Ariz. Rev. Stat. § 28-7509 – Highway bond proceeds fund; investment

A. The highway bond proceeds fund is established. After deducting the necessary fees, charges and expenses incurred in the issuance and sale of the bonds and any amounts necessary to provide for the payment of refunded bonds, the department shall promptly deposit, pursuant to sections 35-146 and 35-147, the proceeds received from the sale and delivery of the bonds for all purposes in the highway bond proceeds fund. The state treasurer shall maintain the fund separate and apart from all other funds, except that the treasurer shall first apply those amounts of the bond proceeds provided in the resolution issuing the bonds to all reserve and sinking funds created in the bond resolution. The department may spend monies in the highway bond proceeds fund for any lawful purpose not inconsistent with the resolution or resolutions authorizing the bonds.
B. The board may order the investment of monies in the highway bond proceeds fund by the state treasurer in any of the following:
1. 1. Obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities and any investments authorized by any other agencies of the United States government that are now authorized for use to secure public deposits.
2. 2. State, county or municipal bonds issued in this state on which the payments of interest have not been deferred.
C. The order directing the state treasurer to invest the monies shall set forth the specified time when the proceeds from the sale of the bonds shall be used for the purposes directed in the bond resolution, and the state treasurer shall invest the proceeds from the sale of the bonds in the securities prescribed in subsection B of this section in such a way as to mature at the specified date.
D. The board shall use the monies or securities in the highway bond proceeds fund solely for the purposes provided in the bond resolution, except that, if the revenues pledged to secure the bonds ever are insufficient to pay the annual principal and interest on the bonds, the board shall order:
1. 1. The liquidation of the securities remaining in the fund.
2. 2. The state treasurer to apply all such monies in the fund as necessary to make current all payments then due on the bonds.