§ 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
educational institution, any participating municipality, 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 educational institution, of
a participating municipality, 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 educational institutions,
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.