- Alaska Statutes.
- Title 44. State Government
- Chapter 85. Alaska Municipal Bond Bank Authority
- Section 130. Effect of Obligations.
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. Care and Custody of Bonds.
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. Negotiability of Bonds or Notes.
AS 44.85.130. Effect of Obligations.
- (a) Bonds and notes issued under this chapter are not a debt or liability of the state and do not create or constitute an
indebtedness, liability, or obligation of the state, nor do they constitute a pledge of the faith and credit of the
state. All bonds and notes issued under this chapter, unless funded or refunded by bonds or notes of the bond bank
authority, are general obligations of the authority to which the full faith and credit of the authority are pledged to
the payments of them, except to the extent provided by the resolution authorizing the issuance of them. Each bond and
note must contain on its face a statement to the effect that the bond bank authority is obligated to pay the principal
and interest on the instrument only from revenues or funds of the bond bank authority and that the state is not
obligated to pay the principal or interest and that neither the faith and credit nor the taxing power of the state is
pledged to the payment of the principal of or the interest on the bond or note.
- (b) The state pledges to and agrees with the holders of the bonds or notes issued under this chapter that the state will
not limit or restrict the rights vested in the bond bank authority to purchase, acquire, hold, sell, or dispose of
municipal bonds or other investments or to make loans to political subdivisions or to establish and collect fees or
other charges convenient or necessary to produce sufficient revenues to meet the expenses of operation of the bond bank
authority and to fulfill the terms of any agreement made with the holders of its bonds or notes or in any way impair
the rights or remedies of the holders of the bonds or notes until the bonds or notes, together with the interest on the
bonds or notes, and interest on unpaid installments of interest, and all costs and expenses in connection with an
action or proceeding by or on behalf of the holders, are fully met, paid and discharged.
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