Sec. 10a-109u. Covenants.
Sec. 10a-109u. Covenants. The state covenants with the purchasers and all other
subsequent owners and transferees of securities issued by the university, in consideration
of the acceptance of and payment for the securities, until the securities, together with
the interest thereon, with interest on any unpaid installment of interest and all costs and
expenses in connection with any action or proceeding on behalf of the owners, are fully
met and discharged or unless expressly permitted or otherwise authorized by the terms
of each contract and agreement made or entered into by or on behalf of the university
with or for the benefit of such owners, that the state: (1) Will not create or cause to be
created any lien or charge on the assets or revenues pledged to secure such securities,
other than a lien or pledge created thereon pursuant to sections 10a-109a to 10a-109y,
inclusive; (2) will not in any way impair the rights, exemptions or remedies of the
owners; and (3) will not limit, modify, rescind, repeal or otherwise alter the rights or
obligations of the university to take such action as may be necessary to fulfill the terms
of the resolution authorizing the issuance of the securities; provided nothing in sections
10a-109a to 10a-109y, inclusive, shall preclude the state from exercising its power,
through a change in law, to limit, modify, rescind, repeal or otherwise alter said sections
if and when adequate provision shall be made by law for the protection of the holders
of outstanding securities, pursuant to the resolution or indenture under which the securities are issued. The university is authorized to include this covenant of the state, as a
contract of the state, in any agreement with the owners of any securities, in any credit
facility or reimbursement agreement with respect to the securities and in any agreement
authorized by sections 10a-109a to 10a-109y, inclusive.
(P.A. 95-230, S. 21, 45.)
History: P.A. 95-230 effective June 7, 1995.