48-6285. Characteristics of bonds; negotiability; obligation; legal investments; exemption from taxation

(Conditionally Rpld.)

A. Bonds issued under this article are fully negotiable within the meaning and for all purposes of the uniform commercial code, subject only to any provisions for registration, regardless of whether the bonds actually constitute negotiable instruments under the uniform commercial code.

B. The bonds, their transfer and the income from the bonds are at all times free from taxation in this state, except that the board of directors in its discretion may elect that the bonds, their transfer and the income from those bonds be issued as taxable in this state.

C. Bonds issued under this article:

1. Are obligations of the district and are not general, special or other obligations of this state or of the county or city establishing the district. The members of the board and persons who execute the bonds are not personally liable for payment of the bonds.

2. Are payable only according to their terms.

3. Do not constitute a debt of this state or of the county or city establishing the district.

4. Are not enforceable against this state and payment of the bonds is not enforceable out of any monies other than the revenue pledged and assigned to or in trust for the benefit of the holder or holders of the bonds.

5. Are securities in which public officers and bodies of this state and of municipalities and political subdivisions of this state, all companies, associations and other persons carrying on an insurance business, all financial institutions, investment companies and other persons carrying on a banking business, all fiduciaries and all other persons who are authorized to invest in government obligations may properly and legally invest.

6. Are securities that may be deposited with public officers or bodies of this state and municipalities and political subdivisions of this state for purposes that require the deposit of government bonds or obligations.