Arkansas § 14-120-241 - Bonds — Sale prohibitions — Penalty.

§ 14-120-241. Bonds — Sale prohibitions — Penalty.

It shall be unlawful for the board of directors of any such district, or any officer or member thereof, to sell or dispose of any bonds authorized to be sold under the provisions of this subchapter at any place other than the domicile of the board; to pledge or deposit any bond or coupon issued under the provisions of this subchapter as security for the payment of any borrowed money or any debt or obligation of the board or of any other person, firm, or corporation whatever; to appropriate or to use any money arising from the sale of bonds to any use or purpose whatever other than herein expressly provided for; or to sell or negotiate the bonds at less than par, on the basis of bonds bearing interest at three and one-half percent (3½%) per annum. The bonds shall be sold at public auction to the highest bidder at the office of the levee district, drainage district, or levee and drainage district after notice of the sale has been published for three (3) consecutive insertions in two (2) or more newspapers having general circulation in the area affected. It is unlawful for the board of directors to pay directly or indirectly any brokerage fee or fiscal agent's fee or enter into any private contract with any person, firm, or corporation agreeing to sell bonds to the person, firm, or corporation or agreeing to pay a fee to the person, firm, or corporation in the event that the person, firm, or corporation is not the successful bidder. Any person violating the provisions of subsection (a) of this section shall be deemed guilty of a misdemeanor and shall be subject to a fine of not more than five thousand dollars ($5,000). No compensation shall be allowed the treasurer of the district, or any other officer or member of the board of directors thereof, either directly or indirectly, for negotiating the sale of the bonds or paying out the proceeds arising from the sale of those bonds.