Arizona Revised Statutes § 11-681.03 Bond Proceeds Fund; Debt Service Fund

11-681.03. Bond proceeds fund; debt service fund

A. If the county issues bonds under this article, the board shall establish a bond proceeds fund consisting of the net proceeds received from the sale of the bonds. The county may use monies in the bond proceeds fund only for county judgment purposes.

B. The board shall establish a debt service fund designated and dedicated for repayment of the bonds, bond related expenses and related expenses associated with redeeming the bonds, consisting of county excise tax revenues pursuant to section 42-6112 and any other excise tax revenues pledged by the county for that purpose. Monies in the debt service fund may be used only for the purposes authorized by this article. The board may segregate the debt service fund into any number of accounts or subaccounts considered necessary to secure bonds issued under this article.

C. The county treasurer shall administer and account for the bond proceeds fund and the debt service fund.

D. No monies derived from selling bonds under this article or pledged or assigned to or in trust for the benefit of the holder or holders of the bonds may be paid into, or commingled with monies in, the county general fund. The treasurer shall deposit all such monies in special accounts or in separate financial institutions that the board designates.

E. The monies in the bond proceeds fund and debt service fund shall be disbursed only as the board directs and according to the terms of any agreements with the holder or holders of the bonds.

F. This section does not limit the power of the board to agree in connection with the issuance of the bonds as to the custody and disposition of the monies received from selling bonds or from the county excise tax revenues pledged or 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