Section 4-48B-23 - Revenue bonds; security; restrictions and limitations.
4-48B-23. Revenue bonds; security; restrictions and limitations.
A. The principal of and interest on any revenue bonds issued under the authority of the Hospital Funding Act [Chapter 4, Article 48B NMSA 1978] shall be secured by a pledge of the revenues out of which such bonds shall be payable and may be secured by a mortgage covering all or any part of the county hospital or jointly owned county-municipal hospital from which the revenues so pledged may be derived.
B. The ordinance and proceedings under which revenue bonds are authorized to be issued or any such mortgage may contain any agreement and provisions customarily contained in instruments securing bonds, including, without limiting the generality of the foregoing, provisions respecting the designation and collection of revenues from the county hospital or jointly owned county-municipal hospital covered by such proceedings or mortgage, the maintenance and insurance of these hospitals, the creation and maintenance of special funds derived from the revenues relating to such hospital, and the rights and remedies available in the event of default to the bondholders or to the trustee under a mortgage, all as the county commissioners shall deem advisable and as shall not be in conflict with the provisions of the Hospital Funding Act; provided, however, that in making any such agreements or provisions a county shall not have the power to obligate itself except with respect to the purposes for which the revenue bonds are issued and application of the revenues pledged from the operation of a county hospital or jointly owned county-municipal hospital and shall not have the power to incur a pecuniary liability or charge upon its general credit or against its taxing powers. The proceedings authorizing any revenue bonds and any mortgage securing those bonds may provide the procedure and remedies in the event of default in payment of the principal of or the interest on the bonds or in the performance of any agreement. No breach of any agreement shall impose any pecuniary liability upon a county or any charge upon its general credit or against its taxing powers.