Arkansas § 14-235-216 - Terms, execution, and sale of bonds.

§ 14-235-216. Terms, execution, and sale of bonds.

Revenue bonds issued under this subchapter shall bear interest at such rate or rates, payable annually or at shorter intervals, and shall mature at such time or times as may be determined by ordinance. The bonds may be made redeemable before maturity, at the option of the municipality, to be exercised by the sewer committee, at not more than the par value thereof and a premium of five percent (5%), under such terms and conditions as may be fixed by the ordinance authorizing the issuance of the bonds. The principal and interest of the bonds may be made payable in any lawful medium. The ordinance shall determine the form of the bonds, including the interest coupons to be attached to them, and shall fix the denomination or denominations of the bonds and the place or places of payment of the principal and interest of them, which may be at any bank or trust company within or without the state. The bonds shall contain a statement on their face that the municipality shall not be obligated to pay them or the interest on them except from the special fund provided from the net revenues of the works. All such bonds shall be, shall have, and are declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments laws of the state. The bonds shall be exempt from all taxation, state, county, and municipal. This exemption shall include income taxation and inheritance taxation, as well as all forms of property taxation. Provisions may be made for the registration of any of the bonds in the name of the owner as to principal alone. Bonds shall be executed in the same manner as other bonds issued by municipalities are executed. The bonds shall be sold by the sewer committee in such manner as may be determined to be for the best interests of the municipality and subject to the approval of the municipal council or the committee. Any surplus of bond proceeds over and above the cost of the works shall be paid into the sinking fund provided for in § 14-235-221. If the proceeds of the bonds, by error or calculation or otherwise, shall be less than the cost of the works, additional bonds may in like manner, be issued to provide the amount of the deficit and, unless otherwise provided in the ordinance authorizing the issuance of the bonds first issued or in the trust indenture executed in connection with them, shall be deemed to be the same issue as the antecedent bonds, secured by a lien of equal rank and in all other respects upon a parity with them. Prior to the preparation of the definitive bonds, temporary bonds may, under like restrictions, be issued with or without coupons, exchangeable for definitive bonds upon the issuance of the latter.