11-1441. Honoring outstanding debt obligations of sponsoring county
192 words·~1 min read·
/az/title-11/11-1441A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The operating agreement entered into pursuant to this chapter shall require the nonprofit corporation to:
1. Honor all covenants and obligations made by the sponsoring county pursuant to title 35, chapter 3, article 7 with respect to the county health system.
2. Assume and perform all covenants, conditions and requirements undertaken by the sponsoring county pursuant to title 35, chapter 3, article 7 with respect to bonds issued to provide monies for the county health system before the transfer date in which the proceeds were used or intended to be used to finance parts of the county health system covered by the operating agreement.
3. Comply with all covenants and conditions against private use, private security interests and private loans contained in the operating agreement or in any proceeding that pertains to issuing the bonds, notes or other obligations of the sponsoring county issued to originally acquire, construct or purchase the health system assets.
B. Notwithstanding any law to the contrary or the articles of incorporation or bylaws of the nonprofit corporation, any action taken by the corporation in violation of those covenants and conditions described in this section is void.