(a) The proceeds from the sale of the bonds, together with all revenues derived by the Arkansas Development Finance Authority from any superproject financed or refinanced under this subchapter shall be deposited by the recipient, as received, into trust funds either established in the State Treasury or into accounts established outside the State Treasury in the name of the authority to accomplish the purposes of this subchapter, in amounts or portions as set forth in the resolution or trust indenture authorizing or securing the bonds issued to finance or refinance the superproject.

(b) There is created as a trust fund in the State Treasury an account designated as the "Economic Development Superprojects Project Fund" to provide for payment of all or a part of debt service on bonds issued under this subchapter and to directly fund superprojects on a pay-as-you-go basis should bonds neither be approved nor issued.

(c)

(1) The Treasurer of State shall establish separate accounts and subaccounts within the fund to correspond to the applicable series of bonds.

(2) In addition, there may be created in the State Treasury other funds, accounts, or subaccounts as the authority may determine to be necessary to accomplish the purposes of this subchapter.

(d) All procedures and methods for application of proceeds of any series of bonds to the financing or refinancing of project costs shall be developed in consultation with and approved by the Arkansas Economic Development Commission and shall be set forth in writings and shall be maintained as part of the records of the authority.

(e) Any arrangements undertaken pursuant to subsection (b) of this section whereby a local entity will administer funds composed in whole or in part of proceeds of bonds or disbursements from the fund shall include provision for the auditing of the funds no less frequently than annually.

(f) The proceeds from the sale of the bonds together with all revenues derived by the authority from any superproject financed or refinanced under this subchapter may be invested and reinvested by the Treasurer of State in any of the following:

(1) Direct obligations of the United States, including obligations issued or held in book entry form on the books of the United States Department of the Treasury or obligations the principal of and interest on which are unconditionally guaranteed by the United States;

(2) Bonds, debentures, notes, or other evidences of indebtedness issued or guaranteed by any United States Government agency if the obligations are backed by the full faith and credit of the United States;

(3) Non-full faith and credit senior debt obligations issued or guaranteed by United States Government agencies;

(4) Money market funds investing exclusively in the investments described in subdivisions (f)(1)-(3) of this section;

(5)

(A) Certificates of deposit providing for deposits secured at all times by collateral described in subdivisions (f)(1)-(3) of this section.

(B) The certificates must be issued by commercial banks whose deposits are insured by the Federal Deposit Insurance Corporation and whose collateral must be held by a third party.

(C) The Treasurer of State, or assigns, must have a perfected first security interest in the collateral;

(6) Certificates of deposit, savings accounts, deposit accounts, or money market deposits, all of which are fully insured by the Federal Deposit Insurance Corporation;

(7) Bonds or notes issued by this state or any municipality, county, or school district in this state, or any agency or instrumentality thereof;

(8) Investment agreements with financial institutions or insurance companies that are rated in one (1) of the two (2) highest rating categories of a nationally recognized rating agency;

(9) Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm to the Treasurer of State, and the transfer of cash from the Treasurer of State to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the Treasurer of State in exchange for the securities at a specified date. Repurchase agreements must satisfy the following criteria:

(A) Repurchase agreements must be between the Treasurer of State and a dealer bank or securities firm described as follows:

(i) Dealers with at least one hundred million dollars ($100,000,000) in capital; or

(ii) Banks whose deposits are insured by the Federal Deposit Insurance Corporation; and

(B) The written repurchase agreement contract must include the following:

(i) Securities that are acceptable for transfer are those listed in subdivisions (f)(1)-(3) of this section;

(ii) The term of the repurchase agreement may not exceed thirty (30) calendar days;

(iii) The collateral must be delivered to the Treasurer of State, a trustee if a trustee is not supplying the collateral, or a third party acting as agent for the trustee if the trustee is supplying the collateral before or simultaneous with payment; and

(iv)

(a) The securities must be valued weekly, marked-to-market at current market price plus accrued interest.

(b)

(1) The value of collateral must be equal to one hundred three percent (103%) of the amount of cash transferred by the Treasurer of State to the dealer bank or security firm under the repurchase agreement plus accrued interest.

(2) If the value of securities held as collateral declines below one hundred three percent (103%) of the value of the cash transferred by the Treasurer of State, then additional cash or acceptable securities, or both, must be transferred and held by the Treasurer of State; and

(10) Any other investment authorized by state law.