Section 195-D:21 Procedure Before Issuance of Bonds.
Notwithstanding any other provision of this chapter, the corporation is not empowered to undertake any project or refinancing of existing indebtedness authorized by this chapter unless, prior to the issuance of any bonds hereunder, the governor and his council, or their designee, have found after a hearing thereon that:
I. In the case of undertaking a project, the construction and acquisition of such project will enable or assist a participating educational institution to provide education within the state or a participating health care institution to provide health care facilities within the state; and
II. Such project to be undertaken or a project to which the refinancing of existing indebtedness relates will be leased to, or owned by, a financially responsible participating institution within the state; and
III. Adequate provision has been, or will be, made for the payment of the cost of the construction and acquisition of such project to be undertaken or for the refinancing of existing indebtedness and that under no circumstances will the state be obligated directly or indirectly, for the payment of the principal of, or interest on, any obligations issued to finance such construction and acquisition or to provide for the refinancing of existing indebtedness, or obligations to which such refinancing of existing indebtedness relates; and
IV. Adequate provision has been, or will be, made in any lease or mortgage or financing of the project to be undertaken or any property leased or mortgaged or financed in connection with the issuance of bonds or notes hereunder for the payment of all costs of operation, maintenance and upkeep of such project or property by the lessee, sublessee, mortgagor, borrower or occupant so that under no circumstances will the state be obligated, directly or indirectly, for the payment of such costs; and
V. In the case of undertaking a project, adequate provision has been made to obligate a participating educational institution to hold and use the project for educational purposes or to obligate a participating health care institution to hold and use the project for health care purposes so long as the principal of and interest on bonds or other obligations issued by the corporation to finance the cost of such project or projects, including any refunding bonds issued to refund and refinance such bonds, have not been fully paid and retired and all other conditions of the resolution or trust agreement authorizing and securing the same have not been satisfied and the lien of such resolution or trust agreement has not been released in accordance with the provisions thereof; and
VI. The construction and acquisition of such project or projects or any refinancing of existing indebtedness will be within the authority conferred by this chapter upon the corporation; and
VII. In the case of undertaking a project, the construction and acquisition of such project or projects serves a need presently not fulfilled in providing education or health care facilities within the state and is of public use and benefit; and
VIII. In the case of refinancing of existing indebtedness, such refinancing will assist the participating institution in either lowering the cost of providing education or health care facilities within the state or such refinancing is in connection with a project being provided by the participating institution.
Source. 1969, 318:1. 1970, 16:22, 23. 1971, 198:12. 1979, 384:8. 1981, 532:5-8. 1982, 16:5-8. 1991, 298:9, eff. Aug. 19, 1991.