Ariz. Rev. Stat. » Title 40
Arizona Revised Statutes

Ariz. Rev. Stat. § 40-610 (2026)

Transition bonds; irrevocability; public policy; noncompliance

✓ current as of May 2026
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40-610. Transition bonds; irrevocability; public policy; noncompliance

A. On or after the issuance of transition bonds, the transition property, the true-up mechanism and the financing charges are irrevocable, final, nondiscretionary and effective without the need for further action by the commission or any other person, and such financing charges shall not be subject to rescission, alteration, amendment, reduction, impairment or adjustment by further action of the commission or any other person except pursuant to the true-up mechanism, including pursuant to section 40-252.

B. This state, including all agencies, public corporations, municipalities or other instrumentalities of this state, pledges to and agrees with the financing parties, including present and future holders of transition bonds, the applicant, the qualified special purpose entity and any other persons that enter into an ancillary agreement, that after the issuance of transition bonds and until all financing costs which include the principal and interest of transition bonds and all amounts to be paid under an ancillary agreement are fully met and discharged, this state or any agency, public corporation, municipality or other instrumentality of this state may not take or allow any action to be taken to limit, reduce, alter, impair, delay or terminate any of the following:

1. The rights conferred by this chapter, including the rights in transition property or transition bonds.

2. The imposition of financing charges and unit financing charges by the qualified special purpose entity.

3. The operation of the true-up mechanism to adjust financing charges and unit financing charges.

4. The collection of financing revenues in payment of financing charges and unit financing charges.

5. The payment of financing costs.

C. It is the intention of this state that the pledges made under subsection B of this section can and will be relied on by the applicant, the qualified special purpose entity, other persons that enter into an ancillary agreement and any financing party. These pledges may be included in transition bonds, ancillary agreements and other documentation related to issuing, rating and marketing the transition bonds.

D. On and after the issuance of the transition bonds, the failure of an applicant or a qualified special purpose entity to comply with this chapter or a financing order does not invalidate, impair or affect the financing order, the transition property, financing charges, transition bonds or financing costs. 

E. A financing order, transition property and financing charges are not affected by either of the following:

1. The bankruptcy, reorganization, sale, dissolution or insolvency of the applicant or the qualified special purpose entity or the successors of the applicant or the qualified special purpose entity.

2. As to either the applicant, the qualified special purpose entity or the successors of the applicant or the qualified special purpose entity, the commencement of any proceeding for bankruptcy or the appointment of a receiver.

Notes of Decisions
Cited in 5 cases, 1966–1972 · leading case: Sulger v. Arizona Corp. Comm'n, 423 P.2d 145 (Ariz. Ct. App. 1967).
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Sulger v. Arizona Corp. Comm'n, 423 P.2d 145 (Ariz. Ct. App. 1967). · cites it 6× “Appellant urges that A.R.S. § 40-610, subsec. C under which the Commission acted is an unconstitutional delegation of legislative powers.”
Arizona Corp. Comm'n v. Constr. Trucking Serv., 473 P.2d 824 (Ariz. Ct. App. 1970). · cites it 4× “C, and that its certificate should be revoked as allowed by A.R.S. § 40-610, subsec. C. The Commission issued an order to show cause why Construction’s certificate should not be revoked and a hearing was held before the Commission in July of 1968, with all parties repersented by…”
Cochise Sanitary Servs., Inc. v. Corp. Comm'n, 410 P.2d 677 (Ariz. Ct. App. 1966). “2d 155 (1963), the Corporation Commission of Arizona ordered the appellant and others to appear and show cause why their “common carrier certificate of convenience and necessity or contract carrier permit, permitting and authorizing the transportation of the above-described…”
Arizona Tank Lines, Inc. v. Arizona Corp. Comm'n, 502 P.2d 539 (Ariz. Ct. App. 1972). · cites it 2× “A), in particular the transfer, revocation and amendment of certificates (A.R.S. § 40-610) and the regulation of their routes (A.”
Hays v. Arizona Corp. Comm'n, 438 P.2d 329 (Ariz. Ct. App. 1968). “§ 40-610, sub-sec. C, A.R.S. provides: “The commission may at any time for good cause suspend a certificate or permit, and, upon not less than five days notice to the grantee of a certificate or permit, and after opportunity to be heard, may revoke or amend a certificate or…”
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