A district shall have power to issue bonds or other obligations including, without limitation, installment purchase or lease-purchase obligations, from time to time in the discretion of the district board, for any of its corporate purposes. A district shall also have power to issue refunding bonds for the purpose of paying or retiring bonds previously issued or other indebtedness previously incurred by it. In order to carry out the purposes of this chapter, a district may issue, upon proper resolution, bonds or other obligations on which the principal and interest are payable (a) exclusively from the income and revenue of a project financed with the proceeds of such bonds or other obligations; or (b) exclusively from such income and revenues together with grants and contributions from the federal government or other moneys of the district or any source in aid of such project.
Neither the members of the district board nor any person executing the bonds shall be liable personally on the bonds or other obligations by reason of the issuance thereof. The bonds and other obligations of a district (and such bonds and obligations shall so state on their face) shall not be a debt or liability, direct or indirect, of the district, the state, or any political subdivision thereof, and neither the district, the state, nor any political subdivision thereof shall be liable thereon, nor in any event shall such bonds or obligations be payable out of any funds other than those of the district. Bonds of a district are declared to be issued for an essential public and governmental purpose, and the interest thereon shall be exempt from income taxation by the state of Idaho.