§39-64  Revenue bonds not a generalor moral obligation of State.  Unless otherwise provided in this section,revenue bonds issued pursuant to this part shall be payable solely from andsecured by the revenue, or the user taxes, or combination of both, of theundertaking or loan program for which the revenue bonds have been issued,pledged to the payment thereof, or secured solely by and payable solely from aspecial fund to be maintained from the revenue, or user taxes, or combinationof both, pledged to the special fund, and shall not constitute a general ormoral obligation of the State or a charge upon the general fund of the State,nor shall the full faith and credit of the State be pledged to the payment ofthe principal and interest thereof.

Revenue bonds issued for the purpose ofestablishing and administering a loan program authorized by law may also besecured by a pledge of all or a portion of undertakings, mortgages, and otherobligations held by the department as security for a loan made under theprogram.  Each revenue bond issued pursuant to this part shall recite insubstance that the revenue bonds and the interest thereon are payable from andsecured by the revenue, or the user taxes, or combination of both, of theundertaking or loan program for which the revenue bond is issued, pledged tothe payment thereof, or secured by and payable from a special fund to bemaintained from the revenue, or user taxes, or combination of both, pledged tothe special fund, and that the revenue bond is not a general or moralobligation of the State and the full faith and credit of the State are notpledged to the payment of principal and interest. [L 1988, c 28, pt of §3]

 

Cross References

 

  See Const. art. VII, §§12, 13.