(a. In addition to the powers conferred upon institutions by other provisions of this chapter, any institution is hereby authorized, by and with the approval of the Governor, upon the affirmative vote of at least two-thirds of its board to borrow from time to time, for and in the name of the institution, such sum or sums as it may determine necessary for its uses and purposes and to secure payment thereof by the pledge of any stocks, notes, bonds, and other assets held by such institution as a part of its endowment funds or unrestricted gifts from private sources.
(b. Notes or bonds issued by an institution pursuant to this section may be issued in one or more series and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates not exceeding the rate specified in § 23-30.03 payable at such time or times, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places, be subject to such terms of redemption, with or without premium, as may be provided by resolution of the board of such institution. Notes or bonds so issued may be sold at public or private sale for such price or prices as the board shall determine, provided that the interest cost to maturity of the money received for any such issue of notes or bonds shall not exceed the rate specified in § 23-30.03. Notes or bonds so issued and the interest thereon shall be payable only out of the sale or the liquidation of the endowment investments, investments of unrestricted gifts from private sources, and interest accruing thereon pledged to secure the notes or bonds so issued, and shall in no event constitute a general obligation of such institution, the Commonwealth, the Governor, the members of the board, nor any person executing the notes or bonds so issued.
(c. All moneys received or derived from the sale of any notes or bonds so issued shall not constitute state funds, but shall be and constitute a part of the local funds of such institution.
(d. The institution shall have power out of any funds available therefor to purchase any notes or bonds so issued, but at a price not more than the principal amount thereof and accrued interest thereon, and any note or bond so purchased shall be canceled unless purchased as an endowment fund investment. This subsection shall not apply to the redemption of bonds.
(e. Any notes or bonds so issued are hereby made securities in which all public officers and bodies of this Commonwealth and all political subdivisions thereof, all insurance companies and associations, all savings banks and savings institutions, including savings and loan associations in this Commonwealth, may properly and legally invest funds under their control; and all notes or bonds so issued, their transfer and the income therefrom, including any profit derived from the sale thereof, shall at all times be free and exempt from taxation by this Commonwealth, and by any municipality, county or any political subdivision hereof.
(f. Any resolution or resolutions of the board authorizing notes or bonds to be issued pursuant to this section may, at the discretion of the board, contain any provision or provisions, which shall be a part of the contract with the holders of notes or bonds so issued, as are authorized by any other section of this chapter in connection with the issuance of bonds by institutions. (1969, Ex. Sess., c. 22; 1970, c. 609; 1981, c. 505.)
