7-60-209 - Liability for bonds or notes. - Tennessee Statutes

7-60-209. Liability for bonds or notes.

(a)  All bonds and notes issued under the provisions of this chapter shall be limited obligations of the county issuing the bonds or notes payable solely out of the revenues and receipts derived from the home mortgages or from any notes or other obligations of lending institutions with respect to which such bonds or notes are issued.

(b)  No holder of any bonds or notes issued under the provisions of this chapter shall have the right to compel any exercise of taxing power of a county to pay the bonds or notes, the interest or redemption premium, if any, on the bonds or notes, and the bonds or notes shall not constitute an indebtedness of any county or a loan of credit of the county within the meaning of any constitutional or statutory provisions, nor shall the bonds or notes be construed to create any moral obligation on the part of any county, the state, or any political subdivision of the county or state, with respect to the payment of such bonds or notes.

(c)  It shall be plainly stated on the face of each bond or note that it has been issued under the provisions of this chapter and that it does not constitute an indebtedness of the county issuing the bonds or notes or a loan of credit of the county within the meaning of any constitutional or statutory provision.

[Acts 1979, ch. 439, § 1; T.C.A., § 6-4412; Acts 1981, ch. 504, § 25.]