13-51A-18. Covenant against debt or charge endangering income pledged to bond retirement.
In connection with the issuance of any bonds under this chapter, and in order to secure the payment of any such bonds and the interest thereon, the board shall have the power for each such institution to covenant that so long as any of the bonds issued under this chapter shall remain outstanding and unpaid, it will not, except upon such terms and conditions as may be determined, voluntarily create or cause to be created any debt, lien, mortgage, pledge, assignment, encumbrance, or other charge having priority to the lien of the bonds issued under this chapter upon any of the income and revenues derived from:
(1)All fees, rentals, and other charges from students, staff members, and others using or being served by, or having the right to use or the right to be served by, or to operate, any project;
(2)All health, hospital, medical, laboratory, admission, student activities, student services, and all other fees collected from students matriculated, registered, or otherwise enrolled at and attending each such institution; and
(3)All rentals from any facility or building leased to the United States of America.
Source: SL 1971, ch 134, ยง5, subdiv 6 (i).
Structure South Dakota Codified Laws
Chapter 51A - Board Of Regents Revenue Bonds
Section 13-51A-1 - Definition of terms.
Section 13-51A-2 - Power to acquire property.
Section 13-51A-3 - Power to accept grants.
Section 13-51A-4 - Borrowing power of board.
Section 13-51A-5 - Interim notes authorized--Purposes.
Section 13-51A-6 - Terms of interim notes--Maturity date--Extension.
Section 13-51A-7 - Security for payment of interim notes--Sources of payment.
Section 13-51A-8 - Additional provisions to make interim notes salable.
Section 13-51A-9 - Registration of interim notes--Interest payments--Redemption.
Section 13-51A-10 - Execution of interim notes.
Section 13-51A-11 - Sale of interim notes.
Section 13-51A-12 - Payment of interim notes on issuance of bonds.
Section 13-51A-13 - Power to issue bonds--Purposes--Resolution--Signatures.
Section 13-51A-14 - Terms of bonds.
Section 13-51A-15 - Pledge of income for security of bonds.
Section 13-51A-16 - Rights of prior bondholders protected.
Section 13-51A-17 - Covenant to maintain adequate income for bond retirement.
Section 13-51A-18 - Covenant against debt or charge endangering income pledged to bond retirement.
Section 13-51A-19 - Covenant against alienation of project so as to endanger bond security.
Section 13-51A-20 - Additional covenants for security of bonds.
Section 13-51A-21 - Trustee for bondholders--General powers--Trust agreement.
Section 13-51A-22 - Covenants to take actions for benefit of bondholders.
Section 13-51A-23 - Prohibition against obligating state.
Section 13-51A-24 - Limited obligation of bonds.
Section 13-51A-25 - Recording not required to perfect lien.
Section 13-51A-27 - Sale of bonds--Minimum price.
Section 13-51A-28 - Negotiability of bonds.
Section 13-51A-29 - Bonds as legal investments.
Section 13-51A-30 - Deposit of bond proceeds and revenues--Security--Disbursement.
Section 13-51A-31 - Agreements as to custody of funds.
Section 13-51A-32 - Actions for enforcement of chapter and resolutions.
Section 13-51A-33 - Power to issue refunding bonds for matured obligations.
Section 13-51A-35 - Power to issue refunding bonds for unmatured obligations.
Section 13-51A-36 - Exchange or sale of refunding bonds--Use of proceeds.
Section 13-51A-37 - Contracts and leases to carry out purposes.
Section 13-51A-38 - Parietal rules.
Section 13-51A-39 - Establishment and collection of fees.
Section 13-51A-40 - Retention of revenues by board.
Section 13-51A-41 - Accounting for project financing--Audits.
Section 13-51A-42 - Supplemental nature of chapter--Conflicting provisions.