Arkansas Code
Subchapter 4 - District Operation
§ 14-117-414. Borrowing money and issuing bonds

(a) The board may petition the chancery or circuit court for authority to borrow money or issue negotiable bonds, and the court shall cause a public hearing to be held with respect to the petition in accordance with the same procedure for the issuance of bonds in connection with contracts with the United States as set forth in § 14-117-402.
(b) The petition of the board shall state whether it is desired that the bonds shall be made payable from the proceeds of revenues derived from the sale or delivery of water by the district or shall be made payable from the proceeds of assessments against the real property within the district. The order of the court authorizing the issuance of the bonds shall specify which of the sources shall be liable for the payments of the principal of and interest on the bonds.
(c) If the board is authorized to do so upon the presentation of the petition to the court, and after compliance with the provisions of § 14-117-402, it may borrow money at a rate of interest determined by the board from any agency of the United States or any other available lending source, may issue promissory notes, negotiable bonds, or such other evidence of indebtedness as required by the lender therefor, signed by the members of the board, and may pledge or assign all assessments and revenues for the repayment thereof.
(d) If promissory notes are issued, the board is authorized to execute mortgages on real or personal property owned by the district or assign or pledge such revenues and assessments as may be required by the lender as security for the repayment of the loan. No promissory notes issued under the terms of this chapter shall run for more than fifty (50) years.
(e) No bonds issued under the terms of this chapter shall run for more than fifty (50) years. All issues of bonds may be divided so that a portion of them may mature each year as the assessments are collected, or they may all be made payable at the same time, with proper provision for a sinking fund.
(f) In all other respects, the board shall determine the form and denominations of the bonds.
(g) The board may sell, exchange, or hypothecate the bonds from time to time and at prices which best serve the interests of the district, provided that any sale or exchange of the bonds at less than ninety percent (90%) of their par value shall first have the approval of the chancery or circuit court.

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