The state board of higher education, when issuing bonds under the provisions of this chapter and the powers herein granted, has additional powers as follows:

1.    When the state board of higher education has issued bonds as provided in this chapter for the purpose of securing funds for all or part of the cost of construction, equipment, and furnishing of any new revenue-producing building or other campus improvement for any of the state-supported institutions of higher learning of the state of North Dakota, or for the purpose of refunding any such bonds, said board is hereby authorized to cover, from time to time, into the interest and principal payment fund for bonds issued, or into a fund for operation and maintenance of the building or other campus improvement so financed or into a fund for repair or replacement of the building or other campus improvement, its equipment and furnishings, the rental or income from revenue-producing buildings or other campus improvements which are not encumbered or impressed with any lien and which are located upon the campuses of such institutions.

2.    In case of destruction of such revenue-producing buildings or campus improvements by fire, tornado, cyclone, or other cause, the proceeds from insurance on such revenue-producing buildings or campus improvements shall be covered into the bond payment fund for the payment of bonds issued under this chapter unless such insurance may be and is used for the repair or replacement of the building or campus improvement, its equipment and furnishings.

3.    The rental income from said revenue-producing buildings or other revenue-producing campus improvements, and the proceeds of insurance thereon may be irrepealably pledged to the payment of the principal and interest of the bonds issued as in this chapter provided, or to the expenses of operation and maintenance or repair or replacement of the building or campus improvement, its equipment and furnishings.

4.    The bonds issued under the provisions of this chapter may not be an indebtedness or obligation of the state of North Dakota or of any of the state institutions nor of any board, bureau, or officer of the state of North Dakota, but such bonds must be payable solely out of income and revenue as provided in this chapter.

The rental income from the revenue-producing buildings or other revenue-producing campus improvements, as defined herein, of any educational institutions of higher learning of the state shall be covered only into a fund for a revenue-producing building or other revenue-producing campus improvement for such educational institution and not to any other institution.