40-1132. Power to secure bonds; reimbursement for advance

255 words·~1 min read·/az/title-40/40-1132

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

A. The board, in connection with the issuance of bonds and in order to secure the payment of the bonds and the interest thereon, shall have power by resolution:

1. To fix and maintain fees and other charges on equipment and facilities of or operated on behalf of the authority.

2. To provide that the bonds issued hereunder may be secured by a first and exclusive lien on the income and revenues derived from, and shall be payable from fees, and other charges on equipment and facilities of or operated on behalf of the authority as provided in paragraph 1.

3. To pledge and assign to or in trust for the benefit of the holder or the holders of bonds any part of the metropolitan public transit authority revenues as will be necessary to pay the principal of and interest on the bonds as the same become due.

4. To covenant with or for the benefit of the holder or holders of bonds issued hereunder, that so long as any of the bonds remain outstanding and unpaid, the board will prescribe fees and other charges on equipment and facilities of or operated on behalf of the authority and will revise the same when necessary so that the project for which the bonds are issued shall be self-supporting.

B. An authority may reimburse the state or a public agency for any advance or contribution from the proceeds of the sale of bonds or any other funds available to the authority as provided for in section 40-1125.