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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