(a. In addition to the powers conferred upon institutions by other provisions of this chapter, and notwithstanding any other provision of this title, 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 the acquisition of real estate, improved or unimproved, whether or not such acquisition is in pursuance of the erection of a project, and to secure payment thereof by a lien on such real estate; provided that interest upon the notes or bonds issued by an institution pursuant to this section may be further secured by the pledge of any endowment funds or unrestricted gifts from private sources available for the use of such institution and which are not required by law or by previous binding contract to be devoted to some other purpose.

(b. Notes or bonds issued by an institution pursuant to this section and the interest thereon shall be required to be paid only from the real estate, endowment funds, or unrestricted gifts from private sources, including interest thereon, pledged to secure the notes or bonds so issued, or the proceeds from the sale or liquidation thereof, 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. 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 thereof.

(d. 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.

History

1970, c. 609; 1981, c. 505.