12-16,110. Same; general obligation of municipality; excluded from debt limit.
12-16,110
12-16,110. Same; general obligation of municipality; excluded from debt limit.
Any notes or warrants issued under the authority of this act
by a municipality with the power to levy taxes shall constitute a general
obligation of such municipality but shall not be within any debt limits of
such municipality. Upon the failure of the municipality to receive timely
payment of the loan or grant, it may extend the terms of the notes or
warrants or may issue new notes or warrants. Upon the failure of the
municipality to receive some or all of the loan or grant provided for in
the written agreement, the municipality may provide for the issuance of new
notes or warrants, for a term determined by the governing body thereof, in
an amount sufficient to pay the principal and interest on such notes or
warrants. Such notes or warrants may be paid from the levy of taxes, from
any future revenue received from the public improvement or service financed
in part or in whole by the loan or grant or from any other revenue source
lawfully available for such purposes.
History: L. 1989, ch. 56, § 3; July 1.