2023 Arizona Revised Statutes › Title 48 - Special Taxing Districts › § 48-4251 - County stadium district bonds

48-4251.
County stadium district bonds
A. The district,  through the board of directors,  may:
1. Issue negotiable county stadium district bonds in a principal amount as in its opinion is necessary to provide sufficient monies for its activities under section 48-4204,  maintaining sufficient reserves in the county stadium district fund to secure the bonds,  to pay the necessary costs of issuing,  selling and redeeming the bonds and to pay the other expenditures of the district incidental to and necessary and convenient to carry out the purposes of this chapter.
2. Refund any bonds issued whether or not the bonds are subject to redemption at that time. The board may provide for investing and holding the proceeds of the refunding bonds in trust for the benefit of the holders of the bonds being refunded.
B. The board shall authorize the bonds by resolution. The resolution shall prescribe:
1. The rate or rates of interest and the denominations of the bonds.
2. The date or dates of the bonds and their maturity.
3. The form of the bonds.
4. The manner of executing the bonds.
5. The medium and place of payment.
6. The terms of redemption which may provide for a premium for early redemption.
C. The bonds shall be sold at public or private sale or through an on-line bidding process at the price and on the terms determined by the board. If bonds are sold through an on-line bidding process,  bids for the bonds that are entered into the system may be concealed until a specified time or disclosed in the on-line bidding process,  may be subject to improvement in favor of the district before a specified time and may be for an entire issue of bonds or specified maturities according to the manner,  terms and notice provisions ordered by the board. All proceeds from issuing the bonds shall be deposited in the county stadium district fund. For purposes of this subsection,  " on-line bidding process"  means a procurement process in which the board of directors receives bids electronically over the internet in a real-time,  competitive bidding event.
D. To secure the principal and interest on the bonds the board may by resolution:
1. Divide the county stadium district fund into any number of accounts or subaccounts deemed necessary to secure bonds or other obligations of the district. Any of the accounts or subaccounts may be pledged or assigned to the bondholders as security for the bonds or to a trustee who may be appointed to act on behalf of the bondholders.
2. Provide that bonds issued under this section may be secured by a first lien on all or part of the monies paid into the county stadium district fund or into any account or subaccount of the fund.
3. Pledge or assign to or in trust for the benefit of bondholders any part of the monies in the county stadium district fund or an account or subaccount as is necessary to pay and secure payment of the principal of,  or interest and premium,  if any,  on,  the bonds as they come due.
4. Establish priorities among bondholders based on criteria adopted by the board of directors.
5. Set aside,  regulate and dispose of reserves and sinking accounts.
6. Provide that the proceeds from the sale of the bonds,  from the taxes and surcharges levied pursuant to article 2 of this chapter or from any other revenues of the district may be used to fully or partly fund any reserves or sinking funds established by the bond resolution.
7. Prescribe the procedure,  if any,  by which the terms of any contract with bondholders may be amended or abrogated,  the amount of bonds the holders of which must consent to and the manner in which consent may be given.
8. Provide for payment,  from the proceeds of the sale of the bonds or from other district income or revenues,  of all legal and financial expenses incurred by the board in issuing,  selling,  delivering and paying the bonds and engineering and architectural expenses incurred by the board in designing and constructing the stadium.
9. Provide for payment of all fees,  premiums,  charges or costs pertaining to bond insurance,  credit enhancement,  liquidity enhancement or any other facility or security deemed necessary by the board to better secure the bonds.
10. Provide for the services of trustees,  co-trustees,  agents,  consultants and other specialized services with respect to the bonds.
11. Place any restrictions on reinvestment yield on the bonds or on any monies pledged to pay the bonds if necessary to comply with federal income tax laws and regulations to gain any federal tax benefits available with respect to the bonds.
12. Pay any rebates necessary to preserve the bonds' tax exempt status under federal income tax laws.
13. Do any other matters which in any way may affect the security and protection of the bonds.
E. Any pledge made under this article is valid and binding from the time when the pledge is made. The monies so pledged and received by the district treasurer to be placed in the county stadium district fund are immediately subject to the lien of the pledge without any future physical delivery or further act,  and any such lien of the pledge is valid or binding against all parties having claims of any kind in tort,  contract or otherwise against the board irrespective of whether the parties have notice of the lien. The official resolution or trust indenture or any instrument by which this pledge is created,  when placed in the board's official records,  is notice to all concerned of the creation of the pledge,  and those instruments need not be recorded in any other place.
F. Neither the members of the board nor any person executing the bonds is personally liable for the payment of the bonds. The bonds are valid and binding obligations notwithstanding that before the delivery of the bonds any of the persons whose signatures appear on the bonds cease to be members of the board. From and after the sale and delivery of the bonds,  they are incontestable by the board.
G. The board,  out of any available monies,  may purchase bonds,  which may thereupon be canceled.