Rhode Island § 45-67-12 - Block Island Utility District Act of 2017

§ 45-67-12. State not liable.

Neither the state nor the town of New Shoreham is liable for the payment of the principal of or interest on any bonds or notes of the utility district, or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever that may be undertaken by the utility district, and none of the bonds or notes of the utility district, nor any of its agreements or obligations, are construed to constitute an indebtedness of the state or the town of New Shoreham within the meaning of any constitutional or statutory provision whatsoever, nor shall the issuance of bonds or notes, under the provisions of this chapter, directly or indirectly or contingently, obligate the state or any municipality of the state to levy or to pledge any form of taxation for them or to make any appropriation for their payment. All of the revenue bonds or notes shall contain on their face a statement to the effect that neither the state nor the town of New Shoreham are obligated to pay the revenue bonds or notes, or their interest, except from revenues of the project or projects for which they are issued, and that neither the faith and credit, nor the taxing power of the state or of any municipality of the state, is pledged to the payment of the principal of or the interest on those bonds or notes.