Presents basic legal issues fundamental to revenue bonds (bonds secured by pledging only the revenues from the facility for the payment of the principal and interest on the bonds) authorized for construction of college and university residence halls and provides reference to, as well as discussion of, court decisions giving specific attention to precedent on the issue of default. Concludes that with leveling of enrollments and retrenchment, universities will face difficult decisions and perhaps even litigation regarding the issue of payment or nonpayment of revenue bonds for residence halls. (Author/PKP)