§ 45-38.1-11. Revenues. (a) The corporation is authorized to fix, revise, charge, and collect rates, rents, fees, and charges for the use of and for the services furnished by each project, and to contract with any person, partnership, association, or corporation, or other body, public or private, in this respect. The rates, rents, fees, and charges shall be fixed and adjusted in respect of the aggregate of rates, rents, fees, and charges from the project so as to provide funds sufficient with other revenues, if any: (1) To pay the cost of maintaining, repairing, and operating the project and each and every portion of it, to the extent that the corporation has not adequately provided for the payment of the cost; (2) to pay the principal of and the interest on outstanding revenue bonds of the corporation issued in respect of the project as the bonds become due and payable; and (3) to create and maintain reserves required or provided for in any resolution authorizing, or trust agreement securing, the revenue bonds of the corporation. The rates, rents, fees, and charges are not subject to supervision or regulation by any department, commission, board, body, bureau, or agency of the state other than the corporation. A sufficient amount of the revenues as may be necessary to pay the cost of maintenance, repair, and operation and to provide reserves and for renewals, replacements, extensions, enlargements, and improvements as may be provided for in the resolution authorizing the issuance of any revenue bonds of the corporation or in the trust agreement securing the revenue bond, shall be set aside at regular intervals as may be provided for in the resolution or trust agreement in a sinking or other similar fund which is pledged to, and charged with, the payment of the principal of and the interest on the revenue bonds as the revenue bonds become due, and the redemption price or the purchase price of bonds retired by call or purchase as provided in the resolution or trust agreement. The pledge is valid and binding from the time when the pledge is made; the rates, rents, fees, and charges and other revenue or other moneys pledged and thereafter received by the corporation immediately subject to the lien of the pledge without any physical delivery or further act, and the lien of the pledge valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the corporation, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement, nor any other agreement, nor any lease by which a pledge is created, need be filed or recorded except in the records of the corporation. The use and disposition of moneys to the credit of a sinking or other similar fund are subject to the provisions of the resolution authorizing the issuance of the bonds or of the trust agreement. Except as may otherwise be provided in the resolution or the trust agreement, the sinking or other similar fund may be a fund for all the bonds issued to finance projects, as a particular institution for higher education or a particular health care provider, without distinction or priority of one over another; provided, that the corporation in the resolution or trust agreement may provide that the sinking or other similar fund is the fund for a particular project at an institution for higher education or a health care provider and for the bonds issued to finance a particular project, and may, additionally, permit and provide for the issuance of bonds having a subordinate lien in respect of the security authorized in this chapter to other bonds of the corporation and, in that case, the corporation may create separate sinking or other similar funds in respect of the subordinate lien bonds.

(b) In connection with any education loan program, the corporation shall fix, revise, charge, and collect fees, and is empowered to contract with any person, partnership, association, or corporation, or other body, public or private, in this respect. Each agreement entered into by the corporation with a participating institution or institutions for higher education shall provide that the fees and other amounts payable by the institution or institutions with respect to any program or programs of the corporation are sufficient: (1) to pay its or their 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 bonds or notes of the corporation issued in respect of the program to the extent that other revenues of the corporation pledged for the payment of the bonds or notes are insufficient to pay the bonds or notes 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 bonds or notes of the corporation; and (4) to establish and maintain whatever education loan servicing, control, or audit procedures are deemed necessary to the operations of the corporation.

The corporation shall pledge the revenues from each program, as described in § 45-38.1-9(d)(1), as security for the issue of bonds or notes relating to the program. The pledge is valid and binding from the time when the pledge is made; the revenues so pledged by the corporation shall immediately be subject to the lien of the pledge without any physical delivery 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 corporation or any participating institution for higher education, whether the parties have notice. Neither the bond resolution nor any financing statement, continuation statement, or other instrument by which a pledge or security interest is created or by which the corporation's interest in revenues is assigned need be filed in any public records in order to perfect the security interest or lien against third parties, except in the records of the corporation. The use and disposition of monies to the credit of a sinking or other similar fund are subject to the provisions of the resolution authorizing the issuance of the bonds or notes or of the trust agreement. Except as provided in the resolution, or the trust agreement, the sinking or other similar fund shall be a fund for all revenue bonds or notes issued to finance an educational program or programs at one or more participating institutions for higher education, without distinction or priority of one over another; provided, that the corporation in the resolution or trust agreement may provide that the sinking or other similar fund is the fund for a particular educational program or programs at a participating institution or institutions for higher education and for the revenue bonds or notes issued to finance a particular educational program or programs, and may, additionally, permit and provide for the issuance of revenue bonds or notes having a subordinate lien in respect of the security authorized in this chapter, to other revenue bonds or notes of the corporation and, in that case, the corporation may create separate or other similar funds in respect of the subordinate lien bonds or notes.

History of Section. (P.L. 1967, ch. 56, § 1; P.L. 1968, ch. 224, § 2; P.L. 1982, ch. 301, § 6; P.L. 1991, ch. 292, § 1.)