Arizona Laws 48-1064. Characteristics of bonds; negotiable; exemption from taxation; obligation; legal investments
A. Bonds issued under this article are fully negotiable within the meaning and for all purposes of the uniform commercial code, subject only to any provisions of registration, regardless of whether the bonds constitute negotiable instruments under the uniform commercial code.
Terms Used In Arizona Laws 48-1064
- Bonds: means bonds of the district issued pursuant to this article. See Arizona Laws 48-1061
- District: means a county improvement district that operates or is formed for the purpose of operating a domestic water delivery system or a wastewater system within the district, whether or not the district is governed in the manner described in article 4 of this chapter. See Arizona Laws 48-1061
- Revenues: includes any charge, income or receipt by the district of money or any other thing of value except that revenues shall not include monies paid to or for the account of the district for the levy of any tax or assessment or the sale of any property by the district to satisfy or pay any delinquent tax or assessment. See Arizona Laws 48-1061
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
B. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state.
C. Bonds issued under this article:
1. Are payable only according to their terms.
2. Are obligations of the district payable solely from the revenues pledged therefor and are not general, special or other obligations of this state or the county.
3. Do not constitute an indebtedness of this state, the county or the district within any statutory or constitutional limitation on indebtedness.
4. Are neither enforceable against this state or the county nor is payment of the bonds enforceable out of any monies other than the income and revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of the bonds.
5. Are securities in which public officers and bodies of this state and of municipalities and political subdivisions of this state, all companies, associations and other persons carrying on an insurance business, all financial institutions, investment companies and other persons carrying on a banking business, all fiduciaries and all other persons who are authorized to invest in government obligations may properly and legally invest.
6. Are securities which may be deposited with public officers or bodies of this state and municipalities and political subdivisions of this state for purposes which require the deposit of government bonds or obligations.