Section 10-326 - Liability; full faith and credit.
§ 10-326. Liability; full faith and credit.
(a) In general.- A bond:
(1) is not a debt, liability, or a pledge of the faith and credit of the State or a political subdivision of the State; and
(2) is payable solely from money available in accordance with this subtitle.
(b) Required statement.- Each bond shall state on its face that:
(1) the State and its political subdivisions are not obliged to pay the bond or the interest on the bond except from revenues of the project or the portion of the project for which the bond is issued; and
(2) the faith, credit, and taxing power of the State and its political subdivisions are not pledged to pay the principal of or the interest on the bond.
(c) State or political subdivision not obliged to pledge or levy tax.- The issuance of bonds does not directly, indirectly, or contingently obligate the State or its political subdivisions:
(1) to levy or pledge a tax to pay the bonds; or
(2) to make an appropriation to pay the bonds.
(d) Authority or participating institution authorized to pledge its full faith and credit.- This section does not prevent the Authority or a participating institution from pledging its full faith and credit to pay bonds.
[An. Code 1957, art. 43C, § 13; 2008, ch. 306, § 2.]