Arkansas Code of 1987 (2023) › Title 22 - PUBLIC PROPERTY (§§ 22-1-101 — 22-10-505) › Chapter 10 - PARTNERSHIP FOR PUBLIC FACILITIES AND INFRASTRUCTURE ACT (§§ 22-10-101 — 22-10-505) › Subchapter 3 - CONTRACTS BETWEEN RESPONSIBLE PUBLIC ENTITY AND PRIVATE ENTITY (§§ 22-10-301 — 22-10-305) › Section 22-10-304 - Financing of qualifying project

(a)
(1)
Financing of a qualifying project may be in the amounts and upon the terms and conditions stated in the interim agreement or the comprehensive agreement.
(2)
(A)
A qualifying project may be financed by the qualified respondent or the responsible public entity, or both, and the qualified respondent and the responsible public entity may utilize any funding resources available to them, including without limitation to the fullest extent permitted by applicable law, issuing debt, equity, or other securities or obligations, entering into leases, accessing designated trust funds, and borrowing or accepting grants from any state, federal, or private source.
(B)
Debt issued by a responsible public entity for the development of a qualifying project may be evidenced by the issuance of taxable or tax-exempt bonds, promissory notes, lease-purchase agreements, or other evidences of indebtedness that are specified in the comprehensive agreement.
(C)
However, bonds issued by a responsible public entity under this chapter:
(i)
Shall state plainly on the face of the bonds that the bonds are issued under this chapter;
(ii)
Are obligations only of the responsible public entity;
(iii)
Do not constitute an indebtedness of the state or a pledge of the full faith and credit of the state; and
(iv)
Shall not be secured by a lien or security interest in any property of the state.
(3)
(A)
Except as provided in subdivision (a)(2)(C) of this section, financing for a qualifying project by a responsible public entity may be secured by a pledge of, security interest in, or lien on the real or personal property of the public entity, including without limitation any property interests in the qualifying project or the qualifying project revenues the responsible public entity is entitled to receive.
(B)
Financing for a qualifying project by the qualified respondent may be secured by a pledge of, security interest in, or lien on the real or personal property of the qualified respondent, including without limitation any property interests in the qualifying project or the qualifying project revenues the qualified respondent is entitled to receive.
(b)
(1)
The responsible public entity may take action to obtain federal, state, or local assistance for a qualifying project that serves the public purpose of this chapter, including without limitation entering into any contracts required to receive such assistance.
(2)
All or any portion of the costs of a qualifying project may be paid, directly or indirectly, from the proceeds of a grant or loan made by the state government, the United States Government, or a public entity if it would serve the public purpose of this chapter.
(c)
In addition to the financing methods allowed under subsection (a) of this section, a qualifying project may be financed through:
(1)
Capital provided by either the responsible public entity or the qualified respondent;
(2)
The available funds of the responsible public entity that may legally be used to finance the qualifying project;
(3)
The operating expenses of the responsible public entity;
(4)
Revenues of the qualifying project;
(5)
Any tax credits or other incentives for which the qualifying project or the qualified respondent may qualify;
(6)
Governmental or third-party grants; and
(7)
Any other available capital or funding sources of the responsible public entity or the qualified respondent.
Added by Act 2017, No. 813,§ 1, eff. 8/1/2017.