Ark. Code Ann. § 14-233-113: Refunding bonds - Issuance

(a) Bonds may be issued for the purpose of refunding any bonds issued under this chapter or any other interest-bearing indebtedness of the sanitation authority. Refunding bonds may be combined with bonds issued under the provisions of § 14-233-109 into a single issue.

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

(c) The resolution under which refunding bonds are issued may provide that any of the refunding bonds shall have the same priority of lien on and security interest in sanitation authority revenues and the sanitation authority's properties as was enjoyed by the bonds refunded by them.