§39A-115  Project agreement.  Nospecial purpose revenue bonds shall be issued unless at the time of issuancethe department shall have entered into a project agreement with respect to theproject for the financing of which the revenue bonds are to be issued.  Anyproject agreement entered into by the department shall contain provisionsunconditionally obligating the project party:

(1)  To pay to the department during the period orterm of the project agreement, exclusive of any renewal or extension thereofand whether or not the project is used or occupied by the project party, thesum or sums, at the time or times, and in the amounts that shall be sufficient:

(A)  To pay the principal and interest on allspecial purpose revenue bonds issued with respect to the project as the bondsbecome due, including any premium payable upon any required redemption of thebonds;

(B)  To establish or maintain a reserve, ifany, as may be required by the instrument authorizing or securing the specialpurpose revenue bonds;

(C)  To pay all fees and expenses (includingthe fees and expenses of the paying agents and trustees) assessed in connectionwith the special purpose revenue bonds; and

(D)  To pay the fees, costs, and expenses(direct or indirect) assessed by the department in administering the bonds orin carrying out the project agreement; and

(2)  To operate, maintain, and repair the project aslong as it is used as provided in the project agreement and to pay all costs ofthe operation, maintenance, and repair.

Moneys received by the department pursuant toparagraph (1)(D) shall not be, or be deemed to be, revenues of the project andshall be paid into the general fund of the State. [L 1981, c 121, pt of §2; amL 2007, c 44, §6]