A.R.S. § 48-933: Issuance of improvement bonds; fund for payment of bonds

A. The board of directors may determine that improvement bonds be issued to represent the cost and expense of the work or improvement constructed. The bonds shall be issued in the name of the district but shall be made payable only from the special fund collected by the district from special assessments levied and assessed upon the lots fronting upon the street improved and those situated in the quarter block and irregular blocks adjoining and cornering upon the crossings, or where there is a termination in the two quarter blocks adjoining and cornering upon them halfway to the next main street crossing, and all the way to a boundary line of the district when no cross street intervenes, or, if an assessment district has been created by the resolution of intention for the work, upon the lots included within the limits of the assessment district.

B. All sums collected from the special assessments shall be placed in the special fund and shall be used for no other purpose than payment of the principal and interest of the bonds.