403A.12 - BONDS.

        403A.12  BONDS.         A municipality shall have power to issue bonds from time to time      in its discretion, for any of the purposes of this chapter.  A      municipality shall also have power to issue refunding bonds for the      purpose of paying or retiring bonds previously issued by it.  A      municipality may issue such types of bonds as it may determine,      including (without limiting the generality of the foregoing) bonds on      which the principal and interest are payable (1) exclusively from the      income and revenues of the project financed with the proceeds of such      bonds, or (2) exclusively from the income and revenues of certain      designated housing projects whether or not they are financed in whole      or in part with the proceeds of such bonds.  Any such bonds may be      additionally secured by a pledge of any loan, grant or contribution      or parts thereof from the federal government or other source, or a      pledge of any income or revenues connected with a housing project or      a mortgage of any housing project or projects.         Neither the governing body of a municipality nor any person      executing the bonds shall be liable personally on the bonds by reason      of the issuance thereof hereunder.  The bonds and other obligations      issued under the provisions of this chapter (and such bonds and      obligations shall so state on their face) shall be payable solely      from the sources provided in this section and shall not constitute an      indebtedness within the meaning of any constitutional or statutory      debt limitation or restriction.  Bonds issued pursuant to this      chapter are declared to be issued for an essential public and      governmental purpose and to be public instrumentalities and, together      with interest thereon and income therefrom, shall be exempt from      taxes.  The tax exemption provisions of this chapter shall be      considered part of the security for the repayment of bonds and shall      constitute, by virtue of this chapter and without the necessity of      the same being restated in said bonds, a contract between the      bondholders and each and every one thereof, including all transferees      of said bonds from time to time on the one hand and the respective      municipalities issuing said bonds and the state on the other.  
         Section History: Early Form
         [C62, 66, 71, 73, 75, 77, 79, 81, § 403A.12]