(1) Subject to restrictions set forth in the ordinance creating the commission, it shall have power to borrow money and issue negotiable evidences of debt in the form of serial bonds or short-term notes. It may execute such negotiable notes or bonds to obtain the funds needed to carry out its functions.
(2) The commission may also pledge its revenues including the income from operations, and it may mortgage its property to secure the payment of money borrowed.
(b) The rate of interest to be paid and the time of maturity of all obligations shall be such as, in the judgment of the commission, will be most advantageous to the commission and its patrons. However, no obligation shall be made to run for more than twenty (20) years and no obligation running longer than one (1) year shall bear interest at more than the maximum rate allowable for income from the obligations to qualify for tax-exempt status under the laws of the United States of America and the State of Arkansas.
Acts 1977, No. 740, § 3; A.S.A. 1947, § 19-3936.