(a)
(1) On or before the commencement of each fiscal year, the Chief Fiscal Officer of the State shall:
(A) Determine the estimated amount required for payment of all or a part of debt service on the bonds issued under this subchapter during that fiscal year, after making deductions therefrom of estimated moneys to be available to the Arkansas Natural Resources Commission from other sources therefor; and
(B) Certify to the Treasurer of State the estimated amount referred to in subdivision (a)(1)(A) of this section.
(2) The Treasurer of State shall make monthly transfers from the State Apportionment Fund to the Water Resources Development Bond Fund to provide for payment of all or part of the debt service on the bonds issued under this subchapter, of that amount of general revenues for allocation, as such a term is defined in the Revenue Stabilization Law, § 19-5-101 et seq., as shall be required to pay the maturing debt service on bonds issued under this subchapter.
(b)
(1) The Treasurer of State shall make any additional monthly transfer or transfers of general revenues for allocation as the Chief Fiscal Officer of the State shall certify to him or her as being required to enable the commission to establish and thereafter maintain a Water Resources Development Debt Service Reserve Fund to provide reserves for payment of debt service on the bonds.
(2) The obligation to make monthly transfers of general revenues for allocation from the State Apportionment Fund to the Water Resources Development Bond Fund and to the Water Resources Development Debt Service Reserve Fund shall constitute a first charge against the general revenues for allocation prior to all other uses to which the general revenues for allocation are devoted, either under present law or under any laws that may be enacted in the future.
(c) Moneys credited to the Water Resources Development Bond Fund and the Water Resources Development Debt Service Reserve Fund shall be used only for the purpose of paying debt service on the bonds, either at maturity or upon redemption prior to maturity, and for these purposes the Treasurer of State is designated the disbursing officer to administer the Water Resources Development Bond Fund and the Water Resources Development Debt Service Reserve Fund in accordance with the provisions of this subchapter.
(d) The Water Resources Development Debt Service Reserve Fund shall be held and used to ensure prompt payment of debt service on the bonds in the manner and pursuant to the conditions specified by the commission in the resolution or trust indenture authorizing or securing the bonds.
(e) Moneys in the Water Resources Development Bond Fund and the Water Resources Development Debt Service Reserve Fund over and above the amount necessary to ensure the prompt payment of debt service on the bonds and the establishment and maintenance of a reserve fund, if any, may be used for the redemption of bonds prior to maturity in the manner and in accordance with the provisions pertaining to redemption prior to maturity, as set forth in the resolution or trust indenture authorizing or securing the bonds.