(a) If the commissioners deem best, they shall deposit the funds of the district in a solvent bank which will pay interest at not less than three percent (3%) nor exceeding four percent (4%) and shall give a good bond, conditioned that the funds shall be safely kept and paid out in accordance with the law.
(b) The order shall relieve the treasurer and his bondsmen from liability for loss of the funds through the insolvency of the bank and its bondsmen, and no commission shall be paid the treasurer on sums so deposited. The bank shall pay out the funds only on warrants drawn upon it as prescribed for funds in the hands of the treasurer.
Structure Arkansas Code
Subtitle 7 - Water and Soil Improvement Districts
Chapter 121 - Drainage Improvement Districts Generally
Subchapter 3 - Board of Commissioners
§ 14-121-301. Members generally
§ 14-121-302. Members — Increase in number
§ 14-121-303. Members — District in more than one county
§ 14-121-305. Powers and duties
§ 14-121-306. Authority to secure federal aid — Surveys
§ 14-121-307. Cooperation with the United States
§ 14-121-308. Authority to improve or extend districts, borrow money, and issue bonds
§ 14-121-309. Deposit of funds — Bond
§ 14-121-310. Treasurer — Warrants
§ 14-121-311. Records and reports of financial transactions — Penalty