(a) The Authority shall establish for each TIF area a tax increment trust fund. Funds allocated to and deposited into the fund must be made available to the Authority and the PFA, as security or otherwise, to finance or refinance any eligible project or TIF bond the Authority undertakes pursuant to the approved tax increment development plan.
(b) Neither the Authority nor the PFA may expend, commit to expend, or pledge an interest in amounts held in the tax increment trust fund, or its respective right to receive any increment revenues pursuant to this section, unless:
(1) The Authority approves the tax increment development plan, as pursuant to Section 1208 which must specify the precise metes and bounds of the TIF area and the maximum principal amount of TIF bonds that the PFA may incur in connection with undertaking the project that is to be secured in whole or in part by increment revenues on deposit from time to time in the tax increment trust fund; and
(2) A projection of the amount of increment revenues that are reasonably expected to accrue from within the TIF area has been prepared by the Authority, showing that the increment revenues will be sufficient in amount to pay when due costs of or debt service on any TIF bonds issued by the PFA and to pay the development costs from the tax increment trust fund. The Authority shall engage an independent appraiser to certify that the appraisal practices constituting the basis for such projection comply with current prevailing appraisal standards and procedures.
(c) The dedication and contribution of increment revenues may not impair existing obligations of the Government of the Virgin Islands or the Authority and may not include tax revenues the contribution of which would violate the Revised Organic Act of the Virgin Islands.
(d) Upon the adoption of the resolution by the Authority pursuant to section 1205 and following the enactment of law approving the TIF project as provided in section 1210 of this chapter, the Tax Assessor and the Director of the Internal Revenue Bureau, as applicable, shall, transfer to the PFA, for deposit in the tax increment trust fund, or directly to the trustee of the TIF bonds for deposit into the funds and accounts held by the Trustee for the benefit of the bond holders, all increment revenues to such TIF bonds until the certification by the PFA or the trustee that all development costs to be paid from the tax increment trust fund, including the payment of TIF bonds, have been paid or provided.
(e) While any TIF bonds remain outstanding the millage may not be reduced, if the reduction would materially impair the ability of the PFA to pay any development costs to which increment revenues have been pledged or otherwise committed by the Authority, including the timely payment of debt service on TIF bonds. Any reduction in millage must be conclusively determined to be immaterial if, in the written opinion of a financial or econometric expert or firm of financial or econometric experts nationally recognized as having experts nationally recognized as having expertise in matters of real property taxation and finance, such reduction in millage will not result in the inability of the PFA to pay such development costs and timely debt service on TIF bonds than outstanding.
(f) TIF bonds of every issue may, by their terms, be payable solely out of the increment revenues pledged to and received in connection with an approved project and deposited to the tax increment trust fund. The lien created to secure the TIF bonds may not attach to any other assets of the PFA, the Authority, or the Government of the Virgin Islands and are special limited obligations of the PFA, payable solely from the pledged increment revenues, unless otherwise secured by the project sponsors. The lien may not attach to any moneys constituting increment revenues until such moneys are collected by the Director of IRB or the Tax Collector. The holders of TIF bonds have no right to require the imposition of any tax or the establishment of any rate of taxation in order to obtain the amounts necessary to pay and retire such TIF bonds.
(g) TIF bonds issued by the PFA under this chapter may not be construed to constitute a debt, liability or obligation of the Government of the Virgin Islands or any instrumentality of the Government, and all such TIF bonds must contain on their face a statement to the effect that neither the full faith and credit nor the taxing power of the Government of the Virgin Islands or of any instrumentality of the Government, is pledged to the payment of the principal of, or the interest on any premium on such bonds.
(h) Moneys in the tax increment trust fund may be expended from time to time for the following purposes, when directly related to financing or refinancing of a project pursuant to an approved tax increment development plan:
(1) Administrative and overhead expenses necessary or incidental to the implementation of a tax increment development plan adopted by the Authority;
(2) Expenses of redevelopment planning, surveys, and financial analysis, including the reimbursement of the Authority for such expenses incurred before the tax increment plan was approved and adopted;
(3) The acquisition of real property in the TIF area;
(4) The clearance and preparation of the TIF area for redevelopment and relocation of site occupants;
(5) The payment of principal of and [sic] interest and any premium on the TIF bonds; and
(6) All expenses incidental to or connected with the issuance, sale, redemption, retirement, or purchase of TIF Bonds, including funding of any reserve, redemption, or any other fund or account provided for in the PFA's resolution authorizing such TIF bonds.
(i) On the last day of each fiscal year of the Government of the Virgin Islands, any money that remains in the tax increment revenue trust fund after payment of the expenses under subsection (h) must be to the extent permitted under the agreements with the holders of such TIF bonds,
(1) applied to reduce the amount of any TIF bonds to which increment revenues are pledged or used to fund reserve accounts for such project or bonds; or
(2) except as otherwise provided in subsection (1) of this section, returned to the General Fund, but only if no TIF bands remain outstanding and the PFA shall have certified that all development costs to be paid from the tax increment trust fund have been paid or provided for.
(j) The trustee of each tax increment trust fund, or its collecting agent shall be a trust company having a place of business within the Virgin Islands.