§206M-8  Project agreement.  (a)  No
special purpose revenue bonds shall be issued unless at the time of issuance
the development corporation shall have entered into a project agreement with
respect to the project or industrial park for the financing of which the
special purpose revenue bonds are to be issued.  Any project agreement entered
into by the development corporation with a qualified person shall contain
provisions unconditionally obligating the qualified person:



(1)  To pay the development corporation during the
period or term of the project agreement, exclusive of any renewal or extension
thereof and whether or not the project or industrial park to which the project
agreement relates is used or occupied by the qualified person, at the time or times
and in the amount or amounts that will be at least sufficient:



(A)  To pay the principal of, and premium, if
any, and interest on all special purpose revenue bonds issued to finance the
cost of the project, or an allocable portion of the special purpose revenue
bonds issued to finance the industrial park, as the case may be, as and when
the special purpose revenue bonds become due, including upon any required
redemption thereof;



(B)  To establish or maintain the reserves, if
any, as may be required by the instrument authorizing or securing the special
purpose revenue bonds, or an allocable portion of the reserves, if less than
all of the proceeds of the special purpose revenue bonds are utilized for the
qualified person;



(C)  To pay the fees and expenses of the paying
agents and trustees for the special purpose revenue bonds, or an allocable
portion of the fees and expenses, if less than all of the proceeds of the
special purpose revenue bonds are utilized for the qualified person; and



(D)  To pay the expenses incurred by the
development corporation in administering the special purpose revenue bonds or
in carrying out the project agreement, or an allocable portion of the expenses,
if less than all of the proceeds of the special purpose revenue bonds are
utilized for the qualified person; and



(2)  To operate, maintain, and repair the project as
long as the project is used as provided in the project agreement and to pay all
costs of the operation, maintenance, and repair.



(b)  The development corporation in determining
the cost of any project, may also include the following:



(1)  Financing charges, fees, and expenses of any
trustee and paying agents for special purpose revenue bonds issued to pay the
cost of the project;



(2)  Interest on the bonds and the expenses of the
State in connection with the bonds and the project to be financed from the
proceeds of the bonds accruing or incurred prior to and during the estimated
period of construction and for not exceeding twelve months thereafter;



(3)  Amounts necessary to establish or increase
reserves for the special purpose revenue bonds;



(4)  The cost of plans, specifications, studies,
surveys, and estimates of costs and of revenues;



(5)  Other expenses incidental to determining the
feasibility or practicability of the project;



(6)  Administration expenses;



(7)  Legal, accounting, consulting, and other special
service fees;



(8)  Interest cost incurred by the project party with
respect to the project prior to the issuance of the special purpose revenue
bonds; and



(9)  Other costs, commissions, and expenses incidental
to the acquisition, construction, improvement, installation, equipping, or
development of the project, the financing, placing of same in operation, and
the issuance of the special purpose revenue bonds, whether incurred prior to or
after the issuance of the bonds.



(c)  Any project agreement entered into by the
development corporation may contain provisions as the development corporation
deems necessary or desirable to obtain or permit the participation of the state
and federal government in the project or industrial park or in the financing of
the cost thereof.



(d)  A project agreement also shall provide
that the development corporation shall have all rights and remedies generally
available at law or in equity to re-enter and take possession of a project upon
the breach or default by a qualified person of any term, condition, or
provision of a project agreement.



(e)  Each qualified person with a project
agreement with the development corporation shall allow the development
corporation full access to the qualified person's financial records.  Upon the
request of the development corporation for the examination of any financial
records, the qualified person shall allow the development corporation to examine
the requested records within a reasonably prompt time from the date of the
request.  If the development corporation requests copies of the records, the
qualified person shall provide the copies.



(f)  To provide the public with full knowledge
of the use of the proceeds and benefits derived from special purpose revenue
bonds issued under this chapter, the development corporation shall require each
qualified person with a project agreement with the development corporation to
make available to the public all relevant financial records that pertain to the
use of or savings resulting from the use of special purpose revenue bonds.



(g)  Each qualified person with a project
agreement with the development corporation shall estimate the benefits derived
from the use of the proceeds of special purpose revenue bonds.  The benefits
estimated shall be based on the creation of new jobs and potential effect on
tax receipts.  The format of and method for determining the estimates shall be
established by the development corporation and shall be uniform for each
qualified person.



(h)  To promote public understanding of the
role played by special purpose revenue bonds in providing benefits to the
general public, the development corporation shall take appropriate steps to
ensure public access to and scrutiny of the estimates determined under
subsection (g).



(i)  The development corporation shall adopt
rules under chapter 91 for the purposes of this section.



(j)  Moneys received by the development
corporation pursuant to subsection (a)(1)(D) shall not be, nor be deemed to be,
revenues or receipts derived under the project agreement which may be pledged
as security for special purpose revenue bonds and shall be paid into the high
technology special fund.



A qualified person may comply with the
unconditional obligation to make payments required by subsection (a), if the
obligations are unconditionally guaranteed or insured by, or the performance
thereof assigned to, or guaranteed or insured by, a person or persons other
than the qualified person who is satisfactory to the development corporation.
[L 1983, c 152, pt of §2; am L 2000, c 72, §12; am L 2001, c 55, §7]