Arizona Revised Statutes § 48-1064 Characteristics Of Bonds; Negotiable; Exemption From Taxation; Obligation; Legal Investments

48-1064. 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 of registration, regardless of whether the bonds 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 payable only according to their terms.

2. Are obligations of the district payable solely from the revenues pledged therefor and are not general, special or other obligations of this state or the county.

3. Do not constitute an indebtedness of this state, the county or the district within any statutory or constitutional limitation on indebtedness.

4. Are neither enforceable against this state or the county nor is payment of the bonds enforceable out of any monies other than the income and revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of the bonds.

5. 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.

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

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Last modified: October 13, 2016