§ 25-25-117 — Payment of bonds - nonliability of state

Bonds and notes issued
by the authority shall not constitute or become an indebtedness, a debt, or a
liability of the state, the general assembly, or any county, city, city and county,
town, school district, or other subdivision of the state, or of any other political
subdivision or body corporate and politic within the state, and neither the state, the
general assembly, nor any county, city, city and county, town, school district, or
other subdivision of the state shall be liable thereon; nor shall such bonds or notes
constitute the giving, pledging, or loaning of the faith and credit of the state, the
general assembly, or any county, city, city and county, town, school district, or other
subdivision of the state, or of any other political subdivision or body corporate and
politic within the state but shall be payable solely from the funds provided for in
this article. The issuance of bonds or notes under the provisions of this article shall
not, directly, indirectly, or contingently, obligate the state or any subdivision
thereof nor empower the authority to levy or collect any form of taxes or
assessments therefor, or to create any indebtedness payable out of taxes or
assessments therefor or make any appropriation for their payment, and such
appropriation or levy is prohibited. Nothing in this section shall prevent or be
construed to prevent the authority from pledging its full faith and credit or the full
faith and credit of a participating health institution to the payment of bonds or
notes authorized pursuant to this article. Nothing in this article shall be construed
to authorize the authority to create a debt of the state within the meaning of the
constitution or statutes of Colorado or to authorize the authority to levy or collect
taxes or assessments; and all bonds issued by the authority pursuant to the
provisions of this article are payable and shall state that they are payable solely
from the funds pledged for their payment in accordance with the resolution
authorizing their issuance or with any trust indenture, mortgage, or deed of trust
executed as security therefor and are not a debt or liability of the state of Colorado.
The state shall not in any event be liable for the payment of the principal of or
interest on any bonds of the authority or for the performance of any pledge,
mortgage, obligation, or agreement of any kind whatsoever which may be
undertaken by the authority. No breach of any such pledge, mortgage, obligation, or
agreement shall impose any pecuniary liability upon the state or any charge upon
its general credit or against its taxing power.

Legislative History

Source: L. 77: Entire article added, p. 1315, � 1, effective July 1.