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The board of trustees of the University of Tennessee has the right to invest the fund derived from the Land Grant Act of congress, or any part of the act, in mortgage loans and such other safe securities that may be approved by the board or its executive committee as shall yield not less than five percent (5%) per annum upon the amounts so invested.
The state engages that the fund so invested shall yield not less than five percent (5%) per annum upon the amounts so invested, and that the principal shall forever remain unimpaired.
With prior approval of the state school bond authority, the University of Tennessee shall have full authority at any stated or called meeting of its board of trustees to borrow money in sums sufficient to provide funds necessary to accomplish or execute the following powers and purposes:
The cooperation with the general services administration and with other agencies of the United States;
The erection from time to time of dormitories or other buildings as may be required for the good of this institution; and
The acquisition of real estate.
With prior approval of the state school bond authority, for any such purposes, the University of Tennessee is authorized to incur debt and as evidence of any such loan, to issue bonds, notes or certificates of indebtedness.
In order to secure necessary loans, the University of Tennessee shall have full authority to pledge the rents, profits, income, or fees from the use of the buildings or improvements acquired with funds secured under subdivision (b)(1).
With prior approval of the state school bond authority, the University of Tennessee may negotiate and dispose of the bonds, notes or certificates of indebtedness authorized by subdivision (b)(2) to be issued as it sees fit, from time to time, in whole or in part.
The proceeds of any such loan or of the sale of the bonds, notes or certificates of indebtedness shall be applied to the purpose for which the debt is incurred by the University of Tennessee.
No bonds, notes, certificates or other evidences of indebtedness issued under this subsection (b) shall constitute an indebtedness of the state, nor shall the faith and credit of the state be pledged for the payment of any such bonds, notes, certificates or other evidences of indebtedness; and any obligations issued under this subsection (b) shall contain a statement to that effect; and they shall be exempt from taxation.
Nothing contained in this subsection (b) shall be construed as a limitation upon or as restricting in any wise powers otherwise possessed by the University of Tennessee and its board of trustees.