1. (1) This part is adopted for the purpose of:

   1. (a) eliminating or reducing, so far as possible, the ad valorem taxes necessary to be levied for the payment of bonds;
   2. (b) improving the security of bonds; and
   3. (c) ensuring that the holders of the bonds from time to time shall have a vested and enforceable contract right in the provisions of the bond proceedings made in accordance with the provisions of this part.

2. (2)

   1. (a) Except as otherwise provided under Section 17-60-203, the county legislative body may contract a bonded indebtedness in the manner and subject to the conditions provided under Title 11, Chapter 14, Local Government Bonding Act.
   2. (b) The revenue derived from the sale of bonds shall be applied only to the purpose or purposes specified in the order of the county legislative body.
   3. (c) If there is any surplus, the surplus shall be applied to the payment of the bonds.
3. (3) A county may not become so indebted to an amount, including existing indebtedness, exceeding 2% of the fair market value, as defined under Section 59-2-102, of the taxable property in the county as computed from the last equalized assessment roll for county purposes before the county incurred the indebtedness.

Renumbered and Amended by Chapter 13, 2025 Special Session 1