A.R.S. § 28-7685: Use of proceeds

A political subdivision shall use the proceeds from the sale of highway project advancement notes for payment of any of the following:

1. Advances to the department under the highway project advance agreement to which the highway project advancement notes relate.

2. Legal and financial costs and expenses incurred in issuing and administering the notes.

3. Reimbursement of the political subdivision for monies previously advanced to the department under the highway project advance agreement to which the highway project advancement notes relate.

4. If authorized by the political subdivision, payment of interest that accrues on the notes before maturity.

5. Payment of the principal, premium or interest on other obligations of the political subdivision to the extent that proceeds of those obligations were or are applied to the financing of the highway project to which the highway project advance agreement relates.