NMSA 1978, § 7-27-27 — Purpose and intent

The purpose of the Severance Tax Bonding Act is to establish the authority who
shall issue and sell all severance tax bonds for financing specific projects authorized by
the legislature and all supplemental severance tax bonds pursuant to Section 7-27-12.2
NMSA 1978 and to guarantee redemption of such bonds by revenue derived from the
receipts from taxes levied upon natural resource products severed and saved from the
soil and such other money as the legislature may from time to time determine. It is
intended that projects to be financed from the fund shall include the construction of
public school buildings, other buildings for state institutions and water resource projects;
and it is further intended that the income from water resource projects in excess of the
amount required for operation and maintenance of the project shall be used to repay the
severance tax bonding fund.