§ 46-12.2-12. Power of local governmental units to issue limited obligations payable from wastewater system revenues. (a) If required by the applicable loan agreement, and notwithstanding any general or special law or municipal charter to the contrary, local governmental obligations shall be issued as limited obligations payable solely from wastewater system revenues pledged to their payment in accordance with § 46-12.2-13. If required by the applicable loan agreement, local governmental obligations issued in accordance with this section shall also be general obligations of the local governmental unit and secured by a pledge of its full faith and credit. Notwithstanding § 45-12-2 or any general or special law or municipal charter to the contrary, all local governmental units shall have the power to issue local governmental obligations payable solely from wastewater system revenues pursuant to this section without limit as to amount, and the amount of principal and premium, if any, and interest on the obligations shall not be included in the computation of any limit on the indebtedness of the local governmental unit or on the total taxes which may be levied or assessed by the local governmental unit in any year or on any assessment, levy, or other charge made by the local governmental unit on any other political subdivision or instrumentality of the state. This chapter shall constitute the bond act for the issuance of the local governmental obligations payable solely from wastewater system revenues by local governmental units. Any local governmental obligations issued in accordance with this section that is payable solely from wastewater system revenues shall recite on its face that it is a limited obligation payable solely from wastewater system revenues pledged to its payment.
(b) The issue of local governmental obligations in accordance with this section, the maturity or maturities and other terms thereof, the security therefor, the rights of the holders thereof, and the rights, duties, and obligations of the local governmental unit in respect of the same shall be governed by the provisions of this chapter relating to the issue of local governmental obligations to the extent applicable and not inconsistent with this section.
History of Section. (P.L. 1989, ch. 303, § 2.)
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