Public Finance

CHAPTER 35-8.1
Refunding Bond Authority

SECTION 35-8.1-17

§ 35-8.1-17. Bonds neither debt of or pledge of credit by state or subdivisions.

(a) Bonds issued under this chapter shall not be deemed to constitute a debt of the state or any other political subdivision thereof or a pledge of the faith and credit of the state or any other political subdivision thereof, but shall be payable solely from the funds provided therefrom from revenues. Each bond must contain on its face a statement to the effect that the authority is obligated to pay the principal thereof and the interest thereon only from revenues or funds of the authority and that neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal or the interest on the bonds.

(b) Except as may be otherwise expressly provided in this chapter or by the authority, every issue of bonds of the authority shall be general obligations of the authority payable out of any revenues or funds of the authority. Bonds may additionally be secured by a pledge of any grants, subsidies, contributions, funds, or moneys from the United States or the state or any governmental unit or any person, firm, or corporation, or a pledge of any income or revenues, funds, or money of the authority from any source whatsoever.

History of Section.
(P.L. 1987, ch. 12, § 1.)