Arizona § 48-690 - Expansion of pledge; effect on prior elections; refunding bonds; conflict of interest

§ 48-690. Expansion of pledge; effect on prior elections; refunding bonds; conflict of interest

A. All bonds issued pursuant to this article shall be paid from, and may hereafter be secured by a pledge of, all revenues received by the city or town issuing the bonds, from taxes, fees, charges and other monies collected by the state and returned to such city or town for street and highway purposes pursuant to title 28, chapter 18, article 2 and section 42-6107.

B. Any city or town which has submitted the question of issuing bonds to its electorate and has received authority therefrom to issue bonds as provided by this article may issue such bonds in the amount and for the purposes approved by its electors notwithstanding the fact that the resolutions ordering and calling such election may have limited the revenues available for repayment to the monies received by such city or town from motor vehicle fuel tax.

C. Whenever the governing body of any city or town determines that the best interests of such municipality will be served by the issuance of refunding bonds in order to refund bonds secured by the pledge of revenues received pursuant to title 28, chapter 18, article 2 and section 42-6107, the governing body may issue refunding bonds on behalf of the municipality to refund the bonds issued pursuant to this article. Such refunding bonds shall be payable at such dates, in such amounts and at such rates of interest as the governing body by resolution may decide, shall be secured by a pledge of all monies received pursuant to title 28, chapter 18, article 2 and section 42-6107, and in all other respects the form and character of the refunding bonds shall conform with the provisions of section 48-688. The refunding bonds may be sold at public or private sale, at the price the governing body deems to be the best price available therefor which price may be below, at, or above par, or the refunding bonds may be exchanged for a like amount of bonds being refunded, with all unmatured coupons attached thereto, or the refunding bonds or proceeds from the sale of the refunded bonds may be exchanged for a sufficient amount of cash to pay all legal, financial and all other expenses incurred by the municipality in the issuance of the bonds plus obligations issued by or guaranteed by the United States which obligations with interest thereon will provide sufficient monies to pay, when due or called for prior redemption at the option of the municipality, all refunded bonds and the coupons appertaining thereto and any redemption premiums, if applicable. The governing body may provide that any securities acquired from refunded bond proceeds or from exchange of the refunding bonds for United States government securities be delivered to a bank or trust company doing business in this state to act as trustee or escrow agent to protect the rights of the holders of the refunded bonds. The governing body may execute such trust or escrow agreements as it sees fit to protect the rights of the holders of the refunded bonds and may pay the fees, costs and expenses of such trustee or escrow agent and also all legal, financial paying agent's fees or charges and all other costs incidental to the issuance of the refunding bonds, either from refunding bond proceeds or from monies received pursuant to title 28, chapter 18, article 2 and section 42-6107.

D. Notwithstanding the provisions of section 38-501 or of any other law, it shall not be a conflict of interest for the holder of any bond authorized by this article, or for a person contracting with the issuing city or town, to purchase any such bond, to offer to sell or exchange, or to contract to sell or exchange, or to sell or exchange any federal government securities or obligations to the municipality to be used for the purposes set forth in subsection C of this section, nor shall it be a conflict of interest for any trustee, escrow agent or paying agent to purchase for their account or for the account of another any bond issued under authority of this article.