Arizona § 17-289 - Bond proceeds fund; investment

§ 17-289. Bond proceeds fund; investment

A. The proceeds received from the sale and delivery of bonds after deducting the necessary costs and expenses of the issuance and sale of the bonds shall be deposited with the trustee designated by the commission pursuant to section 17-290 to be placed in a bond proceeds fund, which shall be established for each series or issue of bonds. The bond proceeds fund shall be separate and apart from all other funds, except that the trustee shall first apply those amounts of the bond proceeds set forth in the resolution issuing the bonds or notes to all reserve and sinking funds if required by the bond resolution. Monies in the bond proceeds fund may be spent for any game and fish facilities purpose consistent with the resolution authorizing the bonds.

B. On order of the commission, all monies in a bond proceeds fund shall be invested by the trustee for the series or issue of bonds in obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities or any investments authorized by any other agencies of the United States government which are now authorized for use to secure public deposits or state, county or municipal bonds issued in this state on which the payments of interest have not been deferred. The order directing the trustee to invest the monies shall set forth the specified time when the proceeds from the sale of the bonds shall be used for the purposes directed in the bond resolution, and the trustee shall invest the proceeds from the sale of the bonds, in the securities described in this subsection. If authorized by the commission, the trustee may purchase any of these securities which mature on a date after the date specified in the order if the trustee obtains a commitment to repurchase the securities on the date specified in the order from a bank or financial institution. The trustee shall exercise reasonable care in choosing the bank or financial institution repurchasing the securities.

C. The separate game and fish bond proceeds funds for different series of bonds may be held by different trustees designated pursuant to section 17-290.

D. If the revenues pledged to secure the bonds or any series of the bonds ever become insufficient to pay the annual principal and interest on the bonds, the commission shall direct the liquidation of the securities remaining in the respective bond proceeds fund and order the trustee to use the proceeds of the liquidation to make current all payments then due on the bonds.