§ 46-12.2-12 - Power of local governmental units to issue limited obligations payable from wastewater system revenues.
SECTION 46-12.2-12
§ 46-12.2-12 Power of local governmentalunits to issue limited obligations payable from wastewater system revenues.– (a) If required by the applicable loan agreement, and notwithstanding anygeneral or special law or municipal charter to the contrary, local governmentalobligations shall be issued as limited obligations payable solely fromwastewater system revenues pledged to their payment in accordance with §46-12.2-13. If required by the applicable loan agreement, local governmentalobligations issued in accordance with this section shall also be generalobligations of the local governmental unit and secured by a pledge of its fullfaith and credit. Notwithstanding § 45-12-2 or any general or special lawor municipal charter to the contrary, all local governmental units shall havethe power to issue local governmental obligations payable solely fromwastewater system revenues pursuant to this section without limit as to amount,and the amount of principal and premium, if any, and interest on theobligations shall not be included in the computation of any limit on theindebtedness of the local governmental unit or on the total taxes which may belevied or assessed by the local governmental unit in any year or on anyassessment, levy, or other charge made by the local governmental unit on anyother political subdivision or instrumentality of the state. This chapter shallconstitute the bond act for the issuance of the local governmental obligationspayable solely from wastewater system revenues by local governmental units. Anylocal governmental obligations issued in accordance with this section that ispayable solely from wastewater system revenues shall recite on its face that itis a limited obligation payable solely from wastewater system revenues pledgedto its payment.
(b) The issue of local governmental obligations in accordancewith this section, the maturity or maturities and other terms thereof, thesecurity therefor, the rights of the holders thereof, and the rights, duties,and obligations of the local governmental unit in respect of the same shall begoverned by the provisions of this chapter relating to the issue of localgovernmental obligations to the extent applicable and not inconsistent withthis section.