(a)

(1) Any fencing district, or the fencing board of the district, for the purposes prescribed in § 14-386-503 is expressly authorized and empowered to issue its general obligation, negotiable bonds, notes, or certificates of indebtedness, in the corporate name of the district, or in the name of the board of any district, in form, denomination, rate of interest, amount, place of payment, date of retirement, terms of payment, or redemption, and with contract provisions required by the lending agency or approved by the board of any district.

(2) In no event shall any bonds or other evidences of indebtedness be sold by any such district, or the board of any such district, on any basis that will cost the borrower over the life of the obligation interest at more than six percent (6%) per annum.

(b)

(1) Any and all bonds, notes, or certificates of indebtedness issued by any district, or the board of any such district in its corporate capacity, shall be signed by the chairman and attested by the secretary of the board, in the name of, and for, the district.

(2) (A) All bonds, notes, certificates of indebtedness, or other evidences of indebtedness issued under this subchapter shall:

(i) Be, and constitute, the general obligation of any district;

(ii) Have the effect of negotiable paper;

(iii) Not be invalid for any irregularity or defect in the proceedings for the issue or sale of them; and

(iv) Be incontestable in the hands of bona fide purchasers or holders for value.

(B)

(i) Under no circumstances shall any such bond, note, or other evidence of indebtedness issued under this subchapter be held or construed to be an obligation of the State of Arkansas, nor shall the State of Arkansas, under any theory or upon any grounds, be liable or responsible for them.

(ii) The bonds, notes, or other evidences of indebtedness, shall be solely and exclusively the general negotiable obligations of the district issuing them in its corporate capacity, or of the board for the district in its representative capacity, and without personal obligation or liability of either of the individual members of the board, and shall be secured by, and payable only from, the assets, property, securities, and revenues, matured or unmatured, of the district, authority for the mortgage, or pledge of which as security for the payment of them is expressly given.