Arizona Revised Statutes Title 48. Special Taxing Districts § 48-2776. Exchange of refunding bonds for bonds, coupons or evidences of indebtedness; report of cancellations

A. When refunding bonds issued under this article are executed, they shall be deposited with the treasurer of the county in which the district was organized. The treasurer shall receive the bonds, give receipt therefor, and shall be charged with them on his official bond. The treasurer shall not deliver the refunding bonds in exchange for any bonds or indebtedness proposed to be refunded until such bonds or evidences of indebtedness have been delivered to him and he has been ordered by the board of directors, by an order entered on its minutes, to make such delivery.

B. When the refunding bonds have been exchanged for other bonds, coupons or evidences of indebtedness, the treasurer shall at once cancel such other bonds, coupons or evidences of indebtedness by writing across the face thereof “cancelled” and the date of cancellation. The treasurer shall report the cancellations with his next regular financial report to the board of directors, designating the bond, coupon or other evidence of indebtedness so that they can be identified, the date of cancellation and the person from whom it was received, together with the amount paid therefor.