28F.6 - BONDS NOT DEBTS OF THE PUBLIC AGENCIES.
28F.6 BONDS NOT DEBTS OF THE PUBLIC AGENCIES.
The principal of and interest on the bonds issued by an entity
under the provisions of this chapter shall be payable solely from and
secured by the net revenues of the project or projects and from other
funds of the entity lawfully available therefor as provided in
section 28F.5 and said bonds shall not in any respect be a general
obligation of any public agency participating in said entity nor
shall the entity or any public agency participating in said entity be
in any manner liable by reason of such net revenues or other funds
being insufficient to pay said bonds. All bonds issued by the entity
shall contain a recital on their face that neither the payment of the
principal nor any part thereof nor any interest thereon constitutes a
debt, liability or obligation of any of the public agencies
participating in the agreement creating such entity or of the entity
itself, except that the entity shall be liable for the payment of
such bonds from the net revenues derived from the project or projects
and from the other moneys lawfully available therefor and pledged
thereto pursuant to the provisions of the resolution which authorized
their issuance. Said bonds issued by the entity shall be authorized
by resolution which may be adopted at the same meeting at which it
was introduced by a majority of the members of the governing body of
the entity. The terms, conditions and provisions for the
authorization, issuance, sale, and security of said bonds and of the
holders thereof shall be set forth in said resolution. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 28F.6]