limitation on time of issuance.

A. Revenue bonds may be issued by the authority:

(1)     for acquiring real and personal property needed for an authority project, including the purchase of water rights;

(2)     for constructing, extending, enlarging, bettering, repairing, equipping or otherwise improving a water project;

(3)     for establishing or increasing reasonable reserve or sinking funds to secure the payment of the bonds;

(4)     to pay costs of issuance of the bonds; (5)     to refund revenue bonds; or

(6)     for any combination of those purposes.

B. The authority may pledge irrevocably any or all of the net revenues from the operation of its water system for payment of the interest on and principal of the revenue bonds.

C. Except for the purpose of refunding previous revenue bond issues, the authority shall not sell revenue bonds payable from pledged revenues after the expiration of two years from the date of the resolution authorizing the issuance of the bonds. However, any period of time during which a particular revenue bond issue is in litigation shall not be counted in determining the expiration date of that issue.

D. The authority shall not impair the rights of any holders of bonds or other obligations payable from the net revenues of the water system previously issued or incurred by the authority.

E. If required by the terms, covenants and provisions of revenue bonds or other obligations previously issued by the authority, all additional bonds or other obligations issued or incurred by the authority pursuant to the Eastern New Mexico Water Utility Authority Act shall contain any required terms, covenants or provisions necessary to avoid impairment of the previously issued or incurred bonds or other obligations.