48-3198. Sale of bonds; notice; minimum price; use of unsold bonds
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/az/title-48/48-3198A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. The board may sell bonds from time to time in such quantities as may be necessary and most advantageous to raise money for the purposes for which they were authorized. Before making any sale the board shall by resolution entered in the records of the board declare its intention to sell the whole or such portion of the bonds as the board deems advisable and fix the day, hour and place of sale.
B. Notice of the sale shall be given by publication thereof at least three weeks in a newspaper published in the county in which the office of the district is located and in such other newspaper or newspapers as the board of directors directs. The notice shall state that sealed proposals will be received by the board at its office for the purchase of bonds until the day and hour named in the resolution and that the right to accept or reject any or all bids is reserved.
C. At the time appointed the board shall open the bids and may award the purchase of the bonds to the highest responsible bidder or may reject any or all bids, but no bid shall be accepted which is not accompanied by a certified check for at least five per cent of the amount of bid to apply on the purchase price of the bonds. The check shall be forfeited if after the acceptance of the bid the bidder refuses to accept the bonds and complete the purchase thereof on the conditions stated in the bid. The board in no event shall sell any of the bonds for less than eighty-five per cent of the face value thereof.
D. If no award is made, the board thereafter may either readvertise the bonds or any part thereof for sale, or sell them or any part thereof at private sale for not less than eighty-five per cent of the face value thereof.
E. The board may use any bonds which have been offered for sale at public sale which are unsold in payment for the construction of works of the district without calling for bids for such construction, and may enter into contracts providing for the payment of the construction in bonds. Such contracts may provide for payment of a fixed contract price, or the cost of construction plus a fixed percentage thereof, or the cost of construction plus a fixed amount, in the discretion of the board, but eighty-five per cent of the par value is the minimum price at which such bonds may be used in payment for construction, and such use of bonds and any such contract shall be approved by the state certification board.