§39A-255  Project agreement.  No
special purpose revenue bonds shall be issued unless, at the time of issuance,
the department shall have entered into a project agreement with respect to the
project for the financing or refinancing of which the revenue bonds are to be
issued.



Any project agreement entered into by the
department shall contain provisions unconditionally obligating the project
party to:



(1)  Pay to the department during the period or term
of the project agreement, exclusive of any renewal or extension thereof and
whether or not the project is used or occupied by the project party, the sum at
the time in the amount that shall be sufficient to:



(A)  Pay the principal and interest on all
special purpose revenue bonds issued with respect to the project as they become
due, including any premium payable upon any required redemption of the bonds;



(B)  Establish or maintain a reserve, if any,
as may be required by the instrument authorizing or securing the special
purpose revenue bonds;



(C)  Pay all fees and expenses, including the
fees and expenses of the paying agents and trustees, assessed in connection
with the special purpose revenue bonds; and



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



(2)  Operate, maintain, and repair the project as long
as it is used in the provision of not-for-profit private nonsectarian and
sectarian elementary, secondary, college-level, and university-level education
to the general public, and to pay all costs of its operation, maintenance, and
repair.



Moneys received by the department pursuant to
paragraph (1)(D) shall not be, nor be deemed to be, revenues of the project and
shall be paid into the general fund of the State. [L 2002, c 257, pt of §1; am
L 2007, c 44, §14]