ARS § 9-441.03

9-441.03 - Issuance of bonds 9-441.03 . Issuance of bonds A. A municipality may issue bonds to finance any housing development project under this article, including the payment of principal and interest on any advances for surveys and plans for housing development projects, and may also issue refunding bonds for the payment or retirement of such bonds previously issued by it. The bonds shall be made payable, as to both principal and interest, solely from the income, proceeds, revenues and monies of the municipality derived from or held in connection with its undertaking and carrying out of housing development projects under this article, whether or not they are financed in whole or in part with the proceeds of such bonds, but payment of the bonds, both as to principal and interest, may be further or exclusively secured by a pledge or any loan, grant or contribution from the federal government or any other source, whether public or private, in aid of any housing development areas of the municipality established pursuant to this article and by a mortgage of any such housing development areas. B. The bonds and other obligations of the municipality issued pursuant to subsection A are not a general obligation or general debt of the municipality, this state or any of its political subdivisions, and neither the municipality, this state nor any of its political subdivisions are generally liable for the bonds or obligations. The bonds or obligations shall not give rise to a general obligation or liability of the municipality, this state or any of its political subdivisions, or a charge against their general credit or taxing powers, and shall not be payable from any monies or properties other than those monies or properties specifically described in subsection A, and the bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Bonds issued under this article are declared to be issued for an essential public and governmental purpose and, together with interest and income, are exempt from all taxes. C. Bonds issued under this section shall be authorized by a resolution of the local governing body, may be issued in one or more series and shall bear a date or dates, be payable on demand or mature at a time or times, bear interest at a rate or rates that may be fixed or variable, be in a denomination or denominations, be in a form, carry conversion or registration privileges, have rank or priority, be executed in a manner, be payable in a medium of payment, at a place or places, and be subject to terms of redemption, with or without premium, as provided by the resolution, trust indenture or mortgage issued for the bonds. D. The bonds or any bonds issued to refund the bonds may be sold at public or private sale or by an on-line bidding process at a price or prices determined by the local governing body or may be exchanged for other bonds. If bonds are sold at public sale, notice shall be published once at least ten days before the sale in a newspaper of general circulation in the area of operation or in another medium of publication as the municipality determines. If bonds are sold through an on-line bidding process, bids for the bonds that are entered into the system may be concealed until a specified time or disclosed in the on-line bidding process, may be subject to improvement in favor of the municipality before a specified time and may be for an entire issue of bonds or specified maturities according to the manner, terms and notice provisions ordered by the governing body. For purposes of this subsection, "on-line bidding process" means a procurement process in which the governing body receives bids electronically over the internet in a real-time, competitive bidding event. E. If any other public officials of the municipality whose signatures appear on any bonds issued under this article cease to be officials before delivery of the bonds, their signatures are valid and sufficient for all purposes the same as if the officials had remained in office until delivery. Bonds issued pursuant to this article are fully negotiable. F. In any action or proceedings involving the validity or enforceability of any bond issued under this article or the security for the bond, the recitation in substance in the bond that it has been issued by the municipality in connection with a housing development area is conclusive proof that the bond was issued for that purpose, and that area is conclusively deemed to have been planned, located and carried out in accordance with the purposes and provisions of this article. G. Neither the members of the local governing body nor any persons executing the bonds are liable personally on the bonds by reason of their issuance.