Arizona Laws 40-810. Power to borrow money; issuance of notes and bonds; mortgage of property and franchise; sinking fund to redeem bonds
A. Railroad companies may borrow amounts of money they deem necessary for constructing and completing railroads and may issue and dispose of bonds or promissory notes therefor, in denominations of not less than one hundred dollars, and at a rate of interest not exceeding ten per cent per annum, in an amount not exceeding their capital stock. They may issue bonds or promissory notes in payment of any debts or contracts for constructing and completing railroads with equipment and other property relative thereto.
Terms Used In Arizona Laws 40-810
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: includes both real and personal property. See Arizona Laws 1-215
B. To secure the payment of the bonds or notes, railroad companies may mortgage their corporate property and franchise.
C. The directors shall provide a sinking fund to be applied to the redemption of bonds on or before their maturity.