HARRY HUGHES, Governor

2649

(I) THE DEPOSITS OF CERTAIN MONEYS, ENDOWMENTS,
OR PROPERTIES BY PARTICIPATING INSTITUTIONS OR LENDING
INSTITUTIONS SO AS TO PROVIDE REASONABLE SECURITY FOR EDUCATION
LOANS FUNDING PROGRAMS, AUTHORITY LOANS, EDUCATION LOANS OR FOR
BONDS; AND

(II) GUARANTEES OF OR CONTRACTS TO PURCHASE
EDUCATION LOANS OR BONDS BY LENDING INSTITUTIONS, PARTICIPATING
INSTITUTIONS OR BY FINANCIAL INSTITUTIONS OR OTHERS.

(2) A DEFAULT RESERVE FUND MAY BE ESTABLISHED FOR ANY
SERIES OR ISSUE OF BONDS.

(B) (1) THE AUTHORITY MAY RECEIVE MONEYS, ENDOWMENTS,
PROPERTIES, AND GUARANTEES AS IT DETERMINES APPROPRIATE AND, IF
NECESSARY, TAKE TITLE IN THE NAME OF THE AUTHORITY OR IN THE NAME
OF A LENDING INSTITUTION, A PARTICIPATING INSTITUTION, OR A
TRUSTEE.

(2) WHEN THE PRINCIPAL OF AND INTEREST ON BONDS OF
THE AUTHORITY ISSUED TO FINANCE THE COST OF ANY EDUCATION LOAN
FINANCING PROGRAM OR PROGRAMS, INCLUDING ANY REFUNDING BONDS
ISSUED TO REFUND OR REFINANCE ANY BONDS, HAVE BEEN FULLY PAID AND
RETIRED OR WHEN ADEQUATE PROVISION HAS BEEN MADE TO FULLY PAY AND
RETIRE THE BONDS, AND ALL OTHER CONDITIONS OF THE BOND RESOLUTION
AUTHORIZING THE BONDS HAVE BEEN SATISFIED AND THE LIEN CREATED BY
THE BOND RESOLUTION HAS BEEN RELEASED IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION, THE AUTHORITY SHALL PROMPTLY DO THE
THINGS AND EXECUTE THE DEEDS AND CONVEYANCES NECESSARY AND
REQUIRED TO CONVEY ANY REMAINING MONEYS, PROPERTIES AND OTHER
ASSETS COMPRISING LOAN FUNDING DEPOSITS TO THE LENDING
INSTITUTIONS AND THE PARTICIPATING INSTITUTIONS IN PROPORTION TO
THE AMOUNTS FURNISHED BY THE RESPECTIVE INSTITUTIONS.

31-108.

(A) (1) THE AUTHORITY MAY AT ANY TIME AND FROM TIME TO TIME
ISSUE BONDS FOR ANY CORPORATE PURPOSE.

(2) THE BONDS OF EACH ISSUE SHALL BE PAYABLE SOLELY
OUT OF REVENUES OF THE AUTHORITY, INCLUDING, WITHOUT LIMITATION:

(I)  PRINCIPAL AND INTEREST ON AUTHORITY LOANS
AND EDUCATION LOANS;

(II)  PAYMENTS BY LENDING INSTITUTIONS,
PARTICIPATING INSTITUTIONS, BANKS, INSURANCE COMPANIES OR OTHERS
PURSUANT TO LETTERS OF CREDIT OR PURCHASE AGREEMENTS;

(III)  INVESTMENT EARNINGS FROM FUNDS OR
ACCOUNTS MAINTAINED PURSUANT TO A BOND RESOLUTION OR TRUST
AGREEMENT;

(IV)  INSURANCE PROCEEDS;