Powers in issuing bonds or incurring obligations

  1. Law
  2. Arkansas Code
  3. Local Government
  4. Economic Development And Tourism Generally
  5. Housing Authorities And Urban Renewal Agencies
  6. Housing Authorities in Cities and Counties
  7. Powers in issuing bonds or incurring obligations

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In connection with the issuance of bonds or the incurring of obligations under leases and in order to secure the payment of the bonds or obligations, a housing authority, in addition to its other powers, shall have power to:

  1. (1) Pledge all or any part of its gross or net rents, fees, or revenues to which its right then exists or may thereafter come into existence;

  2. (2) Mortgage all or any part of its real or personal property then owned or thereafter acquired;

  3. (3)

    1. (A) Covenant against pledging all or any part of its rents, fees, and revenues or against mortgaging all, or any part, of its real or personal property to which its right or title then exists or may thereafter come into existence, or against permitting or suffering any lien on such revenues or property;

    2. (B) Covenant with respect to limitations on its right to sell, lease, or otherwise dispose of any housing project, or any part thereof; and

    3. (C) Covenant as to what other or additional debts or obligations may be incurred by it;

  4. (4)

    1. (A) Covenant as to the bonds to be issued and as to the issuance of the bonds, in escrow or otherwise, and as to the use and disposition of the proceeds thereof;

    2. (B) Provide for the replacement of lost, destroyed, or mutilated bonds;

    3. (C) Covenant against extending the time for the payment of its bonds, or interest thereon; and

    4. (D)

      1. (i) Redeem the bonds;

      2. (ii) Covenant for their redemption; and

      3. (iii) Provide the terms and conditions of redemptions;

  5. (5)

    1. (A) Covenant, subject to the limitations contained in this subchapter, as to:

      1. (i) The rents and fees to be charged in the operation of a housing project;

      2. (ii) The amount to be raised each year or other period of time by rents, fees, and other revenues; and

      3. (iii) The use and disposition to be made of them; and

    2. (B)

      1. (i) Create or authorize the creation of special funds for moneys held for construction or operating costs, debt service, reserves, or other purposes; and

      2. (ii) Covenant as to the use and disposition of the moneys held in these funds;

  6. (6)

    1. (A) Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated;

    2. (B) The amount of bonds the holders of which must consent thereto; and

    3. (C) The manner in which the consent may be given;

  7. (7)

    1. (A) Covenant as to the use of any, or all, of its real or personal property; and

    2. (B) Covenant as to:

      1. (i) The maintenance of its real and personal property;

      2. (ii) The replacement of its property;

      3. (iii) The insurance to be carried on its property; and

      4. (iv) The use and disposition of insurance moneys;

  8. (8)

    1. (A) Covenant as to the rights, liabilities, powers, and duties arising upon the breach by it of any covenant, condition, or obligation; and

    2. (B) Covenant and prescribe as to:

      1. (i) The events of default and terms and conditions upon which any, or all, of its bonds or obligations shall become, or may be declared due before maturity; and

      2. (ii) The terms and conditions upon which the declaration and its consequences may be waived;

  9. (9)

    1. (A) Vest in trustees or the holders of bonds, or any proportion of them, the right to enforce the payment of the bonds or any covenants securing or relating to the bonds;

    2. (B) Vest in trustees the right, in the event of a default by the authority, to:

      1. (i) Take possession and use, operate, and manage any housing project, or part thereof;

      2. (ii) Collect the rents and revenues arising from it; and

      3. (iii) Dispose of the moneys in accordance with the agreement of the authority with the trustees;

    3. (C)

      1. (i) Provide for the powers and duties of trustees; and

      2. (ii) Limit the liabilities of trustees; and

    4. (D) Provide the terms and conditions upon which the trustees or the holders of bonds, or any proportion of them, may enforce any covenant or rights securing or relating to the bonds; and

  10. (10)

    1. (A) Exercise all, or any part or combination of, the powers granted in this section;

    2. (B) Make covenants other than, and in addition to, the covenants expressly authorized in this section, of like or different character;

    3. (C)

      1. (i) Make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds; or

      2. (ii) In the absolute discretion of the authority, act to make the bonds more marketable, notwithstanding that such covenants, acts, or things may not be enumerated in this section.


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