(a) The governing board of each state educational institution has authority to:
(1) Enter into contracts for the use of property and equipment for military training purposes; and
(2) Enter into any mutually agreeable contract incidental thereto as may be required by federal law or regulations of the Secretary of the Army, Navy, or Air Force, or other federal officer or agency, for the care and safekeeping of such property and equipment, or for similar purposes; and
(3) Make reimbursement for such property and equipment.
(b) The cost of any bonds or security and reimbursements shall be paid from funds available for the operation of the institution or school district. This includes, but is not limited to, the authority to obligate any funds available, whether by appropriation or otherwise, for the purpose of executing bonds to secure the safekeeping and return of United States Government property issued in connection with military training purposes.