15-1023.01. Municipal property corporation financing prohibited; definition
175 words·~1 min read·
/az/title-15/15-1023-01A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. Except as provided in subsection C, a school district shall not directly or indirectly pledge its full faith and credit nor incur any direct or indirect obligation of any kind against or pay school district revenues to a municipal property corporation or a special district under title 48 as a means of financing the acquisition or construction of school capital facilities.
B. This section does not apply to any valid obligation initially incurred by a school district on or before December 31, 1998.
C. A school district may pledge school district revenues to a municipal property corporation or a special district under title 48 for the purpose of constructing teacher housing facilities or for any project financed with a loan from the United States department of agriculture.
D. For purposes of this section, "municipal property corporation" means a corporation organized by or at the direction of a city, town or school district to construct and own a capital facility that the school district pledges to lease or lease-purchase and finance with school district revenues.