Arizona Revised Statutes § 41-4508 Effect Of Changing Circumstances On Bonds; Agreement Of This State

41-4508. Effect of changing circumstances on bonds; agreement of this state

A. Bonds issued under this chapter are valid and binding obligations of the authority notwithstanding that before the delivery of the bonds any of the persons whose signatures appear on the bonds cease to be officers of the authority. The validity of the bonds is not dependent on or affected by the validity or regularity of any proceedings to acquire any project financed by the bonds or taken in connection with the bonds. An action may not be brought questioning the legality of any agreement, proceedings or issuance of bonds after two months from the date the bonds are authorized to be issued by the board.

B. Any amendment of any provision in this chapter does not diminish or impair the validity of bonds issued under this chapter or the remedies and rights of bondholders.

C. This state pledges to and agrees with the holders of the bonds authorized by this chapter that this state will not limit, alter or impair the rights vested in the authority to collect the monies necessary to produce sufficient revenue to fulfill the terms of any agreements made with or for the benefit of the holders of the bonds, or in any way impair the rights and remedies of the bondholders, until all bonds issued under this chapter, together with interest on the bonds, interest on any unpaid installments of principal or interest and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders, are fully paid and discharged. The authority may include this pledge and undertaking in its resolutions and indentures authorizing and securing its bonds.

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Last modified: October 13, 2016