Sec. 8-308. Bonds to be special obligations payable only from certain pledged revenue.
Sec. 8-308. Bonds to be special obligations payable only from certain pledged
revenue. Bonds and notes issued pursuant to this chapter shall be special obligations
of the municipality and shall not be payable from nor charged upon any funds other
than the revenues pledged to the payment thereof, nor shall the municipality issuing the
same be subject to any liability thereon except to the extent of such pledged revenues.
No holder of any bonds or notes shall have the right to compel any exercise of the taxing
power of the municipality to pay any bonds or notes or the interest thereon, nor to enforce
payment thereon against any property of the municipality except the property mortgaged
or otherwise encumbered under the provisions and for the purposes of this chapter. The
bonds and notes shall not constitute a charge, lien or encumbrance, legal or equitable,
upon any property of the municipality, except the property mortgaged or otherwise
encumbered under the provisions and for the purposes of this chapter. The substance of
such limitation shall be plainly stated on the face of each bond and note, with appropriate
modification in the case of bonds and notes secured by the covenant and pledge of a
municipality to restore the capital reserve funds to the maximum capital reserve fund
requirement. Except as otherwise provided in subsection (c) of section 8-307, bonds
and notes issued pursuant to this chapter shall not be subject to any statutory limitation
on the indebtedness of the municipality and such bonds and notes when issued shall not
be included in computing the aggregate indebtedness of the municipality in respect to
and to the extent of any such limitation.
(P.A. 79-596, S. 9, 17.)