A.R.S. tit. 48 ch. 36 — Arizona Revised Statutes Title 48 Chapter 36 — Theme Park Districts

48-6201. Definitions (Conditionally Rpld.) In this chapter, unless the context otherwise requires: 1. "Board" means the board of directors of a district. 2. "District" means a theme park district established pursuant to this chapter. 3. "Site host" means a city or county. 4. "Theme park": (a) Means any combination of recreational, entertainment, sports, amusement and cultural venues and parking facilities with a central access designed and built around a particular time, place, story or subject, including consistent presentation of architecture, costuming, merchandise, food, games, rides and attractions. (b) Includes any buildings and improvements used for overnight lodging or accommodation of theme park patrons and other guests. 48-6202. Formation of district (Conditionally Rpld.) A. The governing bodies of a city with a population of more than five hundred thousand persons and a county with a population of more than one hundred twenty-five thousand persons and in which the city is entirely located or the governing body of a city with a population of more than five hundred thousand persons acting on its own or of a county with a population of more than one hundred twenty-five thousand persons acting on its own may establish a theme park district as provided by this chapter. For the purposes of this subsection, the population shall be determined according to the most recent population estimate data produced by the office of economic opportunity at the time the district is established. If formed by a county in conjunction with a city or by a city acting on its own, the district may include theme park sites in only the city that is participating in establishing the district. The city, if any, and the county, if any, shall establish the geographical boundaries of the district, which shall include only the sites of the theme parks and which shall consist of only contiguous property. If a district is formed by a county acting on its own, the geographic boundaries of the district, which shall include only the sites of the theme parks, shall consist only of contiguous property and shall be located entirely and only in the unincorporated area of the county. B. The district may be established with a single theme park site. Any additional sites may be added after the district is initially established and the geographical boundaries of the district may be revised after it is initially established, except that if formed by a county in conjunction with a city or by a city acting on its own, the district shall continue to consist of only contiguous property in that city. More than one district may be located in a county or a city. C. A theme park district organized pursuant to this article is limited to properties whose owners have consented to being included in the district, including any sites that are added after the district is initially established. D. The district is a corporate and political body and, except as otherwise limited, modified or provided by this chapter, has all of the rights, powers and immunities of municipal corporations. E. The district is considered to be a tax levying public improvement district for the purposes of article XIII, section 7, Constitution of Arizona. F. The district is regarded as performing a governmental function in carrying out the purposes of this chapter. The property acquired, leased or constructed by the district, the activities of the district in maintaining and caring for the property and the monies derived by the district from operating the property are exempt from state and local income and property taxation. A hotel building that is located in a district that is less than twenty acres and contains less than one million square feet of building or other improvements is not exempt from state and local property taxation. At the conclusion of the lease, that hotel building shall be returned to the lessee under the lease with the district and if subject to a ground lease with a tax exempt entity, the hotel building and other improvements are subject to state and local property taxation as possessory improvements on government property as defined in section 42-15301. 48-6203. Board of directors (Conditionally Rpld.) A. The district is governed by a board of directors consisting of the following members: 1. For a district that is formed by a city and a county, one member of the governing body of the city participating in establishing the district, elected by the governing body. If a county does not participate in establishing the district, the city shall elect two members of its governing body to be members of the board of directors of the district. 2. For a district that is formed by a city and a county, one member of the governing body of the county participating in establishing the district, elected by the governing body. If a city does not participate in establishing the district, the county shall elect two members of its governing body to be members of the board of directors of the district. 3. One member of the general public who resides in the city or county in which the district is located, appointed by the speaker of the house of representatives. 4. One member of the general public who resides in the city or county in which the district is located, appointed by the president of the senate. B. Members of the board of directors who also serve on the governing body of a city or county establishing the district serve during their terms of office on the governing body of the city or county, unless a successor is earlier elected by the respective governing body to replace the member for any reason. Other members of the board of directors shall serve four-year terms. C. Members are not eligible for compensation for service on the board of directors. 48-6204. Administrative powers and duties (Conditionally Rpld.) A. The board of directors, on behalf of the district, may: 1. Adopt and use a corporate seal. 2. Sue and be sued. 3. Enter into contracts, including intergovernmental agreements under title 11, chapter 7, article 3, as necessary to carry out the purposes and requirements of this chapter. 4. Adopt administrative rules as necessary to administer and operate the district and any property under its jurisdiction. 5. Acquire by any lawful means, except the power of eminent domain, and operate, maintain, encumber, lease and dispose of real and personal property and interests in property. 6. Retain legal counsel and other consultants as necessary to carry out the purposes of the district. B. The board of directors shall: 1. Appoint from among its members a chairperson, a secretary and such other officers as may be necessary to conduct its business. 2. Designate a fiscal agent to deposit, hold, invest and disburse the district's monies. 3. Provide for the acquisition, construction, renovation, redevelopment, lease, use and maintenance of the properties and interests owned or controlled by the district. 4. Keep and maintain a complete and accurate record of all of its proceedings. The board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39, chapter 1. 5. If a county participates in establishing the district, enter into intergovernmental agreements with the county and, if a city participates in establishing the district, with the city, pursuant to title 11, chapter 7, article 3, for administrative and staff support and meeting accommodations for accomplishing the purposes of the district. 6. Enter into contracts, leases and other agreements in the interest of the district or to carry out and accomplish the purposes of this chapter, including construction contracts and agreements with users of the theme parks. If the district issues bonds, the following apply until the bonds are fully repaid: (a) The district shall provide in its lease or use agreement with the lessee or user that the lessee or user may not relocate, significantly reduce its operation or terminate its agreement with the district. (b) The lessee or user may not move to a location in another state. (c) The lessee or user may not be a lessee or user or otherwise be a participant in a different district or use or participate in an agreement to use or construct a professional sports stadium or field in a location outside the district other than for a training stadium or field. 7. Contract for consulting, legal, accounting and other outside professional services, including a professional facility management company. 48-6205. Conflicts of interest (Conditionally Rpld.) A. The directors of the district are subject to title 38, chapter 3, article 8, relating to conflicts of interest, including the penalties prescribed by section 38-510. B. A member of the board of directors shall not have any direct or indirect financial interest in any: 1. Property owned, purchased or constructed by the district. 2. Contract entered into by the district. 3. Private corporation or other entity with which the district contracts. 48-6231. Constructing and maintaining theme parks; limitation on retail sales (Conditionally Rpld.) A. The district may provide for the construction, financing, furnishing and maintenance of one or more contiguous theme parks that shall be located only in the city establishing the district, or if a city does not participate in establishing the district, the one or more theme parks may be located only in unincorporated areas in the county. The district shall own or lease all buildings and other improvements it constructs, renovates or redevelops subject only to liens and other security interests of record. The district may construct its facilities on real property owned or leased by the district or leased by the district from one or more site hosts as provided by section 48-6233. B. On full repayment of the bonds prescribed by section 48-6253, any real property, buildings or other improvements conveyed or leased to the district will be reconveyed by the district to the lessee under the lease with the district. C. Any construction on or for the theme park may include the renovation or redevelopment of existing buildings or improvements and theme park facilities are not limited to new buildings or improvements. D. Not more than one-half of the business conducted at any theme park facility may consist of retail sales of tangible personal property, measured either by the number of employees assigned to retail sales or the square footage of the facility used for retail sales. For the purposes of this subsection, "retail sales" means the sale of tangible personal property to an ultimate consumer. Retail sales do not include: 1. Sales of food and beverages for consumption on the premises of the theme park facility. 2. The distribution without charge of promotional products that display the theme park logo or trademark. 3. Sales solely to employees of the theme park. E. Notwithstanding title 34 or title 41, chapter 23, the district may use alternative systems and procedures, including design-build construction and qualifications-based selection of contractors or any other system or procedure that the district deems appropriate, either by direct selection or by public competition, to expedite the design and construction of any of its facilities or structures or any facilities or structures leased to it or used by it pursuant to an intergovernmental agreement. Notwithstanding any other provision of this section or any other statute, the district shall approve all architects, designers, engineers and contractors that are selected by the developer. For the purposes of this subsection: 1. "Design-build" means a process of entering into and managing a contract between the district and another party in which the other party agrees to both design and build any structure, facility or other items specified in the contract. 2. "Qualifications-based selection" means a process of entering into and managing a contract between the district and another party in which the other party is selected by the district on the basis of the party's qualifications and experience in designing or constructing facilities, structures or other items similar to those the district is authorized to construct or lease. 48-6232. Operational powers of district (Conditionally Rpld.) The district, through the board of directors, may: 1. Approve contractors and architects to construct facilities, unless an architect will be employed directly by a contractor. 2. Negotiate agreements with the contractor and architect, unless the architect will be employed directly by the contractor. 3. Work with the users, contractors and architects to prepare a themed design for the facilities. 4. Prepare construction budgets and schedules. 5. Prepare the annual operating budget for the district pursuant to section 48-6251. 6. Negotiate lease or use agreements with parties that will occupy and use the district facilities. 7. Review construction change order requests. 8. Arrange for capital financing, as needed. 9. In consultation with the users of the district's facilities, negotiate one or more contracts for the lease, use, management, operation and maintenance of the district's facilities. 10. Take any other actions that are necessary to ensure that the district's facilities are constructed according to the schedule and budget. 48-6233. Site host relations (Conditionally Rpld.) A. The district may locate any of its facilities on real property leased from one or more site hosts. The district may negotiate agreements with site hosts, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 if a site host is a public agency as defined in section 11-951, concerning the real property, infrastructure and parking to be provided by the site host. All agreements must: 1. Provide that the site host shall indemnify and hold the district harmless from any liability to the extent resulting from the negligent or intentional acts or omissions of the site host or its representatives and agents or employees resulting from any access ways provided by the site host and reasonably used by the public for ingress and egress to the land, infrastructure and parking facilities provided by the site host for use in connection with any theme park. 2. Require the site host to maintain insurance or an adequate self-insurance plan for any liability of the site host, with a waiver of sovereign immunity if necessary. B. Before entering into an agreement with any site host, the district shall require assurance that the site host has the financial capability to perform its obligations under any agreement with the district. 48-6234. Regulating sale, use and consumption of alcoholic beverages (Conditionally Rpld.) Subject to the requirements of title 4, the board may permit or prohibit the sale, use and consumption of alcoholic beverages on property acquired, leased or subleased under this chapter. 48-6251. Annual budget (Conditionally Rpld.) A. On or before June 30 of each year, the board shall hold a public hearing to adopt a budget for the following fiscal year that includes: 1. District receipts during the preceding fiscal year. 2. Expenditures during the preceding fiscal year. 3. Estimates of amounts necessary for expenses during the following fiscal year, including amounts proposed for: (a) Costs of planning, constructing, financing and maintaining the district's facilities. (b) Administrative costs of the district. 4. Anticipated revenue to the district from each source in the following fiscal year. 5. A complete asset and liability statement. 6. A statement of profit or loss. 7. Cash on hand as of the date the budget is adopted and the anticipated balance at the end of the current fiscal year. 8. An itemized statement of commitments, reserves and anticipated obligations for the following fiscal year. 9. A description of the amount and nature of private funding and financing committed to theme park purposes as required by section 48-6272, subsection D. B. The board may amend the budget on a finding of good cause. 48-6252. General fund; investments (Conditionally Rpld.) A. The district shall maintain a general fund and may establish accounts and subaccounts within the general fund as necessary and convenient. All revenues and monies received by the district shall be deposited in the general fund. B. The district may invest any unexpended monies in the fund as provided in title 35, chapter 2. Interest and other income from investments of monies in any account shall be credited to that account except as otherwise provided by law. C. The district's investments must mature when the fund assets will be required for the purposes of this chapter. If the liquid assets in the fund become insufficient to meet the district's obligations, the board shall direct the fiscal agent to liquidate sufficient securities to meet all of the current obligations and immediately notify the auditor general of the insufficiency. The auditor general shall investigate and audit the circumstances surrounding the depletion of the fund and report the findings to the board. 48-6253. Transaction privilege tax; administration; expiration (Conditionally Rpld.) A. The district shall levy a transaction privilege tax on business activity in the district that is subject to taxation under title 42, chapter 5. The tax shall be levied at up to a maximum rate of nine percent of the gross proceeds of sales or gross income derived from the business, including admission and user fees. The board may use its discretion in approving differing percentage rates for the tax imposed pursuant to this section that may vary by type of tangible personal property sold or by revenue source. B. The board may not approve a tax rate that is less than nine percent for a theme park if all of the following apply: 1. The total amount of bonds sold for the theme park is less than $300,000,000. 2. The theme park is less than twenty acres. 3. The theme park contains less than one million square feet of buildings or other improvements. C. The tax imposed pursuant to this section is in addition to transaction privilege and use taxes imposed by this state pursuant to title 42, chapter 5 and any county, city, town or other local transaction privilege tax. D. Unless the context otherwise requires, section 42-6102 governs the administration of the tax imposed under this section. E. Each month the state treasurer shall remit to the district the net revenues collected under this section during the preceding month. The district shall deposit the monies in the district's general fund. F. The tax imposed pursuant to this section expires when all bonds, interest and other charges related to bonds issued under article 4 of this chapter have been paid. The district shall immediately notify the department of revenue when those expenses have been satisfied. Any amounts collected after payment of the bonds, interest and related charges, after audit by the auditor general, shall be retained or remitted by the state treasurer and credited to the state general fund. 48-6254. Voluntary payments in lieu of property taxes (Conditionally Rpld.) A. The board may provide for voluntary payments of money to taxing jurisdictions in which district property is located in lieu of taxes otherwise levied by those jurisdictions. B. If the board elects to make direct payments under this section to any taxing jurisdiction in any tax year: 1. On or before April 1, the board shall notify the county assessor of the county in which the property is located of its election to make a payment under this section. 2. The board shall pay to the county treasurer one-half of the amount not later than the first Monday in November and the other one-half not later than the first Monday in May of the next year. C. The board shall make any direct payments under this section from any unrestricted and unencumbered monies in the general fund. The payments are considered to be an operating expense of the district. 48-6255. Audit; joint legislative budget committee (Conditionally Rpld.) A. The board shall cause an annual audit to be conducted of the district's funds, accounts and subaccounts by an independent certified public accountant within one hundred twenty days after the end of the fiscal year. B. The board shall immediately file a certified copy of the audit with the auditor general. The auditor general may make such further audits and examinations as necessary and may take appropriate action relating to the audit or examination pursuant to title 41, chapter 7, article 10.1. If the auditor general takes no further action within thirty days after the audit is filed, the audit is considered to be sufficient. C. The board shall pay negotiated and approved fees and costs of the certified public accountant and auditor general under this section. D. At the request of the chairperson of the joint legislative budget committee, a representative of the board shall appear before the joint legislative budget committee to report on any aspect of the district's operation, including the activities and financial performance of the district during the previous fiscal year, the district's plans for capital improvements, other expenditures and investment and the district's response to the audit conducted pursuant to this section. 48-6256. Performance audit; bonds; dissolution of district (Conditionally Rpld.) A. The auditor general shall conduct a performance audit as defined in section 41-1278 of the district and its operations, which shall be completed not more than three hundred months after the date of the initial issuance of bonds authorized by section 48-6272. The audit shall be submitted to the board of directors of the district and to the joint legislative audit committee or its successor. The auditor general shall provide copies of the audit to the secretary of state and the executive director of the Arizona legislative council. B. At the direction of the board of directors but not later than sixty months after the date the performance audit is delivered to the joint legislative audit committee pursuant to subsection A of this section: 1. The board of directors shall wind up the affairs of the district. 2. The board of directors shall sell all district property and other assets to the highest and best bidders at public auction. The proceeds of the auction shall be used to retire all outstanding district obligations and any remaining proceeds shall be transferred to the state treasurer for credit to the state general fund. 3. The district is dissolved. On dissolution of the district, the board shall notify the executive director of the Arizona legislative council of the date of dissolution. 48-6271. Definitions (Conditionally Rpld.) In this article, unless the context otherwise requires: 1. "Bond related expenses" means any expenses incurred by the district to issue and administer its bonds, including underwriting fees and costs, trustee fees, financial consultant fees, printing and advertising costs, paying agent fees, transfer agent fees, legal, accounting, feasibility consultant and other professional fees and expenses, credit enhancement fees, attorney and accounting fees and expenses related to credit enhancement, bond insurance or liquidity enhancement, remarketing fees, rating agency fees and costs, travel and telephone expenses and all other fees considered necessary by the district in order to market and administer the bonds. 2. "Bonds" means the revenue bonds of the district issued pursuant to this article. 3. "Theme park purpose" includes the following purposes: (a) The capital costs of acquiring, designing, developing, constructing, reconstructing, equipping and improving theme park facilities and directly related improvements and of on-site and off-site public infrastructure. (b) The payment of bond obligations. (c) Bond related expenses. 48-6272. Authorization of revenue bonds; conditional expiration (Conditionally Rpld.) A. Subject to subsections D and E of this section, the district may issue negotiable revenue bonds pursuant to this article in a principal amount that is necessary to: 1. Provide sufficient monies for theme park purposes. The board may segregate any theme park purpose for separate financing, and may issue bonds separately or together, in one or more issues. 2. Establish and fully or partially fund any reserves or sinking accounts established by the bond resolution. 3. Issue refunding bonds if the board considers refunding to be expedient. The board may provide for investing and holding the proceeds of the refunding bonds in trust for the benefit of the holders of the bonds being refunded. 4. Refund any bonds issued by the district if the bonds are secured from the same source of revenues as the bonds authorized in this article by issuing new bonds, whether the bonds to be refunded have or have not matured. 5. Issue bonds partly to refund outstanding bonds and partly for any theme park purpose consistent with this article. B. The sum of all bonds issued by all districts established pursuant to this article shall not exceed an outstanding principal amount of $2,000,000,000 at any given time, except for refunding bonds and other bonds issued to refund outstanding bonds of the districts. C. The board shall authorize the bonds by resolution. The resolution shall prescribe: 1. The district's revenue sources that are pledged and dedicated to secure the bonds. 2. The rate or rates of interest, which may be fixed or variable, the date or dates on which interest is payable and the denominations of the bonds. 3. The date or dates of the bonds and maturity, which shall be within thirty years after the date of issuance. 4. The manner of executing the bonds. 5. The medium and place of payment. 6. The terms of redemption, which may provide for a premium for early redemption. D. The board shall not issue bonds under this article unless it receives irrevocable and legally enforceable financial participation commitments from private nongovernmental entities for theme park purposes, including from new market tax credits, in an amount equal to twenty percent of the principal amount of the bond issue. E. The authority of the board of directors to issue bonds under this article expires if the board fails to issue any bonds on or before December 31, 2031. 48-6273. Issuance and sale of bonds (Conditionally Rpld.) A. The board shall issue the bonds in the number and amount provided in the resolution. The board shall provide notice of its intention to issue bonds in a manner consistent with market practice. B. The bonds may be sold by competitive public sale, through an on-line bidding process or at negotiated sale for public or private offering at the price and on the terms prescribed in the resolution. For the purposes of this subsection, "on-line bidding process" means a procurement process in which the board receives bids electronically over the internet in a real-time, competitive bidding event. C. The amount of bond related expenses paid from net premium associated with a bond issue may not exceed two per cent of the par value of the bond issue. For the purposes of this subsection, "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. D. The proceeds from the sale of the bonds shall be deposited in the bond proceeds account established pursuant to section 48-6274. E. Title 35, chapter 3, article 7 applies to the board and to bonds issued under this article. 48-6274. Bond proceeds account (Conditionally Rpld.) A. If the district issues bonds under this article, the board shall establish a bond proceeds account within the general fund consisting of monies received from the sale of the bonds. B. The district may use monies in the bond proceeds account only for theme park purposes in the manner prescribed by this chapter. C. The fiscal agent of the district shall administer and account for the bond proceeds account. 48-6275. Debt service account (Conditionally Rpld.) A. If the district issues bonds under this article, the board shall establish a debt service account within the general fund consisting of monies designated and dedicated by the board for repayment of the bonds and payment of costs and related expenses associated with redeeming the bonds. B. Monies in the debt service account may be used only for the purposes authorized by this article. C. The fiscal agent of the district shall administer and account for the debt service account. 48-6276. Securing principal and interest (Conditionally Rpld.) In connection with issuing bonds authorized by this article and to secure the principal and interest on the bonds, the board by resolution may: 1. Pledge for the payment of principal and interest on the bonds all or part of the revenues and other monies received by the district and deposited in the general fund or any account or subaccount of the district. 2. Pledge and assign to or in trust for the benefit of the holder or holders of the bonds all or part of the monies in the debt service account or any other account or subaccount as necessary to secure and pay the principal, the interest and any premium on the bonds as they come due. 3. Segregate the debt service account into one or more subaccounts and provide that bonds issued under this article may be secured by a lien on all or part of the monies paid into the debt service account or into any subaccount in the debt service account. 4. Establish priorities among bondholders based on criteria adopted by the board. 5. Set aside, regulate and dispose of reserves and sinking accounts. 6. Prescribe the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent to and the manner in which the consent may be given. 7. Provide for payment of bond related expenses from the proceeds of the sale of the bonds or other revenues available to the board. 8. Provide for the services of trustees, cotrustees, agents and consultants and other specialized services with respect to the bonds. 9. Take any other action that in any way may affect the security and protection of the bonds or interest on the bonds. 48-6277. Lien of pledge (Conditionally Rpld.) A. Any pledge made under this article is valid and binding from the time when the pledge is made. B. The monies pledged to the holders of the bonds and received by the district for placement in the debt service account are immediately subject to the lien of the pledge without any further act. Any lien of any pledge is valid and binding against all parties who have claims of any kind against the district, regardless of whether the parties have notice of the lien. The official resolution or any instrument by which this pledge is created, when adopted by the board, is notice to all concerned of the creation of the pledge, and those instruments need not be recorded in any other place to perfect the pledge. 48-6278. Bond purchase; cancellation (Conditionally Rpld.) The board may purchase bonds for cancellation, using any available monies, at a price not exceeding the following: 1. If the bonds are redeemable at the time of purchase, the applicable redemption price plus accrued interest to the next interest payment date. 2. If the bonds are not redeemable at the time of purchase, the applicable redemption price on the first date after purchase on which the bonds become subject to redemption plus accrued interest to that date. 48-6279. Payment of bonds (Conditionally Rpld.) A. The bonds shall be paid solely from monies in the debt service account. B. The members of the board and any persons who execute the bonds are not personally liable for the payment of the bonds. C. The fiscal agent of the district shall cancel all bonds when paid. 48-6280. Use of surplus monies (Conditionally Rpld.) A. If a balance remains in the bond proceeds account after all acquisition, construction and related costs have been paid: 1. The board shall credit the balance to repay any other outstanding indebtedness of the district. 2. If the district has no outstanding indebtedness, the board shall credit the remaining balance to the district's general fund. B. If a balance remains in the debt service account after payment of all bonds, interest and other charges related to bonds issued under this article, the board shall credit the balance to the general fund. 48-6281. Investment of monies in the bond proceeds account (Conditionally Rpld.) A. The board may authorize the district fiscal agent to invest monies in the bond proceeds account in the manner prescribed by section 48-6283. B. The order directing an investment shall state a date on which the proceeds from the sale of the bonds will be needed for use, and the fiscal agent shall make the investment in such a way as to mature on or before the specified date. C. All monies earned as interest or otherwise derived from the investment of the monies in the bond proceeds account shall be used to pay all bonds, interest and other charges related to bonds issued under article 4 of this chapter. 48-6282. Investment of monies in debt service account (Conditionally Rpld.) A. The board may authorize the district fiscal agent to invest and reinvest any monies in the debt service account as provided by section 48-6283. B. The order directing an investment shall state a date on which the monies and other resources in the debt service account will be needed for use, and the fiscal agent shall make the investment in such a way as to mature on or before the specified date. C. All monies earned as interest or otherwise derived from the investment of the monies in the debt service account shall be credited to the district's general fund and applied to bond debt as it accrues. 48-6283. Authorized investments of monies (Conditionally Rpld.) A. The monies in either the bond proceeds account or the debt service account may be invested and reinvested at the direction of the board in any of the following: 1. United States treasury obligations. 2. Consolidated farm loan bonds. 3. Obligations issued by the federal intermediate credit banks or bonds for cooperatives on authority of the farm credit act of 1933. 4. Any other obligations guaranteed by the United States government. 5. Any investments that are authorized by any other agencies of the United States government and that are authorized to secure public deposits. 6. State and local government series United States treasury securities. 7. State, county or municipal bonds issued in this state and on which the payments of interest have not been deferred. 8. Investment agreements and repurchase agreements collateralized by investments described in paragraphs 1 through 5. B. The purchase of the securities shall be made by the district fiscal agent on authority of a resolution of the board. The fiscal agent shall act as custodian of all securities purchased. C. The board may place any restrictions on reinvestment yield on bond proceeds or on any monies pledged to pay the bonds if necessary to comply with federal income tax laws and regulations to gain any federal tax benefits available with respect to the bonds. 48-6284. Deposit and disbursement of monies (Conditionally Rpld.) A. Monies derived from selling bonds under this article or pledged or assigned to or in trust for the benefit of the holder or holders of the bonds shall be deposited by the district fiscal agent in financial institutions that the board designates and that are insured by an agency or instrumentality of the United States. The monies shall be disbursed as the board directs and according to the terms of any agreements with the holder or holders of the bonds. B. This section shall not be construed as limiting the power of the board to agree in connection with the issuance of any of its bonds as to the custody and disposition of the monies received from selling bonds or from the income and revenues pledged or assigned to or in trust for the benefit of the holder or holders of the bonds. 48-6285. Characteristics of bonds; negotiability; obligation; legal investments; exemption from taxation (Conditionally Rpld.) A. Bonds issued under this article are fully negotiable within the meaning and for all purposes of the uniform commercial code, subject only to any provisions for registration, regardless of whether the bonds actually constitute negotiable instruments under the uniform commercial code. B. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state, except that the board of directors in its discretion may elect that the bonds, their transfer and the income from those bonds be issued as taxable in this state. C. Bonds issued under this article: 1. Are obligations of the district and are not general, special or other obligations of this state or of the county or city establishing the district. The members of the board and persons who execute the bonds are not personally liable for payment of the bonds. 2. Are payable only according to their terms. 3. Do not constitute a debt of this state or of the county or city establishing the district. 4. Are not enforceable against this state and payment of the bonds is not enforceable out of any monies other than the revenue pledged and assigned to or in trust for the benefit of the holder or holders of the bonds. 5. Are securities in which public officers and bodies of this state and of municipalities and political subdivisions of this state, all companies, associations and other persons carrying on an insurance business, all financial institutions, investment companies and other persons carrying on a banking business, all fiduciaries and all other persons who are authorized to invest in government obligations may properly and legally invest. 6. Are securities that may be deposited with public officers or bodies of this state and municipalities and political subdivisions of this state for purposes that require the deposit of government bonds or obligations. 48-6286. Effect of changing circumstances on bonds; agreement of state (Conditionally Rpld.) A. Bonds issued under this article remain valid and binding obligations of the district notwithstanding that before the delivery of the bonds any person whose signature appears on the bonds ceases to be an officer of the district. B. An amendment of any provision in this chapter does not diminish or impair the validity of bonds issued under this article or the remedies and rights of bondholders. C. This state pledges to and agrees with the holders of the bonds authorized by this article that this state will not limit, alter or impair the rights vested in the district to receive the monies necessary to fulfill the terms of any agreements made with the holders of the bonds, or in any way impair the rights and remedies of the bondholders, until all bonds issued under this article, together with interest on the bonds, interest on any unpaid installments of principal or interest and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders, are fully met and discharged. The board, as agent for this state, may include this pledge and undertaking in its resolutions and indentures authorizing and securing its bonds. 48-6287. Validity of bonds; legal opinion (Conditionally Rpld.) A. This article constitutes full authority for authorizing and issuing bonds without reference to any other law of this state. No other law with regard to authorizing or issuing obligations or that in any way impedes or restricts performing the acts authorized by this article may be construed to apply to any proceedings taken or acts done pursuant to this article. B. The validity of bonds issued under this article does not depend on and is not affected by the legality of any proceeding relating to the acquisition, construction, improvement, operation or maintenance of a multipurpose facility for which the bonds are issued. C. The board may submit any bonds to be issued under this article to legal counsel after all proceedings for authorizing the bonds have been completed. On submission the counsel shall examine and pass on the validity of the bonds and the regularity of the proceedings. If the proceedings comply with this article, and if the bonds when delivered and paid for will constitute binding and legal obligations of the district, the counsel shall certify on the back of each bond, in substance, that it is issued according to the constitution and laws of this state and that the interest on the bonds will be exempt from state taxes as provided by law. D. The bonds shall recite that they are regularly issued pursuant to this article. That recital, together with the legal opinion under subsection C, constitutes prima facie evidence of the legality and validity of the bonds. From and after the sale and delivery of the bonds, they are incontestable by this state or the district.