Section 10-514 - Bonds - Liability; full faith and credit.

§ 10-514. Bonds - Liability; full faith and credit.
 

(a)  Construction of section.-  

(1) This section does not prevent the Corporation from pledging its full faith and credit to the payment of a bond. 

(2) This section does not limit the ability of the State or a political subdivision to impose an assessment, rate, fee, or charge to pay to the Corporation any cost, including the principal of and interest on a bond, under an agreement between the Corporation and the State or political subdivision. 

(b)  Liability limitations.-  

(1) A bond: 

(i) is not a debt, liability, or a pledge of the full faith and credit of the State or of any political subdivision; and 

(ii) is payable solely from revenues provided under this subtitle. 

(2) The issuance of a bond is not directly, indirectly, or contingently a moral or other obligation of the State or a political subdivision to levy or pledge any tax or to make an appropriation to pay the bond. 

(3) Each bond shall state on its face that: 

(i) neither the State nor a political subdivision, other than the Corporation, is obliged to pay the principal of or interest on the bond, except from revenues pledged to payment of the bond; and 

(ii) neither the full faith and credit nor the taxing power of the State or a political subdivision is pledged to the payment of the principal of or interest on the bond. 
 

[An. Code 1957, art. 41, § 13-510(c); 2008, ch. 306, § 2.]