§ 15-4-3207 - Maximum ceiling on bond principal.
15-4-3207. Maximum ceiling on bond principal.
(a) In determining the maximum amount of Amendment 82 bonds that may be issued, the sum of the outstanding bonded indebtedness plus the principal amount of the proposed Amendment 82 bonds shall not exceed five percent (5%) of the net general revenues for the most recent fiscal year for which revenue calculations are available.
(b) It shall not be a violation of Arkansas Constitution, Amendment 82 or this subchapter or affect the validity of Amendment 82 bonds that were properly issued if:
(1) Net general revenues decline after Amendment 82 bonds are issued; and
(2) The outstanding bonded indebtedness exceeds five percent (5%) of the net general revenues for the most recent fiscal year for which revenue calculations are available.
(c) Amendment 82 bonds that when issued complied with the five-percent limitation may be refunded under Arkansas Constitution, Amendment 82 and this subchapter even if the outstanding bonded indebtedness before or after the refunding exceeds five percent (5%) of the net general revenues for the most recent fiscal year for which revenue calculations are available.