A.R.S. § 48-2718: Limit of indebtedness; exception

The board of directors shall not incur any debt or liability whatever, either by issuing bonds or otherwise, in excess of the express provisions of this chapter, and any debt or liability incurred in excess of such express provisions shall be absolutely void, but for the purposes of organization, or for any of the purposes of this chapter, the board of directors may, before the collection of the first assessment, incur an indebtedness not exceeding in the aggregate two thousand dollars, and may cause warrants of the district to issue therefor bearing interest at seven per cent per annum.