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261a-15
261A.15 PLEDGE OF REVENUES.
The authority shall fix, revise, charge, and collect fees and may
contract with a person to do so. Each agreement entered into by the
authority with an institution shall provide that the fees and other
amounts payable by the institution of higher education with respect
to a program of the authority are sufficient at all times to meet all
of the following:
1. To pay its share of the administrative costs and expenses of
the program.
2. To pay the principal of, the premium, if any, and the interest
on outstanding obligations of the authority, issued in respect of the
program to the extent that other revenues of the authority pledged
for the payment of the obligations are insufficient to pay the
obligations as they become due and payable.
3. To create and maintain reserves which may but need not be
required or provided for in the bond resolution relating to the
obligations of the authority.
4. To establish and maintain whatever education loan servicing,
control, or audit procedures are deemed by the authority to be
necessary to the prudent operation of the authority.
The authority shall pledge the revenues from each program as
security for the issue of obligations relating to the program. A
pledge is valid and binding from the time when the pledge is made,
the revenues pledged by the authority are immediately subject to the
lien of the pledge without physical delivery of the pledge or further
act, and the lien of the pledge is valid and binding against all
parties having claims of any kind in tort, contract, or otherwise
against the authority or a participating institution, irrespective of
whether the parties have notice of the lien. The bond resolution and
a financing statement, continuation statement, or other instrument by
which the authority's interest in revenues is assigned need not be
filed or recorded in public records in order to perfect the lien
against third parties except that a copy of it shall be filed in the
records of the authority and with the treasurer of state. Section History: Early Form
[82 Acts, ch 1031, § 15]
Referred to in § 261A.24
