AZ Rev Stat § 48-1778 (2021)
2021 Arizona Revised Statutes|Title 48 - Special Taxing Districts|§ 48-1778 - Authority of directors to invest monies; approved investments

48-1778.  Authority of directors to invest monies;  approved investments The board of directors,  in the best interests of the district,  may invest and reinvest monies of the district in any of the following: 1. Bonds or other evidences of indebtedness of the United States or any of its agencies or instrumentalities if the obligations are guaranteed as to principal and interest by the United States or by any agency or instrumentality of the United States. 2. Bonds or other evidences of indebtedness of this state or of any county,  incorporated city or town or duly organized school district of this state. 3. Bonds,  notes or evidences of indebtedness of any county,  municipality or municipal district utility within this state,  which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on the obligations and for the payment of which a lawful sinking fund or reserve fund has been established and is being maintained,  but only if no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment or,  if the obligations were issued less than five years prior to the date of investment,  no default in payment of principal or interest has occurred on the obligations to be purchased nor on any other obligations of the issuer within five years of the investment. 4. Bonds,  notes or evidences of indebtedness issued by any municipal improvement district in this state to finance local improvements authorized by law if the principal and interest of the obligations are payable from assessments on real property within the local improvement district. The board of directors shall not make the investment if the face value of all the obligations,  and similar obligations outstanding,  exceeds fifty percent of the market value of the real property and improvements on which the bonds or the assessments for the payment of principal and interest on the bonds are liens inferior only to the liens for general ad valorem property taxes. The board of directors may make the investment only if no default in payment of principal or interest on the obligations to be purchased has occurred within five years of the date of investment or,  if the obligations were issued less than five years prior to the date of investment,  no default in payment of principal or interest has occurred on the obligations to be purchased nor on any other obligation of the issuer within five years of the investment. 5. Interest-bearing savings accounts or certificates of deposit insured in banks or savings and loan associations doing business in this state by the federal deposit insurance corporation or the federal savings and loan insurance corporation but only if they are secured by the depository to the same extent and in the same manner as required by the general depository law of this state. Security is not required for that portion of any deposit that is insured under any law of the United States. 6. Bonds,  debentures or other obligations issued by the federal land banks,  the federal intermediate credit banks,  the banks for cooperatives or the national rural utility cooperative finance corporations. 7. Deposits placed in accordance with the procedures prescribed in section 35-323.01.