Arizona Revised Statutes § 48-3241 Petition For Hearing Where District In Default On Financial Obligations; Notice Of Hearing

48-3241. Petition for hearing where district in default on financial obligations; notice of hearing

A. An irrigation district in default or about to default in the discharge of its financial obligations in respect to any issued and outstanding bonds or the holder of a bond in respect to which an irrigation district may then be in default may petition the state certification board to call a meeting of the holders of all the outstanding bonds for the purposes and with the powers provided by this article.

B. The petition on behalf of the irrigation district shall be by resolution of its board of directors, signed by the president and attested by the secretary of the district, setting forth the difficulties and the problems of the district and the relief sought. The petition on behalf of the holder of the bond shall be subscribed and sworn to by the holder, shall describe the nature of the obligation of the district in respect to which default exists and shall be attached thereto the certificate of the county treasurer by or through whom the obligation is due to be paid that such obligation is the obligation of the district, is outstanding and unpaid and that such district is in default in respect thereto.

C. Upon the filing of the petition, the chairman of the state certification board shall fix a date for hearing the petition by the state certification board, and shall call a meeting thereof for such purpose and give written notice of the time, place and purpose thereof, which shall be served upon the secretary of the district not less than ten or more than thirty days prior to the date of such meeting, and published for at least ten days prior to the date of the meeting in a newspaper of general circulation in the county in which the principal office of the district is located.

D. At the time and place designated or such continuations thereof as may be ordered, the state certification board shall hear evidence in support of and against the granting of the petition. If the state certification board is satisfied that a petition filed on behalf of a district is duly authorized and executed, or that a petition filed by the holder of a bond is in the form prescribed by subsection B and that the district is in default in respect to the obligation described therein, the petition shall be granted forthwith, and the state certification board shall immediately by resolution call a meeting of the holders of all the issued and outstanding bonds of the district, to be held at the state capitol on a date fixed which shall be not less than sixty nor more than ninety days from the date of adoption of the resolution. The state certification board shall cause notice of the time, place and purpose of the meeting to be given to all concerned by publishing such notice for at least two weeks immediately preceding the date of the meeting in a daily newspaper published in the city of Phoenix and of general circulation in the state and in at least two issues immediately preceding the date of such meeting of at least one financial journal of national circulation published in the city of New York.

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Last modified: October 13, 2016