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Senate Engrossed House Bill |
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State of Arizona House of Representatives Forty-seventh Legislature Second Regular Session 2006
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HOUSE BILL 2206 |
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AN ACT
amending sections 28-7502 and 28-7510, Arizona Revised Statutes; relating to state highway fund bonds.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-7502, Arizona Revised Statutes, is amended to read:
28-7502. Bond authority
A. Subject to this article, the board may:
1. Issue its negotiable bonds in a principal amount that in the opinion of the board is necessary to provide sufficient monies for any highway purpose, to establish reserves to secure the bonds and to provide for the payment of all other expenditures of the board incidental to and necessary and convenient to carry out these purposes. The amount of bonds that may be issued shall be determined pursuant to section 28‑7510.
2. Issue refunding bonds if the board deems refunding expedient.
3. Refund any bonds issued by the board or by its predecessor in interest, the Arizona state highway commission, if these bonds are secured from the same source of revenues as the bonds authorized in this article, by the issuance of new bonds, whether or not the bonds to be refunded have matured.
4. Issue bonds partly to refund bonds then outstanding and partly for any highway purpose consistent with this article or as the legislature may authorize.
5. Provide for the registration as to the principal or both principal and interest of the bonds.
B. Regardless of whether or not the bonds are of such form or character as to be negotiable instruments under the terms of the negotiable instruments law, the bonds are fully negotiable within the meaning of and for all purposes of the negotiable instruments law.
Sec. 2. Section 28-7510, Arizona Revised Statutes, is amended to read:
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 both of the following tests are met:
1. the monies subject to pledge for payment of the bonds for the preceding twelve months exceed by two 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.
2. The total principal amount of bonds outstanding, excluding refunded bonds, at any one time shall not exceed one billion three hundred million dollars, unless the additional amount is authorized by the legislature.
C. 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.
D. 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.
E. For purposes of this section, amounts subject to pledge shall be presumptively determined by a certificate of the chairman of the board.
F. 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.