261A.12 - OBLIGATIONS.
261A.12 OBLIGATIONS.
1. The authority may from time to time issue obligations for any
corporate purpose and the obligations of the authority are declared
to be negotiable for all purposes notwithstanding their payment from
limited sources and without regard to any other law.
2. The authority shall not have outstanding at any one time
obligations in an aggregate principal amount exceeding one hundred
million dollars excluding obligations issued to refund the
obligations of the authority.
3. Each issue of obligations is payable solely out of revenues of
the authority pertaining to the program relating to the issue,
including principal and interest on authority loans and education
loans; payments by institutions of higher education, banks, insurance
companies, or others pursuant to letters of credit or purchase
agreements; investment earnings from funds or accounts maintained
pursuant to the bond resolution; insurance proceeds; loan funding
deposits; proceeds of sales of education loans; proceeds of refunding
obligations; and fees, charges, and other revenues of the authority
from the program.
4. Obligations may be issued as serial obligations or as term
obligations, or both. Obligations shall be authorized by a bond
resolution of the authority and shall bear dates, mature at times not
later than the year following the last year in which the final
payments in an education loan series portfolio are due, or thirty
years, whichever is sooner, from their respective dates of issue,
bear interest at rates, be payable at times, be in denominations, be
in a form, either coupon or fully registered, carry registration and
conversion privileges, be payable in lawful money of the United
States of America, and be subject to terms of redemption as the bond
resolution provides. Obligations shall be executed by the manual or
facsimile signatures of officers of the authority designated by the
authority. Obligations shall be sold in a manner and at prices as
the authority determines.
5. A bond resolution may contain provisions, which shall be a
part of the contract with the holders of the obligations to be
authorized, as to all of the following:
a. Pledging or assigning the revenues derived from the
authority loans and education loans with respect to which the
obligations are to be issued.
b. The fees and other amounts to be charged, and the sums to
be raised in each year, and the use, investment, and disposition of
the sums.
c. The setting aside of loan funding deposits, debt service
reserves, capitalized interest accounts, cost of insurance accounts,
and sinking funds, and their regulation, investment, and disposition.
d. Limitations on the use of the education loans.
e. Limitations on the purpose to which or the investments in
which the proceeds of sale of an issue of obligations then or
thereafter to be issued may be applied.
f. Limitations on the issuance of additional obligations, the
terms upon which additional obligations may be issued and secured,
the terms upon which additional obligations may rank on a parity
with, or be subordinate or superior to, other obligations.
g. The refunding of outstanding obligations.
h. The procedure, if any, by which the terms of a contract
with holders of obligations may be amended or abrogated, the amount
of obligations to which the holders must consent to the amendment or
abrogation, and the manner in which the consent may be given.
i. Defining the acts or omissions to act which constitute a
default in the duties of the authority to holders of obligations and
providing the rights or remedies of holders in the event of a
default.
j. Providing for guarantees, pledges, endowments, letters of
credit, property, or other security for the benefit of the holders of
the obligations.
k. Any other matters relating to the obligations which the
authority deems desirable.
6. Neither the members of the authority nor a person executing
the obligations is liable personally on the obligations or subject to
personal liability or accountability by reason of their issuance.
7. The authority may purchase its obligations out of funds
available. The authority may hold, pledge, cancel, or resell
obligations subject to and in accordance with agreements with holders
of obligations.
8. The authority may refund any of its obligations. Refunding
obligations shall be issued in the same manner as other obligations
of the authority. Section History: Early Form
[82 Acts, ch 1031, § 12]
Referred to in § 261A.7, 261A.24