LD 1625
pg. 5
Page 4 of 10 An Act To Provide Affordable Loans for Higher Education Page 6 of 10
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LR 2152
Item 1

 
F.__Establishing loan funding deposits, debt service
reserves, capitalized interest accounts, cost of issuance
accounts and sinking funds and other accounts and their
regulation, investment and disposition;

 
G.__Providing for the issuance of additional bonds and
refunding__bonds;

 
H.__Defining the acts or omissions that constitute a default
in the duties of the authority of its obligations to
bondholders and providing the rights or remedies of such
bondholders in the event of a default;

 
I.__Providing for guarantees, letters of credit, lines of
credit, insurance policies, surety bonds, purchase
agreements or similar instruments or other security for the
benefit of the bondholders;

 
J.__Providing for interest rate or exchange agreements; and

 
K.__Any other matter relating to the bonds that the
authority determines appropriate.

 
2.__Credit not pledged.__Bonds issued under this chapter do
not constitute or create any debt or liability on behalf of the
State or of any political subdivision of the State or the
authority, a loan of the credit of the State or a pledge of the
faith and credit of the State or of any political subdivision of
the State or the authority, but are payable solely from the funds
provided for those bonds.__All the bonds must contain a statement
to the effect that the State, any political subdivision of the
State or the authority is not obligated to pay the bonds or the
interest on the bonds, except from funds provided for those bonds
pursuant to one or more agreements, and that neither the faith
and credit nor the taxing power of the State or of any political
subdivision of the State is pledged to the payment of the
principal of, premium, if any, or the interest on such bonds.__
The issuance of bonds under this chapter does not directly or
indirectly or contingently obligate the State or any political
subdivision of the State to levy or to pledge any form of
taxation whatever or to make any appropriation for the bonds'
payment.

 
3.__Liability of members.__A member or employee of the
authority or any person executing the bonds may not be held
liable personally on the bonds or subject to any personal
liability by reason of the issuance of the bonds.

 
4.__Interest rate exchange agreements.__In connection with, or
incidental to, the issuance or carrying of bonds issued under


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