Arizona Laws 5-535. Securing principal and interest; refunding bonds
A. In connection with issuing state lottery revenue bonds authorized by this article and to secure the principal and interest on the bonds, the director may:
Terms Used In Arizona Laws 5-535
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Bond related expenses: means any expenses incurred by the director to issue and administer the bonds, including underwriting fees and costs, trustee fees, financial consultant fees, printing and advertising costs, paying agent fees, transfer agent fees, legal, accounting, feasibility consultant and other professional fees and expenses, bond insurance or other credit enhancements or liquidity facilities, attorney and accounting fees and expenses related to credit enhancement, bond insurance or liquidity enhancement, remarketing fees, rating agency fees and costs, travel and telecommunications expenses and all other fees considered necessary by the director in order to market and administer the bonds. See Arizona Laws 5-531
- Bond related obligations: means any agreement or contractual relationship between the director and any bank, trust company, insurance company, surety bonding company, pension fund or other financial institution providing increased credit on, or security for, the bonds or liquidity for secondary market transactions and any agreement to fund or replenish reserves for the bonds. See Arizona Laws 5-531
- Bonds: means any bonds issued pursuant to this article. See Arizona Laws 5-531
- Commission: means the Arizona state lottery commission. See Arizona Laws 5-551
- Contract: A legal written agreement that becomes binding when signed.
- Director: means the director of the department of administration. See Arizona Laws 5-531
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Lien: A claim against real or personal property in satisfaction of a debt.
- state lottery: means the lottery created and operated pursuant to this chapter. See Arizona Laws 5-551
1. Segregate the state lottery revenue bond debt service fund into one or more accounts and subaccounts and provide that bonds issued under this article may be secured by a lien on all or part of the monies paid into the state lottery revenue bond debt service fund or into any account or subaccount in the fund.
2. Provide that the bonds issued under this article are secured by a first lien on the monies paid into the state lottery revenue bond debt service fund and paid into the state lottery fund to be placed in the state lottery bond debt service fund as provided in this article and pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the state lottery revenue bond debt service fund, in any account or subaccount in the state lottery revenue bond debt service fund or in the state lottery revenue bond proceeds fund as is necessary to secure and pay the principal, the interest and any premium on the bonds as they come due.
3. Establish priorities among bondholders based on criteria adopted by the director.
4. Set aside, regulate and dispose of reserves and sinking accounts.
5. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given.
6. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues authorized by this article and available to the director.
7. Provide for the services of trustees, cotrustees, agents and consultants and other specialized services with respect to the bonds.
8. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds.
9. Refund any bonds issued by the director by issuing new bonds, if these bonds are secured from the same source of revenues as the bonds authorized by this article.
10. Issue bonds partly to refund outstanding bonds and partly for any other purpose consistent with this article.
B. If state lottery revenue bonds are issued, the director shall provide to the state lottery commission a schedule of the amount needed to pay each fiscal year‘s debt service on outstanding state lottery revenue bonds, including sinking fund and reserve fund deposits pursuant to the terms of the bonds, bond related expenses and amounts payable with respect to bond related obligations.