§ 116-41.5. Contents of resolution authorizing issuance; powers liberally construed; deposit and use of revenues; rights and remedies of bondholders; service charges; insurance of projects; depositari
§ 116‑41.5. Contents of resolution authorizing issuance; powers liberally construed;deposit and use of revenues; rights and remedies of bondholders; servicecharges; insurance of projects; depositaries.
The Board in the resolution authorizing the issuance of bonds underthis Part may provide for a pledge to the payment of such revenue bonds andthe interest thereon of the revenue derived from the project and also for apledge of the revenues derived from any system, facility, plant, works,instrumentalities or properties improved, bettered, or extended by the projector otherwise within the jurisdiction of or operated by the University inconnection with the University of North Carolina at Chapel Hill, NorthCarolina, the revenues derived from any future improvements, betterments orextensions of the project, the revenues derived from the UniversityEnterprises, or any part thereof, or the revenues from the project and any orall of the revenues mentioned in this sentence, without regard to whether the operationsinvolved are deemed governmental or proprietary, it being the purpose hereof tovest in the Board broad powers which shall be liberally construed. So long asany revenues of the University mentioned in this paragraph are pledged for thepayment of the principal of or interest on any bonds issued hereunder, suchrevenues shall be deposited in a special fund and shall be applied and usedonly as provided in the resolution authorizing such bonds, subject, however, toany prior pledge or encumbrance thereof.
The resolution authorizing the issuance of the bonds may containprovisions for protecting and enforcing the rights and remedies of the holdersof the bonds, including covenants setting forth the duties of the University inrelation to the construction of any project to be financed with the proceeds ofsaid bonds, and to the maintenance, repair, operation and insurance of suchproject or any other project, systems, facilities, plants, works,instrumentalities, properties, the University Enterprises or any part thereof,if the revenues thereof are in any way pledged as security for the bonds; thefixing and revising of service charges and the collection thereof; and thecustody, safeguarding and application of all moneys of the Universitypertaining to the project and the bonds, and all revenues pledged therefor.Notwithstanding the provisions of any other law, the Board may carry insuranceon any such project in such amounts and covering such risks as it may deemadvisable. It shall be lawful for any bank or trust company incorporated underthe laws of the State of North Carolina which may act as depositary of theproceeds of bonds or of revenues to furnish such indemnifying bonds or topledge such securities as may be required by the Board. Such resolution may setforth the rights and remedies of the bondholders and may restrict theindividual right of action by bondholders. Such resolution may contain suchother provisions in addition to the foregoing as the Board may deem reasonableand proper for the security of the bondholders.
The Board may provide for the payment of the proceeds of the bonds andany revenues pledged therefor to such officer, board or depositary as it maydesignate for the custody thereof, and for the method of disbursement thereof,with such safeguards and restrictions as it may determine. All expensesincurred in carrying out the provisions of such resolution may be treated as apart of the cost of operation. (1961, c. 1078, s. 5; 1971, c. 1244, s. 15.)