Ark. Code Ann. § 14-232-106: Refunding bonds

(a) Revenue bonds may be issued under this chapter for the purpose of refunding any obligations issued under this chapter. The refunding bonds may be combined with bonds issued under the provisions of § 14-232-105 into a single issue.

(b) When bonds are issued under this section for refunding purposes, they may either be sold or delivered in exchange for the outstanding obligations. If sold, the proceeds may be either applied to the payment of the obligations refunded or deposited in escrow for the retirement thereof.

(c) All bonds issued under this section shall in all respects be authorized, issued, and secured in the manner provided for other bonds issued under this chapter and shall have all the attributes of those bonds.

(d) The order or ordinance under which the refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on the revenues pledged for their payment as was enjoyed by the obligations refunded thereby.