§39-59  Support facility for variablerate revenue bonds.  If revenue bonds issued pursuant to this part areissued bearing interest at a rate or rates which vary from time to time andwith a right of holders to tender the revenue bonds for purchase, the departmenthead or the governing body, with the approval of the governor, may contract forsuch support facility or facilities and remarketing arrangements as arerequired to market the revenue bonds to the greatest advantage of the State ordepartment upon such terms and conditions as the department head or governingbody deem necessary and proper.

The department head or the governing body mayenter into contracts or agreements with the entity or entities providing asupport facility; provided that any contract or agreement shall provide, inessence, that any amount due and owing by the department under the contract oragreement on an annual basis shall be payable solely from the revenue of theundertaking or loan program and any obligation issued or arising pursuant tothe terms of the contract or agreement in the form of revenue bonds, notes, orother evidences of indebtedness shall only arise at such time as either:

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

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