40-1133. Provision of bond resolution; covenants

319 words·~1 min read·/az/title-40/40-1133

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

A. A resolution pertaining to issuance of bonds under this article may contain covenants as to:

1. The purpose to which the proceeds of sale of the bonds may be applied and to the use and disposition thereof.

2. The use and disposition of the revenues of the project for which the bonds are to be issued.

3. The issuance of other or additional bonds, payable from the revenue received from the operation of the authority and its equipment and facilities.

4. The operation and maintenance of the authority and its equipment and facilities.

5. The insurance to be carried thereon and the use and disposition of insurance monies.

6. The use of capitalized interest, reserve and sinking funds and any other funds as the authority deems necessary to the proper handling of authority monies.

7. Books of account and the inspection and audit thereof.

8. The terms and conditions upon which the holders of the bonds, or any proportion of them, or a trustee therefor, shall be entitled to the appointment of a receiver, who may enter and take possession of the authority's records, equipment and facilities, operate and maintain it, prescribe charges, fees and rentals and collect, receive and apply all revenues therefrom thereafter arising in the same manner as the board itself might do, until such time as the terms and conditions of the bonds are satisfied, at which time the receiver shall return possession of the authority and its equipment and facilities to the board.

B. The provisions of this article and any such resolution shall be deemed a contract with the holders of the bonds, and the duties of the board under this article and resolution shall be enforceable by mandamus or other appropriate action in a court of competent jurisdiction.

C. Neither the members of the board nor any person executing the bonds shall be personally liable for the payment of the bonds.