Arizona Revised Statutes § 28-7510 Parity Bonds

28-7510. Parity bonds

A. The board may issue parity bonds only when all of the payments due on the principal and interest on the outstanding bonds are current.

B. The board may not issue parity bonds unless the monies subject to pledge for payment of the bonds for the preceding twelve months exceed by three times the highest annual principal and interest payments on all of the outstanding bonds and the bonds to be issued for the highest one year period during the life of both the outstanding bonds and the bonds to be issued.

C. Notwithstanding subsection B of this section, the board may issue parity bonds to refund or refinance any outstanding bonds if the board meets the requirements of subsection B of this section or if the board certifies that the principal and interest payments for each fiscal year on all outstanding bonds and the bonds to be issued immediately after the date of issuance of the refunding parity bonds do not exceed one hundred five per cent of the principal and interest payments for each fiscal year on all outstanding bonds immediately before the issuance of the refunding parity bonds.

D. The bonds sought to be issued shall mature and the principal and interest are payable at the same time as bonds then outstanding that have the same priority of lien.

E. All bonds issued under this article are deemed to contain the restrictions against issuance of parity bonds contained in this section, whether or not the resolution issuing the bonds or the bonds themselves contain covenants to this effect.

F. For the purposes of this section, amounts subject to pledge shall be presumptively determined by a certificate of the chairman of the board.

G. The pledge of revenues prescribed in section 28-7504, subsection A, paragraphs 1 and 2 is not subject to sections 28-6952 through 28-6955, 28-6992, 28-6993 and 28-6995 through 28-7006. The payment of the necessary fees, charges and expenses incurred in the issuance of the bonds and the principal of and interest on the bonds are not subject to section 28-7007 but shall be made in the manner prescribed in the resolution issuing the bonds.

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Last modified: October 13, 2016