71-15,129. Financing; limitations.
No guaranty, other recourse obligation, mortgage, or security instrument, or other recourse instrument, given or entered into by a housing agency in connection with financing the acquisition, creation, modernization, rehabilitation, or replacement of a development which exposes to foreclosure, loss, or levy any property of the housing agency other than the development being acquired, created, modernized, rehabilitated, or replaced with the proceeds of such financing, shall be given or entered into unless the agency's board of commissioners has specifically approved such action by resolution which finds that such action:
(1) Is necessary and essential to acquiring the financing with respect to which such recourse instrument is given or entered into;
(2) Will not unreasonably expose to loss or foreclosure property of the agency other than the development for which such financing will be used;
(3) Is prudent and sound as required under section 71-15,130; and
(4) Is commercially reasonable, taking into account the characteristics of the transaction in which such recourse instrument would be given and its relative benefits and potential costs to the agency.
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