(a)
(1) 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.
(2) 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.
(3) 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.
(4) 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).
(b) 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.
Structure Arkansas Code
Subtitle 7 - Water and Soil Improvement Districts
Chapter 120 - Drainage and Levee Improvement Districts Generally
Subchapter 2 - Agreements with United States Generally
§ 14-120-201. Legislative intent
§ 14-120-204. Subchapter cumulative
§ 14-120-205. Conditions precedent to conferring powers on districts — In general
§ 14-120-206. Filing project outline and estimate
§ 14-120-207. Board approval of proposal
§ 14-120-208. Approval election generally
§ 14-120-209. Date of election
§ 14-120-210. Notice of election
§ 14-120-211. Election judges and clerks
§ 14-120-213. Voting — Certification of results
§ 14-120-214. Canvass of results — Judicial review
§ 14-120-215. Majority vote — Payment of expenses
§ 14-120-216. Contract authority
§ 14-120-217. Board authority to acquire land — Condemnation
§ 14-120-218. Conveyance of rights-of-way across state lands
§ 14-120-219. Agreements for construction across highways
§ 14-120-220. Eminent domain by the United States
§ 14-120-221. Board of assessors
§ 14-120-223. Assessment — Time, certification, and filing
§ 14-120-224. Board of assessment and equalization
§ 14-120-225. Chancery court review of assessment
§ 14-120-226. Tax levy by board to satisfy certain obligations
§ 14-120-227. Alternative method of assessment — Reassessment — Vacancies on board
§ 14-120-229. Penalty for delinquency — Enforcement proceedings generally
§ 14-120-230. Filing complaint — Notice
§ 14-120-231. Trial date — Continuance or dismissal
§ 14-120-233. Decree — Sale of real property by commissioner
§ 14-120-234. Execution of deed
§ 14-120-235. Redemption of property — Vacation of decree
§ 14-120-236. Tributary tax fund
§ 14-120-237. Disbursement of funds on vouchers
§ 14-120-238. Authority to borrow money and issue bonds — Purpose
§ 14-120-239. Issuance of bonds — Interest coupons
§ 14-120-240. Lithographing and registration of bonds
§ 14-120-241. Bonds — Sale prohibitions — Penalty
§ 14-120-242. Use of revenues for bond payment — Lien