§ 15-55-06 — Designations of agent and depositories - Disposition and use of revenues - Funds created

Funds created.
All income and revenues derived from the operation of any building or other campus
improvement financed or the revenues of which are pledged in the manner provided in this
chapter must be collected by such officer or agent of the institution where the building or other
campus improvement is located as the state board of higher education from time to time may
designate and must be accounted for by such officer or agent, deposited, and remitted as in this
section provided. The said board, in its resolution authorizing the bonds or in the trust
agreement or agreements executed and delivered by the board, shall provide for the disposition
of and accounting for all such revenues by such officer or agent, including the designation of a
depository or depositories, the payment of expenses of operation and maintenance, the
remittance of revenues to the paying agent designated in the bonds for payment of principal of
and interest on the bonds when due, and the investment and disposition of revenues not
immediately required for payment of expenses, principal, and interest. The board may designate
as a depository for such revenues and funds either the state treasury or the Bank of North
Dakota or the trustee under the trust agreement for the bondholders or a bank which is a duly
designated depository for state funds or as provided in section 15-55-05. The said board may, in
its resolution authorizing the bonds or in the trust agreement or agreements executed and
delivered by the board, provide for an expense fund to be retained by the collecting officer for
the purpose of paying and may direct the collecting officer to pay the accrued or anticipated
expenses of operation and maintenance of the building or campus improvement, and if the
board so directs or if such expense fund is so provided, the collecting officer may pay such
expenses as so directed by the board or from said fund. The funds required to be remitted to the
state treasurer, if any, and any funds derived from revenues pledged to the bondholders must
be held by the collecting officer or in the depository for such funds designated by the board in a
special fund or funds, to be applied solely to the payment of the principal and interest on said
bonds, and the establishment of a reserve for future payments until all of said bonds and
interest thereon have been fully paid; provided, that to the extent not prohibited or restricted by
any covenant made with or for the benefit of the bondholders, the board may invest any such
funds in direct obligations of, or obligations the principal of and interest on which are guaranteed
by, the United States of America, or obligations of the state of North Dakota or of any
municipality as defined in section 21-03-01 and may devote revenues not currently required for
payment of principal and interest, for the creation or maintenance of a debt service reserve, or
for expenses of operation and maintenance to such purposes as the board from time to time
may designate, including replacing the furnishings and equipment of such building or buildings
or campus improvements and improving said building or buildings or campus improvements.