Arizona Laws 41-5755. Securing principal and interest
A. In connection with issuing bonds authorized by this article and to secure the principal and interest on the bonds, the board by resolution may:
Terms Used In Arizona Laws 41-5755
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Board: means the school facilities oversight board. See Arizona Laws 41-5701
- Contract: A legal written agreement that becomes binding when signed.
- Lien: A claim against real or personal property in satisfaction of a debt.
1. Segregate the school facilities 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 school facilities 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 school facilities revenue bond debt service fund as provided by section 37-521, subsection B, paragraph 1 and Section 42-5030.01, 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 school facilities revenue bond debt service fund, any account or subaccount in the fund or in the school facilities 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 board.
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 board.
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 board, if these bonds are secured from the same source of revenues as the bonds authorized by this article, by issuing new bonds.
10. Issue bonds partly to refund outstanding bonds and partly for any other purpose consistent with this article.
B. Bonds issued to refund any bonds issued by the board as provided by subsection A, paragraphs 9 and 10 of this section are not subject to legislative authorization or the $200,000,000 limit prescribed by section 41-5751, subsection A.