35-821. Bonds of the corporation

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

B. The proceedings by which bonds are to be issued shall require approval of the board of directors and 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 any form, denomination, tenor and maturity.

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

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

5. Bear interest at any rate or rates and be payable at any time or times and at any place or places within or without the state of Arizona.

6. Be executed by such officers of the corporation and in such manner, and contain such provisions, not inconsistent herewith, as shall be provided in the proceedings of the board of directors authorizing the bonds to be issued, and in case an officer signing the bonds or coupons shall cease to be an officer of the corporation before the delivery of such bonds, such signature shall, nevertheless, be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery.

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, at such time or times, 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, 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 any one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same purpose or any other purpose, but the proceedings authorizing the issuance of any subsequent bonds shall recognize and protect any prior pledge or mortgage made to secure any prior issue of bonds. Any bonds of the corporation at any time outstanding may, if permitted by the conditions of issuance, be refunded at any time and from time to time by the issuance of refunding bonds in such amount as the board of directors may deem necessary but not exceeding any amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereof and any premiums and commissions necessary to be paid in connection therewith. The provisions of subsections A, B and D shall apply to all such bonds. 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 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, regardless of whether 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 may notify the attorney general of this state of its intent to issue bonds. The attorney general shall within ten days of the receipt of any such notice issue an opinion as to whether such issue is in conformity with the provisions of this chapter.

G. No action shall be brought questioning the legality of any contract, lease, mortgage, proceedings or the issuance of bonds hereunder from and after three months from the date the bonds are authorized to be issued by the board of directors.