Bonds, notes, or other forms of indebtedness issued pursuant to the provisions of this article must be authorized by a resolution or resolutions of the board of the university. The resolution of the university, in the discretion of the board, may contain provisions that constitute a part of the contract between the university and the holders of the bonds, notes, or other forms of indebtedness as to any of the following:

(1) the custody, security, use, expenditure, or application of the proceeds of the bonds, notes, or other forms of indebtedness including, without limitation, the use of bonds, notes, or other forms of indebtedness proceeds to pay the cost of acquisition, construction, reconstruction, or renovation of facilities, expenses of issuance of the bonds, notes, or other forms of indebtedness, interest on the bonds, notes, or other forms of indebtedness for a period of time the board may determine, and the cost of bond, note, or other form of indebtedness insurance or other credit enhancement and to fund reserves established with respect to the bonds, notes, or other forms of indebtedness;

(2) the acquisition, renovation, construction, reconstruction, or completion of the facilities for which the bonds, notes, and other forms of indebtedness are issued;

(3) the use, regulation, operation, maintenance, insurance, or disposition of the facilities, the fees and revenues from which are pledged to secure payments with respect to the bonds, notes, and other forms of indebtedness or restrictions on the exercise of the powers of the board to dispose of or to limit or regulate the use of these facilities;

(4) the payment of the principal of, redemption premium, if any, or interest on the bonds, notes, and other forms of indebtedness and the sources and the methods of the payment, the rank or priority of the bonds, notes, and other forms of indebtedness as to a lien or security, or the acceleration of the maturity of the bonds, notes, and other forms of indebtedness;

(5) the use and disposition of the fees and revenues including, without limitation, the pledging, setting aside, or depositing with a trustee all or part of the fees and revenues to secure the payment of the principal of, redemption premium, if any, and interest on the bonds, notes, and other forms of indebtedness and the payment of expenses of operation and maintenance of the facilities;

(6) the setting aside of bond, note, or other form of indebtedness proceeds, the fees and revenues or other available funds of reserves or sinking funds, and the source, custody, security, regulation, and disposition of them;

(7) the determination of the fees and revenues, subject to the provisions of Section 59-127-580, or other available funds to be pledged as security for payments with respect to the bonds, notes, and other forms of indebtedness and for the expenses of operation and maintenance of the facilities;

(8) the fixing, establishment, collection, and enforcement of the rentals, fees, or other charges from students, faculty members, and others using or being served by, or having the right to use or be served by, the facilities, the fees and revenues from which are pledged to secure payments with respect to the bonds, notes, and other forms of indebtedness and the disposition and application of the fees and revenues charged and collected;

(9) limitations on the issuance of additional bonds, notes, and other forms of indebtedness or other obligations or the incurrence of indebtedness payable from the same fees and revenues from which the bonds, notes, and other forms of indebtedness are payable;

(10) rules to ensure the use of the facilities by students or members of the faculty of the university to the maximum extent to which the building or equipment is capable of serving the students or faculty members;

(11) the procedure, if any, by which the terms of a covenant or contract with, or duty to, the holders of the bonds, notes, and other forms of indebtedness may be amended or abrogated, the amount of bonds, notes, and other forms of indebtedness to which the holders shall consent, and the manner in which the consent may be given or evidenced; and

(12) any other matter or course of conduct which, by recital in the resolution or resolutions authorizing or providing for the bonds, notes, and other forms of indebtedness, is declared to further secure the payment of the principal of or the interest on the bonds, notes, and other forms of indebtedness or to further the purposes for which the facilities are being acquired, constructed, reconstructed, renovated, or equipped and the bonds, notes, and other forms of indebtedness being issued.

HISTORY: 2005 Act No. 44, Section 1, eff May 3, 2005.