(a)
(1) In order to acquire and maintain equipment and facilities and do the work of the fire protection district, the board of commissioners may issue the negotiable notes of the fire protection district signed by the members of the board and bearing a rate of interest not exceeding the maximum rate of interest under § 4-57-104, and the board may pledge and mortgage a portion of the future annual benefit assessments as collected for payment.
(2) The petition for the creation of a fire protection district in the court order creating the fire protection district shall limit the total amount of notes that may be outstanding at any time, but the limits may be increased to the maximum prescribed in subdivision (a)(3) of this section.
(3) Subject to Arkansas Constitution, Amendment 78, if applicable, a fire protection district created under this subchapter shall not have notes outstanding at any one time:
(A) In excess of one hundred fifty thousand dollars ($150,000); or
(B) With an annual amortized amount that exceeds two (2) times the available cash reserves of the fire protection district.
(b) A fire protection district shall not issue bonds.