9-531. Provisions of resolution for bond issue; covenants
228 words·~1 min read·
/az/title-9/9-531A 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 revenue of the utility undertaking for which the bonds are to be issued.
3. The issuance of other or additional bonds, payable from the revenue of the utility undertaking.
4. The operation and maintenance of the utility undertaking.
5. The insurance to be carried thereon and the use and disposition of insurance monies.
6. Books of account and the inspection and audit thereof.
7. 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 utility undertaking, operate and maintain it, prescribe charges and collect, receive and apply all revenue thereafter arising therefrom in the same manner as the municipality itself might do.
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 municipality and its governing body and officers under this article and such resolution shall be enforceable by mandamus or other appropriate action in a court of competent jurisdiction.