Arizona Revised Statutes § 48-1797 Deposit Of Proceeds Of Bonds; Bond Of District Treasurer; Liability Of Directors

48-1797. Deposit of proceeds of bonds; bond of district treasurer; liability of directors

A. The proceeds of the bonds shall be paid into the treasury of the district.

B. In each sale of bonds the treasurer of the district shall be required by the board of directors issuing the bonds to give an additional bond in an amount equal to the maximum of funds which will come into his hands as the result of the proposed sale of bonds whether it is for the whole or a part of the bonds authorized by the election, and an additional bond shall be required if any subsequent sale or new issue increases the amount of funds coming into his possession as such treasurer in excess of the amount of the existing security therefor.

C. The amount of the bond of the treasurer shall at no time be less than three thousand dollars, but the board shall from time to time adjust the amount of the bond in conformity with the intent of this section. Except in case of the sale of bonds or otherwise when the amount of funds to come into possession of the treasurer may be accurately determined, the bond shall be not less than seventy-five per cent of the maximum funds which will, in the judgment of the board, probably come into his possession, but the failure of the board to require such bond or the failure to give the bond when required shall not affect the validity of bonds issued or invalidate any other action of the district or its board of directors.

D. Failure to require the district treasurer to give bond as provided in this section, or failure to use ordinary care in the acceptance of sureties, if not a surety bond of a company authorized to give such bonds in this state, shall render the board members jointly and severally liable to the district for losses occurring by reason thereof.

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Last modified: October 13, 2016