6020

(a) The obligations evidenced by municipal general obligation bonds or notes of a municipality constitute the general obligations of the municipality for the prompt payment of which the good faith, credit and power of the municipality to impose unlimited taxes are committed. The holders of municipal general obligation bonds or notes shall have the right to compel the municipality to exercise its power to levy taxes for the payment of the principal, interest and premiums of early redemption, if any, of said bonds or notes.\n(b) The obligations evidenced by special obligation bonds, notes or instruments, revenue bonds and notes or instruments in advance of taxes and revenues do not constitute general obligations of the municipality and, therefore, the good faith, credit and power of said municipality to levy unlimited taxes are not committed for the payment of the principal and interest on said obligations. The holders of special obligation bonds, notes or instruments, revenue bonds or notes or instruments in advance of taxes or revenues shall not have the right to compel the municipality to exercise its power to levy taxes for the payment of the principal, interest and premiums of

notes or instruments in advance of taxes or revenues shall not have the right to compel the municipality to exercise its power to levy taxes for the payment of the principal, interest and premiums of early redemption, if any, of said bonds, notes or instruments.\n(c) Every bond, note or instrument authorized under the provisions of this chapter, with the exception of municipal general obligation bonds or notes and the notes in advance of municipal general obligation bonds, shall include a statement to the effect that they do not constitute general obligations of the municipality and that their principal, interest and early redemption premiums, if any, shall be payable only from the revenues, income, taxes or any other resources that were specifically encumbered or pledged for the payment thereof.\nHistory —July 3, 1996, No. 64, § 21, renumbered as § 24 and amended on Aug. 12, 1997, No. 75, § 23.