Arizona Revised Statutes Title 48. Special Taxing Districts § 48-635. Disposition and investment of bond sale proceeds

A. The governing body shall keep the funds arising from the sale of the bonds separate and distinct from other funds, and invest and reinvest them in the improvement bonds issued for work and public improvements, or used for the purposes provided in articles 1 and 2 of this chapter,  1 and shall collect the interest and principal on the bonds and credit it to the fund.

B. The municipality may sell, at the discretion of its governing body, any of the bonds by it purchased at a price not less than the price paid therefor and accrued interest. The receipts of the sale and all monies paid on account of assessments levied upon lots benefited by the improvements for which the improvement bonds have been issued shall be credited to the “general improvement fund,” and may be again reinvested, or used, so that the improvement fund shall constitute a revolving fund for the purpose of enabling the property owners to pay their bonds and assessments in annual installments to the municipality, and thus enable the municipality to let contracts for the completion of the improvements on a cash basis.