Ark. Code Ann. § 26-78-117: Issuance of refunding bonds

(a) Revenue bonds may be issued for the purpose of refunding any obligations issued under this chapter. The refunding bonds may be combined into a single issue with bonds issued under the provisions of this chapter for the purpose of providing funds for financing additional construction and reconstruction work specified in this chapter. When bonds are issued for refunding purposes, the refunding bonds may either be sold or delivered in exchange for the bonds being refunded. If sold, the proceeds may be either applied to the payment of the bonds being refunded or deposited into escrow for the retirement thereof.

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