State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_116D > GS_116D-23

§ 116D‑23.  Creditand taxing power of State not pledged; statement on face of bonds.

Special obligation bonds issued under this Article shall not constitutea debt or liability of the State or any political subdivision of the State or apledge of the faith and credit of the State or of any political subdivision ofthe State. Special obligation bonds shall be secured solely by the obligatedresources pledged to their payment. All of the special obligation bonds shallcontain on their face a statement to the effect that neither the State nor theBoard of Governors is obligated to pay the bonds or the interest on the bondsexcept from the obligated resources pledged for payment and that neither thefaith and credit nor the taxing power of the State or of any politicalsubdivision or instrumentality of the State is pledged to the payment of theprincipal of or the interest on the bonds. The issuance of special obligationbonds under this Article does not directly or indirectly or contingentlyobligate the State or any political subdivision of the State to levy or topledge any taxes for the bonds. (2000‑3, s. 1.2.)