Ark. Code Ann. § 19-9-204: Retirement of bonds before maturity

(a) Whenever appropriations and funds are available, the State Board of Finance is authorized and empowered to purchase direct obligations of this state in advance of maturity for the purpose of retirement under the procedure set forth in this subchapter.

(b) All obligations purchased as prescribed, and the unmatured interest coupons attached thereto, shall be cancelled by perforation.