48-5164. Bond payment; security

294 words·~1 min read·/az/title-48/48-5164

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 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 secured by a first lien on all or any part of the monies paid into the public transportation fund.

2. Establish and segregate one or more bond accounts in the public transportation fund to set aside monies to be used to pay principal, interest and premium, if any, on the bonds and provide conditions and terms for the use of the accounts.

3. Pledge and assign to or in trust for the benefit of the holder or the holders of the bonds all or any part of the monies that are paid into the public transportation fund and that will be necessary to pay the principal of and interest on the bonds as the bonds become due.

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

5. 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 in the bond resolution.

6. 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.

7. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other monies available to the authority.

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