2005 Arizona Revised Statutes - Revised Statutes §48-1062  Authorization and issuance of bonds; election

A. The district may, pursuant to this article:

1. Issue its bonds in the principal amount as set forth in action by the board of directors, as necessary to:

(a) Provide sufficient monies for any authorized purpose.

(b) Establish reserves to secure the bonds.

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

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

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

3. Refund any bonds or other obligations issued by the district without regard to whether the refunded bonds or obligations are secured from the same revenues or source of revenues as the bonds authorized in this article, by issuing new bonds, whether the bonds or obligations to be refunded have or have not matured.

4. Issue bonds for any two or more purposes described above, consistent with this article.

5. Covenant and agree to maintain revenues sufficient to provide for the timely payment of principal, interest and other charges with respect to bonds of the district together with other obligations and expenses of the district.

B. On determining the amount of money necessary to be raised for any purposes stated in subsection A, the board of directors shall immediately call a special election and shall submit to the electors of the district the question of whether or not revenue bonds should be issued in the amount so determined. No election need be called or held with respect to bonds issued solely for refunding and related purposes.

C. The district shall issue a public notice of the election that specifies the date of the election, the amount of the bonds of each series proposed to be issued, the maximum rate of interest for each series of the bonds and the denominations of the series of the bonds. The notice shall be:

1. Posted in three public places in each election precinct of the district for at least twenty days before the election.

2. Published in a newspaper of general circulation in the county in which the district is located once a week for at least two consecutive weeks.

D. The election shall be held and the results determined as nearly as practicable pursuant to the general election laws of this state, except as otherwise provided by this article. An informality in conducting the election does not invalidate the election if the election was otherwise conducted fairly.

E. At the election the ballots shall identify and describe generally the amount and purpose for which each series of bonds is proposed to be issued and contain the words "bonds--yes" and "bonds--no". If a majority of the votes cast at the election approves the bonds or any series thereof, the board of directors shall cause the bonds or the series approved at the election to be issued at the terms and time the board of directors deems appropriate pursuant to this article. If a majority of the votes cast at the election disapproves the bonds or any series thereof, the board of directors shall declare and enter the result of the election on its record, and if at any time thereafter one-fourth of the qualified electors of the district petition the district, or if the board of directors so directs, the district shall resubmit the question to the electors of the district in the manner prescribed by this section. Disapproval by the electors of the issuance of any bonds or series of bonds shall not bar subsequent submission of the issue to electors of the district.

F. The board of directors shall authorize the bonds by resolution. The resolution shall prescribe as to each series of bonds authorized:

1. The amount and principal purpose of the bonds.

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

3. The date or dates of the bonds, of the maturity thereof and any requirement for periodic deposits into any sinking or similar fund.

4. The coupon or registered form of the bonds.

5. The manner of executing the bonds.

6. The medium and place of payment.

7. The terms of mandatory or optional redemption which may include a premium for early redemption.

8. The security for and source of payment of the bonds.

G. The district 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 county. The last day of publication must be at least ten days before the board of directors authorizes issuance of the bonds. The notice shall state the amount of the bonds to be sold and the intended date of issuance.

H. The bonds shall be sold at public or private sale at the price and on the terms as the board of directors determines pursuant to this article. Bonds to fund or refund other bonds may be either sold or exchanged with the holders of bonds being funded or refunded on terms as determined by the board of directors. All proceeds from issuing the bonds shall be deposited in and disbursed from a segregated fund as determined by the board of directors.

I. The district, out of any available monies, may purchase bonds or other obligations of the district, which may thereupon be cancelled, at a price not exceeding the following:

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

2. If the bonds or obligations 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.

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

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