This section sets the required form for improvement district bonds, including who signs them, how coupons are signed, where payments are made, and that payment comes only from the special assessment fund.
48-936 - Form of bonds 48-936 . Form of bonds A. The bonds shall be signed by the chairman of the board of directors, attested by the clerk and sealed with the corporate seal of the district, and the interest coupons shall bear the facsimile signature of the chairman and clerk. B. The bonds shall be substantially in the following form: "State of Arizona. County of ________________ improvement district bond. Know all men by these presents: That the ___________ improvement district of ________________ county, Arizona, a duly organized improvement district, promises to pay as hereinafter stated to the bearer hereof, on the _____ day of _______________, the sum of ______________ dollars, together with interest on said sum, at the rate of _________ per cent per annum, payable semiannually on the first days of January and July of each year, as evidenced by and upon the presentation and surrender of the interest coupons hereto attached as they severally become due. (Here insert prior redemption feature, if applicable.) Both principal and interest are payable at the office of the county treasurer of ______________ county, Arizona or at _______________ (as applicable). This bond is issued in pursuance of law, and is one of a series of _____________ bonds of like tenor and date for the total sum of ____________________ dollars issued for that certain improvement in said district consisting of (briefly describing improvement), initiated by resolution no. ______________ of (name of district), and is payable only out of the special fund to be collected from special assessments imposed on the lots, or parcels of land fronting on or benefited by said improvement. Said special fund is set apart by law for the payment of said bonds, and can be used for no other purpose. It is hereby certified and declared that the improvement for which this series of bonds is issued is authorized by law, that all the acts, conditions and things required to be done, precedent to and in the issuing of this series of bonds, have been done and performed in regular and due form as required by the laws of the state of Arizona, and all ordinances and resolutions of said district, that the special assessments out of which said bonds are to be paid are first liens on the property assessed, subject only to the lien for general taxes and prior special assessments, and any bona fide purchaser for value of this bond has the right to rely on the recitals herein contained. For the assessment or reassessment, collection and payment of said special assessments, the full faith and diligence of said district are hereby irrevocably pledged."