2005 Arizona Revised Statutes - Revised Statutes §15-1107  Litigation recovery fund; disposition of proceeds

A. Monies received for and derived from settlement of legal controversies or from recovery of costs, attorney fees or damages by a school district in litigation by or against the school district shall be deposited with the county treasurer who shall credit the deposits to the litigation recovery fund of the school district. The litigation recovery fund is a continuing fund which is not subject to reversion.

B. If a school district receives monies as provided in subsection A for the purpose of replacing or repairing school buildings or other school property, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may only apply the proceeds to:

1. Pay any outstanding bonded indebtedness of the school district which is payable from the levy of taxes on property within the school district.

2. Construct, acquire, improve, repair or furnish school buildings after notice and a hearing.

3. Replace or repair the school property other than school buildings.

C. Except as provided in subsection B, the governing board, or the superintendent or chief administrative officer with the approval of the governing board, may apply the proceeds of litigation recoveries to procure legal services or for the costs of litigation.