Arkansas Code
Subchapter 13 - Revenue Bonds for Water Resources
§ 15-22-1308. Bonds — Issuance — Payment

(a) The face of each bond shall plainly state that the bond:
(1) Has been issued under this subchapter;
(2) Is an obligation only of the Arkansas Natural Resources Commission; and
(3) Does not constitute:
(A) An indebtedness of the state;
(B) An indebtedness for which the faith and credit of the state or any of its revenues are pledged; or
(C) An indebtedness secured by a lien on or a security interest in any property of the state.

(b) The payment of the principal of, redemption premium, if any, and interest on and the trustee's and paying agent's fees in connection with the bonds may be secured by a lien on:
(1) All or any part of the:
(A) Construction Assistance Revolving Loan Fund;
(B) Safe Drinking Water Fund;
(C) Arkansas Water Development Fund;
(D) Water, Sewer, and Solid Waste Systems Revolving Fund; or
(E) Arkansas Water Resources Cost Share Revolving Fund; or

(2) A pledge of:
(A) Bonds, notes, or other evidences of indebtedness owned or acquired by the commission and the commission's interest in any revenue derived from the bonds, notes, or other evidences of indebtedness; or
(B) Any collateral security held or received by the commission, including without limitation, facilities or projects financed with proceeds of the commission's bonds.

(c) It shall not be necessary to the perfection of the lien and pledge for those purposes that the trustee in connection with the bond issue or the registered owners of the bonds take possession of the bonds, notes, or other evidences of indebtedness or collateral security.