§37D-3  Related agreements.  Withthe approval of the attorney general as to form and legality, the departmentmay, and with the approval of the attorney general asto form and legality and of the director as to fiscal responsibility, an agencymay:

(1)  Enter into agreements with trustees, within orwithout the State, to hold financing agreement proceeds, payments, and reservesas security for lenders to accept assignments of rights in the financingagreement from, and to enforce the rights of, the lessor or other partythereto, and to issue certificates of participation for the right to receivepayments due from the department or agency under a financing agreement.  Afinancing agreement by an agency shall provide that all payments due from theagency under the financing agreement shall be deposited to or on the order ofthe department, or shall be for payment to or at the order of the lender inaccordance with the financing agreement.  The sale of certificates ofparticipation shall be, at the option of the director, by negotiation or bycompetitive sale, in accordance with the procedures set out bysection 39-55.  The interest component of the certificates ofparticipation shall be at the rate or rates payable at the time or times as thefinancing agreement may provide.  The certificates of participation may be inone or more series; may bear the date or dates; may mature at the time or timesnot exceeding the lesser of:

(A)  The weighted average economic life of therelated project or projects; or

(B)  Thirty years from their date;

may be payable in the medium of payment at theplace or places within or without the State; may carry registration privileges;may be subject to terms of redemption, to tenders for purchase or to purchaseprior to their stated maturity at the option of the department or the agency,or the holder, or both; and may contain terms, covenants, and conditions; andmay be in the form, either coupon or registered, as the financing agreement mayprovide.  Amounts held by a trustee shall be invested by the trustee at thedirection of the department or the agency in investments as are permitted bystate law and as shall be specified in the agreement with the trustee. Interest earned on any investment held by a trustee as security for a financingagreement may, at the option of the department or the agency, be credited tothe accounts held by the trustee and applied in payment of sums due under thefinancing agreement;

(2)  Enter into credit enhancement agreements forfinancing agreements or certificates of participation; provided that the creditenhancement agreements shall be payable solely from available moneys andamounts received from the exercise of property rights granted under thefinancing agreements;

(3)  Use financing agreements to finance the costs ofacquiring or refinancing property, plus the costs of reserves and creditenhancements and costs associated with obtaining the financing;

(4)  Grant leases of real property subject to section37D‑2(b)(2).  The leases may be for a term that ends on the date on whichall amounts due under a financing agreement have been paid or provision forpayment has been made or ten years after the last scheduled payment under afinancing agreement, whichever is later.  The leases may grant the lessor theright to evict the department or the agency, as the case may be, and exclude itfrom possession of the real property for the term of the lease, if thedepartment or the agency, as the case may be, fails to appropriate or pay whendue the amounts scheduled to be paid under a financing agreement or otherwisedefaults under a financing agreement.  Upon failure to pay or default, thelessor may sublease the land to third parties and apply any rentals towardpayments scheduled to be made under a financing agreement;

(5)  Grant security interests in personal propertysubject to section 37D-2(b)(2).  The security interests shall attach and beperfected on the date the department or the agency, as the case may be, takespossession of the personal property, or the date the secured party advancesmoney under a financing agreement, whichever is later.  A security interestauthorized by this section shall have, except as otherwise provided by law,priority over all other liens and claims.  Upon failure to pay or default, thesecured party shall have the rights and remedies available to a secured partyunder chapter 490 or a first, perfected security interest in goods andfixtures.  No later than ten days after a security interest authorized by thissection attaches, the department or the agency, as the case may be, shall causea financing statement for the security interest to be filed with the bureau ofconveyances in the same manner as financing statements are filed for goods;

(6)  Pledge any amounts that are deposited with atrustee in accordance with a financing agreement.  The pledge shall be validand binding from the time it is made, the amounts so pledged shall immediatelybe subject to the lien of the pledge without filing, physical delivery, orother act, and the lien of the pledge shall be superior to all other claims andliens of any kind whatsoever;

(7)  Purchase fire and extended coverage or othercasualty insurance, or liability, title, rental interruption, or otherinsurance for property that is acquired or refinanced with proceeds of afinancing agreement, assign the proceeds thereof to a lender or trustee to theextent of its interest, and covenant to maintain the insurance while thefinancing agreement is unpaid, so long as available funds are sufficient topurchase the insurance; and

(8)  In connection with any financing agreement bywhich the department, on behalf of an agency, leases or purchases property fromanother party, notwithstanding and without regard to chapter 171 or any otherlaw, the department or the agency may lease or sell, on any terms as thedepartment or the agency shall determine, to that party the site or property tobe improved or otherwise to be leased or sold back to the department or theagency. [L 1996, c 119, pt of §2; am L 1998, c 41, §7; am L 2001, c 200, pt of§3; am L 2007, c 126, pt of §1]