Ark. Code Ann. » Title 14 Chapter 94
Arkansas Code Annotated

Ark. Code Ann. § 14-94-123 (2020)

Negotiable notes, bonds, or evidence of debt

✓ Arkansas Code release r76: Acts through about 2020 (2021-2025 sessions missing)
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    1. In order to meet preliminary expenses and to finance the cost of the improvements to be accomplished, with costs incidental to them and to the issuance of the bonds, the board may issue bonds of the district and may pledge all assessments of benefits to the district and all or any part of the profits of the district derived from its operation of any improvements of the district to the payment of the bonds.
    2. The board may also issue to the contractors who do the work evidences of debt bearing interest at the rate or rates prescribed by the board and secure them in the same manner.
    3. As for the security for the payment of any indebtedness, the members of the board may, by resolution, establish the rates for use of the improvements to be collected from the users of the improvements and may mortgage any or all of its property, including improvements.
    1. Bonds issued under the authority of this chapter shall:
      1. Bear interest at such rate or rates;
      2. Mature at such time or times;
      3. Be payable, as to principal, premium, if any, and interest, at such places, within or without the State of Arkansas;
      4. Be in such form, whether bearer or registered, negotiable or nonnegotiable;
      5. Be subject to such exchange privileges; and
      6. Have such other details as may be set forth in the resolution of the board authorizing their issuance.
    2. The resolution may provide for the execution and delivery of a trust indenture or like instrument by the board securing the bonds and for the execution and delivery of other writings pertaining thereto.
    3. The bonds, and coupons, if any, may be executed by the manual or facsimile signatures of the members of the board.

History. Acts 1987, No. 113, § 15.

Case Notes

Trust Indentures.

Pledge and mortgage agreements entered into between municipal improvement districts and trustee of public bond financing, while termed by the parties as a trust, were actually more akin to a trust indenture; therefore, a breach of contract cause of action existed on the part of the districts against the trustee when the trustee failed to perform its obligations under the pledge and mortgage agreements. First United Bank v. Phase II, Edgewater Addition Residential Prop. Owners Improvements Dist. No. 1 of Maumelle, 347 Ark. 879, 69 S.W.3d 33 (2002).

Cited: First Ark. Bank & Trust v. Gill Elrod Ragon Owen & Sherman, P.A., 2013 Ark. 159, 427 S.W.3d 47 (2013).

Notes of Decisions
Cited in 2 cases, 2002–2013 · leading case: First United Bank v. Phase II, 69 S.W.3d 33 (Ark. 2002).
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First United Bank v. Phase II, 69 S.W.3d 33 (Ark. 2002). · cites it 2× “” Ark. Code Ann. § 14-94-123 (b)(2). The importance in understanding the terminology here is that while the parties call this a “trust,” it is not a trust in the classic “donative” sense of the word, and this court has determined on several occasions that an indenture trust is…”
First Arkansas Bank & Trust v. Gill Elrod Ragon Owen & Sherman, P.A., 2013 Ark. 159, 427 S.W.3d 47. · cites it 2× “See Ark.Code Ann. § 14-94-123 (Repl. 1998). .”
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