special fund doctrine

special fund doctrine
The principle that a commitment of a municipal corporation is not subject to debt limit provisions where the obligation is payable out of a special fund and the municipality is not liable to pay the obligation out of its general funds in the event the special fund proves insufficient, and the transaction by which the indebtedness is incurred cannot in any event deplete the general resources of the municipality. 38 Am J1st Mun Corp § 468.

Ballentine's law dictionary. . 1998.

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