§ 21-16-708 — Revenue obligations; security

(a) In any resolution authorizing the issuance of
obligations, the authority shall pledge or assign as security
therefor:
(i) Payments received on student loans including
principal, interest and penalties and other income rendered in
connection with student loans;
(ii) Proceeds of insurance, earnings and profits on
investments of funds and from sales, purchases, endorsements of
student loans and other contract rights;
(iii) Any funds, rights, proceeds of insurance or
other benefits acquired pursuant to any federal law or contract
to the extent not in conflict therewith;
(iv) Money recovered through the enforcement of any
remedies or rights; and
(v) Any other funds or things of value becoming the
property of the authority, which in the determination of the
authority, may enhance the marketability of its revenue
obligations.
(b) The holders of obligations shall not look to any
general or other fund for payment of the obligations except the
revenues pledged or assigned under subsection (a) of this
section.
(c) Revenue obligations shall not constitute an
indebtedness or a debt of the state within the meaning of any
constitutional or statutory provision or limitation. The
obligations shall not be considered or held to be general,
special or limited obligations of the state but shall constitute
the special obligations of the authority for which the state
shall not pledge its full faith and credit for payment on the
obligations.
(d) The resolution or trust indenture under which the
revenue obligations are authorized and any other instrument may
contain agreements and provisions for:
(i) The creation and maintenance of special funds
from revenues; and
(ii) The rights and remedies available in the event
of default.
(e) Each pledge, agreement or other instrument made for
the benefit or security of any obligations of the authority is
valid and binding from the time made. The revenues, receipts,
monies and assets pledged are immediately subject to the lien of
the pledge without delivery or further act. The lien is valid
and binding against persons having claims of any kind against
the authority whether or not the persons have actual notice of
the lien. Neither the resolution nor the indenture or other
instrument by which a pledge is created need be recorded or
filed.
(f) Any resolution or trust indenture under which
obligations of the authority are authorized may contain
provisions for vesting in a trustee the properties, rights,
powers and duties in trust as the authority determines.