39.98.030 - Bonds guaranteed by full faith, credit, and taxing power of the state -- Reference to chapter on face of bond conclusively establishes guaranty. - Washington Statutes

Bonds guaranteed by full faith, credit, and taxing power of the state — Reference to chapter on face of bond conclusively establishes guaranty.

(1)(a) The full faith, credit, and taxing power of the state is pledged to guarantee full and timely payment of the principal of and interest on bonds as such payments become due. However, in the event of any acceleration of the due date of the principal by reason of mandatory redemption or acceleration resulting from default, the payments guaranteed shall be made in the amounts and at the times as payments of principal would have been due had there not been any acceleration.

     (b) This guaranty does not extend to the payment of any redemption premium.

     (c) Reference to this chapter by its title on the face of any bond conclusively establishes the guaranty provided to that bond under the provisions of this chapter.

     (2)(a) The state pledges to and agrees with the owners of any bonds that the state will not alter, impair, or limit the rights vested by the credit enhancement program with respect to the bonds until the bonds, together with applicable interest, are fully paid and discharged. However, this chapter does not preclude an alteration, impairment, or limitation if full provision is made by law for the payment of the bonds.

     (b) Each district may refer to this pledge and undertaking by the state in its bonds.

     (3) Only validly issued bonds issued after January 1, 2000, may be guaranteed under this chapter.

[1999 c 273 § 3.]