AZ Rev Stat § 48-2021 (2021)
2021 Arizona Revised Statutes|Title 48 - Special Taxing Districts|§ 48-2021 - Issuance of bonds; subsequent bond issues

48-2021.  Issuance of bonds;  subsequent bond issues A. If a majority of the votes cast at a bond election favors the bonded indebtedness proposed,  bonds of the district for the amount stated shall be issued and sold. B. The board of directors,  subject to this article,  shall prescribe by resolution the form of the bonds and interest coupons attached thereto. The bonds shall be payable serially over a period of not more than thirty years from the date thereof at a place fixed by the board and designated in the bonds,  together with the interest thereon from the date of the bonds until paid,  except that if the initial purchaser of the bonds is the United States of America or any department,  division or agency of the United States of America,  the bonds may mature over a period that does not exceed forty-one years. Interest shall be payable semiannually at the rate or rates set by the accepted bid,  which shall not exceed the maximum rate of interest set forth in the resolution calling the election. The bonds may be refunded. The board of directors may provide for their redemption before maturity on giving notice as the board determines to be reasonable and for the payment of a premium at redemption if the board determines the premium to be reasonable or advisable. C. The bonds may be issued in denominations as the board of directors determines,  except that no bond shall be of a denomination less than five hundred nor more than ten thousand dollars. Each bond shall be signed by the chairman of the board of directors and countersigned by the auditor of the sanitary district,  and the seal of the district shall be affixed thereto. The interest coupons of the bonds,  if any,  shall be numbered consecutively and shall be signed by the chairman of the board of directors and the auditor of the district by their engraved or lithographed signatures. If any officer whose signature or countersignature appears on a bond or interest coupon ceases to be such officer,  either before or after delivery of the bond to the purchaser,  the signature or countersignature shall be valid for all purposes as if the officer had remained in office. D. The validity of the bonds,  after their issuance,  shall not be questioned in any court,  except on the ground that a provision of this article authorizing their issuance is unconstitutional or that proper notice of the bond election was not given. E. When bonds have been issued by a sanitary district and the proceeds of the sale thereof have been expended as authorized by this article,  the board of directors may,  by resolution passed by a vote of at least two-thirds of its members,  determine that additional bonds for carrying out the purposes of the district should be issued. Thereupon the board of directors shall cause another survey and report to be made. On approval thereof as provided by this article for an original report,  the board shall submit to the qualified electors of the district,  in the manner prescribed by section 48-2020,  the question of issuing additional bonds. If a majority of the votes cast is in favor of issuing the additional bonds,  they may be issued and sold and the proceeds disposed of in the manner prescribed by subsections A,  B,  C and D of this section and by section 48-2022. F. The district may issue refunding bonds to refund all or any portion of an issue of bonds issued pursuant to this section in the manner prescribed by title 35,  chapter 3,  article 4.