§ 49-3-1108 — Funds obligated by bonds

(a) (1) All bonds issued pursuant to this part shall be obligations of the board, payable only in accordance with the terms of the bonds, and shall not be obligations general, special or otherwise of the state. (2) The bonds shall not be a debt of the state, and shall not be enforceable against the state, nor shall payment for the bonds be enforceable out of any funds of the board other than the income and revenue pledged and assigned to, or in trust for the benefit of, the holder or holders of the bonds. (b) Nothing contained in this part shall be construed to authorize the board to contract a debt on behalf of, or in any way to obligate the state, or to pledge, assign or encumber in any way, or to permit the pledging, assigning, or encumbering in any way of, appropriations made by the general assembly, or revenue derived from the investment of the proceeds of the sale, and from the rental of such lands as have been set aside by legislative enactments of the United States, for the use and benefit of the respective state educational institutions.

Legislative History

Acts 1943, ch. 135, §§ 9, 10; C. Supp. 1950, §§ 2316.9, 2316.10 (Williams, §§ 2316.21, 2316.22); Acts 1979, ch. 116, § 9; T.C.A. (orig. ed.), §§ 49-3506, 49-3507.