Sec 41-2254. Greater Arizona development authority revolving fund

A. The greater Arizona development authority revolving fund is established consisting of:

1. Monies appropriated by the legislature.

2. Monies received from the United States government to carry out this article.

3. Monies received from political subdivisions, Indian tribes, tribal subdivisions and special districts as loan repayments, technical assistance repayments, interest, administrative fees and penalties.

4. Interest and other income received from investing monies in the fund.

5. Gifts, grants and donations received from any public or private source to carry out this article.

6. Any other monies received by the authority.

B. The board shall administer the fund in compliance with the requirements of this article. The board shall separately account for monies received from each source listed in subsection A of this section. Monies received pursuant to subsection A, paragraph 1 of this section shall not be used for any purpose except securing bonds issued by the authority and providing assistance under technical assistance repayment agreements if the amount used for providing this assistance is not more than eight hundred thousand dollars. This subsection does not limit the power of the authority to pledge other monies in the fund to secure bonds issued by the authority or to provide assistance under technical assistance repayment agreements.

C. The board may establish accounts and subaccounts as necessary to properly account for and use monies received by the authority.

D. Monies in the fund may be used for securing bonds of the authority.

E. Monies in the fund received pursuant to subsection A, paragraphs 2, 3, 4, 5 and 6 of this section may be used for:

1. Providing technical assistance to political subdivisions, special districts, Indian tribes and tribal subdivisions.

2. Providing financial assistance to political subdivisions, special districts and Indian tribes.

3. Paying the compensation and employment related expenses associated with the employees hired pursuant to section 41-2252, subsection E.

4. Paying the costs to operate the authority, to administer the fund and to carry out the requirements of this article.

5. Paying the costs of professional assistance hired by the authority pursuant to section 41-2253, subsection B, paragraph 6.

F. On notice from the board, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

G. If the monies pledged to secure the bonds become insufficient to pay the principal and interest on the bonds, the board may direct the state treasurer to divest monies in the fund as may be necessary and may apply those proceeds to make current all payments then due on the bonds. The state treasurer shall immediately notify the attorney general and auditor general of the insufficiency. The auditor general shall audit the circumstances surrounding the depletion of the fund and shall report these findings to the attorney general. The attorney general shall conduct an investigation and report these findings to the governor and the legislature.