Interest in loans unlawful — Penalty

  1. Law
  2. Arkansas Code
  3. Local Government
  4. Improvement Districts Generally
  5. Municipal Improvement Districts Generally
  6. Members — Increase in Number in Certain Cities
  7. Interest in loans unlawful — Penalty

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  1. (a) It shall be unlawful for a municipal board of improvement, or any member thereof, to:

    1. (1) Loan the funds, or to be interested in the loan of the funds, raised in any improvement district; or

    2. (2) Apply or use the funds for any purpose except the purpose for which they were raised; or

    3. (3) Purchase, or to be interested in the purchase of, any lot or lands sold for the payment of delinquent assessments; or

    4. (4) Loan money or furnish money or credit to any person, company, or corporation to make such a purchase.

  2. (b) Any person violating the provisions of this section commits a felony and shall be:

    1. (1) Fined in any sum not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000); and

    2. (2) Imprisoned in the state penitentiary not less than one (1) year nor more than ten (10) years.


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