2010 Arizona Revised Statutes
Title 48 - Special Taxing Districts
48-1771 Expenses of organizing district; issuance of time warrants

48-1771. Expenses of organizing district; issuance of time warrants

A. All preliminary expenses incurred in the organization of the district, including necessary engineering and legal services, and all necessary and reasonable services rendered before the district is authorized to contract for such services, materials or valuable things, are lawful obligations of the district, and after the board of directors has qualified shall be paid in such amounts as the board allows.

B. As soon as the board of directors has qualified, it may issue warrants to pay district obligations and deliver them to persons having claims against the district. The board may issue time warrants and sell them for the purpose of obtaining funds to conduct the business of the district. The amount of time warrants issued to provide for administration expenses shall be made payable at such time as it appears reasonably probable they can be redeemed by funds derived from the levy of taxes against the property of the district.

C. The amount of warrants issued to provide for the general indebtedness of the district, and for expenses incurred in the organization of the district, shall be made due and payable at such time as it is reasonably probable that funds to redeem them will be realized from proceeds of the first sale of bonds.