AZ Rev Stat § 48-935 (2021)
2021 Arizona Revised Statutes|Title 48 - Special Taxing Districts|§ 48-935 - List of unpaid assessments; issuance of bonds; denominations; coupons; due date; funds

48-935.  List of unpaid assessments;  issuance of bonds;  denominations;  coupons;  due date;  funds A. After the return of the assessment and warrant,  if applicable,  and after the superintendent has recorded the return,  the superintendent shall make and certify to the clerk a complete list of all unpaid assessments that amount to twenty-five dollars or over upon any assessment. B. If any person before certification of the list to the clerk presents to the superintendent an affidavit that the person is the owner of a lot in the list,  accompanied by the certificate of a searcher of records that the person is the owner of record,  and notifies the superintendent in writing that the person desires no bond to be issued for the assessment upon the lot,  then the assessment shall not be included in the list,  and shall remain collectable as provided by this article. Omission to file notice shall bar any defense against the bonds except the defense that the board of directors did not have authority to issue the bonds. C. The clerk shall present the list to the board of directors at its next meeting after the return has been recorded. At any time after the recording of the return,  the board of directors may by resolution direct improvement bonds to be issued in the amount of the assessments remaining unpaid,  prescribing the number and denomination of the bonds,  and the times when payable,  which shall be so fixed,  not exceeding twenty-five years and three months from the date of the bonds or not to exceed forty annual installments in the case of domestic water improvement districts and domestic wastewater improvement districts as defined by section 48-1011. As far as practicable,  the denominations of the bonds shall be fixed by the board of directors at one hundred dollars or some multiple thereof. The board of directors may provide in the form of bond for redemption prior to maturity upon giving notice the board of directors determines to be reasonable and for the payment of a premium at redemption if the board of directors determines the premium to be reasonable or advisable. D. The bonds shall be issued as of the date set by the board of directors and shall bear interest from that date at a rate that shall not exceed the rate specified in the resolution of intention. The bonds may be registered as to both principal and interest,  or they may have semiannual interest coupons attached. The first interest payment date shall be on either January 1 or July 1,  as the case may be. E. The due date of all bonds shall be January 1 or July 1 in the years in which they respectively become due. F. The district may sell the bonds at public or private sale at the best price obtainable,  which may be above,  at or below par,  and shall require the purchaser also to pay accrued interest to the date of payment. The bonds may bear interest at any interest rate not in excess of the maximum rate set in the resolution of intention. If the bonds are not sold by the district,  they shall be delivered to the contractor for the amount of the assessments remaining unpaid,  and the bonds shall bear interest at the maximum interest rate set forth in the resolution of intention. G. If the bonds are sold before the work or acquisition is completed,  the proceeds from the sale of the bonds shall be placed in a special fund to be held by the treasurer to be used for payment of incidental expenses and payments for construction or acquisition. Proceeds from the sale of the bonds shall be used for the acquisition mentioned in the resolution of intention or to make semimonthly or monthly payments to the contractor upon a basis of ninety per cent of the value of the work actually performed as estimated by the superintendent or engineer employed for those purposes to and including the fifteenth or last day of each calendar month. The balance shall be paid after the superintendent of streets has recorded in the superintendent's office a certificate of substantial completion of the work described in the resolution of intention,  in the same manner as the recording of the assessment. The superintendent shall record the certificate after the work has been completed to the superintendent's satisfaction. The superintendent of streets shall also cause a copy of the notice of completion to be mailed to each property owner in the same manner as the notice of hearing on the assessment. Pending use of the bond proceeds,  the treasurer may invest the proceeds solely for the benefit of the district in any investments for which sinking funds of this state may be invested. If bond anticipation notes have been issued,  the bond proceeds,  or so much as is necessary,  shall be used to redeem such notes. H. If deemed necessary by the board of directors,  a reserve fund may be established either with proceeds from the sale of the bonds or by increasing the collections of the annual installments of principal up to the first ten years the bonds are outstanding,  over and above the amounts required to pay maturing principal on the bonds. The monies in the reserve fund may be used only to cure deficits in the principal and interest funds or to pay interest and principal upon the final maturity or maturities of the bonds.