New York University could seek bondholder approval to let it out of debt service reserve requirements for bonds that have surety bonds issued by downgraded insurers, following the approval yesterday by the board of the Dormitory Authority of the State of New York of amendments to the resolution those bonds were issued under.

DASNY issued two series of bonds on behalf of NYU under a 1998 resolution that generally required the university to maintain a debt service reserve fund that was funded at the maximum annual debt service of those bonds, according to a description of the resolution in a letter to board members from Nixon Peabody LLP.

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