28-7563. Bond payment; security

366 words·~2 min read·/az/title-28/28-7563

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

In connection with the issuance of the bonds authorized by this article or to secure the payment of the bonds and interest on the bonds, the board by resolution may:

1. Provide that bonds issued under this article may be paid with and secured by a pledge on all or any part of the monies paid into the bond account of the respective regional area road fund, and if monies in the bond account are ever insufficient, from any other unobligated monies in the construction account or the bond proceeds account. The board may:

(a)Set the priority of lien or claim of any series or issue of bonds against any other series or issues.

(b)Not abrogate or change the priority unless the affected series or issue is to be fully paid or fully provided for by the issuance of refunding bonds or the holders of the bonds affected agree in writing to the change.

2. Pledge and assign to or in trust, with a trustee appointed by the board, for the benefit of the holder or the holders of the bonds all or any part of the monies paid into the bond account of the respective regional area road fund as will be necessary to pay the principal of, interest on and premium, if any, on the bonds as the bonds become due.

3. Set aside, regulate and dispose of reserves and sinking funds.

4. Provide that sufficient amounts of the proceeds from the sale of the bonds may be used to fully or partly fund all reserves or sinking funds set up by the bond resolution.

5. Prescribe the procedure, if any, by which the terms of a 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 from the proceeds of the sale of the bonds of all legal and financial expenses incurred by the board in the issuance, sale, delivery and payment of the bonds.

7. Do any other matters, of like or different character, that in any way may affect the security and protection of the bonds.