35-721

35-721. Bonds of the corporation

A. All principal and interest of bonds issued by the corporation shall be payable
solely out of the revenues, proceeds and receipts derived from the corporation's sale of
property, loan repayments or lease rentals, or out of the proceeds of bonds issued
hereunder, or of any revenues, proceeds and receipts thereof as shall be specified in the
proceedings of the board of directors under which the bonds shall be authorized to be
issued.

B. The proceedings under which such bonds are to be issued shall require the
approval of the governing body of each issuance of bonds.

C. The bonds prescribed by subsection A may:

1. Be executed and delivered by the corporation at any time and from time to time.

2. Be in such form and denominations and of such tenor and maturities.

3. Be in registered or bearer form either as to principal or interest or both.

4. Be payable in such installments and at such time or times not exceeding forty
years from the date thereof.

5. Be payable at such place or places within or without the state of Arizona.

6. Bear interest at such rate or rates, payable at such time or times and at such
place or places and evidenced in such manner.

7. Be executed by such officers of the corporation and in such manner, and may
contain such provisions not inconsistent herewith, all as shall be provided in the
proceedings of the board of directors whereunder the bonds are authorized to be issued.

D. If deemed advisable by the board of directors, there may be retained in the
proceedings under which any bonds of the corporation are authorized to be issued an
option to redeem all or any part thereof as may be specified in such proceedings, at such
price or prices and after such notice or notices and on such terms and conditions as may
be set forth in such proceedings and as may be briefly recited on the face of the bonds,
but nothing in this article shall be construed to confer on the corporation any right or
option to redeem any bonds except as may be provided in the proceedings under which they
shall be issued.

E. Any bonds of the corporation may be sold at public or private sale in such
manner and from time to time as may be determined by the board of directors of the
corporation to be most advantageous, and the corporation may pay all expenses, premiums
and commissions which its board of directors may deem necessary or advantageous in
connection with the issuance thereof. Issuance by the corporation of one or more series
of bonds for one or more purposes shall not preclude it from issuing other bonds in
connection with the same project or any other project, but the proceedings whereunder any
subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage
made for any prior issue of bonds. Any bonds of the corporation at any time outstanding
may at any time and from time to time be refunded by the corporation by the issuance of
its refunding bonds in such amount as the board of directors may deem necessary but not
exceeding an amount sufficient to refund the principal of the bonds so to be refunded,
together with any unpaid interest thereon and any premiums and commissions necessary to
be paid in connection therewith. Any such refunding may be effected whether the bonds to
be refunded shall have then matured or shall thereafter mature, either by sale of the
refunding bonds and the application of the proceeds thereof for the payment of the bonds
to be refunded thereby, or by the exchange of the refunding bonds for the bonds to be
refunded thereby with the consent of the holders of the bonds so to be refunded, and
regardless of whether or not the bonds to be refunded were issued in connection with the
same projects or separate projects, and regardless of whether or not the bonds proposed
to be refunded shall be payable at the same date or different dates or shall be due
serially or otherwise. All such bonds and the interest coupons applicable thereto are
hereby made and shall be construed to be negotiable instruments.

F. The corporation shall notify the attorney general of its intention to issue
bonds. Such notification shall adequately describe the project. The attorney general
shall inform the corporation within ten days if in his opinion the project sought to be
financed does not come within the purview of this chapter. If after ten days the attorney
general has not issued an opinion that the project does not so conform, the corporation
may issue such bonds. If the attorney general's negative opinion is issued within ten
days, such bonds shall not be issued. No action shall be brought questioning the
legality of any contract, lease, mortgage, proceedings or the issuance of bonds hereunder
from and after ninety calendar days from the date the bonds are authorized to be issued
by the governing body.