(a) The proceeds from the sale of the bonds shall be deposited by the recipient thereof, as received, into trust funds either established in the State Treasury or into accounts established outside the State Treasury in the name of the Commission for Arkansas Public School Academic Facilities and Transportation to accomplish the purposes of this subchapter in amounts or portions as set forth in the resolution or trust indenture authorizing or securing the bonds issued to finance the development of public school academic facilities projects.
(b)
(1) There is established as a trust fund in the State Treasury an account designated as the School Academic Facilities Financing Act of 2007 Bond Fund that is being created to provide for payment of all or a part of the debt service in connection with bonds issued under this subchapter.
(2)
(A) The Treasurer of State shall establish separate accounts and subaccounts within the fund to correspond to the applicable series of bonds.
(B) In addition, there may be created in the State Treasury such other funds, accounts, or subaccounts as the commission may determine to be necessary to accomplish the purposes of this subchapter.
(c)
(1) All procedures and methods for the application of proceeds of any series of bonds to the financing of public school academic facilities project costs shall be set forth in writing.
(2) The writings shall be maintained as a part of the records of the commission.
(d) The proceeds from the sale of the bonds and any moneys in the bond fund may be invested and reinvested by the State Investing Office in any of the following:
(1) Direct obligations of the United States of America, including obligations issued or held in book-entry form on the books of the United States Department of the Treasury or obligations that are unconditionally guaranteed as to principal and interest by the United States of America;
(2) Bonds, debentures, notes, or other evidences of indebtedness issued or guaranteed by any agencies of the United States Government that are backed by the full faith and credit of the United States of America;
(3) Senior debt obligations issued or guaranteed by agencies of the United States Government that are non full-faith and credit agencies;
(4) Money market funds investing exclusively in the investments described in subdivision (d)(1), subdivision (d)(2), or subdivision (d)(3) of this section;
(5) Certificates of deposit providing for deposits secured at all times by collateral described in subdivision (d)(1), subdivision (d)(2), or subdivision (d)(3) of this section if:
(A) The certificates of deposit are issued by commercial banks whose deposits are insured by the Federal Deposit Insurance Corporation and whose collateral is held by a third party; and
(B) The State Investing Office or its assigns have a perfected first security interest in the collateral;
(6) Certificates of deposit, savings accounts, deposit accounts, or money market deposits, all of which are fully insured by the Federal Deposit Insurance Corporation;
(7) Bonds or notes issued by the state or any municipality, county, school district, community college district, or regional solid waste management district in the state or any agency or instrumentality of the state;
(8) Investment agreements with financial institutions or insurance companies that are rated in one (1) of the two (2) highest rating categories of a nationally recognized rating agency;
(9) Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm to the State Investing Office and the transfer of cash from the State Investing Office to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the State Investing Office in exchange for the securities at a specified date if the repurchase agreements satisfy the following criteria:
(A) Repurchase agreements must be between the State Investing Office and a dealer bank or securities firm described as follows:
(i) Dealers with at least one hundred million dollars ($100,000,000) in capital; or
(ii) Banks whose deposits are insured by the Federal Deposit Insurance Corporation; and
(B) The written repurchase agreement contract must include the following:
(i) Securities that are acceptable for transfer are those listed in subdivision (d)(1), subdivision (d)(2), or subdivision (d)(3) of this section;
(ii) The term of the repurchase agreement may be up to thirty (30) days;
(iii) The collateral must be delivered to the State Investing Office, to a trustee if the trustee is not supplying the collateral, or to a third party acting as agent for the trustee if the trustee is supplying the collateral, before or at the time of the payment and perfection by possession of certificated securities; and
(iv)
(a) The securities must be valued weekly, market-to-market at current market price plus accrued interest.
(b) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the State Investing Office to the dealer bank or security firm under the repurchase agreement plus accrued interest.
(c) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the State Investing Office, then additional cash, acceptable securities, or a combination of cash and securities must be transferred and held by the State Investing Office; and
(10) Any other investment authorized by state law.