§ 1823 - Payment exclusive; effect - Vermont Statutes

§ 1823. Payment exclusive; effect

(a) The bonds issued and contracts entered into in connection therewith as authorized in section 1822 of this title and the interest thereon shall be payable solely and exclusively from net revenues derived from the public utility system or project and shall not constitute general indebtedness of the municipal corporation nor be an obligation or liability upon the municipal corporation to pay the same from any funds of the municipal corporation other than such net revenues. No holder or holders of any contracts entered into or bonds issued under this subchapter shall ever have the right to compel any exercise of the taxing power of the municipal corporation to pay such contracts or bonds, or the interest thereon. A statement referring to the limited nature of the contract or bond and reciting that it had been entered into or issued under this subchapter shall be made plainly to appear in or upon each contract or bond.

(b) The bonds or contracts authorized by this subchapter shall not be affected by the restrictions and limitations of subchapter 1 of this chapter relating thereto. (Amended 1989, No. 111, § 7, eff. June 22, 1989.)