§ 46-12.8-9 - Power of local governmental units to issue limited obligations payable from drinking water system revenues.
SECTION 46-12.8-9
§ 46-12.8-9 Power of local governmentalunits to issue limited obligations payable from drinking water system revenues.– (a) If required by the applicable loan agreement, and notwithstanding anygeneral or special law, municipal charter, ordinance or local law to thecontrary, local governmental obligations may be authorized and issued aslimited obligations payable solely from drinking water system revenues pledgedto their payment in accordance with § 46-12.8-10. Notwithstanding §45-12-2 or any general or special law, municipal charter, ordinance or locallaw to the contrary, all local governmental units shall have the power toauthorize and issue local governmental obligations payable solely from drinkingwater system revenues pursuant to this section without limit as to amount, andthe amount of principal and premium, if any, and interest on the obligationsshall not be included in the computation of any limit on the indebtedness ofthe local governmental unit or on the total taxes which may be levied orassessed by the local governmental unit in any year or on any assessment, levy,or other charge made by the local governmental unit on any other politicalsubdivision or instrumentality of the state. Limited obligations shall beauthorized by the affirmative vote of the legislative body of the localgovernmental unit, notwithstanding the provisions of any general or speciallaw, municipal charter, ordinance or local law requiring further approval ofgeneral obligations of the local governmental unit and this chapter shallconstitute the bond act for the authorization and issuance of the localgovernmental obligations payable solely from drinking water system revenues bylocal governmental units. Any local governmental obligations issued inaccordance with this section that are payable solely from drinking water systemrevenues shall recite on their face that they are limited obligations payablesolely from drinking water system revenues pledged to their payment and thatthey are not secured by a pledge of the full faith and credit of the localgovernmental unit.
(b) The authorization, issuance and sale of localgovernmental obligations in accordance with this section, the maturity ormaturities and other terms of the obligations, the security for theobligations, the rights of the holders of the obligations, and the rights,duties, and obligations of the local governmental unit in respect of the same,and the form details and manner of sale of the obligations shall be governed bythe provisions of this chapter relating to local governmental obligationsgenerally to the extent applicable and not inconsistent with this section.