Bonds and Notes

The revenue bonds issued by the Commission are special bonds of the state of Ohio. They are not a general obligation of the state (payable from taxes). The revenue bonds are payable solely by the educational institution from the rentals or other money derived from the lease, rental, sale, or other disposition of the pledged facilities, and may also be paid from any gifts or grants received with respect to the project financed. The bonds may also be secured by a mortgage on the project and its site, under a trust agreement with a corporate trustee. Satisfactory marketing of the bonds may require provision for a reserve fund to pay the principal and interest on the bonds for up to one year. The reserve may be funded as part of the bond issue. The bonds must mature in a period not exceeding 50 years from the date of their issuance, but in most instances satisfactory marketing of the bonds will probably entail somewhat shorter maturities, generally from ten to 30 years.

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