For the purpose of financing the cost of any projects, each of the boards is hereby authorized to adopt the resolution or resolutions and prepare all other documents necessary for the issuance, sale, and delivery of the bonds or any part thereof at such time or times as it shall deem necessary and advisable. Said bonds:
(1) Shall not constitute
(a) An obligation, either general or special, of the state; or
(b) A general obligation of the university or college or of the board;
(2) Shall be
(a) Either registered or in coupon form; and
(b) Issued in denominations of not less than one hundred dollars; and
(c) Fully negotiable instruments under the laws of this state; and
(d) Signed on behalf of the university or college by the chair of the board, attested by the secretary of the board, have the seal of the university or college impressed thereon or a facsimile of such seal printed or lithographed in the bottom border thereof, and the coupons attached thereto shall be signed with the facsimile signatures of such chair and the secretary;
(3) Shall state
(a) The date of issue; and
(b) The series of the issue and be consecutively numbered within the series; and
(c) That the bond is payable both principal and interest solely out of the bond retirement fund;
(4) Each series of bonds shall bear interest, payable either annually or semiannually, as the board may determine;
(5) Shall be payable both principal and interest out of the bond retirement fund;
(6) Shall be payable at such times over a period of not to exceed forty years from date of issuance, at such place or places, and with such reserved rights of prior redemption, as the board may prescribe;
(7) Shall be sold in such manner and at such price as the board may prescribe;
(8) Shall be issued under and subject to such terms, conditions, and covenants providing for the payment of the principal thereof and interest thereon and such other terms, conditions, covenants, and protective provisions safeguarding such payment, not inconsistent with RCW
28B.35.700 through
28B.35.790, as now or hereafter amended, and as found to be necessary by the board for the most advantageous sale thereof, which may include but not be limited to:
(a) A covenant that the building fees shall be established, maintained, and collected in such amounts that will provide money sufficient to pay the principal of and interest on all bonds payable out of the bond retirement fund, to set aside and maintain the reserves required to secure the payment of such principal and interest, and to maintain any coverage which may be required over such principal and interest;
(b) A covenant that a reserve account shall be created in the bond retirement fund to secure the payment of the principal of and interest on all bonds issued and a provision made that certain amounts be set aside and maintained therein;
(c) A covenant that sufficient moneys may be transferred from the capital projects account of the university or college issuing the bonds to the bond retirement fund of such university or college when ordered by the board of trustees in the event there is ever an insufficient amount of money in the bond retirement fund to pay any installment of interest or principal and interest coming due on the bonds or any of them;
(d) A covenant fixing conditions under which bonds on a parity with any bonds outstanding may be issued.
The proceeds of the sale of all bonds, exclusive of accrued interest which shall be deposited in the bond retirement fund, shall be deposited in the state treasury to the credit of the capital projects account of the university or college issuing the bonds and shall be used solely for paying the costs of the projects.