Subsequent indebtedness

  1. Law
  2. Arkansas Code
  3. Local Government
  4. Improvement Districts Generally
  5. General Provisions
  6. Financial Requirements and Minimum Standards of Districts
  7. Subsequent indebtedness

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  1. (a)

    1. (1) After the initial creation, bonding, and indebtedness of a district, but before subsequent bonds, notes, or indebtedness is incurred under the authority of this subchapter, a majority of the owners of record in the district, including no less than a majority of the total number of real property owners in the area affected if the majority of owners owns more than half of the acreage affected, shall be required to authorize the issuance of bonds or the incurring of notes or indebtedness by a vote called by the governing body of the district for that purpose.

    2. (2) Subdivision (a)(1) of this section does not apply to:

      1. (A) The Interstate Watershed Cooperation Act, § 14-115-101 et seq.;

      2. (B) The Arkansas Irrigation, Drainage, and Watershed Improvement District Act of 1949, § 14-117-101 et seq.;

      3. (C) Section 14-118-101 et seq.;

      4. (D) Section 14-120-101 et seq.;

      5. (E) Section 14-121-101 et seq.;

      6. (F) Section 14-122-101 et seq.;

      7. (G) Section 14-123-201 et seq.;

      8. (H) Section 14-124-101 et seq.; or

      9. (I) A district seeking an increase in fees, taxes, or assessments without the issuance of bonds, liens, or other indebtedness.

  2. (b) The governing body shall not require a vote if:

    1. (1) The indebtedness is necessary to fulfill directives of a regulatory governmental agency;

    2. (2) The district has one thousand (1,000) or more owners of record;

    3. (3) The bonds, notes, or indebtedness does not include the assessed property as specific collateral for the bonds, notes, or indebtedness; or

    4. (4) The indebtedness is incurred for the refunding of outstanding bonds, notes, or indebtedness of the district for the purpose of reducing debt service and creating economic savings.

  3. (c) Before incurring the indebtedness, the secretary or other administrative officer of the governing body shall:

    1. (1) Give notice of the required action and improvement by publication one (1) time per week for two (2) weeks in a newspaper published and having a general circulation in the county; and

    2. (2) Transmit a copy of the notice by certified mail to each owner of real property within the boundaries of the district.


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