§ 116-209.5. Bond resolution.
§ 116‑209.5. Bondresolution.
The resolution providing for the issuance of such bonds may containsuch provisions for protecting and enforcing the rights and remedies of thebondholders as may be reasonable and proper and not in violation of law,including covenants setting forth the duties of the Authority in relation tothe purchase or sale of obligations, the making of student loans, the insuranceof student loans, the fees, charges and premiums to be fixed and collected, theterms and conditions for the issuance of additional bonds and the custody,safeguarding and application of all moneys. It shall be lawful for any bank ortrust company incorporated under the laws of the State which may act asdepositary of the proceeds of bonds, revenues or other money hereunder tofurnish such indemnifying bonds or to pledge such securities as may be requiredby the Authority. Any such resolution may set forth the rights and remedies ofthe bondholders and may restrict the individual right of action by bondholders.All expenses incurred in carrying out the provisions of such resolution may betreated as a part of the cost of administering this Article and may be payable,together with other expenses of operation and administration under this Articleincurred by the Authority, from the Loan Fund.
In the discretion of the Authority, any bonds issued under theprovisions of this Article may be secured by a trust agreement by and betweenthe Authority and a corporate trustee, which may be any trust company or bankhaving powers of a trust company within or without the State. Such trustagreement or the resolution providing for the issuance of such bonds may pledgeor assign the fees, penalties, charges, proceeds from collections, grants,subsidies, donations and other funds and revenues to be received therefor. Suchtrust agreement or resolution providing for the issuance of such bonds maycontain such provisions for protecting and enforcing the rights and remedies ofthe holders of such bonds as may be reasonable and proper and not in violationof law, including covenants setting forth the duties of the Authority inrelation to student loans, the acquisition of obligations, insurance, the fees,penalties and other charges to be fixed and collected, the sale or purchase ofobligations or any part thereof, or other property, the terms and conditionsfor the issuance of additional bonds, and the custody, safeguarding andapplication of all moneys. It shall be lawful for any bank or trust companyincorporated under the laws of the State which may act as depositary of theproceeds of bonds, revenues or other money hereunder to furnish suchindemnifying bonds or to pledge such securities as may be required by theAuthority. Any such trust agreement or resolution may set forth the rights andremedies of the bondholders and of the trustee, and may restrict the individualright of action by bondholders. In addition to the foregoing, any such trustagreement or resolution may contain such other provisions as the Authority maydeem reasonable and proper for the security of the bondholders. All expensesincurred in carrying out the provisions of such trust agreement or resolutionmay be treated as a part of the cost of carrying out the purposes for whichsuch bonds shall be issued.
In addition to all other powers granted to the Authority by thisArticle, the Authority is hereby authorized to pledge to the payment of theprincipal of and the interest on any bonds under the provisions of this Articleany moneys received or to be received by it under any appropriation made to itby the General Assembly, unless the appropriation is restricted by the GeneralAssembly to specific purposes of the Authority or such pledge is prohibited bythe law making such appropriation; provided, however, that nothing herein shallbe construed to obligate the General Assembly to make any such appropriation. (1967, c. 1177; 1971, c. 392, s. 8.)