(a) The Arkansas Economic Development Council shall notify the State Board of Finance or the appropriate officer, board, or agency then having jurisdiction over the moneys involved when it has determined to issue bonds under this subchapter and the amount that will be needed each month after the bonds are issued to provide for the payment, when due, of interest, principal, trustee's and paying agent's fees and any other necessary expenses and to provide for the establishing and maintaining of reserves, if the council determines to establish reserves. The monthly amount is referred to in this section as the “bond debt service amount”.
(b) After receipt of notice, the board or the appropriate officer, board, or agency then having jurisdiction over the moneys involved shall set aside the bond debt service amount out of interest derived from the investment of state funds pursuant to § 19-3-219 [repealed].
(c) The bond debt service amount shall not be deposited into or deemed to be a part of the State Treasury for purposes of Arkansas Constitution, Article 5, § 29; Arkansas Constitution, Article 16, § 12; Arkansas Constitution, Amendment 20; or any other constitutional or statutory provision, but shall be paid directly to the council for deposit into a special fund of the council in a bank or trust company selected by the council designated “Guaranty Bond Fund”, also known as the “fund”.
(d) Moneys in the fund shall be used to pay interest, principal, trustee's and paying agent's fees and to establish and maintain reserves all as shall be specified by the council in the resolution or trust indenture authorizing and securing the bonds.
(e) The interest earnings, meaning the bond debt service amount transferred directly to the council, are declared to be cash funds restricted in their use and dedicated and to be used solely as authorized in this subchapter.
(f) So long as any bonds issued under this subchapter are unpaid, no changes shall be made in laws of the State of Arkansas which would or could result in the council's not receiving as cash funds amounts of interest equaling the bond debt service amount.