Title 45
Towns and Cities

Chapter 38.1
Health and Educational Building Corporation

§ 45-38.1-9. Bonds of the corporation.

(a) The corporation is authorized from time to time to issue its negotiable bonds for any corporate purpose or project. In anticipation of the sale of the bonds the corporation may issue negotiable bond anticipation notes and may renew those notes from time to time, but maximum maturity of the notes, including renewals of those notes, shall not exceed forty (40) years from the date of issue of the original notes. The notes shall be paid from any revenues of the corporation or other moneys available for payment and not otherwise pledged, or from the proceeds of the sale of the bonds of the corporation in anticipation of which they were issued. The notes shall be issued in the same manner as the bonds. The notes and the resolution, or resolutions authorizing the notes, may contain any provisions, conditions, or limitations which a bond resolution of the corporation may contain.

(b) The bonds, notes, or other obligations are payable from any revenues or moneys of the corporation available for payment and not otherwise pledged, subject only to any agreements with the holders of particular bonds, notes, or other obligations pledging any particular revenues or moneys, and subject to any agreements with any participating institution for higher education or any participating municipality or participating child daycare center or any participating hospital, notwithstanding that the bonds, notes, or other obligations may be payable from a special fund, they shall be and be deemed to be for all purposes negotiable instruments, subject only to the 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 bonds shall 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 their respective dates, bear interest at rate or rates, be payable at a time or times, be in denominations, be in a form, either coupon or registered, carry registration privileges, be executed in a manner, be payable in lawful money of the United States of America at a place or places, and be subject to terms of redemption, that the resolution or resolutions may provide. In the event term bonds are issued, the resolution authorizing the term bonds may make provisions for the establishment and management of adequate sinking reserve funds for their payment as the corporation may deem necessary. The bonds or notes may be sold at public or private sale for a price or prices as the corporation determines. Pending preparation of the definitive bonds, the corporation may issue interim receipts or certificates which shall be exchanged for the definitive bonds.

(d) Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions, which are a part of the contract with the holders of the bonds to be authorized, as to:

(1) Pledging the full faith and credit of a participating institution for higher education or of a participating municipality or participating child daycare center or of a participating healthcare provider, all or any part of the revenues of a project of any revenue producing contract or contracts made by the corporation with any individual, partnership, corporation, or association or other body, public or private, or pledging all or 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 from the sale of education loans, proceeds of refunding bonds and fees, charges, and other revenues of the corporation, to secure the payment of the bonds or of any particular issue of bonds, subject to agreements with bondholders as may then exist;

(2) The rentals, revenues, fees, and other charges to be charged, and the amounts to be raised in each year, and the use and disposition of the revenues;

(3) The setting aside of reserves or sinking funds, loan funding deposits, and their regulation and disposition;

(4) Limitations on the right of the corporation or its agent to restrict and regulate the use of the project or of education loans;

(5) Limitations on the purpose to which the proceeds of the sale of any issue, of bonds then or thereafter to be issued, may be applied and pledging the proceeds to secure the payment of the bonds or any issue of the bonds;

(6) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;

(7) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which the consent may be given;

(8) Limitations on the amount of moneys derived from the project 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 a default in the duties of the corporation to holders of its obligations, and providing the rights and remedies of those holders in the event of a default;

(10) The mortgaging of a project and its site for the purpose of securing the bondholders;

(11) Any other additional covenants, agreements, and provisions that are deemed desirable or necessary by the corporation for the security of the holders of the bonds; and

(12) Providing for guarantees, pledges of endowment, letters of credit, property, or other security for the benefit of the holders of the bonds.

(e) Neither the members of the corporation nor any person executing the bonds or notes are personally liable on the bonds or notes, or are subject to any personal liability or accountability by reason of the issuance of the bonds or notes.

(f) The corporation has power out of any available funds, to purchase its bonds or notes. The corporation may hold, pledge, cancel, or resell the bonds, subject to and in accordance with agreements with bondholders.