Arizona Revised Statutes § 48-5567 Reserves; Tax To Replenish Reserve

48-5567. Reserves; tax to replenish reserve

A. Bonds that are issued under this article may contain a provision requiring the establishment of a reserve or reserves in an amount that does not exceed the requirements of principal and interest payments for the two years during the life of the bonds requiring the largest amount of principal and interest payments. The district shall maintain the reserve during the life of the bond issue to protect against any deficiency in tax collections.

B. If it becomes necessary to withdraw monies from the reserve to protect against any deficiency, the board of directors shall certify to the county board of supervisors and the board of supervisors shall levy a tax on all taxable property in the district in an amount that is sufficient to maintain the reserve fund in an amount equal to the original amount deposited in the reserve fund. In making the certification for the payment of principal and interest for the last year when the bonds mature, the board of directors shall take into consideration the amount of monies then in the reserve fund and shall certify an amount sufficient to pay the principal and interest on the bonds, less the amount then in the reserve fund.

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Last modified: October 13, 2016