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Ga. Const. art. VII, § IV, ¶ IV — Certain contracts prohibited | Georgia Constitution

CONSTITUTION OF THE STATE OF GEORGIA

ARTICLE VII. TAXATION AND FINANCE

Paragraph IV. Certain contracts prohibited.

The state, and all state institutions, departments and agencies of the state are prohibited from entering into any contract, except contracts pertaining to guaranteed revenue debt, with any public agency, public corporation, authority, or similar entity if such contract is intended to constitute security for bonds or other obligations issued by any such public agency, public corporation, or authority and, in the event any contract between the state, or any state institution, department or agency of the state and any public agency, public corporation, authority or similar entity, or any revenues from any such contract, is pledged or assigned as security for the repayment of bonds or other obligations, then and in either such event, the appropriation or expenditure of any funds of the state for the payment of obligations under any such contract shall likewise be prohibited.

1976 Constitution.

- Art. III, Sec. X, Para. V; Art. VII, Sec. III, Para. I.

JUDICIAL DECISIONS

Garbage collection contract valid.

- There was no merit in a resident's arguments that the provision in a contract in which a county agreed to reimburse a private enterprise for a percentage of uncollected fees for garbage collection services prior to the county's recovery of those fees from residents by means provided by O.C.G.A. § 12-8-39.3 violated Ga. Const. 1983, Art. VII, Sec. IV, Para. IV, prohibiting the state from entering contracts with any public agency, public corporation, authority, or similar entity as security for bonds or other obligations. Strykr v. Long County Bd. of Comm'rs, 277 Ga. 624, 593 S.E.2d 348 (2004).

RESEARCH REFERENCES

ALR.

- Right of creditor of public body to full or pro rata payment when fund out of which obligation is payable is insufficient to pay all like obligations of equal dignity, 90 A.L.R. 717; 171 A.L.R. 1033.

Bonds issued by state officer or board payable solely out of proceeds of obligations of political subdivisions pledged as security as within constitutional or statutory provisions which impose a limit on state indebtedness or require consent of electors, 100 A.L.R. 1114.