§39A-285  Project agreement.  Nospecial purpose revenue bonds shall be issued unless, at the time of issuance,the department shall have entered into a project agreement with respect to theproject for the financing or refinancing of which the bonds are to be issued. Any project agreement entered into by the department shall contain provisionsunconditionally obligating the project party to:

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

(A)  Pay the principal and interest on allspecial purpose revenue bonds issued with respect to the project as they becomedue, 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 specialpurpose revenue bonds;

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

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

(2)  Operate, maintain, and repair the project as longas it is used to provide low- and moderate-income housing, and to pay all costsof operation, maintenance, and repair.

Moneys received by the department pursuant toparagraph (1)(D) shall not be, nor be deemed to be, revenues of the project andshall be paid into the general fund of the State. [L 2006, c 102, pt of §2; amL 2007, c 44, §16]