§ 159D-40. Criteria and requirements.
§ 159D‑40. Criteria and requirements.
(a) In undertaking any project pursuant to this Article, theagency shall be guided by and shall observe the following criteria andrequirements listed below. The determination of the agency as to its compliancewith these criteria and requirements is conclusive.
(1) No project shall be sold or leased nor any loan made to anyparticipating institution that is not financially responsible and capable offulfilling its obligations, including its obligations under an agreement ofsale or lease or a loan agreement to make purchase price payments, to pay rent,to make loan repayments, to operate, repair and maintain at its own expense theproject and to discharge any other responsibilities imposed under the agreementof sale or lease or loan agreement.
(2) Adequate provision shall be made for the payment of theprincipal of and the interest on the bonds and any necessary reserves forpayment and for the operation, repair and maintenance of the project at theexpense of the participating institution.
(3) The public facilities, including utilities, and publicservices necessary for the project will be made available.
(4) The projects shall be operated to serve and benefit thepublic and there shall be no discrimination against any person based on race,creed, color, or national origin.
(b) In making these determinations, the agency may consider theparticipating institution's experience and ratio of current assets to currentliabilities; the participating institution's net worth, earnings trends, andcoverage of fixed charges; the nature of the project involved; and anyadditional security for payment of the bonds and performance of theparticipating institution's obligations under the agreement of sale or lease orloan agreement, such as credit enhancement, insurance, guaranties, or propertypledged to secure the payment and performance. (1985 (Reg. Sess., 1986), c. 794, s. 6; 1998‑124,s. 6; 2000‑179, s. 2.)