Section 21-21A-9 - Status of bonds. - New Mexico Statutes

21-21A-9. Status of bonds.

A.     Bonds and other obligations issued under the provisions of the Educational Assistance Act [21-21A-1 NMSA 1978] shall not be deemed to constitute a debt, liability or obligation of or a pledge of the faith and credit of the state or any political subdivision thereof, but shall be payable solely from the revenues or assets of the foundation pledged for such payment. Each obligation issued on behalf of the foundation under that act shall contain on its face a statement to the effect that neither the state nor the foundation shall be obligated to pay the same or the interest thereon except from the revenues or assets pledged therefor and that neither the faith and credit nor the taxing power of the state or any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligation.   

B.     Expenses incurred by the foundation and the guarantee corporation in carrying out the provisions of the Educational Assistance Act may be made payable from the revenues and funds provided pursuant to that act, and no liability shall be incurred by the foundation or the guarantee corporation thereunder beyond the extent to which such money shall have been so provided.