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renewal notes.__The bonds may be issued through the Maine Health | | and Higher Education Facilities Authority.__The board of trustees | | may pledge or assign its revenues, including any funds that have | | been or may be appropriated to the system, and the proceeds of | | those revenues and its other property as security toward its bonds, | | notes, other evidences of indebtedness or other obligations of the | | system.__The proceeds of bonds, notes or other evidences of | | indebtedness may be invested in accordance with subsection 8.__ | | Bonds, notes and other evidences of indebtedness issued under this | | subsection are not debts of the State, nor a pledge of the credit | | of the State, but are payable solely from the funds of the system.__ | | Indebtedness incurred and evidences of indebtedness issued under | | this chapter constitute a proper public purpose, and all income | | derived is exempt from taxation in the State.__The net earnings of | | the system may not inure to the benefit of any private person, and | | no borrowing may be effected pursuant to this chapter unless the | | amount of the borrowing and the project or projects are submitted | | to the Office of Fiscal and Program Review for review by the joint | | standing committee of the Legislature having jurisdiction over | | appropriations and financial affairs at least 60 days before | | closing on such borrowing for the project or projects is to be | | initiated. |
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| | | Sec. 4. 22 MRSA §2053, sub-§4-B, ķA, as enacted by PL 1993, c. 706, Pt. | | A, §5, is amended to read: |
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| | | A. Any private, nonprofit or charitable institution or | | organization engaged in the operation of, or formed for the | | purpose of operating, an educational institution within this | | State, including the Maine Technical College System, that, | | by virtue of law or charter, is an educational institution | | empowered to provide a program of education beyond the high | | school level; and |
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| | | This bill gives the Maine Technical College System ongoing | | authority to issue up to $35,000,000 in bonds and notes. These | | borrowings do not constitute debts or liabilities of the State | | and do not pledge the credit of the State. Debt service payments | | are to be made solely from the funds of the Maine Technical | | College System. Any future requests for funding made to the | | State by the Maine Technical College System may include debt | | service payments. However, no special obligation is imposed on | | the State to fund such requests. |
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| | | Under current law, the University of Maine System has the | | authority to issue revenue bonds up to $100,000,000 and the Maine | | Maritime Academy has the authority to incur debt up to | | $4,000,000. These statutes enable the university and academy to | | improve their facilities without pledging the credit of the | | State. This bill authorizes the Maine Technical College System | | to issue up to $35,000,000 in revenue bonds and to issue bonds | | through the Maine Health and Higher Education Facilities | | Authority. |
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