(a) For the purpose of fully securing revolving loan bonds or revolving loan certificates of indebtedness, the issuing school district may pledge any one (1) or more of the following, as shall be determined by the State Board of Education, as a condition precedent to the making of any such loans:
(1) The proceeds of taxes to be collected from a continuing ad valorem tax levy on all of the taxable real and personal property within the bounds of the school district, such levy having been proposed by the board of directors of the issuing school district and approved by a majority of the qualified electors of the school district voting on the proposition at an election called and held according to law;
(2) The per capita apportionment, or any part thereof, allocable to the school district from the Public School Fund;
(3) Any other moneys allocable to the school district by the State of Arkansas, the use of which is not otherwise specifically provided by law;
(4) Any surplus revenues arising each year from taxes voted to meet annual debt service requirements of any other issues of the school district's obligations; and
(5) Any other revenues or resources of the school district that may be legally pledged to secure obligations of the school district.
(b) In the event the proceeds of any such loan are to be used for the retirement of any of its legally issued and outstanding commercial bonds, the school district may, in lieu of the pledge requirements provided in subsection (a) of this section and subject to the approval of the state board, secure the payment of any such loan by the deposit with the state board of all commercial bonds so purchased.
(c) In all instances, the pledge to secure the payment of the revolving loan bonds or revolving loan certificates of indebtedness, both principal and interest, shall be contained in a resolution adopted by the board of directors of the school district.
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