Energy assessment bond not a local entity's general obligation -- Liability and responsibility of a local entity issuing an energy assessment bond -- No state liability.
Energy assessment bond not a local entity's general obligation -- Liability and responsibility of a local entity issuing an energy assessment bond -- No state liability.
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(1)
(a) An energy assessment bond that a local entity issues under this chapter:
(i) is a limited obligation of the local entity; and
(ii) does not constitute nor give rise to:
(A) a general obligation or liability of the local entity or the state; or
(B) a charge against the general credit or taxing powers of the local entity or the state.
(b) The local entity shall ensure that the limitation described in Subsection (1)(a) is plainly stated upon the face of the bond.
(c) The assessments and the property upon which the energy assessment lien is recorded are the sole securities for an energy assessment bond.
(2)
(a) A local entity that issues an energy assessment bond is not liable and may not obligate itself for payment of the bond, except for a fund that the local entity creates and receives from assessments against which the bond is issued.
(b) Unless otherwise provided in this chapter, a local entity that issues an energy assessment bond is responsible for:
(i) the lawful levy of all assessments; and
(ii) the faithful accounting, collection, settlement, and payment of assessments.