Section 5-1.5-4-2 - Nature of bond or note; state pledge and agreement(a) A bond or note of the bank: (1) is not a debt, liability, loan of the credit, or pledge of the faith and credit of the state or of any qualified entity;(2) is payable solely from the money pledged or available for its payment under this article, unless funded or refunded by bonds or notes of the bank; and(3) must contain on its face a statement that the bank is obligated to pay principal and interest, and redemption premiums if any, and that the faith, credit, and taxing power of the state are not pledged to the payment of the bond or note.(b) The state pledges to and agrees with the holders of the bonds or notes issued under this article that the state will not:(1) limit or restrict the rights vested in the bank to fulfill the terms of any agreement made with the holders of its bonds or notes; or(2) in any way impair the rights or remedies of the holders of the bonds or notes; until the bonds or notes, together with the interest on the bonds or notes, and interest on unpaid installments of interest, and all costs and expenses in connection with an action or proceeding by or on behalf of the holders, are fully met, paid, and discharged.
As added by P.L. 25-1984, SEC.1. Amended by P.L. 43-1985, SEC.13; P.L. 46-1987, SEC.11.