Ariz. Rev. Stat. § 41-5857 – Program funding obligations; immunity

A. The board may deliver nonnegotiable program funding obligations in one or more series in an aggregate principal amount of not more than $80,000,000.
B. The board shall sell any program funding obligations prescribed in subsection A of this section to the state treasurer, and the state treasurer shall buy such obligations as an allowable investment of the fund. The total principal amount of program funding obligations outstanding at any one time may not exceed $80,000,000. The board may reissue to the state treasurer any called program funding obligations on the same terms as the obligations that were called and in a principal amount that does not exceed the principal amount called.
C. The board shall authorize each program funding obligation by a resolution that sets forth:
1. 1. The rate or rates of interest.
2. 2. The date or dates of maturity.
3. 3. The terms of redemption.
4. 4. The form and manner of execution of the program funding obligation.
5. 5. Any terms necessary to secure credit enhancement or other sources of payment or security.
6. 6. Any other terms deemed necessary or advisable by the board.
D. The interest rate to be paid on program funding obligations authorized by the board pursuant to subsection C of this section shall be equal to the sum of the following:
1. 1. The actual rate of interest earned by the state treasurer on the investment of the proceeds from the sale of the program funding obligations.
2. 2. For any period during which guaranteed financings are outstanding, an additional interest rate of at least one hundred basis points as determined by the board.
E. The principal of and interest on the program funding obligations shall be secured by and paid from monies deposited in the fund, on the terms set forth in the resolution, and are subordinate to any payments that are necessary to be made for guaranteed financings. Principal payments shall be paid on a basis proportional to the reduction in outstanding principal of guaranteed financings under the program. Interest shall be paid on an annual or more frequent basis as set forth in the resolution of the board. The monies pledged under this section to the program funding obligations are immediately subject to the lien of the pledge without any future physical delivery or further act. A lien of any pledge is valid and binding against all parties having claims of any kind in tort, contract or otherwise against the board irrespective of whether the parties have notice of the lien. When placed in the board's records, the resolution by which the pledge is created is notice to all concerned of the creation of the pledge.
F. Program funding obligations shall be sold at private sale to the state treasurer at a price and on terms provided by the board in its resolution pursuant to this section. The proceeds from the sale of program funding obligations shall be deposited into the fund and may be used for the purposes of the fund as set forth in section 41-5854.
G. Program funding obligations are:
1. 1. Special obligations of the board.
2. 2. Not obligations that are general, special or otherwise of this state.
3. 3. Not a legal debt of this state.
4. 4. Payable and enforceable only from the monies and fund pledged and assigned by the board in its resolution.
H. Any member of the board or a person executing a program funding obligation is not personally liable for the payment of the program funding obligation.