WILLIAM DONALD SCHAEFER, Governor                      Ch. 93

INSURANCE, RESERVE FUND INSURANCE, LETTER OF CREDIT, LINE OF
CREDIT, OR OTHER FORM OF ADDITIONAL, SUBSTITUTE, OR REPLACEMENT
SECURITY. ANY SUCH AGREEMENTS AND CONTRACTS MAY CONTAIN SUCH
COVENANTS, TERMS, AND CONDITIONS AS MAY BE CONTAINED IN ANY TRUST
AGREEMENT FOR ANY BONDS.

19-104.

(a)  Any bonds issued under the provisions of this title may
be secured by a trust agreement between a system and a corporate
trustee, which may be any trust company or bank having the powers
of a trust company within or without the State.

(b)  Any trust agreement may pledge or assign [the income,
fees, rents, charges, and other revenues to be received from the
use of auxiliary facilities] ALL OR ANY PART OF A SYSTEM'S
EDUCATIONAL AUXILIARY FACILITIES FEES AND ACADEMIC FEES.

(c)  Any trust agreement or any resolution providing for the
issuance of bonds may contain provisions for protecting and
enforcing the rights and remedies of the bondholders reasonable
and proper and not in violation of law, including covenants which
shall include but not be limited to:

(1)  The duties of [the System] A SYSTEM in relation
to the acquisition of property, and the construction,
improvement, maintenance, repair, operation, use, and insurance
of any [auxiliary] EDUCATIONAL facilities AUXILIARY FACILITIES OR
ANY ACADEMIC FACILITIES AUTHORIZED UNDER THE REQUIREMENTS OF THIS
TITLE;

(2)  The duties of [the System] A SYSTEM in relation
to [auxiliary facilities fees] EDUCATIONAL AUXILIARY FACILITIES
FEES AND ACADEMIC FEES;

(3)  The custody, safeguarding, and application of
all moneys;

(4)  Provisions for the employment of independent
consultants in connection with the construction or operation of
the [auxiliary] EDUCATIONAL facilities AUXILIARY FACILITIES OR
ANY ACADEMIC FACILITIES AUTHORIZED UNDER THE REQUIREMENTS OF THIS
TITLE and requirements that [the System] A SYSTEM follow the
recommendation of such independent consultants; and

(5)  Provisions in the nature of rate covenants
requiring the establishment and revision of [fees, rents,
charges, or revenues] EDUCATIONAL AUXILIARY FACILITIES FEES AND
ACADEMIC FEES at certain levels or in accordance with procedures
set forth therein OR REQUIRING THE MAINTENANCE OF EXPENSES AT
CERTAIN LEVELS OR IN ACCORDANCE WITH PROCEDURES SET FORTH
THEREIN.

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