The contracting public body and related persons are not personally liable on the bonds, and the bonds are payable only from specified project-area tax revenues and related pledged money.
The contracting public body, the members of the governing body of the contracting public body, and any person executing the bonds shall not be liable personally on the bonds by reason of the issuance of the bonds. The bonds and other obligations of the contracting public body, and such bonds and obligations shall so state on their face, shall be special limited obligations of the contracting public body payable solely from a portion of ad valorem taxes levied by taxing bodies on property in the redevelopment project area and allocable to and collected by the contracting public body as authorized by the Nebraska Redevelopment Act and shall not be a debt of the contracting public body. The contracting public body shall not be liable on such bonds except to the extent authorized by sections 58-507 to 58-510. Such bonds or obligations shall not be payable out of any funds or properties other than those of the contracting public body acquired for the purposes of the act except to the extent authorized by sections 58-507 to 58-510. Except to the extent otherwise authorized, the bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Bonds of the contracting public party are declared to be issued for an essential public and governmental purpose and to be public instrumentalities and, together with interest thereon and income therefrom, shall be exempt from all taxes. The contracting public body may issue bond anticipation notes and may issue renewal notes, such notes in any case to mature not later than thirty months from the date of incurring the indebtedness represented in an amount not exceeding in the aggregate at any time outstanding the amount of bonds then or before authorized. Payment of such notes shall be made from any money or revenue which the contracting public body may have available for such purpose or from the proceeds of the sale of bonds of the contracting public body, or such notes may be exchanged for a like amount of such bonds. The contracting public body may pledge such money or revenue of the contracting public body subject to prior pledges, if any, for the payment of such notes, and may in addition secure the notes in the same manner as provided for bonds. All notes shall be issued and sold in the same manner as bonds, and any contracting public body may contract for the future sale of notes on terms and conditions stated in such contracts, and the contracting public body may pay such consideration as it deems proper for any commitments to purchase notes and bonds in the future. Such notes shall also be collaterally secured by pledges and deposits with a bank or trust company, in trust for the payment of such notes, of bonds in an aggregate amount at least equal to the amount of such notes and, in any event, in an amount deemed by the issuing party sufficient to provide for the payment of the notes in full at the maturity of the notes. The contracting public body may provide in the collateral agreement that the notes may be exchanged for bonds held as collateral security for the notes, or that the trustee may sell the bonds if the notes are not otherwise paid at maturity and apply the proceeds of such sale to the payment of the notes. Such notes shall bear interest at a rate or rates set by the contracting public body and shall be sold at such price as will cause the interest cost on the note to not exceed such rate or rates. Any pledge of revenue, income, receipts, proceeds, or other money made by a contracting public body for the payment of bonds or notes shall be valid and binding from the time such pledge is made. The revenue, income, receipts, proceeds, and other money so pledged and thereafter received by the contracting public body shall immediately be subject to the lien of such pledge without the physical delivery or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the contracting public body irrespective of whether such parties have actual notice. Neither the resolution nor any other instrument by which a pledge is created need be recorded. History: Laws 1995, LB 830, § 15.