§39A-195  Project agreement.  Nospecial purpose revenue bonds shall be issued unless at the time of issuancethe department shall have already entered into a project agreement with respectto the energy project for the financing of which the bonds are to be issued. Any project 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 energy project is used or occupied by the project party,the sum or sums, at the time or times, and in the amount or amounts that shallbe sufficient:

(A)  To pay the principal and interest on allspecial purpose revenue bonds issued to finance the energy 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, as determined by the department; and

(2)  To operate, maintain, and repair the energyproject as long as it is used in the business of local furnishing of electricenergy or gas, and to pay all costs of the operation, maintenance, and repair.

Moneys received by the department pursuant toparagraph (1)(D) shall not be, nor be deemed to be, revenues of the energyproject and shall be paid into the general fund of the State. [L 1981, c 151,pt of §2; am L 2007, c 44, §10]