15-2085

15-2085. Securing principal and
interest

A. In connection with issuing bonds authorized by this article and to secure the
principal and interest on the bonds, the school facilities board by resolution may:

1. Segregate the school improvement revenue bond debt service fund into one or more
accounts and subaccounts and provide that bonds issued under this article may be secured
by a lien on all or part of the monies paid into the revenue bond debt service fund or
into any account or subaccount in the fund.

2. Provide that the bonds issued under this article are secured by a first lien on
the monies paid into the school improvement revenue bond debt service fund as provided by
section 42-5029, subsection E, paragraph 1 and pledge and assign to or in trust for the
benefit of the holder or holders of the bonds all or part of the monies in the school
improvement revenue bond debt service fund, in any account or subaccount in the fund or
in the school improvement revenue bond proceeds fund as is necessary to secure and pay
the principal, the interest and any premium on the bonds as they come due.

3. Establish priorities among bondholders based on criteria adopted by the board.

4. Set aside, regulate and dispose of reserves and sinking accounts.

5. Prescribe 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 to and the manner in which the consent may be given.

6. Provide for payment of bond related expenses from the proceeds of the sale of
the bonds or other revenues authorized by this article and available to the board.

7. Provide for the services of trustees, cotrustees, agents and consultants and
other specialized services with respect to the bonds.

8. Take any other action that in any way may affect the security and protection of
the bonds or interest on the bonds.

9. Refund any bonds issued by the board, if these bonds are secured from the same
source of revenues as the bonds authorized by this article, by issuing new bonds, whether
at or before maturity of the bonds being refunded.

10. Issue bonds partly to refund outstanding bonds and partly for any other purpose
consistent with this article.

B. Bonds issued to refund any bonds issued by the board as provided by subsection
A, paragraphs 9 and 10 of this section are not subject to legislative authorization or
subject to the eight hundred million dollar limitation prescribed by section 15-2081,
subsection A.