(a) The principal of and interest on the certificates of indebtedness issued under this subchapter shall be secured, except as stated in subdivision (c)(1) of this section, by a lien on and pledge of:
(1) All revenue derived from payments by the Arkansas Development Finance Authority pursuant to § 22-3-1225(b) which is a portion of the funds received by the Arkansas Development Finance Authority from the sale of certificates for the inspection of motor vehicles;
(2) All moneys from the sale of or disposition of farm products, livestock, or other products produced in connection with the agriculture and livestock activities at any institution under the control of the Board of Corrections or any successor entity, excluding those moneys that may be accountable from, or the value of, products consumed within the Division of Correction and from rental of farm properties under the control of the board or any successor entity;
(3) All moneys from the sale or disposition of articles and products manufactured or produced by prison labor through the operations of the prison industry program, excluding those moneys that may be accountable from, or the value of, articles and products used or consumed within the Division of Correction; and
(4) Fifty percent (50%) of the gross revenue, if any, derived from the leasing or renting to tenants, other than state agencies, of space in any new facility constructed or acquired with proceeds of any certificates issued under this subchapter.
(b) The pledging of the revenues enumerated in subsection (a) of this section, which are, collectively, the pledged revenues, is authorized. All pledged revenues are specifically declared to be nontax revenues restricted in their use and dedicated to be used solely as provided and authorized in this subchapter.
(c)
(1)
(A) Moneys described in subdivision (a)(2) of this section are declared to be cash funds restricted in their use and dedicated and are to be used solely as authorized in § 15-5-213. The cash funds when received by the Division of Correction 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 related thereto. The Division of Correction shall pay such cash funds to the Arkansas Development Finance Authority for deposit into the Correction Facilities Privatization Account of the Correction Facilities Construction Fund for the purposes authorized by § 15-5-213. The cash funds described in this subsection shall not be subject to appropriation to the extent required for debt service.
(B) Commencing on the first day of the month next succeeding the issuance of certificates of indebtedness under this subchapter, but not before July 1, 1983, and so long as any certificates are outstanding under this subchapter, the pledged revenues, except as provided herein, shall be deposited into the State Treasury as and when received by the Division of Correction, by the Building Authority Division, by state-supported institutions of higher education, or by any other state agency, as the case may be, to the credit of a fund to be designated the “Public Facilities Debt Service Fund”.
(2) So long as any certificates of indebtedness are outstanding under this subchapter, all moneys in the Public Facilities Debt Service Fund shall be used solely for payment and redemption of the outstanding 1977 Bonds and the 1979 Bonds, as authorized in this subchapter, for the payment of the principal of and interest on the certificates of indebtedness as authorized in this subchapter, for transfer of such amounts designated in subsection (a) of this section from time to time, as deemed necessary by the Chief Fiscal Officer of the State, to the Correction Facilities Privatization Account of the Correction Facilities Construction Fund established in § 15-5-213, and for the transfer of surplus moneys as defined in the authorizing resolution in the State Treasury for credit to the designated Division of Correction funds, in accordance with the provisions of this subchapter.
(d)
(1) The principal of and interest on the certificates of indebtedness shall be payable solely from the Public Facilities Debt Service Fund and from the moneys required by this subchapter to be deposited into the Public Facilities Debt Service Fund.
(2) The Building Authority Division is directed to insert appropriate provisions in the authorizing resolution for the investing and reinvesting of moneys in the Public Facilities Debt Service Fund in securities selected by the Building Authority Division, and all income derived therefrom shall be and become a part of the Public Facilities Debt Service Fund.
(e) So long as there are outstanding certificates of indebtedness issued under this subchapter, the General Assembly may eliminate or change any source of revenue pledged in connection with the certificates but only on the condition that there is always maintained in effect and made available for the payment of outstanding certificates sources of nontax revenues and fees which produce revenues, as distinguished from tax revenues, at least sufficient in amount to provide for the payment when due of the principal of and interest on the outstanding certificates of indebtedness and to comply with all covenants provided in this subchapter.
(f) Nothing in this section is intended to prohibit the Building Authority Division from investing moneys received under this section, as provided in this subchapter.