§ 27-64-211 - Sources of repayment.
27-64-211. Sources of repayment.
(a) (1) The bonds shall be general obligations of the State of Arkansas secured and payable from the designated revenues, as defined herein, and the general revenues of the state.
(2) The bonds will be payable first from certain designated revenues, specifically:
(A) That portion designated by the State Highway Commission of funds received or to be received from the federal government of the United States as federal highway assistance funding allocated to the state designated as federal highway interstate maintenance funds, and, if needed, that portion of national highway system funds authorized by State Highway Commission Minute Order 98-214 adopted September 22, 1998; and
(B) Revenues derived from the increase in taxes levied on distillate special fuels pursuant 26-56-201 and transferred to the State Highway and Transportation Department Fund pursuant to 27-70-207(c) in accordance with 26-56-201(f) and 26-55-1006(d).
(3) To the extent that designated revenues are insufficient to make timely payment of debt service on the bonds, such payment shall be made from the general revenues of the State of Arkansas.
(b) In order to secure the payment of debt service, any trust instrument, resolution, or other document setting forth the security for the bondholders may provide for the direct payment of the federal highway assistance funds that are designated revenues directly into a trust fund or to a paying agent for the payment of debt service on the bonds, and it shall not be necessary for such funds to be deposited with the State Treasury.