48-652. Use of net proceeds; investment of proceeds; definition
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/az/title-48/48-652A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. Refunding bonds issued pursuant to this article may be exchanged for not less than a like principal amount of bonds to be refunded, may be sold at, above or below par at a negotiated or public sale or may be exchanged in part and sold in part. If sold, the net proceeds of the refunding bonds together with all or a portion of the amounts held in the debt service fund for payment of principal of and interest on the bonds being refunded, amounts in any reserve fund for the bonds being refunded and other amounts lawfully available may be invested provided such investments and any reinvestment thereof will mature with interest so as to provide funds to pay the bonds to be refunded when due, or called for redemption, together with interest thereon and redemption premiums, if any, at maturity or on an available redemption date or on an earlier voluntary surrender with the consent of the city or town.
Such amounts and investments shall be deposited in trust with a national banking corporation or association that is authorized to do trust business in this state and that is a member of the federal deposit insurance corporation, or any successor agency. After such deposit, the bonds being refunded shall be deemed to have been paid and shall have no further interest in the assessments for the bonds being refunded.
B. The treasurer may enter into trust agreements with banking corporations or associations for the handling, safekeeping and administration of the amounts and investments that are derived from, or contributed to, the refunding. The investments shall be obligations issued by the United States government, or one of its agencies, or obligations fully guaranteed by the United States government as to principal and interest.
C. For the purposes of this section, "net proceeds" means the gross proceeds of the refunding bonds after the deduction of all accrued interest and expenses incurred in connection with the authorization and issuance of the refunding bonds and the refunding of the bonds being refunded including all cost and expenses resulting from price variation to par or otherwise incurred in the purchase of obligations for the trust and in the distribution of the refunding bonds.