§206M-8  Project agreement.  (a)  Nospecial purpose revenue bonds shall be issued unless at the time of issuancethe development corporation shall have entered into a project agreement withrespect to the project or industrial park for the financing of which thespecial purpose revenue bonds are to be issued.  Any project agreement enteredinto by the development corporation with a qualified person shall containprovisions unconditionally obligating the qualified person:

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

(A)  To pay the principal of, and premium, ifany, and interest on all special purpose revenue bonds issued to finance thecost of the project, or an allocable portion of the special purpose revenuebonds issued to finance the industrial park, as the case may be, as and whenthe special purpose revenue bonds become due, including upon any requiredredemption thereof;

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

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

(D)  To pay the expenses incurred by thedevelopment corporation in administering the special purpose revenue bonds orin 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 areutilized for the qualified person; and

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

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

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

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

(3)  Amounts necessary to establish or increasereserves 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 thefeasibility or practicability of the project;

(6)  Administration expenses;

(7)  Legal, accounting, consulting, and other specialservice fees;

(8)  Interest cost incurred by the project party withrespect to the project prior to the issuance of the special purpose revenuebonds; and

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

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

(d)  A project agreement also shall providethat the development corporation shall have all rights and remedies generallyavailable at law or in equity to re-enter and take possession of a project uponthe breach or default by a qualified person of any term, condition, orprovision of a project agreement.

(e)  Each qualified person with a projectagreement with the development corporation shall allow the developmentcorporation full access to the qualified person's financial records.  Upon therequest of the development corporation for the examination of any financialrecords, the qualified person shall allow the development corporation to examinethe requested records within a reasonably prompt time from the date of therequest.  If the development corporation requests copies of the records, thequalified person shall provide the copies.

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

(g)  Each qualified person with a projectagreement with the development corporation shall estimate the benefits derivedfrom the use of the proceeds of special purpose revenue bonds.  The benefitsestimated shall be based on the creation of new jobs and potential effect ontax receipts.  The format of and method for determining the estimates shall beestablished by the development corporation and shall be uniform for eachqualified person.

(h)  To promote public understanding of therole played by special purpose revenue bonds in providing benefits to thegeneral public, the development corporation shall take appropriate steps toensure public access to and scrutiny of the estimates determined undersubsection (g).

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

(j)  Moneys received by the developmentcorporation 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 pledgedas security for special purpose revenue bonds and shall be paid into the hightechnology special fund.

A qualified person may comply with theunconditional obligation to make payments required by subsection (a), if theobligations are unconditionally guaranteed or insured by, or the performancethereof assigned to, or guaranteed or insured by, a person or persons otherthan 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]