§206M-7  Conditions precedent to negotiatingand entering into a project agreement.  (a)  The development corporationprior to entering into negotiations with respect to a project agreement or atany time during such negotiations shall require that as a condition to suchnegotiations or the continuation thereof the State shall be reimbursed for anyand all costs and expenses incurred by it even though a project agreement maynot be entered into and may further require the deposit of moneys with thedevelopment corporation as security for such reimbursement.  Any amount of suchdeposit in excess of the amount required to reimburse the State shall bereturned by the development corporation to the party which has made suchdeposit.

(b)  The development corporation shall notenter into any project agreement with respect to any project or industrial parkunless the legislature shall have first authorized the issuance of specialpurpose revenue bonds to finance a project or projects, an industrial park orindustrial parks, or a multi-project program pursuant to section 206M-9, andthe development corporation has thereafter found and determined either that:

(1)  The qualified person is a responsible party,whether by reason of economic assets or experience in the type of enterprise tobe undertaken through the project, or otherwise; or

(2)  The obligations of the qualified person 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 1983,c 152, pt of §2; am L 2000, c 72, §11]