2005 Arizona Revised Statutes - Revised Statutes §48-2714  Payment of interest coupons; redemption of unmatured bonds

A. Upon presentation to the treasurer of matured interest coupons, he shall pay them from the bond fund.

B. When the bond fund amounts to ten thousand dollars in excess of the amount sufficient to meet the matured interest coupons, the board of directors shall direct the district treasurer to pay such an amount of unmatured bonds of the district as the money in the bond fund will redeem, at the lowest value at which they are offered for liquidation, after advertising in the manner provided by section 48-2757 for sealed bids for the redemption of such bonds. The bids shall be opened by the board in open meeting at the time specified in the notice, and the lowest bid for the bonds shall be accepted, but no bond shall be redeemed at a rate above par. If the bids are equal, the lowest numbered bond shall have preference.

C. If none of the holders of such bonds desire to have them redeemed, the money shall be invested by the treasurer under direction of the board of directors in bonds of the United States, of the state, of any school district of the state, or in the bonds of any other municipal corporation within the state. The bonds shall be kept in the bond fund and may be used to redeem district bonds when the holders thereof so request, either by exchanging them for bonds of the district or by converting them into cash and redeeming the bonds of the district.