§ 15-55-14 — Rental income from unencumbered revenue-producing buildings or other campus improvements may be applied to bond retirement

North Dakota § 15-55-14

• Jurisdiction: North Dakota
• Title 15: Education
• Ch. 15-55: Construction of Revenue-Producing Buildings

Text

campus improvements may be applied to bond retirement.
The state board of higher education, when issuing bonds under the provisions of this
chapter and the powers herein granted, has additional powers as follows:
1. When the state board of higher education has issued bonds as provided in this chapter
for the purpose of securing funds for all or part of the cost of construction, equipment,
and furnishing of any new revenue-producing building or other campus improvement
for any of the state-supported institutions of higher learning of the state of North
Dakota, or for the purpose of refunding any such bonds, said board is hereby
authorized to cover, from time to time, into the interest and principal payment fund for
bonds issued, or into a fund for operation and maintenance of the building or other
campus improvement so financed or into a fund for repair or replacement of the
building or other campus improvement, its equipment and furnishings, the rental or
income from revenue-producing buildings or other campus improvements which are
not encumbered or impressed with any lien and which are located upon the campuses
of such institutions.
2. In case of destruction of such revenue-producing buildings or campus improvements
by fire, tornado, cyclone, or other cause, the proceeds from insurance on such
revenue-producing buildings or campus improvements shall be covered into the bond
payment fund for the payment of bonds issued under this chapter unless such
insurance may be and is used for the repair or replacement of the building or campus
improvement, its equipment and furnishings.
3. The rental income from said revenue-producing buildings or other revenue-producing
campus improvements, and the proceeds of insurance thereon may be irrepealably
pledged to the payment of the principal and interest of the bonds issued as in this
chapter provided, or to the expenses of operation and maintenance or repair or
replacement of the building or campus improvement, its equipment and furnishings.
4. The bonds issued under the provisions of this chapter may not be an indebtedness or
obligation of the state of North Dakota or of any of the state institutions nor of any
board, bureau, or officer of the state of North Dakota, but such bonds must be payable
solely out of income and revenue as provided in this chapter.
The rental income from the revenue-producing buildings or other revenue-producing campus
improvements, as defined herein, of any educational institutions of higher learning of the state
shall be covered only into a fund for a revenue-producing building or other revenue-producing
campus improvement for such educational institution and not to any other institution.