§ 14-188-110 — Issuance of bonds and other evidence of indebtedness

(a) (1) (A) A rural development authority shall have power to issue bonds or other evidence of indebtedness from time to time, in its discretion, for any of its corporate purposes. (B) Any authority shall also have power to issue refunding bonds for the purpose of paying or retiring bonds previously issued by it. (2) (A) An authority may issue these types of bonds as it may deem necessary, including bonds on which the principal and interest are payable: (i) Exclusively from the income and revenues of the development project financed with the proceeds of the bonds, or with these proceeds together with a grant from the federal government in aid of the project; (ii) Exclusively from the income and revenues of certain designated development projects, whether or not they were financed, in whole or in part, with the proceeds of the bonds; or (iii) From its revenues generally. (B) Any of the bonds may be additionally secured by a pledge of any revenues or a mortgage of any development project or other property of the authority. (b) (1) Neither the commissioners of an authority nor any person executing the bonds shall be liable personally on the bonds by reason of the issuance of them. (2) (A) The bonds and other evidence of indebtedness of an authority shall not be a debt of the city, county, the state, or any political subdivision thereof, and neither the city, the county, nor the state, nor any political subdivision thereof, shall be liable on them nor in any event shall such bonds or evidence of the indebtedness be payable out of any funds or properties other than those of the authority. (B) The bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.

Legislative History

Acts 1963, No. 172, § 13; A.S.A. 1947, § 20-1413.