§ 45-38.1-9 - Bonds of the corporation.
SECTION 45-38.1-9
§ 45-38.1-9 Bonds of the corporation.– (a) The corporation is authorized from time to time to issue its negotiablebonds for any corporate purpose or project. In anticipation of the sale of thebonds the corporation may issue negotiable bond anticipation notes and mayrenew those notes from time to time, but maximum maturity of the notes,including renewals of those notes, shall not exceed forty (40) years from thedate of issue of the original notes. The notes shall be paid from any revenuesof the corporation or other moneys available for payment and not otherwisepledged, or from the proceeds of the sale of the bonds of the corporation inanticipation of which they were issued. The notes shall be issued in the samemanner as the bonds. The notes and the resolution, or resolutions authorizingthe notes, may contain any provisions, conditions, or limitations which a bondresolution of the corporation may contain.
(b) The bonds, notes, or other obligations are payable fromany revenues or moneys of the corporation available for payment and nototherwise pledged, subject only to any agreements with the holders ofparticular bonds, notes, or other obligations pledging any particular revenuesor moneys, and subject to any agreements with any participating institution forhigher education or any participating hospital, notwithstanding that the bonds,notes, or other obligations may be payable from a special fund, they shall beand be deemed to be for all purposes negotiable instruments, subject only tothe provisions of the bonds, notes, or other obligations for registration.
(c) The bonds may be issued as serial bonds or as term bonds,or the corporation, in its discretion, may issue bonds of both types. The bondsshall be authorized by resolution of the corporation and bear a date or dates,mature at a time or times, not exceeding sixty-five (65) years from theirrespective dates, bear interest at rate or rates, be payable at a time ortimes, be in denominations, be in a form, either coupon or registered, carryregistration privileges, be executed in a manner, be payable in lawful money ofthe United States of America at a place or places, and be subject to terms ofredemption, that the resolution or resolutions may provide. In the event termbonds are issued, the resolution authorizing the term bonds may make provisionsfor the establishment and management of adequate sinking reserve funds fortheir payment as the corporation may deem necessary. The bonds or notes may besold at public or private sale for a price or prices as the corporationdetermines. Pending preparation of the definitive bonds, the corporation mayissue interim receipts or certificates which shall be exchanged for thedefinitive bonds.
(d) Any resolution or resolutions authorizing any bonds orany issue of bonds may contain provisions, which are a part of the contractwith the holders of the bonds to be authorized, as to:
(1) Pledging the full faith and credit of a participatinginstitution for higher education or of a participating health care provider,all or any part of the revenues of a project of any revenue producing contractor contracts made by the corporation with any individual, partnership,corporation, or association or other body, public or private, or pledging allor any part of the revenues derived from corporation loans, education loans,payments by participating institutions for higher education, banks, guarantors,insurers, or others pursuant to letters of credit or purchase agreements,investment earnings, insurance proceeds, loan funding deposits, proceeds fromthe sale of education loans, proceeds of refunding bonds and fees, charges, andother revenues of the corporation, to secure the payment of the bonds or of anyparticular issue of bonds, subject to agreements with bondholders as may thenexist;
(2) The rentals, revenues, fees and other charges to becharged, and the amounts to be raised in each year, and the use and dispositionof the revenues;
(3) The setting aside of reserves or sinking funds, loanfunding deposits, and their regulation and disposition;
(4) Limitations on the right of the corporation or its agentto restrict and regulate the use of the project or of education loans;
(5) Limitations on the purpose to which the proceeds of thesale of any issue, of bonds then or thereafter to be issued, may be applied andpledging the proceeds to secure the payment of the bonds or any issue of thebonds;
(6) Limitations on the issuance of additional bonds, theterms upon which additional bonds may be issued and secured, and the refundingof outstanding bonds;
(7) The procedure, if any, by which the terms of any contractwith bondholders may be amended or abrogated, the amount of bonds the holdersof which must consent thereto, and the manner in which the consent may be given;
(8) Limitations on the amount of moneys derived from theproject or education loan program to be expended for operating, administrative,or other expenses of the corporation;
(9) Defining the acts or omissions to act which constitute adefault in the duties of the corporation to holders of its obligations, andproviding the rights and remedies of those holders in the event of a default;
(10) The mortgaging of a project and its site for the purposeof securing the bondholders;
(11) Any other additional covenants, agreements, andprovisions that are deemed desirable or necessary by the corporation for thesecurity of the holders of the bonds; and
(12) Providing for guarantees, pledges of endowment, lettersof credit, property, or other security for the benefit of the holders of thebonds.
(e) Neither the members of the corporation nor any personexecuting the bonds or notes are personally liable on the bonds or notes, orare subject to any personal liability or accountability by reason of theissuance of the bonds or notes.
(f) The corporation has power out of any available funds, topurchase its bonds or notes. The corporation may hold, pledge, cancel, orresell the bonds, subject to and in accordance with agreements with bondholders.