12-16,110.   Same; general obligation of municipality; excluded from debt limit.Any notes or warrants issued under the authority of this actby a municipality with the power to levy taxes shall constitute a generalobligation of such municipality but shall not be within any debt limits ofsuch municipality. Upon the failure of the municipality to receive timelypayment of the loan or grant, it may extend the terms of the notes orwarrants or may issue new notes or warrants. Upon the failure of themunicipality to receive some or all of the loan or grant provided for inthe written agreement, the municipality may provide for the issuance of newnotes or warrants, for a term determined by the governing body thereof, inan amount sufficient to pay the principal and interest on such notes orwarrants. Such notes or warrants may be paid from the levy of taxes, fromany future revenue received from the public improvement or service financedin part or in whole by the loan or grant or from any other revenue sourcelawfully available for such purposes.

      History:   L. 1989, ch. 56, § 3; July 1.