Arkansas Code
Subchapter 5 - Human Development Centers — Property and Finances
§ 20-48-504. Procedure for issuing revenue bonds

(a)
(1) Revenue bonds may be issued from time to time for any of the purposes set forth in § 20-48-502.
(2) Each issue shall be authorized by resolution of the Board of Developmental Disabilities Services.
(3)
(A) The bonds of each issue shall be coupon bonds payable to bearer but may be made subject to registration as to principal only, except as otherwise provided in subsection (e) of this section, may be issued in one (1) or more series, may bear such date or dates, may mature at such time or times, may bear interest at such rate or rates, may be in such form, may be executed in such manner, may be payable in such medium of payment, at such place or places, may be subject to such terms of redemption, and may contain such terms, covenants, and conditions as the resolution may provide.
(B) The resolution may contain terms, covenants, and conditions, including without limitation those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance and investment of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the board and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.

(4) Priority as to lien on revenues between and among successive issues may be controlled by the resolution authorizing the issuance of each issue of bonds.
(5) The bonds shall have all the qualities of negotiable instruments under the negotiable instrument laws of this state.

(b) Each resolution authorizing the issuance of any issue of bonds may provide for the execution by the board of an indenture which defines the rights of the bondholders and provides for the appointment of a trustee for the bondholders. The indenture may control priority as to lien on revenues between successive issues and may contain any other terms, covenants, and conditions that are deemed desirable, including, without limitation, those pertaining to the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the maintenance of various funds and reserves, the nature and extent of the security, the rights, duties, and obligations of the board and the trustee for the holders or registered owners of the bonds, and the rights of the holders or registered owners of the bonds.
(c) The bonds may be sold at public or private sale for such price, including, without limitation, sale at a discount, and in such manner as the board may determine by resolution.
(d) The bonds shall be executed by the chair and the executive secretary of the board and in case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of the bonds of any issue, the signature shall nevertheless be valid and sufficient for all purposes. The coupons attached to the bonds shall be executed by the facsimile signature of the chair of the board.
(e)
(1) In the resolution authorizing the issuance of any issue of bonds, the board may provide for the initial issuance of one (1) or more bonds aggregating the principal amount of the entire issue and may, in the resolution, make such provisions for installment payments of the principal amount of the bonds as it may consider desirable and may provide for the making of the bonds payable to bearer or otherwise, registrable as to principal or as to both principal and interest, and where interest accruing thereon is not represented by interest coupons, for the endorsement of payment of interest on such bonds.
(2) The board may make provision in the resolution for the manner and circumstances in which and under which the bonds may in the future at the request of the holders thereof be converted into bonds of smaller denomination, which bonds of smaller denomination may in turn be either coupon bonds or bonds registrable as to principal or registrable as to principal and interest.