HARRY HUGHES, Governor

2831

charges, and other revenues derived from auxiliary facilities
which have been assigned or pledged as security for the bonds,
except the part necessary to pay the cost of maintaining,
equipping, repairing, and operating the auxiliary facilities and
to provide reserves as provided for in the resolution authorizing
the issuance of the bonds or in the trust agreement securing
them, shall be set aside at regular intervals in a sinking fund
which is hereby pledged to, and charged with, the payment of:
(1) the interest upon the bonds when due, (2) the principal of
the bonds when due, (3) the necessary charges of paying agents
for paying principal and interest, and (4) the redemption price
or 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 made. Auxiliary facilities
fees and other revenues or other moneys so pledged and thereafter
received by the University are immediately subject to the lien of
the pledge without any physical delivery or further act, and the
lien of any pledge of auxiliary facilities fees and other
revenues or other moneys and the rights to receive the same is
valid and binding against all parties having any claims of any
kind in tort, contract, or otherwise against the University,
irrespective of whether such parties have notice thereof.
Neither the resolution nor any trust agreement by which a pledge
is created need be filed or recorded except in the records of the
University. The use and disposition of moneys to the credit of
the sinking fund or other funds or accounts established under the
resolution or trust agreement are subject to the provisions of
the resolution authorizing the issuance of the bonds or of the
trust agreement.

Notwithstanding any provision of this section, the
University may, by resolution passed prior to the issuance of
bonds under the provisions of this Act or in the trust agreement
securing the bonds, covenant to pay all or any part of the cost
of maintaining, equipping, repairing, and operating any auxiliary
facilities. Each covenant has the force of contract between the
University and the holders of the bonds issued on account of the
project or projects.

6.

All moneys received by the University as proceeds from the
sale of bonds authorized by this Act, and all moneys received by
the University by way of auxiliary facilities fees which are
assigned or pledged as security for the bonds shall be deemed to
be trust funds to be held and applied as provided by the
provisions of this Act.

7.

The exercise of the powers granted by the provisions of this
Act shall be for the benefit of the people of the State, for the
increase of their education and prosperity, and for the
improvement of their health, living conditions, and general
welfare. The operation and maintenance of auxiliary facilities