A. A resolution for the issuance of bonds shall set forth the determinations and findings of the authority required by this section.
B. Prior to approving a resolution for the issuance of bonds or the closing of a loan for any project, the authority shall determine and find that:
(1) the resolution is for the issuance of bonds and the principal and interest of the bonds to be issued shall be fully secured by:
(a) a lease agreement or installment sale agreement executed by an agency of the United States government;
(b) a state or local public agency or institution;
(c) a corporation organized and operating within the United States;
(d) an irrevocable letter of credit issued by a chartered financial institution approved for this purpose by the state board of finance;
(e) a bond insurance policy issued by an insurance company rated not less than "AA" by a national rating service; or
(f) revenue received by the authority pursuant to a contract entered into by and between the authority and a regional spaceport district;
(2) revenues are available in an amount necessary in each year to pay the principal of and interest on the bonds proposed to be issued or the loan proposed to be obtained to finance the project; and
(3) revenues are available in an amount necessary to be paid each year into any reserve funds that the authority may deem advisable to establish in connection with the retirement of the proposed bonds or the repayment of the loan or the maintenance of the project.
C. Unless the terms under which the project is to be leased or sold provide that the lessee or purchaser shall maintain the project and carry all proper insurance with respect to the project, the resolution shall set forth the estimated cost of maintaining the project in good repair and keeping it properly insured.
D. Prior to the issuance of the bonds or the closing of the loan, the authority may lease or sell the project to a lessee or purchaser under an agreement conditioned upon completion of the project and providing for payment to the authority of such rentals or payments as, upon the basis of such determinations and findings pursuant to provisions of this section, will be sufficient to:
(1) pay the principal of and interest on the bonds issued or on the loan to be obtained to finance the project;
(2) build up and maintain any reserve deemed by the authority to be advisable in connection with the financing of the project; and
(3) pay the costs of maintaining the project in good repair and keep it properly insured, unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the project.
E. With prior approval of the state board of finance, the authority may borrow funds to purchase, lease, acquire or develop water rights, a water system, a wastewater collection and treatment system, a natural gas distribution system, an electrical distribution system or other infrastructure needed to support the project, provided that the authority does not obligate itself or the state to any debt or obligation that cannot be paid from funds derived from the project.
F. Upon prior approval of the state board of finance, the authority may obtain commitment from a financial institution to borrow money, provided that closing of the loan and disbursement of the proceeds is conditional upon compliance with the requirements of the Spaceport Development Act. Nothing in this section shall be deemed to authorize the authority to incur any debt obligation of the authority in connection with a loan commitment prior to the closing of the loan.
History: Laws 2005, ch. 128, § 11; 2006, ch. 15, § 19.
ANNOTATIONSThe 2006 amendment, effective May 17, 2006, deletes the qualification in Subparagraph (c) of Paragraph (1) of Subsection B that authority bonds be secured by a corporation whose long term-term debt is rated not less that "A" by a national rating service; and adds Subparagraph (f) of Paragraph (1) of Subsection B to provide that authority bonds shall be secured by revenue received pursuant to a contract between the authority and a regional spaceport district.