Arizona Revised Statutes § 48-2215 Issuance Of Bonds; Subsequent Bond Issues

48-2215. 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 shall, subject to the provisions of this article, prescribe by resolution the form of the bonds and interest coupons attached thereto. The bonds shall be payable over a period of not more than twenty 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. 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.

C. The bonds may be issued in such denominations as the board of directors determines. Each bond shall be signed by the chairman of the board of directors and countersigned by the clerk or secretary of the health service district. The interest coupons of the bonds shall be numbered consecutively and shall be signed by the chairman of the board of directors and the clerk or secretary 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.

E. When bonds have been issued by a health service 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 majority vote 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. Upon 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 48-2213, the question of issuing additional bonds. If a majority of the votes cast thereon 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 through C of this section and by section 48-2216.

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Last modified: October 13, 2016