Arizona § 48-1815 - Bond agreements; covenants

§ 48-1815. Bond agreements; covenants

A. Any resolution, contract, indenture or trust agreement pertaining to the bonds may contain covenants and contractual arrangements as to the following:

1. The purpose to which the proceeds of the sale of the bonds may be applied and the use and disposition.

2. The segregation of any or all revenues of the district into a special fund or funds and the pledging of all or any part of the revenues to the payment of the principal of and interest and premium, if any, on the bonds and for the reserves and other funds as may be deemed necessary or advisable. A pledge may include a deposit with a trustee or a pledge, assignment, pawn, mortgage or sale of any contracts that pertain to the payment of revenues to the district not pledged to other holders of obligations issued by the district.

3. Limitations or restrictions on the issuance of additional bonds or other obligations payable from all or part of the revenues then securing any bonds of the district and the rights and remedies of the holders of additional bonds or refunding bonds issued for that purpose.

4. The procedure, if any, by which the terms of any covenant with the holder or holders of bonds issued pursuant to this article may be amended, abrogated or altered.

5. The rank or priority as to lien and source of security for payment from the revenues between and among bonds issued pursuant to this article and bonds issued pursuant to other lawful authority.

6. The appointment of a trustee or trustees to hold and apply any revenues derived from revenue producing activities of the district.

7. The appointment of a trustee or trustees to act for and on behalf of bondholders, the manner and terms of the appointment and the powers of the trustee or trustees.

8. The keeping of books of account relating to the revenue producing activities of the district and any contracts providing revenues to pay the bonds and the audit and inspection of these records.

9. Rights and remedies of the holders of bonds and the manner of exercising and enforcing rights and remedies.

10. Other and additional covenants deemed necessary or appropriate to achieve the purpose for which the bonds are issued or for the security of the holders of bonds or other obligations issued pursuant to this article.

B. All covenants and agreements constitute valid and binding contracts between the district and the holders of any bonds or other obligations issued pursuant to the resolution, regardless of the time of their issuance, and, subject to any limitations contained in the resolution or trust agreement or this article, are enforceable by any holder or holders of the bonds or other obligations, acting either for himself or themselves alone or acting in behalf of all other holders of the bonds or other obligations, by appropriate proceedings in any court of competent jurisdiction.

C. Notwithstanding any law to the contrary, any pledge, assignment, pawn, mortgage or sale of any contract or the district's right to receive revenues from any source whatsoever except ad valorem taxes is fully effective and fully enforceable from and after the initial delivery of any bond. A recording, filing or other notice of any nature is not required to fully perfect the pledge, assignment, pawn, mortgage or sale other than entry of the resolution, indenture, trust agreement or other document into the official records of the district and the entry is notice to all interested of its contents.