Arkansas § 14-91-1003 - Purchase of waterworks.

§ 14-91-1003. Purchase of waterworks.

The purchaser of the water system in any city or town in this state shall pay at least the appraised value for the plant. If the purchaser desires to assume an amount of bonds equal to the purchase price outstanding against the plant, he shall give to the city or town an indemnifying bond in some good surety company, conditioned for the payment of the interest and the retiring of the bonds, so assumed by the purchaser, as they may become due and payable. Should the purchaser desire to take up the amount of bonds that may be adjudged against the waterworks, as shown by the purchase price, he may do so by making the necessary arrangements for retiring them with the holders of the bonds. The transfer of the properties shall be evidenced by a deed of conveyance in the usual form and with the usual covenants of warranty. A lien against the property sold shall be retained in the deed for all of the unpaid sale price with the right upon default of payment of any interest or indebtedness when it falls due to declare all of the unpaid sale price due and payable and to proceed with a foreclosure of the lien so retained. The deed of conveyance shall be executed on behalf of the city or town by the clerk or recorder, when authorized by the city or town council. A receipt duly executed by the treasurer of the city or town shall release the purchaser from further liability for the payment of the amount of money received. If payment is made in cash, it shall be applied only to the retirement of the bonds of the district. Upon the payment of all indebtedness for which a lien may be retained in a deed of conveyance, the mayor, or recorder, or clerk of the town or city is authorized and directed to satisfy the lien by a deed of release, or by marginal entry upon the deed record where it may be recorded.