Agency: Board of Governors of the State University System. (Earlier series of the bonds were issued in the name of the former Board of Regents, Florida Board of Education or Florida Education System).
Purpose: The bonds are issued to finance student‐related capital projects which are part of the university system and approved by the Florida Legislature. The projects are generally not directly related to academic activities but include facilities such as student activity centers, athletic facilities, and health facilities.
Security:
- Pledged Revenues: The bonds are payable from capital improvement fees which are assed on a per‐credit‐hour basis and are paid by each student in the university system. The bonds are not a general obligation or indebtedness of the State of Florida, and the full faith and credit of the State of Florida is not pledged to payment of the Bonds.
- Debt Service Reserve Fund: The bonds may also be secured by a reserve account. In the past, reserve accounts were funded with debt service reserve account surety bonds or cash in an amount equal to the maximum annual debt service on the bonds. Some recent bond issues have not had reserve requirements, and reserve accounts have not been funded.
- Lien Status: The bonds have a senior lien on the pledged capital improvement fee revenues.
- Additional Bonds Test: Additional parity bonds may be issued if the average pledged revenues for the two preceding fiscal years are at least 120% of the average annual debt service on the outstanding bonds and the proposed additional bonds.
Frequency: As capital needs dictate.