Arkansas Code
APPENDIX — TITLE 19 BOND ISSUES
8. Regulatory Agencies Building — Acts 1977, No. 820.

SECTION 1. The Arkansas State Building Services, created by Act No. 716 of 1975 and hereinafter referred to as “State Building Services,” is hereby authorized and empowered to:
SECTION 2. (a) The State Building Services is hereby authorized and empowered to issue revenue bonds, at one time or from time to time, in the total aggregate principal amount of $4,000,000 and to use the proceeds thereof for defraying the costs of accomplishing all or any part of the authorities and powers set forth in Section 1 of this Act, paying all incidental expenses in connection therewith, paying the expenses of authorizing and issuing the bonds, establishing a debt service reserve to secure the payment of the bonds, if the State Building Services deems such desirable, and making provision for the payment of interest on the bonds during and for up to one year after construction, if the State Building Services deems such desirable.
(b) The bonds shall be authorized by resolution of the State Building Services Council (“authorizing resolution”). The bonds may be coupon bonds, payable to bearer, or may be registrable as to principal only or as to principal and interest, may be made exchangeable for bonds of another denomination, may be in such form and denomination, may have such date or dates, may be stated to mature at such time or times, may bear interest payable at such times and at such rate or rates, provided that no bond may bear interest at a rate exceeding ten percent (10%) per annum, may be made payable at such place or places within or without the State of Arkansas, may be made subject to such terms of redemption in advance of maturity at such prices, and may contain such terms and conditions, all as the State Building Services shall determine. The bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to provisions as to registration, as set forth above. The authorizing resolution may contain any other terms, covenants and conditions that are deemed desirable by the State Building Services, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge (parity or priority) in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting (in securities specified by the State Building Services) of any funds during periods not needed for authorized purposes, and the rights, duties and obligations of the State Building Services and of the holders and registered owners of the bonds.
The authorizing resolution may provide for the execution by the State Building Services with a bank or trust company within or without the State of Arkansas of a trust indenture. The trust indenture may contain any terms, covenants and conditions that are deemed desirable by the State Building Services, including, without limitation, those pertaining to the maintenance of various funds and reserves, the nature and extent of the security, the issuance of additional bonds and the nature of the lien and pledge (parity or priority) in that event, the custody and application of the proceeds of the bonds, the collection and disposition of revenues, the investing and reinvesting (in securities specified by the State Building Services) of any funds during periods not needed for authorized purposes, and the rights, duties and obligations of the State Building Services and of the holders and registered owners of the bonds.
(c) The bonds may be sold to any one or more retirement systems now existing or hereafter created by the General Assembly of the State of Arkansas, or may be sold at public sale. If sold at public sale, the bonds shall be sold on sealed bids, and notice of the sale shall be published once in a newspaper published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, at least twenty (20) days prior to the date of sale and may be published in such other publications as the State Building Services may determine. In either case the bonds may be sold at such price as the State Building Services may accept including sale at a discount, but in no event shall any bid be accepted which results in a net interest cost (determined by computing the aggregate interest cost from date to maturity at the rate or rates bid and deducting any premium or adding the amount of any discount) in excess of the interest cost computed at par for bonds bearing interest at the rate of ten percent (10%) per annum. The award at any public sale, if made, shall be to the bidder whose bid results in the lowest net interest cost.
(d) The bonds shall be executed by the manual or facsimile signatures of the Chairman and Secretary of the State Building Services Council, provided that one of such signatures must be manual. The coupons attached to the bonds shall be executed by the facsimile signature of the Chairman of the Council. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, their signatures shall, nevertheless, be valid and sufficient for all purposes. The State Building Services shall adopt and use a seal in the execution and issuance of the bonds, and each bond shall be sealed with the seal of the State Building Services.
SECTION 3. (a) It shall be plainly stated on the face of each bond that it has been issued under the provisions of this Act, that the bonds shall be obligations only of the State Building Services, that in no event shall they constitute an indebtedness for which the faith and credit of the State of Arkansas or any of its revenues are pledged, and that they are not secured by a mortgage or lien on any land or buildings belonging to the State of Arkansas. No member of the State Building Services Council shall be personally liable on the bonds or for any damages sustained by anyone in connection with any contracts entered into in carrying out the purposes and intent of this Act unless he shall have acted with a corrupt intent.
(b) The principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with the bonds shall be secured by a lien on and pledge of and shall be payable from the revenues derived from the operation of the Regulatory Agency Building (including, without limitation, lease rentals derived from the leasing of space in the Regulatory Agencies Building to the state agencies housed in the Regulatory Agencies Building). The authorizing resolution or trust indenture shall set forth details of the nature and extent of the lien and pledge, including provision for the use of surplus revenues, if any, for other lawful purposes.
(c) The State Building Services shall undertake the necessary investigation and shall make a determination of state agencies which can be housed in the Regulatory Agencies Building and the State Agency Revenues (as hereinafter defined) of each such agency. State Agency Revenues are hereby defined to be those revenues received by each such agency (directly or by way of appropriation) from sources other than the proceeds of taxes as the term “taxes” is ordinarily used. State Building Services and each state agency so found to have State Agency Revenues are hereby authorized to enter into longterm lease agreements (which may have a term of years no less than the period covered by the maturity schedule of the longest maturing outstanding bonds) for space in the Regulatory Agencies Building. In each such agreement, the state agency's commitment to make rental payments for such space shall be payable solely from its State Agency Revenues. State Agency Revenues, to the extent of such rental commitments, shall not be paid into the State Treasury and shall not be subject to legislative appropriation but shall be transferred by each such state agency directly to State Building Services in discharge of that state agency's obligations under its lease agreement. All such State Agency Revenues (to the extent necessary to discharge all committments of state agencies under such lease agreements) are hereby declared to be cash funds restricted in their use and dedicated and to be used solely as provided in this Act. So long as any bonds authorized by this Act are issued and outstanding, State Building Services shall be obligated to select state agencies and enter into such long-term lease agreements, in accordance with its determinations made in accordance with the above provisions, which provide for aggregate rentals not less than the total amount necessary to pay when due the principal of, premiums, if any, interest on, trustee's and paying agent's fees in connection with, and any other fees and expenses required to discharge covenants and obligations in the authorizing resolution or trust indenture securing, all outstanding bonds issued hereunder. Different state agencies may be housed from time to time and lease agreements may be altered, or one agency or lease agreement substituted for another, so long as the aggregate of rentals called for by all outstanding lease agreements with state agencies selected pursuant to provisions hereof at all times while bonds are outstanding hereunder shall be no less than the amount necessary to pay when due the principal of, premiums, if any, interest on, trustee's and paying agent's fees in connection with, and any other fees and expenses required to discharge covenants and obligations in the authorizing resolution or trust indenture securing, all outstanding bonds issued hereunder.
SECTION 4. (a) Any authorizing resolution and trust indenture shall, together with this Act, constitute a contract between the State Building Services and the holders and registered owners of the bonds, which contract, and all covenants, agreements and obligations therein, shall be promptly performed in strict compliance with the terms and provisions of such contract, and the covenants, agreements and obligations of the State Building Services may be enforced by mandamus or other appropriate proceedings at law or in equity. In this regard, in addition to other provisions referred to above, the State Building Services is hereby expressly authorized to include in any authorizing resolution or trust indenture all or any part of the following covenants:
SECTION 5. All moneys received by the State Building Services from the Regulatory Agencies Building (including moneys from leasing or renting of space or facilities therein) are hereby specifically declared to be cash funds, restricted in their use and dedicated and to be used solely as provided in this Act. Such moneys shall not be deposited in the State Treasury and shall not be subject to legislative appropriation but shall be deposited by the State Building Services, as and when received, in such bank or banks as the State Building Services may from time to time select, and secured, invested and disbursed as provided in this Act.
SECTION 6. Bonds issued under the provisions of this Act, and the interest thereon, shall be exempt from all state, county and municipal taxes, except property taxes, and the exemption shall include income, inheritance and estate taxes.
SECTION 7. The Board of Trustees of any retirement system now existing or hereafter created by the General Assembly of the State of Arkansas may, in its discretion, invest its funds in bonds issued under this Act.
SECTION 8. The State Building Services is hereby authorized to employ architects to prepare plans, specifications and estimates of cost for the construction of the Regulatory Agencies Building and to supervise and inspect such construction. After the State Building Services shall have approved the plans and specifications prepared by the architect, it shall proceed to advertise for bids and contract for the construction of the Regulatory Agencies Building in accordance with applicable laws governing the construction of public buildings. In addition, the State Building Services is hereby authorized to engage and pay such professional, technical and other help as it shall determine to be necessary or desirable in assisting it to carry out effectively the authorities, functions, powers, and duties conferred and imposed upon it by this Act.
SECTION 9. The State Building Services shall include necessary provisions in the authorizing resolution or trust indenture to require the deposit of the proceeds of each bond issue (except amounts for interest or reserves, which may be deposited in the Bond Fund) into a special Construction Fund (“Construction Fund”) which shall be a trust fund in such depository as the State Building Services shall designate, which depository shall be a member of the Federal Deposit Insurance Corporation, and all moneys in the Construction Fund in excess of the amount insured by the Federal Deposit Insurance Corporation must be secured by direct obligations of the United States of America, unless invested in securities specified by the State Building Services. The moneys in the Construction Fund shall be used solely for the purposes set forth in Section 1 and Section 2(a) of this Act.
SECTION 10. Bonds may be issued for the purpose of refunding any bonds issued under this Act. Refunding bonds may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited in trust and there maintained in cash or authorized investments for the retirement of the bonds being refunded, as shall be specified by the State Building Services in the authorizing resolution or trust indenture securing the refunding bonds and subject to compliance with the provisions of the authorizing resolution or trust indentures securing the bonds being refunded. The resolution or trust indenture securing the refunding bonds may provide that the refunding bonds shall have the same priority of lien on revenues pledged for their payment as was enjoyed by the bonds refunded. Refunding bonds shall be sold and secured in accordance with the provisions of this Act pertaining to the sale and security of bonds.
SECTION 11. This Act shall not create any right in any bondholder for bonds issued pursuant to this act, and no right for such bondholder shall arise under it, until bonds authorized by this Act (or the initial issue or series) shall have been sold and delivered by the State Building Services.
SECTION 12. The State Building Services shall be responsible for the maintenance, operation, and repair of the Regulatory Agencies Building, and, subject to the provisions of any authorizing resolution or trust indenture securing outstanding bonds, all or any part of the costs of such maintenance, operation and repair may be paid from revenues derived from the Regulatory Agencies Building (including, without limitation, rentals).
SECTION 13. This Act shall be construed liberally. The enumeration of any object, purpose, power, manner, method and thing shall not be deemed to exclude like or similar objects, purposes, powers, manners, methods and things.
SECTION 14. The provisions of this Act are hereby declared to be severable. If any provision of this Act, shall be held invalid or inapplicable to any state agency, person, firm or circumstances, such invalidity or inapplicability shall not affect the validity or applicability of the remainder of this Act.
SECTION 15. This Act shall be complete and sole authority for the accomplishment of the purposes hereof. To the extent that there is a conflict between the provisions of this Act and Act No. 716 of 1975, the provisions of this Act shall govern. All laws and parts of laws in conflict herewith, except Act No. 716 of 1975, are hereby repealed to the extent of such conflict.
SECTION 16. The General Assembly hereby finds and declares that there is an urgent need to construct and equip a building to meet the space and facilities requirements of state agencies and that this Act is immediately necessary for the accomplishment of such purpose. Therefore, an emergency is declared to exist and this Act being necessary for the preservation of the public peace, health and safety, shall be effective from and after its passage and approval. APPROVED: March 28, 1977.