§39A-314  Conditions precedentto negotiating and entering into a project agreement.  (a)  Prior toentering into negotiations with respect to a project agreement or at any timeduring the negotiations, the department shall require that as a condition to thenegotiations or the continuation thereof, the project party shall agree to payall fees, costs, and expenses assessed by the department even though a projectagreement may not be entered into.  The department may further require thedeposit of moneys with the department as security to pay for fees, costs, andexpenses.  Any amount of the deposit in excess of the amount required to paythe State shall be returned by the department to the party that has made thedeposit.  The State shall not be required to pay to the project party anyinterest or earnings on the deposit.

(b)  The department shall not enter into anyproject agreement with respect to any project unless the legislature shall havefirst authorized the issuance of special purpose revenue bonds to finance theproject pursuant to section 39A-317 and the department has determined that:

(1)  The project party is a responsible party, whetherby reason of economic assets or experience in the type of enterprise to beundertaken through the project, or otherwise; or

(2)  The obligations of the project party under theproject agreement will be unconditionally guaranteed by a person who is aresponsible party, whether by reason of economic assets or experience in thetype of enterprise to be undertaken through the project, or otherwise. [L 2006,c 148, pt of §1; am L 2007, c 44, §17]