2017 Arizona Revised Statutes
Title 48 - Special Taxing Districts
§ 48-2091.01 Use of net proceeds of refunding bonds; authorized investments

48-2091.01. Use of net proceeds of refunding bonds; authorized investments

A. Refunding bonds issued under this article may be:

1. Exchanged for bonds of at least the same principal amount of the bonds to be refunded.

2. Sold at, above or below par at a negotiated or public sale.

3. Exchanged in part and sold in part.

B. If the refunding bonds are sold, the net proceeds of the refunding bonds, together with all or part of the amounts held in the debt service fund for payment of principal of and interest on the bonds being refunded, amounts in any reserve fund for the bonds being refunded and other amounts lawfully available, may be invested if the investments and any reinvestment will mature with interest so as to provide monies to pay the bonds to be refunded when due, or when called for redemption, plus interest and redemption premiums, if any, at maturity or on an available redemption date or on an earlier voluntary surrender with the consent of the board of directors. On receipt, these amounts and investments shall be deposited in trust with a national banking corporation, or an association authorized to do trust business in this state, that is a member of the federal deposit insurance corporation, or any successor. After the deposit, the bonds being refunded are considered to have been paid and have no further interest in the assessments for the bonds being refunded. For the purposes of this subsection, " net proceeds" means the gross proceeds of the refunding bonds, after the deduction of:

1. All accrued interest.

2. Costs and expenses incurred:

(a) In connection with the authorization and issuance of the refunding bonds.

(b) In connection with the refunding of the bonds being refunded.

(c) Resulting from price variation to par.

(d) In the purchase of obligations for the trust.

(e) In the distribution of the refunding bonds.

C. The treasurer of the sanitary district may enter into trust agreements with banking corporations or associations for the handling, safekeeping and administration of the amounts and investments that are derived from, or contributed to, the refunding.

D. Monies that are invested pursuant to subsection B of this section shall be invested and reinvested at the board's discretion in:

1. Obligations issued by the United States government or one of its agencies.

2. Obligations fully guaranteed by the United States government as to principal and interest.