MARVIN MANDEL, Governor

1115

COMPANIES IN THE DISCHARGE OF DUTIES UNDER THIS SECTION;

(5)     PROVISIONS ESTABLISHING AND CONTROLLING
ALL ASPECTS OF RESERVE FUNDS, INCLUDING DEBT SERVICE
RESERVE FUNDS;

(6)     PROVISIONS FOR FUNDING OR REFUNDING
BONDS OR NOTES, INCLUDING REDEMPTION PREMIUMS AND
INTEREST;

(7) ANY OTHER PROVISIONS DEEMED REASONABLE
AND PROPER FOR THE SECURITY OF BONDHOLDERS OR
NOTEHOLDERS.

(M) ANY PLEDGE MADE BY THE ADMINISTRATION IS VALID
AND BINDING FROM THE TIME THE PLEDGE IS MADE. THE LIEN
OF THE PLEDGE ATTACHES IMMEDIATELY TO REVENUES OR
PROPERTY SO PLEDGED AND THEREAFTER RECEIVED BY THE
ADMINISTRATION, WITHOUT ANY PHYSICAL DELIVERY OR FURTHER
ACT, AND IS VALID AND BINDING AGAINST ALL PERSONS HAVING
CLAIMS OF ANY KIND AGAINST THE ADMINISTRATION,
IRRESPECTIVE OF WHETHER THOSE PERSONS HAVE NOTICE OF THE
PLEDGE, AND WITHOUT RECORDING OR FILING THE DETERMINATION
OR ANY OTHER INSTRUMENT.

(N) THE ADMINISTRATION, SUBJECT TO ANY EXISTING
AGREEMENTS WITH NOTEHOLDERS OR BONDHOLDERS, SHALL HAVE
POWER TO PURCHASE NOTES OR BONDS OF THE ADMINISTRATION
OUT OF ANY FUNDS AVAILABLE THEREFOR. THE NOTES OR BONDS
SHALL THEREUPON BE CANCELLED, AT A PRICE NOT EXCEEDING:

(1)     IF THE NOTES OR BONDS ARE THEN
REDEEMABLE, THE REDEMPTION PRICE THEN APPLICABLE PLUS
ACCRUED INTEREST TO THE NEXT INTEREST PAYMENT DATE
THEREON, OR

(2)     IF THE NOTES OR BONDS ARE NOT THEN
REDEEMABLE, THE REDEMPTION PRICE APPLICABLE ON THE FIRST
DATE AFTER THE PURCHASE UPON WHICH THE NOTES OR BONDS
BECOME SUBJECT TO REDEMPTION PLUS ACCRUED INTEREST TO
SUCH DATE.

(O) BONDS OR NOTES ISSUED UNDER THIS SECTION ARE
SECURITIES IN WHICH ALL PUBLIC OFFICER AND PUBLIC UNITS
OF THE STATE AND ITS POLITICAL SUBDIVISIONS AND ALL
BANKS, TRUST COMPANIES, SAVINGS AND LOAN ASSOCIATIONS,
INVESTMENT COMPANIES, AND OTHERS CARRYING ON A BANKING
BUSINESS, ALL INSURANCE COMPANIES, INSURANCE
ASSOCIATIONS, AND OTHERS CARRYING ON AN INSURANCE
BUSINESS, ALL PERSONAL REPRESENTATIVES, GUARDIANS,
TRUSTEES, AND OTHER FIDUCIARIES, AND ALL OTHER PERSONS
MAY LEGALLY AND PROPERLY INVEST FUNDS, INCLUDING CAPITAL
IN THEIR CONTROL OR BELONGING TO THEM. THE BONDS ARE
SECURITIES WHICH MAY PROPERLY AND LEGALLY BE DEPOSITED