KRS 106.070: Bonds negotiable -- Sale -- Nonliability of city.

Bonds issued pursuant to this chapter shall be negotiable and shall not be subject to

taxation. If any officer whose signature or countersignature appears on the bonds or

coupons ceases to be an officer before delivery of the bonds, his signature or

countersignature shall nevertheless be valid and sufficient for all purposes the same as if

he had remained in office until delivery. The bonds shall be sold in a manner and upon

terms as the water district commissioners or the city legislative body deems for th e best

interest of the water district or city, or any contract for the purchase or acquisition of any

waterworks may provide that payment shall be made in bonds. The bonds shall be

payable solely from the revenue funds derived from the waterworks and shall not

constitute an indebtedness of the city within the meaning of the Constitution. It shall be

plainly stated on the face of each bond that it does not constitute an indebtedness of the

city within the meaning of the Constitution.