§ 13 — Fees; contracts; pledge of revenues; sinking fund

Section 13. The Authority shall fix, revise, charge and collect fees and is empowered to contract with any person, partnership, association or corporation, or other body, public or private, in respect thereof such that the fees and other amounts payable with respect to any program or programs of the Authority shall be sufficient at all times, (a) to pay or provide for the administrative costs and expenses of such program, (b) to pay the principal of, the premium, if any, and the interest on outstanding bonds or notes of the Authority issued in respect of such program to the extent that other revenues of the Authority pledged for the payment of the bonds or notes are insufficient to pay the bonds or notes as they become due and payable, (c) to create and maintain reserves which may but need not be required or provided for in the bond resolution relating to such bonds or notes of the Authority, and (d) to establish and maintain whatever education loan servicing, control, or audit procedures are deemed to be necessary or appropriate to the operations of the Authority. The Authority may pledge as security for the issue of bonds or notes for a particular program the revenues, as described in paragraph (b) of section ten, from each such program and any other contract rights arising out of contracts entered into by the Authority or assigned to the Authority in connection with each such program. All such pledges shall be valid and binding from the time when the pledge is made; the revenues and contract rights so pledged by the Authority shall immediately be subject to the lien of such pledge without any physical act, delivery thereof or further act, and the lien of any such pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise against the Authority or any participating institution for higher education, irrespective of whether such parties have notice thereof. Neither the bond resolution nor any financing statement, continuation statement or other instrument by which a pledge or security interest is created or perfected or by which the Authority's interest in such revenues or contract rights is assigned needs to be filed in any public records in order to perfect the security interest or lien thereof as against third parties except in the records of the Authority. The use and disposition of monies to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or notes or of such trust agreement. Except as may otherwise be provided in such resolution, or such trust agreement, such sinking or other similar fund shall be a fund for all such revenue bonds or notes issued to finance an educational program or programs at one or more participating institutions for higher education, without distinction or priority of one over another; provided 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 educational program or programs at a participating institution or institutions for higher education and for the revenue bonds or notes issued to finance a particular educational program or programs and may, additionally, permit and provide for the issuance of revenue bonds or notes having a subordinate lien in respect of the security herein authorized to other revenue bonds or notes of the Authority and, in such case, the Authority may create separate or other similar funds in respect of such subordinate lien bonds or notes.