2023 Nevada Revised Statutes › Chapter 396 - Nevada System of Higher Education › NRS 396.862 - Covenants and other provisions in bonds and other securities.

Any resolution providing for the issuance of any bonds or other securities hereunder payable from pledged revenues and any indenture or other instrument or proceedings appertaining thereto may at the discretion of the Board contain covenants or other provisions, notwithstanding such covenants and provisions may limit the exercise of powers conferred hereby, in order to secure the payment of such securities, in agreement with the holders of such securities, including without limitation covenants or other provisions as to any one or more of the following:
1. The pledged revenues to be fixed, charged or levied and the collection, use and disposition thereof, including but not limited to the foreclosure of liens for delinquencies, the discontinuance of services, facilities or use of any properties or facilities, prohibition against free service, the collection of penalties and collection costs, and the use and disposition of any moneys of the University or the Board, derived or to be derived, from any source herein designated;
2. The acquisition, improvement or equipment of all or any part of properties pertaining to any project or any facilities;
3. The creation and maintenance of reserves or sinking funds to secure the payment of the principal of and interest on any securities or of operation and maintenance expenses of any facilities, or part thereof, and the source, custody, security, regulation, use and disposition of any such reserves or funds, including but not limited to the powers and duties of any trustee with regard thereto;
4. A fair and reasonable payment by the University or the Board from the general fund of the University or the Board or other available moneys to the account of any designated facilities for services rendered thereby to the University or the Board;
5. The payment of the cost of any project by delineating the purpose or purposes to which the proceeds of the sale of securities may be applied, and the custody, security, use, expenditure, application and disposition thereof;
6. The application of any accrued interest and any premium from the sale of any bonds or other securities hereunder to the cost of a project, to any bond fund or other fund or account for the payment of interest on or the principal of the bonds or other securities, or both interest and principal, or to any reserve fund or account therefor, or any combination thereof;
7. The registration of the bonds or other securities for payment as to principal only, or as to both principal and interest, at the option of any holder of a bond or other security, or for registration for payment only in either manner designated;
8. The endorsement of payments of interest on the bonds or other securities or for reconverting the bonds or other securities into coupon bonds or other coupon securities, or both for such endorsement and such reconversion, where any bond or other security is registered for payment as to interest; and where interest accruing on the securities is not represented by interest coupons the securities may provide for the endorsing of payments of interest thereon;
9. The endorsement of payments of principal on the bonds or other securities, where any bond or other securities are registered for payment as to principal;
10. The initial issuance of one or more bonds or other securities aggregating the amount of the entire issue or any portion thereof, and the endorsement of payments of interest or principal, or both interest and principal, on the securities;
11. The manner and circumstances in and under which any such bond or other securities may in the future, at the request of the holder thereof, be converted into bonds or other securities of larger or smaller denominations, which bonds or other securities of larger or smaller denominations may in turn be either coupon bonds or other coupon securities or bonds or other securities registered for payment, or coupon bonds or other coupon securities with provisions for registration for payment;
12. The reissuance of any outstanding bond or other securities, and the terms and conditions thereof, whether lost, apparently destroyed, wrongfully taken, or for any other reason, as provided in the Uniform Commercial Code—Investment Securities, or otherwise;
13. The temporary investment and any reinvestment of proceeds of bonds or other securities or pledged revenues, or both such proceeds and revenues, in federal securities;
14. The deposit of moneys or federal securities, or both moneys and such securities, with and securing their repayment by a commercial bank or commercial banks within or without or both within and without this state;
15. The pledge of and the creation of a lien upon pledged revenues or the proceeds of bonds or other securities pending their application to defray the cost of any project, or both such revenues and proceeds of securities, to secure the payment of bonds or other securities issued hereunder;
16. The payment of the principal of and interest on any securities, and the sources and methods thereof, the rank or priority of any securities as to any lien or security for payment, or the acceleration of any maturity of any securities, or the issuance of other or additional securities payable from or constituting a charge against or lien upon any pledged revenues or other moneys pledged for the payment of securities and the creation of future liens and encumbrances thereagainst;
17. The use, regulation, inspection, management, operation, maintenance or disposition, or any limitation or regulation of the use, of all or any part of the facilities or any property of the Board or University; and the making and enforcement of reasonable parietal rules that shall insure the use of the facilities by all students in attendance at the University who reside on the campus of the University, or otherwise, to the maximum extent to which the facilities are capable of serving such students;
18. The determination or definition of pledged revenues from any facilities or of operation and maintenance expenses of facilities, the use and disposition of such revenues and the manner of and limitations upon paying such expenses;
19. The creation of special funds and accounts appertaining to any pledged revenues or to the bonds or other securities issued hereunder;
20. The insurance to be carried by the University or the Board or any other person in interest and use and disposition of insurance moneys, the acquisition of completion, performance, surety and fidelity bonds appertaining to any project or funds, or both, and the use and disposition of any proceeds of such bonds;
21. Books of account, the inspection and audit thereof, and other records appertaining to any project, facilities or pledged revenues;
22. The assumption or payment or discharge of any obligation, lien or other claim relating to any part of any project, any facilities, or any securities having or which may have a lien on any part of any pledged revenues or other moneys of the Board or University;
23. Limitations on the powers of the University or the Board to acquire or operate, or permit the acquisition or operation of, any structures, facilities or properties which may compete or tend to compete with any facilities;
24. The vesting in a corporate or other trustee or trustees such property, rights, powers and duties in trust as the Board may determine which may include any or all of the rights, powers and duties of the trustee appointed by the holders of securities, and limiting or abrogating the right of such holders to appoint a trustee, or limiting the rights, duties and powers of such trustee;
25. The payment of costs or expenses incident to the enforcement of the securities or of the provisions of the resolution or of any covenant or contract with the holders of the securities;
26. Events of default, rights and liabilities arising therefrom, and the rights, liabilities, powers and duties arising upon the breach by the University or the Board of any covenants, conditions or obligations;
27. The terms and conditions upon which the holders of the securities or any portion, percentage or amount of them may enforce any covenants or provisions made hereunder or duties imposed thereby;
28. The terms and conditions upon which the holders of the securities or of a specified portion, percentage or amount thereof, or any trustee therefor, shall be entitled to the appointment of a receiver, which receiver may enter and take possession of any facilities or service, operate and maintain the same, prescribe fees, rates and charges, and collect, receive and apply all revenues thereafter arising therefrom in the same manner as the Board itself might do;
29. A procedure by which the terms of any resolution authorizing securities, or any other contract with any holders of securities, including but not limited to an indenture of trust or similar instrument, may be amended or abrogated, and as to the amount of securities the holders of which must consent thereto, and the manner in which such consent may be given;
30. The terms and conditions upon which any or all of the securities shall become or may be declared due before maturity, and as to the terms and conditions upon which such declaration and its consequences may be waived; and
31. All such acts and things as may be necessary or convenient or desirable in order to secure the securities, or in the discretion of the Board tend to make the securities more marketable, notwithstanding that such covenant, act or thing may not be enumerated herein, it being the intention hereof to give the Board power to do all things in the issuance of the University’s or the Board’s securities and for their security except as herein expressly limited.
(Added to NRS by 1967, 13; A 1971, 2122)