§ 23-15-119 — Rents and charges

A sufficient amount of the revenues derived
with respect to a facility, except such part of such revenues as may be necessary to
pay the cost of maintenance, repair, and operation and to provide reserves and for
renewals, replacements, extensions, enlargements, and improvements provided for
in the resolution authorizing the issuance of any bonds or notes of the authority or
in the trust agreement securing the same, shall be set aside at such regular
intervals as may be provided in such resolution or trust agreement in a sinking or
other similar fund which is hereby pledged to and charged with the payment of the
principal of and the interest on such bonds or notes as the same become due and
the redemption price or the purchase price of bonds retired by call or purchase as
therein provided. Such pledge shall be valid and binding at the time the pledge is
made and thereafter until satisfied, and the rates, rents, fees, charges, and other
revenues or other moneys so pledged and thereafter received by the authority shall
immediately be subject to the lien of such pledge without any physical delivery
thereof or further act; and the lien of any such pledge shall be valid and binding as
against all parties having claims of any kind in tort or contract or in any other form
against the authority, irrespective of whether such parties have notice thereof.
Neither the bond resolution, any trust agreement, any other agreement, nor any
lease by which a pledge is created need be filed or recorded except in the records
of the authority. The use and disposition of moneys to the credit of such sinking or
other similar fund shall be subject to the resolution authorizing the issuance of such
bonds or notes or to such trust agreement. Except as may be otherwise provided in
such resolution or such trust agreement, such sinking or other similar fund may be a
fund for all such bonds or notes issued to finance facilities at a particular
educational institution or cultural institution without distinction or priority of one
over another; except that the authority in any such resolution or trust agreement
may provide that such sinking or other similar fund shall be the fund for a particular
facility at an educational institution or a cultural institution and for the bonds
issued to finance a particular facility and, additionally, may permit and provide for
the issuance of bonds having a lien with respect to the security authorized which is
subordinate to other bonds of the authority, and, in such case, the authority may
create separate sinking or other similar funds with respect to such subordinate lien
bonds.

Legislative History

Source: L. 81: Entire article added, p. 1109, � 1, effective July 1. L. 89: Entire section amended, p. 992, � 10, effective April 8. L. 98: Entire section amended, p. 608, � 13, effective May 4.