(a) State of Arkansas Water, Waste Disposal, and Pollution Abatement Facilities general obligation bonds and the interest on the bonds issued under this subchapter are exempt from state, county, and municipal taxes, including income taxes, inheritance taxes, and property taxes.
(b) Bonds issued under this subchapter are eligible to secure deposits of all public funds and are legal for investment of bank funds, fiduciary funds, insurance company funds, trust funds, and public funds.