§ 23-30.29:3. Investigation by Governor of alleged defaults; withholding ofstate funds from defaulting institution; payment of funds withheld; receipts,reports, etc.
A. Whenever it appears to the Governor from an affidavit filed with him bythe paying agent for the bonds issued by the Authority that the institutionhas defaulted in the payment of the principal of or premium, if any, orinterest on its bonds pursuant to this chapter, the Governor shallimmediately make a summary investigation into the facts set forth in theaffidavit. If it is established to the satisfaction of the Governor that theinstitution is in default in the payment of its bonds or the interestthereon, the Governor immediately shall make an order directing the StateComptroller to make payment immediately to the owners of the bonds indefault, or the paying agent for the bonds, on behalf of the institution fromany appropriation available to the institution in the amount due andremaining unpaid by the institution on its bonds.
B. Any payment so made by the State Comptroller to the owners of the bonds indefault, or to the paying agent of the bonds for the bonds, shall be creditedas if made directly by the institution and shall be charged by the StateComptroller against the appropriations of the institution. The owners of thebonds in default, or the paying agent for the bonds, at the time of paymentor at the time of each payment shall deliver to the State Comptroller, in aform satisfactory to the State Comptroller, a receipt for payment of theprincipal or interest satisfied by the payment. The State Comptroller shallreport each payment made to the governing body of the defaulting institutionunder the provisions of this section.
C. In addition, for any institution which defaulted on its bonds pursuant tothis section, the Governor shall direct the State Comptroller to chargeagainst the appropriations available to such institution all future paymentsof principal of and interest on the institution's bonds when due and payableand to make such payments to the owners of the bonds, or the paying agent forthe bonds, on behalf of the institution so as to ensure that no futuredefault will occur on such bonds. The charge and payment shall be made uponreceipt of such documentation as in the opinion of the State Comptrollerprovides satisfactory evidence of the claim. The owners of the bonds, or thepaying agent for the bonds, at the time of each payment shall deliver to theState Comptroller, in a form satisfactory to the State Comptroller, a receiptfor payment of the principal or interest satisfied by the payment.
D. Nothing in this section shall be construed to create any obligation on thepart of the State Comptroller or the Commonwealth to make any payment onbehalf of the defaulting institution other than from funds appropriated tothe defaulting institution.
§ 23-30.29:3. Investigation by Governor of alleged defaults; withholding ofstate funds from defaulting institution; payment of funds withheld; receipts,reports, etc.
A. Whenever it appears to the Governor from an affidavit filed with him bythe paying agent for the bonds issued by the Authority that the institutionhas defaulted in the payment of the principal of or premium, if any, orinterest on its bonds pursuant to this chapter, the Governor shallimmediately make a summary investigation into the facts set forth in theaffidavit. If it is established to the satisfaction of the Governor that theinstitution is in default in the payment of its bonds or the interestthereon, the Governor immediately shall make an order directing the StateComptroller to make payment immediately to the owners of the bonds indefault, or the paying agent for the bonds, on behalf of the institution fromany appropriation available to the institution in the amount due andremaining unpaid by the institution on its bonds.
B. Any payment so made by the State Comptroller to the owners of the bonds indefault, or to the paying agent of the bonds for the bonds, shall be creditedas if made directly by the institution and shall be charged by the StateComptroller against the appropriations of the institution. The owners of thebonds in default, or the paying agent for the bonds, at the time of paymentor at the time of each payment shall deliver to the State Comptroller, in aform satisfactory to the State Comptroller, a receipt for payment of theprincipal or interest satisfied by the payment. The State Comptroller shallreport each payment made to the governing body of the defaulting institutionunder the provisions of this section.
C. In addition, for any institution which defaulted on its bonds pursuant tothis section, the Governor shall direct the State Comptroller to chargeagainst the appropriations available to such institution all future paymentsof principal of and interest on the institution's bonds when due and payableand to make such payments to the owners of the bonds, or the paying agent forthe bonds, on behalf of the institution so as to ensure that no futuredefault will occur on such bonds. The charge and payment shall be made uponreceipt of such documentation as in the opinion of the State Comptrollerprovides satisfactory evidence of the claim. The owners of the bonds, or thepaying agent for the bonds, at the time of each payment shall deliver to theState Comptroller, in a form satisfactory to the State Comptroller, a receiptfor payment of the principal or interest satisfied by the payment.
D. Nothing in this section shall be construed to create any obligation on thepart of the State Comptroller or the Commonwealth to make any payment onbehalf of the defaulting institution other than from funds appropriated tothe defaulting institution.
§ 23-30.29:3. Investigation by Governor of alleged defaults; withholding ofstate funds from defaulting institution; payment of funds withheld; receipts,reports, etc.
A. Whenever it appears to the Governor from an affidavit filed with him bythe paying agent for the bonds issued by the Authority that the institutionhas defaulted in the payment of the principal of or premium, if any, orinterest on its bonds pursuant to this chapter, the Governor shallimmediately make a summary investigation into the facts set forth in theaffidavit. If it is established to the satisfaction of the Governor that theinstitution is in default in the payment of its bonds or the interestthereon, the Governor immediately shall make an order directing the StateComptroller to make payment immediately to the owners of the bonds indefault, or the paying agent for the bonds, on behalf of the institution fromany appropriation available to the institution in the amount due andremaining unpaid by the institution on its bonds.
B. Any payment so made by the State Comptroller to the owners of the bonds indefault, or to the paying agent of the bonds for the bonds, shall be creditedas if made directly by the institution and shall be charged by the StateComptroller against the appropriations of the institution. The owners of thebonds in default, or the paying agent for the bonds, at the time of paymentor at the time of each payment shall deliver to the State Comptroller, in aform satisfactory to the State Comptroller, a receipt for payment of theprincipal or interest satisfied by the payment. The State Comptroller shallreport each payment made to the governing body of the defaulting institutionunder the provisions of this section.
C. In addition, for any institution which defaulted on its bonds pursuant tothis section, the Governor shall direct the State Comptroller to chargeagainst the appropriations available to such institution all future paymentsof principal of and interest on the institution's bonds when due and payableand to make such payments to the owners of the bonds, or the paying agent forthe bonds, on behalf of the institution so as to ensure that no futuredefault will occur on such bonds. The charge and payment shall be made uponreceipt of such documentation as in the opinion of the State Comptrollerprovides satisfactory evidence of the claim. The owners of the bonds, or thepaying agent for the bonds, at the time of each payment shall deliver to theState Comptroller, in a form satisfactory to the State Comptroller, a receiptfor payment of the principal or interest satisfied by the payment.
D. Nothing in this section shall be construed to create any obligation on thepart of the State Comptroller or the Commonwealth to make any payment onbehalf of the defaulting institution other than from funds appropriated tothe defaulting institution.
