This is a Prior instruments and Obligations form, in addition to being made subject to all conveyances, reservations, and exceptions or other instruments of record, this assignment is made and assignee accepts this assignment subject to all terms, provisions, covenants, conditions, obligations, and agreements, including but not limited to the plugging responsibility for any well, surface restoration, or preferential purchase rights, contained in any contracts existing as of the effective date of this assignment and affecting the assigned property, whether or not recorded.
Arizona Prior instruments and obligations refer to legal contracts or financial agreements that were issued or entered into by the state of Arizona or its municipalities before the issuance of new debt or obligations. These instruments and obligations have priority or seniority over any new debt or obligations issued subsequently. The purpose of Arizona Prior instruments and obligations is to ensure that the state and its municipalities honor their pre-existing commitments before taking on additional financial obligations. This system helps maintain the credibility and creditworthiness of the state's financial obligations. Some different types of Arizona Prior instruments and obligations include: 1. General Obligation Bonds (GO Bonds): These are long-term debt instruments issued by the state or its local governments to finance capital projects or infrastructure improvements. The repayment of these bonds is typically secured by the full faith and credit of the issuer, meaning that they are backed by the taxing power of the government. 2. Revenue Bonds: These are debt instruments issued by the state or its municipalities to finance specific revenue-generating projects such as toll roads, bridges, or water and sewer systems. The repayment of revenue bonds is supported by the revenue generated by the project they finance, rather than the general taxing authority. 3. Lease Obligations: These are contractual obligations entered into by the state or its municipalities to lease or rent tangible assets like buildings, vehicles, or equipment. Lease obligations typically have specific payment schedules and contractual terms that must be honored. 4. Pension Obligations: These refer to the financial obligations owed by the state or its municipalities to their current and retired employees as part of their pension plans. These obligations include regular pension payments and contributions required to honor pension agreements. 5. Contractual Arrangements: The state and its municipalities may have various contractual agreements, such as service contracts or construction contracts, that specify payment obligations and terms. It is crucial for the state and its municipalities to adequately manage and address these prior instruments and obligations to avoid default or adverse financial consequences. By prioritizing these pre-existing commitments, the state can maintain its financial stability, protect its credit ratings, and ensure ongoing investor confidence.
