AZ Rev Stat § 48-2471 (2021)
2021 Arizona Revised Statutes|Title 48 - Special Taxing Districts|§ 48-2471 - Refunding bonds

48-2471.  Refunding bonds A. If a district has outstanding any bonds issued pursuant to this article or article 6 of this chapter,  it may issue,  by resolution of the board of directors,  bonds to refund such outstanding bonds. Such bonds shall be designated " refunding bonds"  and shall be secured by the revenue of the district or any part thereof or all or any part of revenues pledged to the bonds which have been thereby refunded. B. Refunding bonds may be issued in an amount up to an amount sufficient to pay: 1. The principal of the outstanding bonds or other obligations to be refunded. 2. The redemption premium,  if any,  on such outstanding bonds on the prior redemption thereof. 3. The interest due and payable on such outstanding bonds to the dates upon which the principal of such bonds matures or to the dates upon which the outstanding bonds are called for redemption by the district,  which call dates may,  subject to the resolutions authorizing said outstanding bonds,  be any date prior to maturity of said outstanding bonds,  including any interest theretofore accrued and unpaid. 4. Any expenses of the issuance and sale of refunding bonds,  including the creation of initial debt service reserve funds and reasonable and necessary fees of financial and legal advisers. Refunding bonds may be issued to refund more than one issue of outstanding obligations notwithstanding that such outstanding obligations may have been issued at different times and for different purposes. C. Any monies in the sinking or reserve funds or other funds for such outstanding bonds to be refunded may be used for the purpose stated in paragraphs 1,  2,  3 and 4,  of subsection B,  or may be deposited in a sinking fund or reserve fund or other funds for the refunding bonds to be issued. When refunding bonds issued pursuant to this section are sold,  a sufficient amount of the proceeds of the refunding bonds shall be invested and reinvested in direct obligations of the United States of America or in time deposits evidenced by certificates of deposit in the bank or trust company holding such fund,  or in time deposits evidenced by certificates of deposit in one or more banks or trust companies,  each of which is a member of the federal deposit insurance corporation or in such other securities or obligations as may be determined by the board which are scheduled to mature with interest so as to provide funds to pay when due,  or when called for redemption,  the outstanding bonds to be refunded together with the interest thereon and redemption premiums,  if any,  and such proceeds or obligations shall,  and other funds legally available for such purpose may,  be deposited in the respective principal and interest redemption funds and shall be held in trust for the payment of the refunded bonds with interest and redemption premiums,  if any,  on maturity or redemption. The bank or trust company holding the proceeds of such refunding bonds in trust shall deliver monthly to the treasurer of the district which issued the refunding bonds a copy of the document evidencing each transaction relating to the trust fund. D. When refunding bonds are issued under this chapter,  the resolution authorizing them may also provide for other bonds to be issued jointly with such refunding bonds for any other purpose or purposes authorized and provided for by law. Any refunding bonds may be sold as provided in this article or may be exchanged for the bonds to be refunded thereby.