Arizona Revised Statutes § 11-1440 Corporate Bonds

11-1440. Corporate bonds

A. The nonprofit corporation may issue its corporate bonds in principal amounts as the board of directors determines to be necessary to provide sufficient monies for purposes of the community health system.

B. Bonds issued by the nonprofit corporation:

1. Are entitled to all of the immunities and exemptions afforded bonds of other nonprofit corporations.

2. Are obligations of the nonprofit corporation, and are not in any manner obligations of the sponsoring county or of this state.

3. Do not constitute a legal debt of the sponsoring county or of this state.

4. Are not enforceable against the sponsoring county or this state.

5. Are not enforceable against the county's interest in any health system assets that are leased pursuant to section 11-1432. The county shall not subordinate its lessor interest to any obligee of the nonprofit corporation.

6. Are payable only from the revenues or other assets of the nonprofit corporation that is pledged and assigned to, or in trust for the benefit of, the holder or holders of the bonds.

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Last modified: October 13, 2016