12-5228. Payment of bonds; bonded debt limitations inapplicable.
12-5228
12-5228. Payment of bonds; bonded debt limitations inapplicable.
All bonds issued under and pursuant to this act shall be limited
obligations of the city or county issuing the same, payable solely from
the revenues and receipts derived from the home mortgage loans or from any
notes or other obligations of persons with respect to which such bonds are
issued and secured by a mortgage, pledge, security interest, insurance agreement
or indenture of trust of or with respect to such home mortgage loans. No
city or county shall have any right or authority to levy taxes to pay any
of the principal of, redemption premium, if any, or interest on any bonds
issued pursuant to this act or any judgment against a city or county on
account thereof. No holder of any bonds issued under this act shall have
the right to compel any exercise of the taxing power of a city or county
to pay the bonds, the interest or redemption premium, if any, thereon, and
the bonds shall not constitute an indebtedness of such city or county, or
a loan of the faith and credit thereof, within the meaning of any constitutional
or statutory provision, nor shall the bonds be construed to create any moral
obligation on the part of such city or county to provide for the payment
of such bonds. It shall be plainly stated on the face of each bond that
it has been issued under the provisions of this act and that it does not
constitute an indebtedness of the city or county, or a loan of the faith
and credit thereof, within the meaning of any constitutional or statutory
provisions. Bonds may be issued pursuant to this act without regard to any
statutory limitations of bonded indebtedness and shall not be included in
computing the total bonded indebtedness of any city or county within the
meaning of other statutes limiting such bonded indebtedness.
History: L. 1982, ch. 60, § 10; April 22.