Arizona § 48-966 - Refunding bonds

§ 48-966. Refunding bonds

A. Any bonds issued pursuant to this chapter may be refunded and refunding bonds may be issued to do any of the following:

1. Provide monies to pay the bonds being refunded at their maturity or before their redemption date.

2. Purchase noncallable obligations issued or guaranteed by the United States in an amount sufficient to pay at maturity or at earlier redemption the bonds being refunded.

3. Exchange the refunding bonds for the bonds refunded.

B. Refunding bonds may be issued only if the total amount of principal and interest to be paid on the refunding bonds does not exceed the total amount of principal and interest remaining to be paid on the bonds to be refunded. For purposes of this calculation, the total amount of principal and interest to be paid shall include the cost of issuance of the refunding bonds and the cost of acquiring any obligations of the United States.

C. If the refunding bonds are secured in whole or in part with special assessments, on issuance of refunding bonds the remaining unpaid assessment installment shall be recalculated to match the amounts to be collected against that needed to repay the refunding bonds.

D. Except for payment of the costs of issuing the refunding bonds, any United States government obligations that are purchased from bond proceeds shall be deposited in or credited to the interest fund and the bond retirement fund and shall be held by the treasurer until needed to pay the bonds being refunded.

E. All of the costs of issuance of the refunding bonds may be paid from refunding bond proceeds. Costs of issuance include underwriter's discount, attorney fees, trustee, registrar and paying agent fees, bond insurance premiums, bond printing costs, deposition services, rating agency fees, official statement printing costs, verification fees, financial advisor fees and other fees and charges related to the issuance of the refunding bonds.

F. The treasurer may enter into trust agreements with any bank or trust company that does business in this state for the handling, safekeeping and administration of the monies and United States government obligations that are derived from the refunding.