13-51A-20. Additional covenants for security of bonds.
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 with or for the benefit of the holder or holders of bonds issued under this chapter as to all matters deemed advisable by the board, including:
(1)The purposes, terms, and conditions for the issuance of additional parity or junior lien bonds that may thereafter be issued, and for the payment of the principal, redemption premiums, and interest on such bonds.
(2)The kind and amount of all insurance to be carried, the cost of which shall be charged as an operation and maintenance expense of any project.
(3)The operation, maintenance, and management of any project to assure the maximum use and occupancy thereof; the accounting for, and the auditing of, all income revenue from, and all expenses of, any project; the employment of engineers and consultants; and the keeping of records, reports, and audits of any project.
(4)The obligation of the board to maintain any project in good condition and to operate the same at all times in an economical and efficient manner.
(5)The terms and conditions for creating and maintaining debt service funds, reserve funds, and such other special funds as may be created in the resolution authorizing said bonds, separate and apart from all other funds and accounts of said board and said institution.
(6)The procedure by which the terms of any contract with the holders of the bonds may be amended, the amount of bonds the holders of which must consent thereto, and the manner in which consent may be given.
(7)Providing the procedure for refunding such bonds.
(8)Such other covenants as may be deemed necessary or desirable to assure a successful operation of any project and the prompt payment of the principal of and interest upon the bonds so authorized.
Source: SL 1971, ch 134, ยง5, subdiv 4.
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.