Arizona Revised Statutes § 15-2113 Characteristics Of Bonds; Negotiable; Exemption From Taxation; Obligation; Legal Investments

15-2113. Characteristics of bonds; negotiable; exemption from taxation; obligation; legal investments

A. Bonds issued under this article are fully negotiable within the meaning and for all purposes of the uniform commercial code, subject only to any provisions for registration, regardless of whether the bonds actually constitute negotiable instruments under the uniform commercial code.

B. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state.

C. Bonds issued under this article:

1. Are obligations of the school district. The members of the governing board and persons executing the bonds are not personally liable for payment of the bonds.

2. Are payable only according to their terms.

3. Are not general, special or other obligations of the county or of this state.

4. Do not constitute a debt of the county or of this state.

5. Are not enforceable against the county or this state nor is payment of the bonds enforceable out of any monies other than the revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of the bonds.

6. Are securities in which public officers and bodies of this state and of municipalities and political subdivisions of this state, all companies, associations and other persons carrying on an insurance business, all financial institutions, investment companies and other persons carrying on a banking business, all fiduciaries and all other persons who are authorized to invest in government obligations may properly and legally invest.

7. Are securities that may be deposited with public officers or bodies of this state and municipalities and political subdivisions of this state for purposes that require the deposit of government bonds or obligations.

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Last modified: October 13, 2016