Act 2205 of 2005 amends Arkansas Code Annotated § 19-1-504 to allow school districts to invest moneys held for the repayment of a federally recognized Qualified Zone Academy Bond (QZAB) in a Guaranteed Investment Contract(GIC) or a forward delivery agreement in which the district is guaranteed a certain rate of interest if the GIC or forward delivery agreement is entered into between the school district and the purchaser of the QZAB. QZABs may be issued in the form of bonded and non-bonded debt, including, but not limited to, commercial bonds, second lien bonds, postdated warrants, lease purchases, or installment contracts.
Questions concerning Act 2205 should be directed to the Loans and Bonds Unit of Public School Finance and Administrative Support at (501) 682-4465.
To access The Arkansas Department of Education Rules and Regulations Governing the Allocation of Qualified Zone Academy Bonds, go to http://arkedu.state.ar.us/, click on Rules, then current rules, then Q, then Qualified Zone Academy Bonds. For the QZAB application, enter the same web address, click on Publications, then Reports, then Qualified Zone Academy Bond (QZAB) Application.
To access federal QZAB law, enter http://www.ed.gov/programs/qualifiedzone/faq.html, click on Laws, Regs and Guidance, then click on Section 226(a) of the Taxpayer Relief Act of 1997. To access the tax credit rate and maximum term enter the same web address, click on Resources and enter applicable dates.