Colorado § 24-117-107 - Payment of bonds - nonliability of state.

§ 24-117-107. Payment of bonds - nonliability of state.

(1) Bonds issued by the authority must not constitute or become an indebtedness, a debt, or a liability of the state nor do such bonds constitute the giving, pledging, or loaning of the full faith and credit of the state. Bonds issued by the authority are payable solely from the money provided for in this article 117. The issuance of bonds by the authority pursuant to this article 117 does not obligate the state or empower the authority, directly, indirectly, or contingently, to levy or collect any form of taxes or assessments, create any indebtedness payable out of taxes or assessments, or make any appropriation for their payment, and such appropriation, levy, or collection is prohibited.

(2) Nothing in this section prevents or may be construed to prevent the authority from pledging its full faith and credit to the payment of bonds authorized pursuant to this article 117, but nothing in this article 117 may be construed to authorize the authority to create a debt of the state within the meaning of the constitution or statutes of Colorado, and all bonds issued by the authority pursuant to the provisions of this article 117 are payable and must state that they are payable solely from the money pledged for their payment in accordance with the resolution authorizing their issuance or with any trust indenture executed as security for such bonds and are not a debt or liability of the state.

(3) The state is not liable in any event for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, obligation, or agreement of any kind whatsoever which may be undertaken by the authority. No breach of any such pledge, obligation, or agreement imposes any pecuniary liability upon the state or any charge upon its general credit or against its taxing power.

Source: L. 2025: Entire article added, (SB 25-081), ch. 320, p. 1684, § 3, effective August 6.