(a) It shall not be lawful for the board of the district or any officer, member, or agent thereof to pledge or deposit any bond or coupon issued under the provisions of this chapter as security for payment of any borrowed money or any debt or obligation of the board or any person, firm, or corporation whatever; nor shall it be lawful for the board of the district or any officer, member, or agent thereof to appropriate or use any money arising from the sale of bonds authorized to be issued under this chapter to any use or purpose whatever other than is herein specified and expressly directed.(b) Any officer, member, or agent of the board of the district who shall violate any of the provisions of this section shall be deemed guilty of a felony and upon conviction shall be punished by imprisonment in the penitentiary for not less than one (1) year nor more than five (5) years.Acts 1938 (Ex. Sess.), No. 23, § 16; A.S.A. 1947, § 76-1417.
Arkansas Legal Code