11-42-606. Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.
(1) Assessment bonds are not a general obligation of the local entity that issues them.
(2) A local entity that issues assessment bonds: may not be held liable for payment of the bonds except to the extent of: funds created and received from assessments against which the bonds are issued; improvement revenues; and the local entity's guaranty fund under Sectionor, if applicable, reserve fund under Section; and 11-42-701 11-42-702 is responsible for: the lawful levy of all assessments; the collection and application of improvement revenues, as provided in this chapter; the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and the faithful accounting, collection, settlement, and payment of: assessments and improvement revenues; and money in a guaranty fund or, if applicable, a reserve fund.
(3) If a local entity illegally assesses property that is exempt from assessment, the local entity: is liable to the holders of assessment bonds for the payment of the illegal assessment; and shall pay the amount for which it is liable under Subsectionfrom the local entity's general fund or other legally available money. (3)(a)