§ 35-491 — Registration of bonds; payment of principal and interest; paying agent; security for deposits; record date; definition

Arizona § 35-491

• Jurisdiction: Arizona
• Title 35: Arizona Revised Statutes
• Ch. 3: PUBLIC INDEBTEDNESS
• Art. 5: Registration and Payment of Bonds

Text

A. Bonds of this state, any department, agency or instrumentality of this state or any political subdivision, municipal corporation or other entity authorized by statute to issue bonds may be issued in a form that is registrable as to the principal or as to both principal and interest by a registrar designated by the issuer for such a purpose or may be in book entry form on the books of the registrar. In the case of entities for which bonds are issued by other bodies, the issuing body shall employ registrars, transfer agents or paying agents if requested to do so by the governing body of the entity or entities obligated to repay the bonds. All costs incurred due to employing registrars or paying agents are the liability of the entity or entities obligated to repay the bonds. The costs may be paid from bond proceeds.

B. Evidence of registration shall be entered in a bond register, disclosing the name of the holder, the number and amount of the bond, the date of registry and other information deemed necessary. If required by the proceedings authorizing the issuance of the bonds, the registrar shall endorse on the bond a certificate, signed by the registrar, that the bond is registered and that the principal or principal and interest are payable to the registered holder only, naming the registered holder or the registered holder's legal representative.

C. Notwithstanding any provision of law pertaining to the authorization and issuance of any bond, in addition and supplemental to the form of bond prescribed in such law, the issuer may prescribe a form of bond that meets the provisions of this section.

D. Notwithstanding any provision of law pertaining to the authorization and issuance of any bond, the governing body that authorizes the issuance of any bond may prescribe that the bond be executed by one or more facsimile signatures of designated officials. The governing body of the issuer may provide that a bond be authenticated by the registrar or by an authorized officer of the registrar.

E. The issuer may provide for paying principal of or principal and interest on any bond by check or warrant drawn on either the treasurer of the issuer or on a paying agent and may provide for mailing the check to the registered owner or for wire or other electronic transfer of monies to the registered owner. An issuer may contract with one or more banks or trust companies as paying agents and a registrar for any issue or series of bonds and may pay the costs either from bond proceeds or current revenues collected by the issuer. All banks and trust companies shall pledge assets to secure the deposits made for the purpose of paying either principal of, interest on or both principal and interest on any series of bonds.

F. The proceedings for the issuance of any bond may provide for setting a record date before each date set to pay principal or interest. The record date is then the date the registrar shall use to determine the ownership of the bonds for the next payment of principal or interest.

G. For the purposes of this article, "registrar" includes the recorder, secretary or clerk of the issuer or any other entity designated by the issuer to act as the registrar.