A.R.S. § 11-635: Warrants, substitute checks and electronic funds transfers unpaid for lack of monies; interest; definitions

A. If a revolving line of credit has not been obtained for a political subdivision or if the revolving line of credit has been spent and if there are insufficient monies in the issuer's account, the county treasurer may invest in the warrant, substitute check or electronic funds transfer prescribed in section 35-323, subsection A, paragraph 7.

B. The county treasurer shall keep a register of warrants and substitute checks and a record of electronic funds transfers presented for payment.

C. If the county treasurer does not invest in the presented warrant, substitute check or electronic funds transfer, the county treasurer shall notify the servicing bank that the warrant or substitute check will not be paid for lack of monies and from that time until there are sufficient monies to pay the original warrant, the original warrant may not bear more than ten percent interest per year.

D. For the purposes of this section:

1. "Substitute check" has the same meaning prescribed in section 9-249.

2. "Warrant" has the same meaning prescribed in section 9-249 and includes a record from which an electronic funds transfer may be made.