1. (a) In connection with any lease entered into between the authority and any nonprofit college or university, the authority shall fix, revise, charge, and collect rents for the use of each project and contract with any person, partnership, association, limited liability company, or corporation, or other body, public or private, in respect thereof.

2. (b) Each lease entered into by the authority with a nonprofit college or university must provide that the rents or other money payable by the nonprofit college or university is sufficient at all times:

   1. (1) to pay the private institution's share of the administrative costs and expenses of the authority;
   2. (2) to pay the principal of the premium, if any, and the interest on outstanding bonds of the authority issued in respect of the project as the bonds become due and payable; and
   3. (3) to create and maintain reserves that may be required or provided for in the bond resolution relating to the bonds of the authority.
3. (c) The authority shall pledge the revenues derived and to be derived from a project for the purposes specified in subsection (b).
4. (d) Additional bonds may be issued that rank on a parity with other bonds relating to the project to the extent and on the terms and conditions provided in the bond resolution.
5. (e) A pledge is valid and binding from the time the pledge is made. The revenues pledged by the authority are immediately subject to the lien of a pledge without any physical delivery of the pledge document or further act. The lien of a pledge is valid and binding against all parties having claims of any kind in tort or contract or otherwise against the authority, irrespective of whether the parties have notice of the lien.

6. (f) Neither the bond resolution nor any financing statement, continuation statement, or other instrument by which a pledge is created or by which the authority's interest in revenues is assigned need be filed or recorded in public records to perfect the lien created by a pledge of revenues by the authority as against third parties, except that a copy of the pledge document must be filed in the records of the authority and with the treasurer of state.

   [Pre-2007 Higher Education Recodification Citation: 20-12-63-18.]

As added by P.L.2-2007, SEC.69.