§ 13-51A-18 Covenant against debt or charge endangering income pledged to bond retirement.

SD Codified L § 13-51A-18 (2019) (N/A)

Copy with citation

Copy as parenthetical citation

13-51A-18. Covenant against debt or charge endangering income pledged to bond retirement. In connection with the issuance of any bonds under this chapter, and in order to secure the payment of any such bonds and the interest thereon, the board shall have the power for each such institution to covenant that so long as any of the bonds issued under this chapter shall remain outstanding and unpaid, it will not, except upon such terms and conditions as may be determined, voluntarily create or cause to be created any debt, lien, mortgage, pledge, assignment, encumbrance, or other charge having priority to the lien of the bonds issued under this chapter upon any of the income and revenues derived from:

(1) All fees, rentals, and other charges from students, staff members, and others using or being served by, or having the right to use or the right to be served by, or to operate, any project;

(2) All health, hospital, medical, laboratory, admission, student activities, student services, and all other fees collected from students matriculated, registered, or otherwise enrolled at and attending each such institution; and

(3) All rentals from any facility or building leased to the United States of America.Source: SL 1971, ch 134, § 5, subdiv 6 (i).

Previous Section

§ 13-51A-17 Covenant to maintain adequate income for bond retirement.

Next Section

§ 13-51A-19 Covenant against alienation of project so as to endanger bond security.