Ariz. Rev. Stat. § 15-1024 – Interest on bonds; sale; disposition of proceeds; definition

A. The bonds shall bear interest, payable semiannually at the rate or rates set by the accepted bid, which shall not exceed the maximum rate of interest set forth in the resolution calling the election. The bonds may be made payable at such place within the United States as the governing board of the school district directs and shall be sold in the manner prescribed by the governing board of the school district for not less than par.
B. The proceeds of the sale of the bonds shall be deposited in the county treasury to the credit of the bond building fund of the school district. Such deposits may be drawn out for the purposes authorized by this article as other school monies are drawn. If a balance remains in the bond building fund after the acquisition or construction of facilities is completed for which the bonds were issued and on written request of the governing board:
1. 1. If the school district has outstanding bonded indebtedness, the balance remaining in the bond building fund shall be transferred to the debt service fund of the district.
2. 2. If the district has no outstanding bonded indebtedness, the balance remaining in the bond building fund shall be used for reduction of school district taxes.
C. When bonds are sold and the proceeds are not required to be used for a period of ten days or more, such proceeds may be invested as provided by section 15-1025, subsection B. All monies earned as interest or otherwise derived from the investment of the proceeds of the sale of the bonds shall be credited to the debt service fund, except that on the request of the district, the monies earned as interest shall be deposited to the bond building fund if federal laws or rules require the interest to be used for capital expenditures or the monies earned as interest shall be credited to the bond building fund if the voters authorized such use of the monies in a separate question at the bond election. The separate question shall inform the voters that the monies will be credited to the debt service fund, and may therefore reduce the amount of the secondary property tax, if the measure authorizing the monies to be credited to the bond building fund does not pass.
D. The amount of net premium associated with a bond issue may be used only for one or more of the following:
1. 1. To pay costs incurred in issuing the bonds, subject to section 15-491, subsection G and section 15-1465, subsection A.
2. 2. As a deposit in a debt service fund and used only to pay interest on the bonds.
3. 3. For any other purpose, if the district has voter authorization and available capacity under its debt limitations and the amount of net premium used for such purpose will reduce in an equal amount both:
  1. (a) The available aggregate indebtedness capacity of the district under the statutes and constitution of this state.
  2. (b) The principal amount authorized at the election for the district from which the issue of bonds is being sold.
E. Any net premium used as provided in subsection D, paragraph 3 of this section shall be amortized for all debt limitation purposes on a pro rata basis each year by multiplying the net premium used by a percentage equal to the percentage of the total principal amount of the bond issue that matures in that year.
F. For the purposes of this section, "net premium" means the difference between the par amount of the bond issue and the bond issue price determined pursuant to United States treasury regulations.