§ 12-113. Payment of bonds

   (a) Bonds payable from revenue. --

   (1) A bond and the interest on a bond are limited obligations of the public body.

   (2) Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:

      (i) money from the financing of a facility; or

      (ii) other money made available to the public body.

   (3) Bonds and the interest on them:

      (i) are not debts or charges against the general credit or taxing powers of a public body within the meaning of any constitutional or charter provision or statutory limitation; and

      (ii) may not give rise to any pecuniary liability of an issuing public body.

   (4) A bond may state on its face that the bond:

      (i) is issued under this subtitle; and

      (ii) is not a debt to which the public body's faith and credit is pledged.

(b) Appointment of receiver. -- On default in the payment of the principal of or interest on a bond, a court with jurisdiction:

   (1) may appoint a receiver or take other appropriate action to provide for the payment of the bond; and

   (2) shall apply any available revenue as this subtitle or a resolution adopted under this subtitle provides.

HISTORY: An. Code 1957, art. 41, § 14-106(e), (f); 2008, ch. 306, § 2.