obligations of the regional mobility authority and the holders and registered owners of the bonds. (g)(1) The authorizing resolution may provide for the execution of a trust indenture between the regional mobility authority and any financial institution within or without the State of Arkansas. (2) The trust indenture may contain any terms, covenants, and conditions that are deemed desirable by the board of directors of the regional mobility authority, including without limitation those pertaining to the: (A) Maintenance of various funds and reserves; (B) Nature and extent of any security for the payment of the bonds; (C) Custody and application of the proceeds of the bonds; (D) Collection and disposition of revenues; (E) Investment and reinvestment of any moneys during periods not needed for authorized purposes; and (F) Rights, duties, and obligations of the regional mobility authority and the holders and registered owners of the bonds. (h)(1) An authorizing resolution and trust indenture relating to the issuance and security of the bonds shall constitute a contract between the regional mobility authority and the holders or registered owners of the bonds. (2) The contract and all covenants, agreements, and obligations in the contract shall be promptly performed in strict compliance with the terms and provisions of the contract, and the covenants, agreements, and obligations of the regional mobility authority may be enforced by mandamus or other appropriate proceeding at law or in equity. (i)(1) The resolution shall fix the minimum fees, fares, tolls, or charges to be collected prior to the payment of all of the bonds, with exceptions as may be provided in the resolution, and shall pledge the revenues derived from the regional mobility authority's transportation system or any specified portion of the regional mobility authority's transportation system for the purpose of paying the bonds and interest on the bonds. (2) The rates to be charged for the use of the regional mobility authority's transportation system shall be sufficient to provide for the payment of all principal of and interest on all bonds when due. (j)(1) Additional bonds may be issued in the same manner to pay the costs of a transportation project. (2) Unless otherwise provided in the bond resolution, the additional bonds shall be on a parity, without preference or priority, with bonds previously issued and payable from the revenue of the transportation project. (3) A regional mobility authority may issue bonds for a transportation project secured by a lien on the revenue of the transportation project subordinate to the lien on the revenue securing other bonds issued for the transportation project.