The state pledges to and agrees with the holders of bonds issued under this chapter that until such bonds, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceedings by or on behalf of such holders, are fully met and discharged, or unless expressly permitted or otherwise authorized by the terms of each contract and agreement made or entered into by or on behalf of the state with or for the benefit of such holders, the state shall:

1. I. Carry out and perform, or cause to be carried out and performed, each and every promise, covenant, agreement, or contract made or entered into by the state or on its behalf by or under the provisions of this chapter and on its behalf to be performed; and

2. II. Not issue any bonds, notes, or other evidences of indebtedness, other than federal highway grant anticipation bonds, having any rights secured by any pledge of or other lien or charge on the revenues or any moneys or securities paid or to be paid to or held or to be held by the state or the treasurer hereunder, and shall not create or cause to be created any lien or charge on the revenues, any such moneys or securities, other than a lien and pledge thereon created by or pursuant to the provisions of this chapter; provided that nothing in this section shall prevent the state from issuing evidences of indebtedness which:

   1. (a) Are secured by a pledge or lien which is and shall on the face of said evidences of indebtedness be expressed to be subordinate and junior in all respects to every lien and pledge created by or pursuant to the provisions of this chapter;
   2. (b) Pledge the full faith and credit of the state and which are not expressly secured by any specific lien or charge on revenues or any such moneys or securities; or
   3. (c) Are secured by a pledge of or lien on moneys or funds to be derived on and after such date as every pledge or lien thereon created by or pursuant to the provisions of this chapter shall be discharged and satisfied; and
3. III. Not divert federal highway construction trust funds from the purposes identified herein except as provided in the trust or security agreement or resolution or credit facility relating thereto nor shall the trusts with which they are hereby impressed be broken, and the pledge and dedication in trust of such funds shall continue unimpaired or unabrogated.

Source. 2005, 58:1, eff. July 1, 2005.