2015 Arizona Revised Statutes
Title 11 - Counties
§ 11-681.10 Characteristics of bonds; negotiable; obligation; legal investments; exemption from taxation

11-681.10. Characteristics of bonds; negotiable; obligation; legal investments; exemption from taxation

A. Subject to any registration requirements, the bonds issued under this article are fully negotiable within the meaning and for all purposes of the uniform commercial code regardless of whether the bonds actually constitute negotiable instruments under the uniform commercial code.

B. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state.

C. Bonds issued under this article:

1. Are payable only according to their terms.

2. Are obligations of the county, and are not general, special or other obligations of this state.

3. Do not constitute a general obligation debt of this state or of the county.

4. Are not enforceable against this state or the county nor is payment of the bonds enforceable out of any monies other than the revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of the bonds.

5. Are government obligation securities suitable for investment by:

(a) Public officers and bodies of this state and of counties, municipalities and other political subdivisions of this state.

(b) Insurance companies, associations and other persons carrying on an insurance business.

(c) Financial institutions, investment companies and other persons carrying on a banking business.

(d) Fiduciaries.

(e) All other persons who are authorized to invest in government obligations.

6. Are securities that may be deposited with public officers or bodies of this state and counties, municipalities and other political subdivisions of this state for purposes that require the deposit of government bonds or obligations.