48-986. Advancing maturity of bonds

585 words·~3 min read·/az/title-48/48-986

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

A. When the treasurer determines that, by reason of the prepayment of an assessment or assessments as provided in section 48-985, a bond or bonds may be called, proceedings shall be had as provided in this section.

B. The treasurer shall advance the maturity of bonds in the amount determined at the time of the prepayment of the assessments, to any interest payment date. The bonds shall be called for par and a premium equal to five per cent of the principal amount of the bonds called, together with interest to the redemption date.

C. In selecting a bond for retirement, the lowest numbered bond of the annual series midway to the end of the bond term shall be chosen. Successive bonds shall be chosen from the lowest number of each annual series on either side thereof, so that bonds called shall be a pro rata part of each annual series after the one for which a levy has been posted to the county roll. The relationship of unpaid assessments to bonds outstanding shall be disturbed as little as possible by the call of bonds. The decision of the treasurer shall be final and conclusive.

D. The district treasurer shall give written notice of advanced maturity, entitled "to whom it may concern," to the holder or owner of each bond that is called, at least fourteen days prior to the day of call. The notice may be given by personal service, by registered mail addressed to the last known address of the holder or owner, or by one publication in a newspaper having circulation in the district or in a financial paper in the United States. When given by publication, it shall also be mailed to the last known address of the holder or owner and if not known then to the original purchaser of the bonds.

E. If notice of advanced maturity is given, the bond shall mature and become payable on the date fixed for maturity in the notice. The holder or owner of the bond may surrender it prior to the date of advanced maturity and receive the principal and interest thereon to the date of payment.

F. If the bond has not been sooner surrendered, on the date fixed for advanced maturity the district treasurer shall set aside to the credit of the owner of the bond the amount of principal and accrued interest then due on the bond, and the bond shall then be deemed to have matured and interest shall cease to accrue on the bond. The amount so set aside shall, upon demand and upon the surrender and cancellation of the bond and all unpaid coupons thereof, be paid to the holder or owner thereof.

G. The cost of serving or publishing the notice of advanced maturity shall be paid from the redemption fund.

H. More than one bond may be included in a single notice of advanced maturity. All bonds called and redeemed shall be canceled and destroyed.

I. Prior to the surrender of any bond or the setting aside of any funds, the treasurer may waive and vacate any notice of advanced maturity upon being tendered for cancellation some other bond or bonds of an equivalent amount and of a maturity not earlier than that notice, if ten days' notice of his intention so to do is first given by mail or otherwise to the holder or owner of the bond noticed for advanced maturity and such holder or owner has not objected to such action.