§206M-9  Issuance of special purpose revenue
bonds; bond anticipation notes; refunding bonds.  (a)  In addition to the
other powers that it may have, the development corporation may issue special
purpose revenue bonds to finance, in whole or in part, the costs of projects
of, for, or to loan the proceeds of the bonds to assist qualified persons.  All
revenue bonds issued under this chapter are special purpose revenue bonds and
part III of chapter 39 shall not apply thereto. All special purpose revenue bonds
shall be issued in the name of the development corporation and not in the name
of the State.



The legislature finds and determines that the
exercise of the powers vested in the development corporation by this chapter
constitutes assistance to a high technology industrial, manufacturing, or
processing enterprise and that the issuance of special purpose revenue bonds to
finance facilities of, for, or to loan the proceeds of the bonds to assist
qualified persons, is in the public interest.



(b)  The development corporation, with the
approval of the governor, may issue special purpose revenue bonds for each
single project or industrial park or multi-project program that has been
authorized by the legislature by an affirmative vote of two-thirds of the
members to which each house is entitled; provided that the legislature shall
find that the issuance of the special purpose revenue bonds is in the public
interest.  Special purpose revenue bonds shall be issued in principal amounts
as may be authorized from time to time by law and at the time or times as the
development corporation deems necessary and advisable to finance the cost of a
project, industrial park, or multi-project program as authorized by law.  With
respect to the financing of a multi-project program with the proceeds of
special purpose revenue bonds, the legislature may authorize the issuance from
time to time in one or more series by the development corporation, in each case
with the approval of the governor, of special purpose revenue bonds in the aggregate
principal amount and during the period as the legislature shall provide.  The
principal of, premium, if any, and interest on the special purpose revenue
bonds shall be payable:



(1)  Exclusively from the revenues and receipts
derived or to be derived by the development corporation under project
agreements or from the revenues and receipts together with any grant from the
government in aid of the project or industrial park financed from the proceeds
of the bonds;



(2)  Exclusively from the revenues and receipts
derived or to be derived by the development corporation from a particular
project agreement, whether or not the project or industrial park to which it
relates is financed in whole or in part with the proceeds of the special
purpose revenue bonds; or



(3)  From revenues and receipts derived or to be
derived by the development corporation generally.



Neither the board members nor any person
executing the special purpose revenue bonds shall be liable personally on the
bonds by reason of the issuance thereof.



All special purpose revenue bonds of the same
issue (or, in the case of an authorized issue for a multi-project program,
series), subject to the prior and superior rights of outstanding bonds, claims,
obligations, or mechanic's and materialman's liens, shall have a prior and
paramount lien on the revenues derived from the project agreement with respect
to the project for which the bonds have been issued, over and ahead of all
special purpose revenue bonds of the issue (or series) payable from the revenues
which may be subsequently issued and over and ahead of any claims or
obligations of any nature against the revenues subsequently arising or
subsequently incurred; provided that the development corporation may reserve
the right and privilege to subsequently issue additional series of special
purpose revenue bonds, from time to time, payable from the revenues derived
from the project agreement on a parity with the issue or series of special
purpose revenue bonds theretofore issued, and the subsequently issued series of
special purpose revenue bonds may be secured, without priority by reason of
date of sale, date of execution, or date of delivery, by a lien on the revenues
in accordance with law, including this chapter.



(c)  Special purpose revenue bonds issued
pursuant to this chapter may be in one or more issues and in one or more series
within an issue and shall be further authorized pursuant to resolution of the
board.  The special purpose revenue bonds shall be dated, shall bear interest
at the rate or rates, shall mature at the time or times not exceeding forty
years from their date or dates, shall have the rank or priority, and may be
made redeemable before maturity at the option of the development corporation,
at the price or prices and under the terms and conditions, all as may be
determined by the development corporation. 



The development corporation shall determine the
form of the special purpose revenue bonds, including interest coupons, if any,
to be attached thereto, and the manner of execution of the special purpose
revenue bonds, and shall fix the denomination or denominations of the special
purpose revenue bonds and, subject to the approval of the director of finance,
the place or places of payment of principal and interest, which may be at any
bank or trust company approved by the director of finance within or without the
State.



The special purpose revenue bonds may be issued
in coupon or in registered form, or both, as the development corporation may
determine, and provisions may be made for the registration of coupon bonds as
to principal alone and also as to both principal and interest, and for the
reconversion into coupon bonds of special purpose revenue bonds registered as
to both principal and interest.  Subject to the approval of the director of
finance, the development corporation may sell special purpose revenue bonds in
such manner, either at public or private sale, and for such price as it may
determine.



(d)  Prior to the preparation of definitive
special purpose revenue bonds, the development corporation may issue interim
receipts or temporary bonds, with or without coupons, exchangeable for
definitive bonds when the bonds have been executed and are available for
delivery.



(e)  Should any special purpose revenue bond
issued under this chapter or any coupon appertaining thereto become mutilated,
lost, stolen, or destroyed, the development corporation may cause a new bond or
coupon of like date, number, and tenor to be executed and delivered in exchange
and substitution for, and upon the cancellation of the mutilated bond or
coupon, or in lieu of and in substitution for the lost, stolen, or destroyed
bond or coupon.  The new bond or coupon shall not be executed or delivered
until the holder of the mutilated, lost, stolen, or destroyed bond or coupon:



(1)  Has paid the reasonable expenses and charges in
connection therewith;



(2)  In the case of a lost, stolen, or destroyed bond
or coupon, has filed with the development corporation or its fiduciary evidence
satisfactory to the development corporation or its fiduciary that the bond or
coupon was lost, stolen, or destroyed and that the holder was the owner
thereof; and



(3)  Has furnished indemnity satisfactory to the
development corporation.



(f)  The development corporation in its discretion
may provide that CUSIP identification numbers shall be printed on the special
purpose revenue bonds.  If the numbers are imprinted on the bonds:



(1)  No such number shall constitute a part of the
contract evidenced by the particular bond upon which it is imprinted; and



(2)  No liability shall attach to the development
corporation or any officer or agent thereof, including any fiscal agent, paying
agent, or registrar for the bonds by reason of the numbers or any use made
thereof, including any use thereof made by the development corporation, any
such officer, or any such agent, or by reason of any inaccuracy, error, or
omission with respect thereto or in such use.  The development corporation in
its discretion may require that all costs of obtaining and imprinting the
numbers shall be paid by the purchaser of the bonds.  For the purposes of this
subsection, the term "CUSIP identification numbers" means the
numbering system adopted by the Committee for Uniform Security Identification
Procedures formed by the Securities Industry Association.



(g)  Whenever the development corporation has
authorized the issuance of special purpose revenue bonds under this chapter,
special purpose revenue bond anticipation notes of the development corporation
may be issued in anticipation of the issuance of the bonds and of the receipt
of the proceeds of sale thereof, for the purposes for which the bonds have been
authorized.  All special purpose revenue bond anticipation notes shall be
authorized by the development corporation, and the maximum principal amount of
the notes shall not exceed the authorized principal amount of the bonds.  The
notes shall be payable solely from and secured solely by the proceeds of sale
of the special purpose revenue bonds in anticipation of which the notes are
issued and the moneys, rates, charges, and other revenues from which would be
payable and by which would be secured the bonds; provided that to the extent
that the principal of the notes shall be paid from moneys other than the
proceeds of sale of the bonds, the maximum amount of bonds that has been
authorized in anticipation of which the notes are issued shall be reduced by
the amount of notes paid in this manner.  The authorization, issuance, and the
details of the notes shall be governed by this chapter with respect to special
purpose revenue bonds insofar as the same may be applicable; provided that each
note, together with all renewals and extensions thereof, or refundings thereof
by other notes issued under this subsection, shall mature within five years
from the date of the original note.



(h)  To secure the payment of any of the
special purpose revenue bonds issued pursuant to this chapter, and interest
thereon, or in connection with the bonds, the development corporation shall
have the power as to the bonds:



(1)  To pledge all or any part of the revenues and
receipts derived or to be derived by the development corporation as provided in
this chapter to the punctual payment of special purpose revenue bonds issued
with respect to the project or industrial park financed from the proceeds
thereof, and interest thereon, and to covenant against thereafter pledging any
such revenues and receipts to any other bonds or any other obligations of the
development corporation for any other purpose, except as otherwise stated in
the proceedings providing for the issuance of special purpose revenue bonds
permitting the issuance of additional special purpose revenue bonds to be
equally and ratably secured by a lien upon such revenues and receipts;



(2)  To pledge and assign the interest and right of
the development corporation under any project agreement and other agreements
related to a project or industrial park, and the rights, duties, and
obligations of the development corporation thereunder, including the right to
receive revenues and receipts thereunder;



(3)  To pledge or assign all or any part of the
proceeds derived by the development corporation from proceeds of insurance or
condemnation awards;



(4)  To covenant as to the use and disposition of the
proceeds from the sale of the special purpose revenue bonds;



(5)  To covenant to set aside or pay over reserves and
sinking funds for the special purpose revenue bonds and as to the disposition
thereof;



(6)  To covenant and prescribe as to what happenings
or occurrences shall constitute "events of default", the terms and
conditions upon which any or all of the bonds shall become or may be declared
due before maturity, and as to the terms and conditions upon which the
declaration and its consequences may be waived;



(7)  To covenant as to the rights, liabilities,
powers, and duties arising upon the breach by the development corporation of
any covenant, condition, or obligation;



(8)  Subject to the approval of the director of
finance, to designate a national or state bank or trust company within or
without the State, incorporated in the United States, to serve as trustee for
the holders of the special purpose revenue bonds and to enter into a trust
indenture, trust agreement, or indenture of mortgage with the trustee.  The
trustee may be authorized by the development corporation to receive and receipt
for, hold, and administer the proceeds of the special purpose revenue bonds and
to apply the proceeds to the purposes for which the special purpose revenue bonds
are issued, or to receive and receipt for, hold, and administer the revenues
and receipts derived or to be derived by the development corporation under a
project agreement or other agreement related to a project or industrial park,
and to apply such revenues and receipts to the payment of the principal of and
interest on the special purpose revenue bonds, or both, and any excess revenues
and receipts to the payment of expenses incurred by the development corporation
in administering the special purpose revenue bonds or in carrying out the
project agreement or other agreement.  If the trustee shall be appointed, any
trust indenture, trust agreement, or indenture of mortgage entered into by the
development corporation with the trustee may contain whatever covenants and
provisions as may be necessary, convenient, or desirable in order to secure the
special purpose revenue bonds.  The development corporation may pledge and
assign to the trustee the interest of the development corporation under a
project agreement and other agreements related thereto and the rights, duties,
and obligations of the development corporation thereunder, including the right
to receive revenues and receipts thereunder.  The development corporation may
appoint the trustee to serve as fiscal agent for the payment of the principal
and interest, and for the purchase, registration, transfer, exchange, and
redemption of the special purpose revenue bonds, and may authorize and empower
the trustee to perform the functions with respect to the payment, purchase,
registration, transfer, exchange, and redemption, as the development
corporation may deem necessary, advisable, or expedient, including, without
limitation, the holding of the special purpose revenue bonds and coupons that
have been paid and the supervision of the destruction thereof in accordance
with law;



(9)  To execute all instruments necessary or
convenient in the exercise of the powers herein granted or in the performance
of its covenants and duties;



(10)  To invest or provide for the investment of the
proceeds of special purpose revenue bonds and revenues and receipts derived by
the development corporation in the securities and in such manner as it deems
proper; and



(11)  To make such covenants and do any and all acts
and things as may be necessary, convenient, or desirable in order to secure the
special purpose revenue bonds, notwithstanding that the covenants, acts, or
things may not be enumerated in this chapter.



No holder or holders of special purpose revenue
bonds issued under this chapter shall ever have the right to compel any
exercise of the taxing power of the State or any political subdivision of the
State to pay the special purpose revenue bonds or the interest thereon and no
moneys other than the revenues pledged to the special purpose revenue bonds
shall be applied to the payment thereof.



(i)  Special purpose revenue bonds bearing the
signature or facsimile signature of officers in office on the date of the
signing thereof shall be valid and sufficient for all purposes, notwithstanding
that before the delivery thereof and payment therefor any or all of the persons
whose signatures appear thereon shall have ceased to be officers of the
development corporation.  The special purpose revenue bonds shall contain a
recital that they are issued pursuant to this chapter which recital shall be
conclusive evidence of their validity and of the regularity of their issuance.



(j)  Subject to authorization by an act enacted
by the legislature by an affirmative vote of two-thirds of the members to which
each house is entitled, the development corporation may issue special purpose
revenue bonds for the purpose of refunding special purpose revenue bonds then
outstanding and issued under this chapter whether or not the outstanding
special purpose revenue bonds have matured or are then subject to redemption. 
The development corporation may issue special purpose revenue bonds for the
combined purposes of:



(1)  Financing or refinancing the cost of a project or
industrial park, or the improvement or expansion thereof; and



(2)  Refunding special purpose revenue bonds that
shall theretofore have been issued under this chapter and then shall be
outstanding, whether or not the outstanding bonds have matured or then are
subject to redemption.



Nothing in this subsection shall require or be
deemed to require the development corporation to elect to redeem or prepay
special purpose revenue bonds being refunded, or to redeem or prepay special
purpose revenue bonds being refunded that were issued, in the form customarily
known as term bonds in accordance with any sinking fund installment schedule
specified in any proceeding authorizing the issuance thereof, or, if the
development corporation elects to redeem or prepay any such bonds, to redeem or
prepay as of any particular date or dates. The issuance of the special purpose
revenue bonds, the maturities and other details thereof, the rights and
remedies of the holders thereof, and the rights, powers, privileges, duties,
and obligations of the development corporation with respect to the bonds, shall
be governed by the foregoing provisions of this chapter insofar as the same may
be applicable.



(k)  If special purpose revenue bonds issued
pursuant to this chapter are issued bearing interest at a rate or rates which vary
from time to time and with a right of holders to tender the bonds for purchase,
the development corporation may contract for such support facility or
facilities and remarketing arrangements as are required to market the special
purpose revenue bonds to the greatest advantage of the development corporation
upon such terms and conditions as the development corporation deems necessary
and proper.



The development corporation 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 development corporation under the contract
or agreement on an annual basis shall be payable solely from the revenue and
receipts of the project agreement and any obligation issued or arising pursuant
to the terms of the contract or agreement in the form of special purpose
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 special purpose
revenue bonds issued pursuant to this chapter; or



(2)  A like principal amount of the issue or series of
special purpose revenue bonds to which the support facility relates are held in
escrow by the entity or entities providing the support facility. [L 1983, c
152, pt of §2; am L 2000, c 72, §13]