Arizona § 28-7561 - Bonds payable from transportation excise taxes

§ 28-7561. Bonds payable from transportation excise taxes

A. The board is designated as the body having sole and exclusive power to authorize and issue bonds or incur long-term obligations payable in whole or in part from monies in a regional area road fund established by chapter 17, article 1 of this title. The board may act for and on behalf of a county that has a regional area road fund established by chapter 17, article 1 of this title to:

1. Issue negotiable bonds payable solely from monies paid into the bond account of the respective regional area road fund in a principal amount that in the opinion of the board is necessary to provide sufficient monies for any lawful purpose for which the respective regional area road fund monies may be spent, to establish reserves to secure the bonds and to provide for the payment of all other expenditures of the board that are incidental, necessary and convenient to carry out these purposes.

2. Issue refunding bonds if the board deems refunding expedient, including refunding any bonds and other obligations issued pursuant to chapter 21 of this title if the proceeds of the bonds and other obligations to be refunded are used for the purposes provided in section 28-6304, subsection C, paragraph 4 or 5, as applicable, whether the bonds and other obligations to be refunded have or have not matured.  Proceeds of the refunding bonds may be used to pay principal, interest or redemption premiums on the refunded bonds and other obligations.

3. Refund any bonds issued by the board and payable from regional area road fund income as authorized in this article by the issuance of refunding bonds, whether the bonds to be refunded have or have not matured. Proceeds of refunding bonds may be used to pay principal, interest or redemption premiums on refunded bonds.

4. Issue bonds partly to refund bonds and other obligations described in paragraphs 2 and 3 of this subsection outstanding and partly for any other purpose consistent with this article.

B. Regardless of whether or not the bonds are of such form or character as to be negotiable instruments under the terms of the uniform commercial code, the bonds are fully negotiable within the meaning and for all purposes of the uniform commercial code.