(a)
(1) The authority is authorized and empowered to issue transit revenue bonds from time to time in principal amounts sufficient to pay capital costs of the system.
(2) There may be more than one (1) issue of bonds, or there may be one (1) issue sold and delivered in series.
(3) In all instances, priority between and among issues and successive issues shall be controlled by the authorizing resolution or by the trust indenture securing the bonds.
(4) Transit revenue bonds shall have all the qualities of negotiable instruments under the laws of the State of Arkansas, subject to the provisions of this chapter regarding registration.
(b)
(1) Transit revenue bonds shall be authorized by resolution of the authority, referred to as the “authorization resolution.”
(2)
(A) The bonds may be coupon bonds, payable to bearer, or may be registrable as to both principal and interest without coupons and may be made exchangeable for bonds of another denomination. The bonds of another denomination may in turn be coupon bonds payable to bearer, or bonds registrable as to principal only or as to principal and interest with coupons, or bonds registrable as to principal and interest without coupons.
(B) As the authority shall determine, the bonds may:
(i) Be in such form and denominations;
(ii) Have such date or dates;
(iii) Mature at such time or times;
(iv) Bear interest payable at such time or times and at such rate or rates;
(v) Be payable at such places within or without the State of Arkansas;
(vi) Be subject to such terms of redemption in advance of maturity at such prices, including such premiums; and
(vii) Contain such terms and provisions.
(3) The authorizing resolution may contain any other terms, covenants, and conditions that are deemed desirable by the authority, including, without limitation, those pertaining to:
(A) The custody, investment, and application of bond proceeds;
(B) The maintenance of various funds reserves;
(C) The nature and extent of the security;
(D) The rights, duties, and obligations of the authority; and
(E) The rights, duties, and obligations of the holders and registered owners of the bonds.
(c)
(1) The authorizing resolution may provide for the execution by the authority with a bank or trust company, within or without the State of Arkansas, of a trust indenture, referred to as the “trust indenture.”
(2) The trust indenture may control the priority between and among successive issues and series and may contain any other terms, covenants, and conditions that are deemed desirable including, without limitation, those pertaining to:
(A) The custody and application of the proceeds of bonds;
(B) The collection and disposition of transit system revenues;
(C) The maintenance of various funds and reserves;
(D) The nature and extent of the security;
(E) The rights, duties, and obligations of the authority and the trustee for the holders or registered owners of the bonds; and
(F) The rights of the holders or registered owners of the bonds.
(d)
(1)
(A) Bonds issued under the authority of this chapter may be sold at public or private sale.
(B) 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 having a general circulation throughout the State of Arkansas at least ten (10) days prior to the date of sale.
(2) In either case, the bonds may be sold at a price the authority may accept, including sale at a discount.
(3) The award at any public sale, if made, shall be to the bidder whose bid results in the lowest net interest cost.
(e)
(1)
(A)
(i) Bonds shall be executed by the manual or facsimile signature of the chairman of the board of the authority and by the manual signature of the secretary of the authority.
(ii) Coupons attached to the bonds shall be executed by the facsimile signature of the chairman of the board of the authority.
(B) In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such an officer before the delivery date of the bonds or coupons, their signatures shall nevertheless be valid and sufficient for all purposes.
(2) The authority shall adopt and use a seal in the execution and issuance of bonds, and each bond shall be sealed with the seal of the authority.