5-875

5-875. Characteristics of bonds; negotiable;
obligation; legal investments; exemption from taxation

A. 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, their transfer and the income from the bonds are at all times free
from taxation in this state.

C. Bonds issued under this article:

1. Are obligations of the authority. The members of the board and persons who
execute the bonds are not personally liable for payment of the bonds.

2. Are payable only according to their terms.

3. Are obligations of the authority and are not general, special or other
obligations of this state.

4. Do not constitute a debt of this state.

5. Are not enforceable against this state nor is 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.

6. 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.

7. 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.