Arizona Laws 30-191. Indemnity or performance bonds as security; collateral security in lieu of bond
A. Operating units may execute and deliver indemnity or performance bonds as required by the United States or the state as security or assurance for performance of or indemnity for liability under any contract made with them or either of them.
Terms Used In Arizona Laws 30-191
- Contract: A legal written agreement that becomes binding when signed.
- Operating units: means districts, state agencies, federal Indian agencies, cities and towns. See Arizona Laws 30-101
- State: means this state. See Arizona Laws 30-101
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. The operating units may at their election establish, tender and deliver collateral security in lieu of the indemnity or performance bond required. The amount or penalty of any indemnity or performance bond or pledge shall be the amount determined by the pledgee as sufficient for and proportionate to any contract undertaking involved.
C. The bond or pledge shall be in appropriate and effective form as the circumstances require. The pledge may consist of:
1. An uncommitted or unencumbered fund on hand or to be received or to be thereafter created.
2. Proceeds of any uncommitted or unencumbered district assessment.
3. Income or proceeds from any district, state agency or municipal operation not otherwise committed or encumbered.
4. Revenue bonds.
5. Real or personal property.
6. Any other valuable right or thing satisfactory to the pledgees or either of them.