Nevada § 396.840 - Proposed securities: Sufficiency of revenues; earnings test; estimates and adjustments

§ 396.840. Proposed securities: Sufficiency of revenues; earnings test; estimates and adjustments

1. Before any securities are actually issued payable from any net pledged revenues,

except for any securities issued solely for the purpose of funding or refunding or

both funding and refunding outstanding securities, any such revenues for the next

preceding 12 months, for the next preceding calendar year, or for the next preceding

fiscal year, as defined and otherwise determined by the Board, shall be sufficient

to pay an amount representing 110 percent of the combined maximum annual principal

and interest requirements to be paid during such 12 months, calendar year, fiscal

year or bond year, as defined and otherwise determined by the Board, of any outstanding

securities payable from and constituting a lien upon such net pledged revenues and

the securities proposed to be issued (excluding any reserves therefor), except as

otherwise expressly provided in this section. 2. In any determination of whether or not any proposed securities meet the earnings

test limiting their issuance as provided in subsection 1 of this section: (a) There shall be deducted from or added to any gross pledged revenues any estimated

decrease or increase in such revenues resulting from any decreased or increased or

additional fees, rates or charges fixed by the Board, whether or not appertaining

to any additional facilities for which the proposed securities are authorized to be

issued; and (b) There shall be deducted from or added to any operation and maintenance expenses

any estimated decrease or increase in such expenses, whether or not resulting from

any additional facilities for which the proposed securities are authorized to be issued. 3. The respective annual principal and interest requirements (including as an interest

requirement the amount of any prior redemption premiums due on any prior redemption

date as of which any outstanding securities have been called or have been ordered

by the Board to be called for prior redemption) shall be reduced to the extent such

requirements are scheduled to be paid with any moneys held in trust or escrow for

that purpose in any trust bank or trust banks within or without or both within and

without the State, including without limitation the known minimum yield from any investment

or reinvestment of any such moneys in federal securities. 4. The estimates and adjustments provided in subsections 2 and 3 of this section and

the calculations required by subsection 1 of this section shall be made by the Treasurer

of the University; and his or her estimates, adjustments and determination of whether

the earnings test provided in subsection 1 of this section has been met shall be conclusively

presumed to be accurate. Nothing contained in this section shall be construed to prohibit the issuance of securities

merely because there were no pledged revenues nor operation and maintenance expenses,

in the absence of such adjustments, in the next preceding 12 months, calendar year,

or fiscal year, as the case may be. 5. There must be excluded from the calculations required by subsections 1 to 4, inclusive,

the proceeds of any general fund fee or fees to be pledged to the payment of the securities

(other than any securities issued solely for the purpose of funding or refunding or

both funding and refunding outstanding securities). The proceeds of a general fund fee or fees must not be pledged to the payment of

any such securities (other than any such funding or refunding or both funding and

refunding securities) unless the remaining pledged revenues do not contravene the

limitations imposed by those subsections. 6. Nothing herein contained prevents the Board from providing an earnings test in

any resolution authorizing the issuance of securities or in any other proceedings

appertaining thereto which test limits the issuance of any additional securities.