§39-10  Support facility for variablerate bonds.  If bonds issued pursuant to this part are issued bearinginterest at a rate or rates which vary from time to time and with a right ofholders to tender the bonds for purchase, the director of finance, with theapproval of the governor, may contract for the support facility or facilitiesand remarketing arrangements as are required to market the bonds to thegreatest advantage of the State upon such terms and conditions as the directorof finance deems necessary and proper.  The director of finance may enter intocontracts or agreements with the entity or entities providing a supportfacility; provided that any contract or agreement shall provide, in essence,that any amount due and owing by the State under the contract or agreement onan annual basis shall be subject to annual appropriation by the State and anyobligation issued or arising pursuant to the terms of such contract oragreement in the form of bonds, notes, or other evidences of indebtedness shallonly arise at such time as either:

(1)  Moneys or securities have been irrevocably setaside for the full payment of a like principal amount of bonds issued pursuantto this part; or

(2)  A like principal amount of the issue or series ofbonds to which the support facility relates are held in escrow by the entity orentities providing the support facility. [L 1988, c 28, pt of §3]