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



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



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



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