260C.58 - BONDS OR NOTES.
260C.58 BONDS OR NOTES.
To pay all or any part of the cost of carrying out any project at
any institution the board is authorized to borrow money and to issue
and sell negotiable bonds or notes and to refund and refinance bonds
or notes issued for any project or for refunding purposes at a lower
rate, the same rate, or a higher rate or rates of interest and from
time to time as often as the board shall find it to be advisable and
necessary so to do. Bonds or notes issued by the board for residence
hall or dormitory purposes at any institution, including dining or
other facilities and additions, or issued for refunding purposes, may
either be sold in the manner specified for the selling of
certificates under section 260E.6 and the proceeds applied to the
payment of the obligations being refunded, or the refunding bonds or
notes may be exchanged for and in payment and discharge of the
obligations being refunded. A finding by the board in the resolution
authorizing the issuance of the refunding bonds or notes, that the
bonds or notes being refunded were issued for a purpose specified in
this division and constitute binding obligations of the board, shall
be conclusive and may be relied upon by any holder of any refunding
bond or note issued under the provisions of this division. The
refunding bonds or notes may be sold or exchanged in installments at
different times or an entire issue or series may be sold or exchanged
at one time. Any issue or series of refunding bonds or notes may be
exchanged in part or sold in parts in installments at different times
or at one time. The refunding bonds or notes may be sold or
exchanged at any time on, before, or after the maturity of any of the
outstanding notes, bonds or other obligations to be refinanced
thereby and may be issued for the purpose of refunding a like or
greater principal amount of bonds or notes, except that the principal
amount of the refunding bonds or notes may exceed the principal
amount of the bonds or notes to be refunded to the extent necessary
to pay any premium due on the call of the bonds or notes to be
refunded, to fund interest in arrears or about to become due, or to
allow for sufficient funding of the escrow account on the bonds to be
refunded.
All bonds or notes issued under the provisions of this division
shall be payable from and shall be secured by an irrevocable first
lien pledge of a sufficient portion of the following: the net rents,
profits and income derived from the operation of residence halls,
dormitories, dining or other incidental facilities and additions,
including necessary real and personal property, acquired or improved
in whole or in part with the proceeds of such bonds or notes,
regardless of the manner of such acquisition or improvement; and the
net rents, profits and income not pledged for other purposes derived
from the operation of any other residence halls or dormitories,
including dining or other incidental facilities and additions, at the
particular institution. In addition, the board may secure any bonds
or notes issued by borrowing money, by mortgaging any real estate or
improvements erected on real estate, or by pledging rents, profits,
and income received from property for the discharge of mortgages.
All bonds or notes issued under the provisions of this division shall
have all the qualities of negotiable instruments under the laws of
this state. Section History: Recent Form
90 Acts, ch 1253, §60
C91, § 280A.58
91 Acts, ch 267, §245
C93, § 260C.58