New Mexico Administrative Code › Title 5 - POST-SECONDARY EDUCATION › Chapter 3 - POST-SECONDARY EDUCATION INSTITUTION FINANCES › Part 7 - BUILDING AND IMPROVEMENT BONDS › Section 5.3.7.8 - REVIEW CRITERIA

Current through Register Vol. 35, No. 13, July 16, 2024
A. The
				state educational institutions clearly have statutory authority to borrow
				money.
(1) Sections
				6-13-1 through
				6-13-26
				NMSA 1978 authorizes each of the governing boards to issue and sell bonds for
				the purpose of erecting, purchasing or otherwise acquiring, altering, improving
				furnishing and equipping any necessary buildings or structures or acquiring any
				necessary land. Permanent fund income and income from the lease of the
				institutions lands may be pledged as security for the repayment of the bonds.
				Board of finance approval is required prior to the issuance and sale of bonds.
				Board of finance policy requires higher education department approval prior to
				their consideration of any matter related to higher education.
(2) Section
				6-17-1
				through
				6-17-13
				NMSA 1978 authorizes the boards of regents of each of the state educational
				institutions to borrow money for the purpose of purchasing, erecting, altering,
				improving, repairing furnishing and/or the equipping of any income-producing
				dormitory, auditorium, dining hall, refectory, stadium, swimming pool, or any
				type of building including classroom buildings and administration buildings.
				For income-producing projects, the board of regents shall impose charges and
				student fees in the amount needed to retire the debt plus enough to operate and
				maintain the facility. Approval by the board of finance is required.
(3) Section
				6-17-14
				allows the pledge of additional revenues including the net income from all
				auxiliary facilities, land and permanent fund income, and lease and rental
				income.
(4) Various articles in
				Section 21 grant each individual board of regents authority to borrow money
				through the issuance and sale of bonds. For example, Section
				21-7-13
				NMSA 1978 states: That for the purpose of erecting, altering, improving,
				furnishing or equipping any necessary buildings at the university of New Mexico
				at Albuquerque, or for acquiring any necessary land for the use of said
				university, or for retiring the whole or any part of any series of bonds
				previously issued under the provisions hereof, or for any of such purposes, the
				board of regents of the university of New Mexico is hereby authorized to borrow
				money in conformity with the terms of this act (Sections
				21-7-13
				to
				21-7-25
				NMSA 1978).
(5) Section
				21-7-19
				describes the income pledged for redemption of building and improvement bonds
				as follows: "For the faithful and prompt payment of all interest and principal
				of said bonds as and when the same shall mature according to the tenor thereof,
				the issue thereof shall constitute an irrevocable pledge by said board of so
				much of each year's income from the permanent fund of the university of New
				Mexico in the hands of the treasurer of this state, as shall be necessary to
				provide the interest and retirement fund herein mentioned, for the ensuing
				year, and to at all times fully and faithfully keep the same in not less than
				the amount necessary to pay the interest and principal maturing as aforesaid;
				and in addition thereto the issue of said bonds shall constitute an irrevocable
				pledge by said board of so much of each year's income from the income and
				current fund derived from the lease of such of its lands as remain unsold, as
				may be necessary to fully protect the interest and retirement fund for the
				ensuing year, and keep the same at all times in proper amount as herein
				provided."
(6) Similar provisions
				are included in Section 21 for each of the state educational
				institutions.