(a) Where the sale price is an amount greater than the outstanding secured indebtedness of the district, at least the excess over the amount of the secured indebtedness shall be paid in cash.
(b)
(1) All deferred payments, if any, shall be secured by a bond for one and one-half (11/2) times the total amount of the deferred payments, which bond shall be for the maintenance of the plant or system during the time of any outstanding secured indebtedness and for the prompt payment of any interest or principal on any secured indebtedness as and when it shall fall due.
(2) The bond shall be further conditioned that the purchaser will maintain insurance upon the plant for an amount to be agreed upon, with a "loss payable" clause for the benefit of the district making the sale as its interest may appear.
(3) The bond herein provided for shall be approved by the board of commissioners.
(4) The bond provided for in this section and § 14-219-101 shall be made by a corporate surety company authorized to do business in the State of Arkansas.
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