§ 45-38.1-20 - Procedure before issuance of bonds or notes.
SECTION 45-38.1-20
§ 45-38.1-20 Procedure before issuance ofbonds or notes. – Notwithstanding any other provisions of this chapter, the corporation is notempowered to undertake any project authorized by this chapter unless, prior tothe issuance of any bonds or notes under this chapter, it has determined that:
(1) The acquisition, construction, or financing of the costof the project will:
(i) With respect to an institution for higher education,enable or assist the institution to fulfill its obligations in providingeducation to the youth of this state; or
(ii) With respect to a health care provider, enable thehealth care provider to improve the health of the people it serves by means ofexpanded health care, health care provider, and other related services; and
(2) The project is leased to, or owned by, a financiallyresponsible institution for higher education or health care provider within thestate; and
(3) Adequate provision has been, or will be, made for thepayment of the cost of the construction and/or acquisition of the project, and,except with regard to those bonds issued through the corporation related toschool housing project financing, that under no circumstances will the state beobligated, directly or indirectly, for the payment of the cost of theconstruction and/or acquisition of the project, or for the payment of theprincipal of, or interest on, any obligations issued to finance theconstruction and/or acquisition; and
(4) Adequate provision has been, or will be made in anyagreement with respect to or lease of the project for payment of all costs ofoperation, maintenance, and upkeep of the project by the lessee, sublessee, oroccupant so that under no circumstances is the state obligated, directly orindirectly, for the payment of the costs except with regard to statereimbursement for school housing projects; provided, that no findings shall bemade and no financing effected under this chapter, with respect to health careproviders, unless the proposed health care providers have first been approvedby any state agency empowered to approve the construction of any health careproviders in the manner provided in its general laws.