§ 14-265-107 — Bonds - Indebtedness as special obligation - Payment of principal and interest

(a) (1) The revenue bonds shall not be general obligations of the municipality or county, but they shall be special obligations. In no event shall the revenue bonds constitute an indebtedness of the municipality or county within the meaning of any constitutional or statutory limitation. (2) It shall be plainly stated on the face of each bond that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the municipality or county within any constitutional or statutory limitation. (b) (1) The principal of, and interest on, the revenue bonds and paying agent's fees shall be payable in the first instance from gross revenues derived from the lands, buildings, and facilities acquired, constructed, reconstructed, extended, and improved, in whole or in part, with the proceeds of the bonds, and, for that purpose, the municipality or county may pledge all or any part of the gross revenues. (2) In addition, the municipality or county is authorized to pledge to, and use for, the payment of the principal of and interest on the bonds, and for paying agent's fees, surplus revenues derived from water, sewer, gas, and electric utilities owned by the municipality or county. (3) As used in this subsection, "surplus revenues" means revenues remaining after adequate provision shall have been made for expenses of operation, maintenance, and depreciation and after all requirements of ordinances, orders, and indentures securing bonds theretofore or thereafter issued to finance the cost of acquiring, constructing, reconstructing, extending, and improving the utilities, have been fully met and complied with. (c) The municipality or county is also authorized to use, for the payment of the principal of and interest on the bonds and for paying agent's fees, moneys in the general fund of the municipality or county.

Legislative History

Acts 1961, No. 175, § 4; A.S.A. 1947, § 19-4716.