§ 30-26-511 — Agreement of counties

(1) Any county is authorized to enter into
agreements with the state or any of its agencies or departments, any of its political
subdivisions, any agency or department of the United States, or any person with
respect to any project in order to facilitate the financing, acquisition, and
construction of such project and to promote the purposes of this part 5. Such
agreements may be for a term covering the life of a project, for any other term, or
for any indefinite period. Pursuant to any such agreement, counties or persons may
obligate themselves to make payments in amounts which shall be sufficient to
enable such counties or persons to pay their expenses and the interest and
principal payments (whether at maturity or upon sinking fund redemption) for any
bonds issued pursuant to this part 5, to maintain reasonable reserves for debt
service, operation and maintenance, and renewals and replacements, and to meet
the requirements of any rate covenant with respect to debt service coverage
contained in any resolution, trust indenture, or other security instrument.

(2) The obligations of a governmental agency or persons under an
agreement with the county or arising out of the default by any other purchaser with
respect to such an agreement shall not be construed to constitute debt of the
governmental agency or persons. To the extent provided in agreements with the
county, such obligations shall constitute special obligations of the governmental
agency or persons and shall be payable solely from the revenues and other moneys
derived by the governmental agency or persons.

Legislative History

Source: L. 82: Entire part added, p. 489, � 1, effective July 1.