Indiana § 8-1-2.2-18 Limited liability on bonds

Indiana Statutes

§ 8-1-2.2-18 — Limited liability on bonds

Indiana § 8-1-2.2-18

Art. 1UTILITIES GENERALLY

Ch. 2.2Municipal Electric Utility Programs

This text of Indiana § 8-1-2.2-18 (Limited liability on bonds) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 8-1-2.2-18 (2026).

Text

Limited Liability.

(a)The bonds issued under the authority of this chapter by a municipality shall not be general obligations of the municipality issuing them. The principal of, premium, if any, and interest on the bonds shall not be payable from the general funds of the municipality, nor shall they constitute a legal or equitable pledge, charge, lien, or encumbrance upon any of its property or upon any of its income, receipts, or revenues, except the funds which are pledged under the resolution authorizing the bonds or the trust agreement securing the bonds. Neither the faith and credit nor the taxing power of a municipality or of the state are, or may be, pledged for the payment of the principal of, premium, if any, or interest on the bonds, and no holder of the bonds shall have the rig

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Limited Liability. (a) The bonds issued under
the authority of this chapter by a municipality shall not be general
obligations of the municipality issuing them. The principal of,
premium, if any, and interest on the bonds shall not be payable from
the general funds of the municipality, nor shall they constitute a legal
or equitable pledge, charge, lien, or encumbrance upon any of its
property or upon any of its income, receipts, or revenues, except the
funds which are pledged under the resolution authorizing the bonds or
the trust agreement securing the bonds. Neither the faith and credit nor
the taxing power of a municipality or of the state are, or may be,
pledged for the payment of the principal of, premium, if any, or interest
on the bonds, and no holder of the bonds shall have the right to compel
the exercise of the taxing power by the state or a municipality or the
forfeiture of any of its property in connection with any default. Every
bond shall recite in substance that the principal of, premium, if any,
and interest on the bond is payable solely from the revenues and other
funds pledged to its payment and that the municipality is not obligated
to pay the principal, premium, if any, or interest except from such
revenues and other funds.
(b) The bonds issued under the authority of this chapter by a joint
agency shall constitute obligations of the joint agency issuing them and
neither the state nor any political subdivision thereof, other than the
joint agency, shall be obligated to pay the principal of, premium, if any,
or interest on the bonds and neither the faith and credit nor the taxing
power of the state or any such political subdivision thereof or of any
such municipality shall be pledged to the payment of the principal of,
premium, if any, or interest on the bonds.
(c) Payments made under a transmission contract under section
9(a)(14) of this chapter must be paid solely from revenues of the joint
agency entering into the contract. The obligation to make these
payments does not constitute an indebtedness, or lend the credit of the
state, a political subdivision, or a municipality to a public utility.
As added by Acts 1980, P.L.68, SEC.1. Amended by
P.L.81-1997, SEC.5.