§ 35-75-116 — Payment of bonds - nonliability of state

Colorado § 35-75-116

• Jurisdiction: Colorado
• Title 35: Agriculture
• Art.: Colorado Agricultural Development

Text

(1) Bonds and notes
issued by the authority shall not constitute or become an indebtedness, a debt, or a
liability of the state, nor shall the state be liable on such bonds and notes, nor shall
such bonds or notes constitute the giving, pledging, or loaning of the full faith and
credit of the state, but such bonds and notes 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 obligate the state or empower the authority, directly, indirectly,
or contingently, to levy or collect any form of taxes or assessments, to create any
indebtedness payable out of taxes or assessments, or to make any appropriation for
their payment, and such appropriation, levy, or collection is prohibited.

(2) Nothing in this section shall prevent or be construed to prevent the
authority from pledging its full faith and credit to the payment of bonds or notes
authorized pursuant to this article, but 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; 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 executed as security for such
bonds and are not a debt or liability of the state of Colorado.

(3) The state shall not be liable in any event for the payment of the principal
of or interest on any bonds of the authority or for the performance of any pledge,
obligation, or agreement of any kind whatsoever which may be undertaken by the
authority. No breach of any such pledge, 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. 81: Entire article added, p. 1742, � 1, effective June 19.