§ 14-269-106 - Bonds -- Issuance, sale, and execution.
14-269-106. Bonds -- Issuance, sale, and execution.
(a) (1) The issuance of revenue bonds shall be by ordinance of the municipality.
(2) The bonds may be coupon bonds payable to bearer or may be made registrable as to principal only with interest coupons, or may be made registrable as to both principal and interest without interest coupons.
(3) The bonds may be exchanged for bonds of another denomination, which bonds of another denomination may, in turn, be either coupon bonds payable to bearer, coupon bonds registrable as to principal only, or bonds registrable as to both principal and interest without interest coupons.
(4) The bonds may be in such form and denominations; may be made payable at such places within or without the state; may be issued in one (1) or more series; may bear such date or dates; may mature at such time or times, not exceeding forty (40) years from their respective dates; may bear interest at such rate or rates; may be payable in such medium of payment; may be subject to such terms of redemption; and may contain such terms, covenants, and conditions as the ordinance authorizing their issuance may provide including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the municipality and the trustee for the holders and registered owners of the bonds, and the rights of the holders and registered owners of the bonds.
(5) There may be successive bond issues for the purpose of financing the same project, including land, buildings, or facilities, and there may be successive bond issues for financing the cost of reconstructing, replacing, constructing additions to, extending, improving, and equipping projects, land, buildings, or facilities, already in existence, whether or not originally financed by bonds issued under this subchapter, with each successive issue to be authorized as provided by this subchapter.
(6) Priority between and among issues and successive issues as to security of the pledge of revenues and mortgage liens on the land, buildings, and facilities involved may be controlled by the ordinance authorizing the issuance of bonds under this subchapter.
(7) The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas.
(b) (1) The ordinance may provide for the execution by the municipality of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders.
(2) The indenture may control the priority between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the municipality and the trustee, and the rights of the holders and registered owners of the bonds.
(3) It shall not be necessary for the municipality to publish any indenture or any lease if the ordinance authorizing an indenture or the ordinance authorizing a lease is published as required by the law governing the publication of ordinances of a municipality, the ordinance advises that a copy of the indenture or a copy of the lease, as the case may be, is on file in the office of the clerk or recorder of a municipality for inspection by any interested person, and the copy of the indenture or the copy of the lease, as the case may be, is actually filed with the clerk or recorder of the municipality.
(c) (1) The bonds may be sold for such price, including, without limitation, sale at a discount, and in such manner as the municipality may determine by ordinance.
(2) The bonds may be sold with the privilege of conversion into an issue bearing another rate or rates of interest, upon such terms that the municipality receives no less and pays no more than it would receive and pay if the bonds were not converted, and the conversion shall be subject to the approval of the governing body of the municipality.
(d) (1) The bonds shall be executed by the mayor and the city clerk or recorder of the municipality, and, in case any of the officers whose signatures appear on the bonds or coupons shall cease to be officers before the delivery of the bonds or coupons, the signatures shall, nevertheless, be valid and sufficient for all purposes.
(2) The coupons attached to the bonds may be executed by the facsimile signature of the mayor of the municipality.