5-540

5-540. Characteristics of bonds; negotiable;
exemption from taxation; obligation; legal investments

A. State lottery revenue bonds issued under this article are fully negotiable
within the meaning and for all purposes of the uniform commercial code, subject only to
any provisions for registration, regardless of whether the bonds actually constitute
negotiable instruments under the uniform commercial code.

B. The bonds, the transfer of the bonds and the income from the bonds are at all
times free from taxation in this state.

C. State lottery revenue bonds:

1. Are payable only according to their terms.

2. Are not general, special or other obligations of this state.

3. Do not constitute a debt of this state.

4. Are not enforceable against this state nor is the payment of the bonds
enforceable out of any monies other than the revenue pledged and assigned to, or in trust
for the benefit of, the holder or holders of the bonds.

5. Are securities in which public officers and bodies of this state and of
municipalities and political subdivisions of this state, all companies, associations and
other persons carrying on an insurance business, all financial institutions, investment
companies and other persons carrying on a banking business, all fiduciaries and all other
persons who are authorized to invest in government obligations may properly and legally
invest.

6. Are securities that may be deposited with public officers or bodies of this
state and municipalities and political subdivisions of this state for purposes that
require the deposit of government bonds or obligations.