Constitution of Arkansas (2025 publisher edition) — Amendment 89: [GOVERNMENTAL BONDS AND LOANS — INTEREST

Publisher edition notice: This collection preserves the complete constitutional appendix of the Secretary of State’s 2025 Election Laws and Constitution compilation: its preamble, twenty original articles, schedule and 104 published amendments, including annotations and explicit repealed notices. Repealed notices remain historical publisher context. Later amendments have not been independently verified.

Amendment 89

AMEND. 89. [GOVERNMENTAL BONDS AND LOANS — INTEREST
RATES — ENERGY EFFICIENCY PROJECTS] (CONST., ART. 19, § 13
REPEALED, CONST. AMEND. 30, § 5, AMEND. 38, § 5, AMEND. 62, § 1,
AMEND. 65, § 4, AND AMEND. 78, § 2, AMENDED, AND SECTIONS
ADDED)
Publisher’s Notes. This amendment, consisting of sec-
tions 1 through 14, is set out below. Section 14 of the
amendment repealed Ark. Const., Art. 19, § 13 and
amended Ark. Const. Amend. 30, § 5, Amend. 38, § 5,
Amend. 62, § 1, Amend. 65, § 4, and Amend. 78, § 2. The
amendments to those sections, effective January 1, 2011,
are incorporated within those sections. The amendment
was proposed by H.J.R. 1004 during the 2009 Regular
Session and adopted at the 2010 general election by a vote
of 448,711 for and 250,167 against.
The bracketed heading was added by the Publisher.
Effective Dates.
Acts 2019, No. 694, § 8: Apr. 4, 2019. Emergency clause
provided: “It is found and determined by the General
Assembly of the State of Arkansas that under current law
the Arkansas Code Revision Commission does not have the
authority to correct conflicts occurring when multiple acts
amend the same provision of the Arkansas Constitution as
expressly permitted by the Arkansas Constitution; that
this inability to resolve conflicts makes the law unclear and
impossible to publish for review and study by the citizens
of the state; and that this act should become effective at the
earliest opportunity so that it may be applied to acts
enacted by the Ninety-Second General Assembly. There-
fore, an emergency is declared to exist, and this act being
immediately necessary for the preservation of the public
peace, health, and safety shall become effective on: (1) The
date of its approval by the Governor; (2) If the bill is neither
approved nor vetoed by the Governor, the expiration of the
period of time during which the Governor may veto the bill;
or (3) If the bill is vetoed by the Governor and the veto is
overridden, the date the last house overrides the veto.”
§ 1. Governmental Bonds and Loans.
(a) The maximum lawful rates of interest on bonds issued by governmental units in the State
of Arkansas as set forth in various provisions and amendments to the Arkansas Constitution of
1874, including Article 19, § 13, and Amendment Nos. 30, 38, 62, 65, and 78 are removed.
(b) The maximum lawful rate of interest on loans made by or to governmental units in the
State of Arkansas as set forth in Article 19, § 13 of the Arkansas Constitution of 1874 is removed.
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(c) Except as may be established by the General Assembly pursuant to Section 8 of this
amendment, there shall be no maximum lawful rate on bonds issued by and loans made by or to
governmental units.
§ 2. Loans by Federally Insured Depository Institutions.
The maximum lawful rate of interest, discount points, finance charges, or other similar charges
that may be charged, taken, received, or reserved from time to time in any loan or financing
transaction by or to any federally insured depository institution having its main office in this
State shall be the maximum rate of interest that was applicable to federally insured depository
institutions under 12 U.S.C. § 1831u effective on March 1, 2009.
§ 3. Other Loans.
The maximum lawful rate of interest on loans or contracts not described in Sections 1 and 2
shall not exceed seventeen percent (17%) per annum.
§ 4. Energy Efficiency Project Bonds – Issuance – Terms and Conditions.
(a) A governmental unit, under laws adopted by the General Assembly, may issue bonds to
finance all or a portion of the costs of energy efficiency projects. The bonds may bear such terms,
be issued in such manner, and be subject to such conditions as may be authorized by the General
Assembly. The bonds authorized by Section 4 shall be governmental bonds subject to the
provisions of Section 1 of this amendment.
(b) Bonds may be secured by a pledge of the savings from the energy efficiency project and may
be repaid from general revenues, special revenues, revenues derived from taxes or any other
revenues available to the governmental unit.
(c) The authority conferred by this Section 4 shall be supplemental to other constitutional
provisions which authorize the issuance of bonds.
§ 5. Definitions.
(a) The term “bonds” means all bonds, notes, certificates, financing leases, or other interest-
bearing instruments or evidences of indebtedness.
(b) The term “Federal Reserve Primary Credit Rate” means the Primary Credit Rate, or such
successor rate, as established by and in effect in the Federal Reserve Bank in the Federal Reserve
District in which Arkansas is located.
(c) The term “federally insured depository institution” means a state bank, a national bank, or
a savings association, as such terms are defined in 12 U.S.C. § 1813 as such statute existed on
January 1, 2009, the deposits of which are insured by the Federal Insurance Deposit Corporation,
or its successor.
(d) The term “governmental unit” means the State of Arkansas; any county, municipality,
school district, or other political subdivision of the State of Arkansas; any special assessment or
taxing district established under the laws of the State of Arkansas; and any agency, board,
commission, or instrumentality of any of the foregoing.
(e) The term “loan or financing transaction by or to a federally insured depository institution”
means all direct or indirect advances of funds and moneys that are conditioned on the obligation
of a person or entity to repay the funds and moneys pursuant to loan agreements, lease
agreements, installment sale agreements, security agreements, notes, bill of exchange, or other
evidence of debt or other instruments or documents evidencing the indebtedness and are made
by or to a federally insured depository institution.
(f) The term “loans made by or to governmental units” means all direct or indirect advances of
funds and moneys that are conditioned on the obligation of a person or entity to repay the funds
and moneys pursuant to loan agreements, lease agreements, installment sale agreements,
security agreements, notes, or other instruments or documents evidencing the indebtedness and
are made by or to governmental units.
733 Amend. 89, § 5 GOVERNMENTAL BONDS AND LOANS

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§ 6. Miscellaneous.
(a) The provisions of this amendment are not intended and shall not be deemed to supersede
or otherwise invalidate any provisions of federal law applicable to loans or interest rates
including loans secured by residential real property.
(b) All contracts under Section 3 having a rate of interest in excess of the maximum lawful
rate shall be void as to principal and interest and the General Assembly shall prohibit the same
by law.
§ 7. [Ballot Title].
The ballot title for this amendment shall be:
An amendment providing that constitutional provisions setting the maximum lawful rate of
interest on bonds issued by and loans made by or to governmental units are repealed; the
maximum lawful rate of interest on loans by federally insured depository institutions shall
remain at the rate resulting from the federal preemption effective on March 1, 2009; establishing
that the maximum lawful rate of interest on any other loan or contract shall not exceed seventeen
percent (17%) per annum; authorizing governmental units to issue bonds to finance energy
efficiency projects and allowing such bonds to be repaid from any source including general
revenues derived from taxes; providing that any federal laws applicable to loans or interest rates
are not superseded by the amendment; and repealing Article 19, § 13, and the interest rate
provisions of Amendment Nos. 30, 38, 62, 65, and 78 of the Arkansas Constitution.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 8. [Interest Rate Limits].
Nothing in this amendment shall limit the power of the General Assembly to fix, from time to
time, one or more interest rate limits on various types of bonds issued by and loans made by or
to governmental units.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 9. [Application of Amendment].
If this amendment or the application thereof to any person or circumstances is held invalid, the
remainder of the amendment and its application to persons or circumstances other than those to
which it is held invalid shall not be affected.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 10. [Amendment Provisions].
The provisions of this amendment, other than the provisions of Section 4 of this amendment,
shall be self-executing.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 11. [Three-fourths vote].
(a) The General Assembly may by a three-fourths vote of each house of the General Assembly
amend the provisions of this amendment so long as the amendments are germane to this
amendment and consistent with its policy and purposes.
(b)(1) If an act of the General Assembly amends one (1) or more provisions of this amendment,
the Arkansas Code Revision Commission may, by a majority vote of the commission, make the
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following revisions to the act so long as the revisions do not change the substance or meaning of
the act:
(A) Correct the spelling of words;
(B) Change capitalization for the purpose of uniformity;
(C) Correct manifest typographical and grammatical errors;
(D) Correct manifest errors in references to laws and other documents;
(E) Correct manifest errors in internal reference numbers;
(F) Number, renumber, redesignate, and rearrange the provisions of this amendment at
issue;
(G) Change internal reference numbers to agree with renumbered sections, subsections,
subdivisions, or other provisions of law;
(H) Insert or delete hyphens in words to follow correct grammatical usage;
(I) Change numerals or symbols to words or vice versa and add figures or words if they are
merely repetitions of written words or vice versa for purposes of uniformity and style;
(J) Change the form of nouns, pronouns, and verbs for purposes of style and grammar;
(K) Correct punctuation; and
(L) Change gender-specific language to gender-neutral language.
(2)(A) If more than one (1) act amending a provision of this amendment is enacted by the
General Assembly during the same session, the commission may, by a majority vote of the
commission, revise this amendment as necessary so that all of the enactments shall be given
effect, including without limitation renumbering, redesignating, and rearranging sections,
subsections, and subdivisions of this amendment.
(B) In the event that one (1) or more acts amending a provision of this amendment result in
an irreconcilable conflict with one (1) or more acts amending a provision of this amendment
enacted during the same session, the commission may, by a majority vote of the commission,
revise this amendment so that the conflicting provision of the last enactment prevails.
(c) If the commission makes revisions under subsection (b) of this section, the commission shall
file a report with the Speaker of the House of Representatives, the President Pro Tempore of the
Senate, and the Governor that:
(1) Explains the revisions made under subsection (b) of this section; and
(2) Includes the text of this amendment as amended by the revisions made under subsection
(b) of this section. [As amended by Acts 2019, No. 694, § 5.]
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 12. [Applicability].
The provisions of this amendment shall apply to all bonds issued and loans made after the
effective date of this amendment.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 13. [Effective Date].
The effective date of this amendment is January 1, 2011.
Publisher’s Notes. The bracketed heading was added
by the Publisher.
§ 14. [Repealer].
This amendment shall repeal Article 19, § 13, and the interest rate provisions of Amendment
Nos. 30, 38, 62, 65, and 78 of the Arkansas Constitution.
735 Amend. 89, § 14 GOVERNMENTAL BONDS AND LOANS

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Publisher’s Notes. The bracketed heading was added
by the Publisher.