(a)
- (1) Any single revenue bond issue of a governmental unit or political subdivision shall be subject to the twenty percent (20%) limitation of the capital base of the bank.
- (2) A political subdivision will be defined to include an improvement district.
- (b) Note — Revenue obligations not to be combined. For municipal bond obligations payable solely from pledged revenues, the twenty percent (20%) limitation should be applied to each business corporation whose obligation (for rent or otherwise) is being assigned to secure the bonds, and to each bond or note issue payable solely out of revenues, but these revenue bonds should not be combined in determining whether the loan limit of the municipality has been exceeded.
Codification Notes: This section was promulgated as Section 47-401.3 of the State Bank Department Rules prior to codification into the Code of Arkansas Rules. This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Reference A.C.A § 23-47-401)"