State Codes and Statutes

Statutes > Nebraska > Chapter85 > 85-1741

85-1741. Bonds issued to purchase securities of private institution; provisions applicable.In addition to any other methods of financing authorized in the Nebraska Educational Finance Authority Act, the authority may finance the cost of a project or program, refund outstanding indebtedness, or reimburse advances from an endowment or any similar fund of a private institution of higher education as authorized by section 85-1731 by issuing its bonds for the purpose of purchasing the securities of a private institution of higher education. Any such securities shall have the same principal amounts, maturities, and interest rates as the bonds being issued, may be secured by a first mortgage lien on or security interest in any real or personal property, subject to such exceptions as the authority may approve and created by a mortgage or security instrument satisfactory to the authority, and may be insured or guaranteed by others. Any such bonds shall be secured by a pledge of such securities under the trust agreement creating such bonds, shall be payable solely out of the payments to be made on such securities, and shall not exceed in principal amount the cost of such project or program, the refunding of such indebtedness, or reimbursement of such advances as determined by the private institution of higher education and approved by the authority. In other respects any such bonds shall be subject to the act, including sections 85-1738 and 85-1739, and the trust agreement creating such bonds may contain any of the provisions set forth in section 85-1740 as the authority may consider appropriate.If a project is financed pursuant to this section, the title to such project shall remain in the private institution of higher education owning the same, subject to the lien of the mortgage or security interest, if any, securing the securities then being purchased, and there shall be no lease of such facility between the authority and such private institution of higher education.Section 85-1737 shall not apply to any project financed pursuant to this section, but the authority shall return the securities purchased through the issuance of bonds pursuant to this section to the private institution of higher education issuing such securities when such bonds have been fully paid and retired or when adequate provision has been made to pay and retire such bonds fully and all other conditions of the trust agreement creating such bonds have been satisfied and any lien established pursuant to this section has been released in accordance with the provisions of the trust agreement. SourceLaws 1981, LB 321, § 41; Laws 1993, LB 465, § 21; R.S.1943, (1994), § 79-2941; Laws 1995, LB 5, § 41.