Ariz. Rev. Stat. § 48-5169 – Public transportation bond proceeds fund

A. The public transportation bond proceeds fund is established. After deducting the necessary costs and expenses of the issuance and sale of the bonds, the authority shall promptly transfer the proceeds received from the sale and delivery of the bonds to the fiscal agent for deposit in the public transportation bond proceeds fund. The fiscal agent shall maintain the fund separate and apart from all other funds, except that the authority's treasurer or fiscal agent 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 authority may spend monies in the fund for any public transportation purpose not inconsistent with the resolutions authorizing the bonds.
B. The board may order the investment of monies in the public transportation bond proceeds fund by the fiscal agent in 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 that are authorized by any other agencies of the United States government and that are now authorized for use to secure public deposits or state, county or municipal bonds issued in this state on which the payments of interest have not been deferred.
C. The order directing the fiscal agent to invest the monies shall set forth the approximate time when the proceeds from the sale of the bonds shall be used for the purposes directed in the bond resolution, and the fiscal agent shall invest the proceeds from the sale of the bonds in the securities prescribed in subsection B in such a way as to mature at the specified date.
D. The board shall use the monies or securities in the public transportation bond proceeds fund solely for the purposes set forth 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 fiscal agent to apply all such monies in the fund as necessary to make current all payments then due on the bonds.
E. Title 35, chapter 3, article 7 applies to the bonds and the authority.