§ 17-221. Pledge of "seventh cent" gas tax.

(a)

The county may pledge the proceeds of the "seventh cent" gas tax as security for the payment of the principal of and interest on any bonds issued under this division, or for reserves for such debt service.

(b)

In the event of the pledge of such "seventh cent" gas tax, such pledge shall be and constitute a valid and legally binding contract between the county and the holders of such bonds, and the county shall be obligated to continue to receive and apply the "seventh cent" gas tax in accordance with the proceedings which authorized the issuance of the bonds for which the "seventh cent" gas tax is pledged as security, as long as any of the bonds are outstanding and unpaid. The county shall likewise be obligated to collect and apply all revenues derived from the project in accordance with proceedings authorizing the issuance of the bonds.

(Code 1965, § 26-56; Ord. No. 77-2, § 6, 3-8-77)