Ala. Code § 23-7-18

Current through the 2024 Regular Session.

Section 23-7-18 - Liability for bonds

Bonds, other financial assistance, and other obligations issued by the bank shall not constitute an obligation or debt of this state, or any of its political subdivisions, but shall be limited obligations of the bank payable solely from the revenue, money, or property of the bank pledged for such purpose as provided in this chapter. Any bonds, other financial assistance, or other obligations of the bank issued do not constitute an indebtedness of the state or any of its political subdivisions within the meaning of any constitutional or statutory limitation, and neither the full faith and credit nor the taxing power of the state, or any of its political subdivisions, is pledged to the payment thereof. No member of the bank or any person executing bonds, other financial assistance, or other obligations of the bank is liable personally thereon by reason of their issuance or execution. Each bond, other financial assistance, and other obligation issued under this chapter shall contain on its face a statement to the effect of the following:

(1) The instrument is not a general obligation of the bank, but is a limited obligation of the bank payable solely from the revenue, money, or property of the bank pledged.

(2) The instrument is not an obligation or debt of the state, or any of its political subdivisions, and neither the full faith and credit nor the taxing power of the state, or any of its political subdivisions, is pledged to the payment of the instrument.

(3) The bank does not have taxing power.

Ala. Code § 23-7-18 (1975)

Amended by Act 2018-290,§ 1, eff. 3/22/2018.

Added by Act 2015-50,§ 18, eff. 7/1/2015.