CHAPTER 195-F NEW HAMPSHIRE MUNICIPAL BOND BANK EDUCATIONAL INSTITUTIONS BOND FINANCING ACT
Section 195-F:4
195-F:4 Bond Bank's Authority. –
I. The New Hampshire municipal bond bank established pursuant to RSA 35-A is hereby authorized and empowered to lend money to educational institutions through the purchase by the bank of educational institution bonds in fully marketable form. The bank, for the purposes authorized by this chapter, including the funding of interest during construction and for not more than 18 months thereafter, is hereby authorized and empowered to authorize and issue its bonds and notes payable solely from the revenues or funds therefor available to the bank for financing educational institution projects or improvements, and to otherwise assist educational institutions as provided in this chapter.
II. The bank shall establish a special division to administer the purchase and sale of educational institution bonds and of its bonds and notes issued pursuant to this chapter.
III. The bank shall administer the educational institution general fund and educational institution reserve fund established by this chapter separate from those general funds and reserve funds established pursuant to RSA 35-A and RSA 374-C.
IV. Bonds and notes of the bank issued under the provisions of this chapter shall not be in any way a debt or liability of the state and shall not create or constitute any indebtedness, liability or obligation of the state or be or constitute a pledge of the faith and credit of the state but all such bonds and notes, unless funded or refunded by bonds or notes of the bank, shall be payable solely from revenues or funds pledged or available for their payment as authorized herein. Each bond and note shall contain on its face a statement to the effect that the bank is obligated to pay the principal thereof and the interest thereon only from revenues or funds of the bank and that the state is not obligated to pay such principal or interest and that neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on such bonds or notes.
V. All expenses incurred in carrying out the provisions of this chapter shall be payable solely from revenues or funds provided or to be provided under the provisions of this chapter and nothing in this chapter shall be construed to authorize the bank to incur any indebtedness or liability payable by the state.
VI. The bank may contract with holders of its bonds and notes in the manner provided in RSA 35-A:9.
VII. In the event of default by the bank on any bonds or notes issued under this chapter, a trustee shall be appointed pursuant to RSA 35-A:15, but shall act only with respect to such bonds or notes issued hereunder.
VIII. The provisions of RSA 35-A:4; RSA 35-A:6, I through X, inclusive; XI, but with respect to educational institutions rather than governmental units, and XV; RSA 35-A:7, II through IV, inclusive; RSA 35-A:8, I and III through VIII, inclusive; RSA 35-A:9, but with respect to educational institution bonds rather than municipal bonds; RSA 35-A:10; RSA 35-A:15, but with respect to educational institution bonds rather than municipal bonds; RSA 35-A:16; RSA 35-A:17; RSA 35-A:23; RSA 35-A:24, but with respect to educational institutions and educational institution bonds rather than governmental units and municipal bonds; RSA 35-A:25; RSA 35-A:26; RSA 35-A:36; and RSA 35-A:37 shall apply as they may be applicable to the financing of educational institution projects or improvements in accordance with this chapter.
IX. Notwithstanding any other provision of this chapter, the bank shall not lend money to an educational institution for any educational institution project or improvement as authorized by this chapter unless, prior to the issuance of any bonds hereunder, the bank has found that:
(a) The construction and acquisition of such project or improvement will enable or assist an educational institution to provide education within the state; and
(b) Such project or improvement will be leased to, or owned by, a financially responsible educational institution within the state; and
(c) Adequate provision has been, or will be, made for the payment of the cost of the construction and acquisition of such project or improvement 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; and
(d) Adequate provision has been, or will be, made in any lease or mortgage of the project for the payment of all costs of operation, maintenance and upkeep of such project by the lessee, sublessee, mortgagor or occupant so that under no circumstances will the state be obligated, directly or indirectly, for the payment of such costs; and
(e) Adequate provision has been made to obligate the educational institution to hold and use the project for educational purposes so long as the principal of and interest on bonds issued by the bank to finance the cost of such project or improvement, 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, if any, 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;
(f) The lending of money by the bank to the educational institution is within the authority conferred by this chapter upon the bank; and
(g) The construction and acquisition of such project or improvement serves a need presently not fulfilled in providing education within the state and is of public use and benefit.