48-1798 - Arizona Statutes

48-1798. Bond retirement fund; investment of fund A. Beginning with the third year after issuance of any bonds, the board of directors shall include in the certificate provided for in section 48-1773 an amount sufficient to create a sinking fund which will pay the outstanding bonds when they become due. All probable income or increase of income from the sources referred to in section 48-1774 shall be taken into account in certifying the annual requirements of the sinking fund. B. When the sinking fund amounts to five hundred dollars or any multiple thereof, the fund may be loaned on farmlands at not more than thirty-five per cent of their cash value, but such loans shall mature not later than the bonds which the funds loaned were raised to pay. C. In addition to the provisions of subsection B of this section, the board of directors may invest funds in: 1. Interest bearing savings accounts or certificates of deposit in banks doing business in this state whose accounts are insured by the federal deposit insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state. 2. Interest bearing savings accounts or certificates of deposit in savings and loan associations doing business in this state whose accounts are insured by the federal savings and loan insurance corporation, but only if such deposits in excess of the insured amount are secured by the depository to the same extent and in the same manner as required by the general depository law of the state.