2015 Arizona Revised Statutes
Title 15 - Education
§ 15-1484 Powers to secure bonds

15-1484. Powers to secure bonds

A. In connection with the issuance of the bonds authorized by section 15-1483, or in order to secure the payment of such bonds and interest thereon, the board shall have power by resolution to:

1. Fix and maintain tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.

2. Provide that bonds issued under this article may be secured by a first, exclusive and closed lien on all or any certain part of the income and revenue derived from, and shall be payable from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.

3. Pledge and assign to, or in trust for the benefit of, the holder or holders of the bonds issued hereunder an amount of the income and revenue derived from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.

4. Covenant with or for the benefit of the holder or holders of bonds issued under this article to acquire any project, that as long as any such bonds remain outstanding and unpaid the board will fix, maintain and collect in such installments as may be agreed upon an amount of the tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project, which shall be sufficient to pay when due the bonds issued hereunder to acquire such project, and interest thereon, and to create and maintain reasonable reserves therefor and to pay the costs of operation and maintenance of such project including, but not limited to, reserves for extraordinary repairs, insurance and maintenance, which costs of operation and maintenance shall be determined by the board in its absolute discretion.

5. Make and enforce and agree to make and enforce parietal rules that shall insure the use of any project by all students in attendance at the institution to the maximum extent to which such project is capable of serving such students, or if any part of the project is designed for occupancy as living quarters for the faculty members, by as many faculty members as may be served thereby.

6. Covenant that as long as any of the bonds issued under this article remain outstanding and unpaid it will not, except upon such terms and conditions as may be determined:

(a) Voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge having priority to or being on a parity with the lien of the bonds issued under this article upon any of the income and revenues derived from tuitions, fees, rentals and other charges from students, faculty members and others using or being served by, or having the right to use or the right to be served by, any project.

(b) Convey or otherwise alienate the project to acquire which such bonds shall have been issued or the real estate upon which such project shall be located, except at a price sufficient to pay all the bonds then outstanding issued under this article to acquire such project and interest accrued thereon, and then only in accordance with any agreements with the holder or holders of such bonds.

(c) Mortgage or otherwise voluntarily create or cause to be created any encumbrance on the project to acquire which such bonds shall have been issued or the real estate upon which it shall be located.

7. Covenant as to the procedure by which the terms of any contract with a holder or holders of such bonds may be amended or abrogated, the amount or percentage of bonds the holder or holders of which must consent to an amendment or abrogation and the manner in which such consent may be given.

8. Vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued hereunder, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay or in relation to the bonds, and execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and limiting the liabilities thereof and describing what occurrences shall constitute events of default and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of bonds of any specified amount or percentage of such bonds may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate.

9. Vest in a trustee or trustees or the holder or holders of any specified amount or percentage of bonds the right to apply to any court of competent jurisdiction for, and have granted, the appointment of a receiver or receivers of the income and revenue pledged and assigned to or for the benefit of the holder or holders of such bonds, which receiver or receivers may have and be granted such powers and duties as such court may order or decree for the protection of the bondholders.

10. Make covenants with any federal agency, private agency, corporation or individual to perform any and all acts and to do any and all such things as may be necessary or convenient or desirable in order to secure such bonds or as may in the judgment of the board tend to make the bonds more marketable, notwithstanding that such acts or things may not be enumerated herein, and to lease any project for the best interests of the institution, and to perform all acts and to do all things not inconsistent with the constitution of this state as may be necessary or convenient or desirable for the issuance of such bonds and for their security.

11. Enter into any and all contracts and agreements necessary to accomplish the acquisition of the project or projects including agreements for construction, engineering and architectural services and agreements covering disposition and application of the proceeds received from the sale of the bonds.

B. No bond shall be issued pursuant to this section for any institution that causes the total aggregate face amount of all bonds issued pursuant to this section to have maximum annual debt service that exceeds, in any fiscal year, more than eight per cent of such institution's current expenditures less any expenditures for retirement of general obligation bonds principal or interest, or both. General obligation bonds are excluded from this provision. For the purposes of this section, the amount of the institution's current expenditures less any expenditures for retirement of general obligation bonds principal or interest, or both, shall be determined by reference to the most recently adopted budget of the institution as of the date of issuance of bonds issued pursuant to this section.