Bonds — Financial incentives

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  1. (a) The proceedings of the Arkansas Higher Education Coordinating Board, the Arkansas Development Finance Authority and the Governor authorizing the issuance of bonds may also provide for additional financial incentives to be provided to holders of such bonds to encourage the enrollment of students at institutions of higher education located within the state.

  2. (b)

    1. (1) Such financial incentives shall be in the form as recommended by the state board and approved by the Governor and Chief Fiscal Officer of the State at the time of the authorization of such bonds and may include, among others, supplemental payments to the holders of such bonds at maturity when such proceeds are to be applied to the cost of higher education as defined in § 6-62-703(2) at an institution of higher education located within the state.

    2. (2) Such financial incentives shall be provided only if, in the sole judgment of the Governor and the Chief Fiscal Officer of the State that the cost of such incentives shall not cause the cost to the state of the proceeds of the bonds being sold to be increased by more than one-half of one percent (0.5%).

  3. (c) No such financial incentives shall be paid to assist in the financing of an education of a student:

    1. (1) In a school or department of divinity for any religious denomination; or

    2. (2) Pursuing a course of study consisting of training to become a minister, priest, rabbi, or professional person in the field of religion.


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