Arizona § 30-227 - Additional provisions of bonds; certification by attorney general; sale

§ 30-227. Additional provisions of bonds; certification by attorney general; sale

A. The authority may provide for reimbursement to the holder of all expenses of litigation and attorney fees incurred in collection of the bonds in the event of default, and may provide for and fix the powers and duties of a trustee if necessary to enforce collection. Bond resolutions, agreements and bonds may be in such form and contain such other conditions and terms as the authority deems appropriate or necessary to make the bonds fully salable and marketable.

B. The authority may provide that any holder of bonds, or a trustee designated by the authority at the time of issuing the bonds, may upon proper showing secure by mandamus, or other proper proceedings, an order of court requiring the authority, subject to the provisions of contracts with purchasers of electrical energy or transmission service from the authority then in effect, to fix and collect rates and charges which will produce revenues and income permitting the setting up of adequate yearly reserves with which to meet future payments in accordance with the terms of the bond.

C. All bonds issued by the authority and agreements of the authority with respect thereto shall be subject to the provisions of this chapter, and no bond or agreement shall contain any provisions in conflict with this chapter. No amendment of this chapter shall ever diminish or impair the remedy and rights of the bondholder.

D. The bonds shall be signed by the chairman or vice-chairman and the secretary of authority in office at the date of signing, and shall be valid obligations of the authority although before delivery or sale the persons whose signatures appear on the bonds have ceased to be members of the authority.

E. The validity of the bonds shall not be dependent on or affected by the legality of any proceeding relating to the acquisition, construction, improvement or extension of a project for which the bonds are issued. The bonds shall recite that they are regularly issued pursuant to this chapter and such recital shall be prima facie evidence of their legality and validity.

F. Before delivery or sale the authority may submit the bonds to the attorney general of the state, and he shall examine them and inquire into the legality of all proceedings bearing upon the validity of the bonds. If satisfied that they are legally issued, he shall certify in substance on the back of each bond that it is issued in accordance with the constitution and laws of this state.

G. Bonds so issued may be sold if and when the money is needed for the purposes for which they were issued. Pending the preparation or execution of definite bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser or purchasers of bonds.