CHAPTER 162-I BUSINESS FINANCE AUTHORITY REVENUE BONDS
Section 162-I:6
162-I:6 Financing Documents. –
I. Every financing document shall:
(a) Provide for payments by the user at such times and in such amounts as are necessary in order to pay the debt service on all bonds issued to finance the project as they become due; and
(b) Obligate the user to pay all the costs and expenses of operation, maintenance and upkeep of the eligible facility.
II. Any financing document may:
(a) Bear any appropriate title;
(b) Involve property in addition to the property financed by the bonds;
(c) Be in the nature of:
(1) A sale and leaseback;
(2) A lease purchase;
(3) A conditional sale;
(4) An installment sale;
(5) A secured or unsecured loan;
(6) A loan and mortgage; or
(7) Other similar transaction;
(d) Provide for payments by the user which include amounts in addition to the amounts required to pay debt service;
(e) Obligate a user to make payments before the eligible facility exists or becomes functional and to make payments after the eligible facility has ceased to exist or to be functional to any extent and from any cause;
(f) Obligate a user to make payments regardless of whether the user is in possession or is entitled to be in possession of the eligible facility;
(g) Allocate responsibility between the authority and the user for making purchases and contracts required for the project;
(h) Contain an option for the user to acquire any ownership or possessory interest which the authority may have in the eligible facility for nominal consideration upon payment of the bonds or upon the user's making adequate and secure provision for their payment and provide for the automatic transfer of the authority's interest in the facility upon the effective exercise of the option;
(i) Provide that some or all of the user's obligations under the document shall be unconditional and shall be binding and enforceable in all circumstances, notwithstanding any other provision of law; or
(j) Contain other provisions and covenants relating to the use, maintenance and replacement of the eligible facility which the authority and the user deem necessary for the protection of themselves or others.
Source. 1975, 98:1. 1981, 213:6; 455:6, eff. June 23, 1981.