Section 374-E:5 Lending and Borrowing Powers Generally; State Not Liable.
I. The bond bank acting by and through the division, for the purposes authorized by this chapter, may lend money to municipalities for the purpose of financing the construction and development of small scale power facilities through the purchase by the division of municipal small scale power facility bonds of municipalities in fully marketable form. The bond bank, for the purposes authorized by this chapter, may authorize and issue bonds and notes of the division payable solely from the revenues or funds available to the division for such bonds and notes, and otherwise assist municipalities as provided in this chapter.
II. The bonds and notes of the division issued under this chapter shall not be a debt or liability of the state, but shall be payable solely from those revenues or funds of the division pledged or available for their payment as authorized in this chapter. Each bond and note shall contain on its face a statement to the effect that the bond bank is obligated to pay the principal of and the interest on such bond or note only from the pledged revenues or funds of the division, that the state is not obligated to pay such principal or interest, and that neither the faith and credit nor the taxing power of the state is pledged to payment of such principal or interest.
III. All expenses incurred in carrying out the provisions of this chapter shall be payable solely from revenues or funds provided or to be provided under this chapter and nothing in this chapter shall be construed to authorize the division or the bond bank to incur any indebtedness or liability on behalf of or payable by the state.
Source. 1981, 545:7, eff. Aug. 29, 1981.