Ariz. Rev. Stat. § 40-606 (2026)

40-606. Transition bonds; issuance; authority of qualified special purpose entity; reimbursement of costs

A. After approval of a financing order issued pursuant to section 40-603, the qualified special purpose entity is authorized to issue one or more series, classes or tranches of transition bonds and to pledge transition property to secure the payment of ongoing financing costs. On issuance of the transition bonds, the qualified special purpose entity shall transfer to the applicant the net proceeds of the transition bonds minus the up-front financing costs paid by the qualified special purpose entity.

B. The approval of a financing order does not obligate an applicant or a qualified special purpose entity to engage in the approved transaction, and neither an applicant nor a qualified special purpose entity shall be subject to any regulatory conditions, regulatory sanctions or other penalties for not engaging in an approved transaction.  If the qualified special purpose entity determines not to issue transition bonds authorized by a financing order, the applicant shall reimburse the qualified special purpose entity for any costs paid by the qualified special purpose entity that would have constituted up-front financing costs had the transition bonds been issued, except that delaying the issuance of transition bonds pending final resolution of any appeals from the financing order or any legal challenges to this chapter is not deemed to be a determination.