Arizona § 48-4542 - Issuance of bonds

§ 48-4542. Issuance of bonds

A. The board, subject to this article, may:

1. Issue its negotiable bonds in such principal amount as, in the opinion of the board, is necessary to:

(a) Provide sufficient monies for any water replenishment purpose.

(b) Establish reserves to secure the bonds.

(c) Pay the necessary costs of issuing, selling and redeeming the bonds.

(d) Pay all other costs and bond related expenses incidental to and necessary and convenient to carry out such purposes.

2. Issue refunding bonds if the board deems refunding expedient. The board may provide for investing and holding the proceeds of the refunding bonds in trust for the benefit of the holders of the bonds being refunded.

3. Refund any bonds issued by the district if the bonds are secured from the same source of revenues as the bonds authorized in this article by issuing new bonds, whether the bonds to be refunded have or have not matured.

4. Issue bonds partly to refund outstanding bonds and partly for any water replenishment purpose consistent with this article.

B. The board shall authorize the bonds by resolution. The resolution shall prescribe:

1. The rate or rates of interest, which may be fixed or variable, and the denominations of the bonds.

2. The date or dates of the bonds and maturity.

3. The coupon or registered form of the bonds.

4. The manner of executing the bonds.

5. The medium and place of payment.

6. The terms of redemption that may provide for a premium for early redemption.

C. The board shall publish a notice of its intention to issue bonds under this article for at least five consecutive days in a newspaper of general circulation in the district. The last day of publication must be at least ten days before issuing the bonds. The notice shall state the amount of the bonds to be sold and the intended date of issuance.

D. The bonds shall be sold at public or private sale at the price and on the terms as the board determines. Bonds to fund or refund other bonds may be either sold or exchanged with the holders of bonds being funded or refunded on terms the board determines. All proceeds from issuing the bonds shall be deposited in the bond fund.

E. The board, out of any available monies, may purchase bonds, which may thereupon be canceled, at a price not exceeding the following:

1. If the bonds are then redeemable, the applicable redemption price plus accrued interest to the next interest payment date.

2. If the bonds are not then redeemable, the redemption price applicable on the first date after purchase on which the bonds become subject to redemption plus accrued interest to that date.

F. Neither the members of the board nor any person executing the bonds is personally liable for the payment of the bonds.

G. Title 35, chapter 3, article 7 applies to the district and to bonds issued under this article.