15-1025

15-1025. Investment and reinvestment of debt
service fund

A. The governing board of a school district may invest and reinvest all monies
belonging or credited to the school district as a debt service fund. Consent may be
requested prior to the beginning of any fiscal year for the adoption of a resolution of
continuing effect. The investment shall be made for the best interests of the school
district.

B. The funds may be invested and reinvested in any of the following:

1. Bonds or other evidences of indebtedness of the United States of America or any
of its agencies or instrumentalities when such obligations are guaranteed as to principal
and interest by the United States of America or by any agency or instrumentality thereof.

2. Bonds or other evidences of indebtedness of this state, or of any of the
counties or incorporated cities, towns or school districts of this state.

3. Bonds, notes or evidences of indebtedness of any county, municipality or
municipal district utility within this state, which are payable from revenues or earnings
specifically pledged for the payment of the principal and interest on such obligations,
and for the payment of which a lawful debt service fund or reserve fund has been
established and is being maintained, but only if no default in payment of principal or
interest on the obligations to be purchased has occurred within five years of the date of
investment therein or, if such obligations were issued less than five years prior to the
date of investment, no default in payment of principal or interest has occurred on the
obligations to be purchased, nor on any other obligations of the issuer within five years
of such investment.

4. Bonds, notes or evidences of indebtedness issued by any municipal improvement
district in this state to finance local improvements authorized by law, if the principal
and interest of such obligations are payable from assessments on real property within
such local improvement district. No such investment shall be made if the face value of
all such obligations and similar obligations outstanding exceeds fifty per cent of the
market value of the real property and improvements upon which such bonds or the
assessments for the payment of principal and interest thereon are liens inferior only to
the liens for general ad valorem property taxes. Such investment shall be made only if no
default in payment of principal or interest on the obligations to be purchased has
occurred within five years of the date of investment therein or, if such obligations were
issued less than five years prior to the date of investment, no default in payment of
principal or interest has occurred on the obligations to be purchased, nor on any other
obligation of the issuer within five years of such investment.

5. Interest bearing savings accounts or certificates of deposit insured in banks or
savings and loan associations doing business in Arizona by the federal deposit insurance
corporation, but only if they are secured by the depository to the same extent and in the
same manner as required by the general depository law of this state. Security shall not
be required for that portion of any deposit that is insured under any law of the United
States.

6. Bonds, debentures or other obligations issued by the federal land banks, the
federal intermediate credit banks or the banks for cooperatives.

7. Interest bearing certificates of deposit purchased in accordance with the
procedures prescribed in section 35-323.01.

C. The purchase of the securities shall be made by the county treasurer or the
treasurer's designated agent upon authority of a resolution of the governing board. The
county treasurer shall be the custodian of all securities so purchased. The securities
may be sold upon an order of the governing board.

D. All monies earned as interest or otherwise derived by virtue of the provisions
of this section shall be credited to the debt service fund.