Purchase agreements authorized--terms--not to constitute debt.
393.770. 1. The contracting municipalities may provide in the jointcontract for payment to the commission of funds for commodities to beprocured and services to be rendered by the commission. The contractingmunicipalities, participating municipalities, and other persons may enterinto purchase agreements with the commission for the purchase, sale,exchange or transmission of water, sewage service, gas, heat or any rightto capacity or interest in such electric power and energy and any otherservices provided by the project whereby the purchaser is obligated to makepayments in amounts which shall be sufficient to enable the commission tomeet its expenses, interest and principal payments, whether at maturity orupon sinking fund redemption, for its bonds, reasonable reserves for debtservice, operation and maintenance and renewals and replacements and therequirements of any rate covenant with respect to debt service coveragecontained in any resolution, trust indenture or other security instrument.Purchase agreements may contain such other terms and conditions as thecommission and the purchasers may determine, including provisions wherebythe purchaser is obligated to pay for water, sewage service, gas, heat,power, or any other services provided by the project irrespective ofwhether water, sewage service, gas, heat, energy, or any other service isproduced or delivered to the purchaser or whether any project contemplatedby any such agreement is completed, operable or operating, andnotwithstanding suspension, interruption, interference, reduction orcurtailment of the output of such project. Such agreements may be for aterm covering the life of a project or for any other term, or for anindefinite period. The joint contract or a purchase agreement may providethat if one or more of the purchasers default in the payment of itsobligations under any such purchase agreement, the remaining purchaserswhich also have such agreements shall be required to accept and pay for andshall be entitled proportionately to use or otherwise dispose of the water,sewage service, gas, heat, energy, or other service to be purchased by thedefaulting purchaser.
2. The obligations of a contracting or participating municipalityunder a purchase agreement with a commission or arising out of the defaultby any other purchaser with respect to such an agreement shall not beconstrued to constitute debt of the contracting or participatingmunicipality. To the extent provided in the purchase agreement, suchobligations shall constitute special obligations of the contracting orparticipating municipality, payable solely from the revenues and othermoneys derived by the contracting or participating municipality from itsmunicipal utility and shall be treated as expenses of operating a municipalutility.
Purchase agreements authorized--terms--not to constitute debt.
393.770. 1. The contracting municipalities may provide in the jointcontract for payment to the commission of funds for commodities to beprocured and services to be rendered by the commission. The contractingmunicipalities, participating municipalities, and other persons may enterinto purchase agreements with the commission for the purchase, sale,exchange or transmission of water, sewage service, gas, heat or any rightto capacity or interest in such electric power and energy and any otherservices provided by the project whereby the purchaser is obligated to makepayments in amounts which shall be sufficient to enable the commission tomeet its expenses, interest and principal payments, whether at maturity orupon sinking fund redemption, for its bonds, reasonable reserves for debtservice, operation and maintenance and renewals and replacements and therequirements of any rate covenant with respect to debt service coveragecontained in any resolution, trust indenture or other security instrument.Purchase agreements may contain such other terms and conditions as thecommission and the purchasers may determine, including provisions wherebythe purchaser is obligated to pay for water, sewage service, gas, heat,power, or any other services provided by the project irrespective ofwhether water, sewage service, gas, heat, energy, or any other service isproduced or delivered to the purchaser or whether any project contemplatedby any such agreement is completed, operable or operating, andnotwithstanding suspension, interruption, interference, reduction orcurtailment of the output of such project. Such agreements may be for aterm covering the life of a project or for any other term, or for anindefinite period. The joint contract or a purchase agreement may providethat if one or more of the purchasers default in the payment of itsobligations under any such purchase agreement, the remaining purchaserswhich also have such agreements shall be required to accept and pay for andshall be entitled proportionately to use or otherwise dispose of the water,sewage service, gas, heat, energy, or other service to be purchased by thedefaulting purchaser.
2. The obligations of a contracting or participating municipalityunder a purchase agreement with a commission or arising out of the defaultby any other purchaser with respect to such an agreement shall not beconstrued to constitute debt of the contracting or participatingmunicipality. To the extent provided in the purchase agreement, suchobligations shall constitute special obligations of the contracting orparticipating municipality, payable solely from the revenues and othermoneys derived by the contracting or participating municipality from itsmunicipal utility and shall be treated as expenses of operating a municipalutility.
Purchase agreements authorized--terms--not to constitute debt.
393.770. 1. The contracting municipalities may provide in the jointcontract for payment to the commission of funds for commodities to beprocured and services to be rendered by the commission. The contractingmunicipalities, participating municipalities, and other persons may enterinto purchase agreements with the commission for the purchase, sale,exchange or transmission of water, sewage service, gas, heat or any rightto capacity or interest in such electric power and energy and any otherservices provided by the project whereby the purchaser is obligated to makepayments in amounts which shall be sufficient to enable the commission tomeet its expenses, interest and principal payments, whether at maturity orupon sinking fund redemption, for its bonds, reasonable reserves for debtservice, operation and maintenance and renewals and replacements and therequirements of any rate covenant with respect to debt service coveragecontained in any resolution, trust indenture or other security instrument.Purchase agreements may contain such other terms and conditions as thecommission and the purchasers may determine, including provisions wherebythe purchaser is obligated to pay for water, sewage service, gas, heat,power, or any other services provided by the project irrespective ofwhether water, sewage service, gas, heat, energy, or any other service isproduced or delivered to the purchaser or whether any project contemplatedby any such agreement is completed, operable or operating, andnotwithstanding suspension, interruption, interference, reduction orcurtailment of the output of such project. Such agreements may be for aterm covering the life of a project or for any other term, or for anindefinite period. The joint contract or a purchase agreement may providethat if one or more of the purchasers default in the payment of itsobligations under any such purchase agreement, the remaining purchaserswhich also have such agreements shall be required to accept and pay for andshall be entitled proportionately to use or otherwise dispose of the water,sewage service, gas, heat, energy, or other service to be purchased by thedefaulting purchaser.
2. The obligations of a contracting or participating municipalityunder a purchase agreement with a commission or arising out of the defaultby any other purchaser with respect to such an agreement shall not beconstrued to constitute debt of the contracting or participatingmunicipality. To the extent provided in the purchase agreement, suchobligations shall constitute special obligations of the contracting orparticipating municipality, payable solely from the revenues and othermoneys derived by the contracting or participating municipality from itsmunicipal utility and shall be treated as expenses of operating a municipalutility.
