37D-5 Financing agreements not a general obligation of State. Financing agreements shall:

(1) Not be obligations for which the full faith and credit of the State, the department, or any agency are pledged; and

(2) Have no claim or lien on any revenues or other moneys of the State, the department, or any agency except moneys appropriated or otherwise held in trust for that purpose.

Financing agreements entered into under this chapter shall not constitute "bonds" within the meaning of section 12 of article VII of the Constitution of the State. No holder or holders of any financing agreement entered into under this chapter shall have the right to compel any exercise of taxing power of the State, the department, or any agency to pay the financing agreements or the interest thereon and no moneys other than amounts appropriated or otherwise held in trust for that purpose shall be required to be applied to the payment thereof. Each financing agreement issued under this chapter shall recite in substance that the agreement, including the interest component thereof, shall not be an obligation for which the full faith and credit of the State, the department, or any agency are pledged, and that the financing agreement shall have no claim or lien on any revenues or other moneys of the State, the department, or any agency except moneys appropriated or otherwise held in trust for that purpose. [L 1996, c 119, pt of 2; am L 2001, c 200, pt of 3; am L 2007, c 126, pt of 1]

 

 

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