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(a) The Authority may issue bonds to finance the cost of any project or part thereof with respect to which the Authority has adopted a resolution.
(b) The Authority may issue bonds to refund bonds previously issued by the Authority or any other issuer, past or present, within the State (including, without limitation, the former Department of Community Affairs and Economic Development and the former Delaware Office of Economic Development), including the payment of any redemption premium thereon and any interest accrued to the date of redemption of such bonds.
(c) The Authority may issue bonds payable solely from the revenues of the project for which the bonds have been issued. Such bonds may be issued for a project whether or not such project is or will be financed by state-guaranteed bonds.
(d) The Authority may pledge the full faith and credit of the State to the payment of principal, premium, if any, and interest due on bonds (whether at stated or accelerated maturity or otherwise) subject to the following conditions:
(1) With respect to any project proposed to be financed by state-guaranteed bonds, the Authority shall find and determine, which findings and determinations shall be conclusive, in addition to making the appropriate findings and determinations required by § 8755A of this title, that:
a. The aggregate principal amount of state-guaranteed bonds, the proceeds of which are used to finance the proposed project together with the aggregate principal amount of outstanding bonds used to finance any other project or projects owned, used, leased or occupied by the same assisted person, or by a related person to the assisted person, does not exceed $3,000,000;
b. Not more than 50 percent of the cost of the proposed project shall be financed by state-guaranteed bonds, and no part of the assisted person's contribution to the cost of a proposed project may be supplied, in whole or in part, by funds appropriated by an act of the General Assembly of the State; and
c. The fulfillment, discharge and satisfaction of the assisted person's obligations under the terms of the lease, mortgage, loan agreement or other financing agreements between the Authority and the assisted person shall be adequately secured.
(2) The aggregate principal amount of state-guaranteed bonds that may be authorized to be outstanding shall be limited to $4,449,015. The limit shall automatically be reduced below $4,449,015, once the aggregate principal amount of outstanding state-guaranteed bonds is reduced to $4,449,015 by an amount equal to the principal amount of state-guaranteed bonds thereafter retired by the Authority.
(3) In no event shall the proceeds of state-guaranteed bonds be used to finance a project for commercial business or agricultural business.
(4) The Authority may not adopt a resolution authorizing the issuance of state-guaranteed bonds without the approval of at least 5 of the 7 members (the ‘‘members’’) of the Council on Development Finance (the ‘‘Council’’) or 3/4 of the members if vacancies on the Council exist.
(5) The assisted person shall be legally obligated to deposit (prior to the delivery of the bonds and from a source other than the proceeds of the bonds), and thereafter maintain, with a person in trust, a cash reserve fund in an amount equal to the maximum principal and interest payable on such bonds during any consecutive 12-month period by such assisted person to the Authority under the terms of the lease, mortgage, loan agreement or other financing agreement between the Authority and such assisted person. Such cash reserve fund shall be pledged solely for the purposes provided in § 8761A of this title and shall not be construed as a security deposit under the State's Landlord Tenant Code (Part III of Title 25).
(6) In the case of accelerated maturity, the pledge of the full faith and credit of the State to the payment of principal, premium, if any, and interest due on state-guaranteed bonds prior to their stated maturity shall not apply without the express written approval of the Secretary of Finance. Such approval may be given at any time after the occurrence of a default which would permit the acceleration of payment of principal, premium, if any, or interest on such state-guaranteed bonds under the terms of the lease, mortgage, loan agreement or other financing agreements between the Authority and the assisted person.
(e) The Authority shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of this subchapter including without limitation the power:
(1) To adopt bylaws for the regulation of its affairs and the conduct of its business and to adopt rules, regulations and policies in connection with the performance of its functions and duties;
(2) To adopt, use and alter at will an official seal;
(3) To sue in its own name;
(4) To acquire in its own name by purchase, lease or otherwise, on such terms and conditions and in such manner as it may deem proper, any franchise, property, real, personal or mixed, tangible or intangible, or any interest therein, whether or not in connection with a project, and to sell, lease as lessor, mortgage or otherwise encumber, transfer or dispose of any such property or interest therein;
(5) To enter into contracts with a person upon such terms and conditions as the Authority shall determine to be reasonable, providing, without limitation, for reimbursement for the planning, designing, financing, construction, reconstruction, improvement, equipping, furnishing, operation and maintenance of a project and to pay or compromise any claims arising from any such contracts;
(6) To enter into loan agreements with, to provide any other forms of financing support and to make loans to, an assisted person, for the cost of a project (title to which project may remain or vest in such assisted person), which loans or other financing support may be secured or evidenced by notes, debentures, bonds, mortgages, leases or other instruments, delivered to the Authority or to a trustee or other person as assignee of the Authority, all upon such terms and conditions as the Authority may deem advisable;
(7) To establish and maintain funds of any kind, including without limitation reserve and insurance funds with respect to any financing of a project;
(8) To mortgage, pledge, assign or otherwise encumber all or any portion of a project or revenues;
(9) To grant options to purchase or renew a lease for any project;
(10) To contract for and to accept any gifts, grants or loans of funds or property or financial or other aid from any source, and to comply, subject to this subchapter, with the terms and conditions thereof;
(11) To charge and collect such fees and charges as it shall determine to be reasonable for the use of its services;
(12) To acquire, purchase, manage, operate, hold and dispose of real and personal property or interests therein, take assignments of rentals and leases and make and enter into all contracts, leases, agreements and arrangements necessary or incidental to the performance of its duties;
(13) To purchase, acquire and take assignments of notes, mortgages and other forms of security and evidences of indebtedness;
(14) To purchase, acquire, attach, seize, accept or take title to any project by conveyance or by foreclosure, and sell, lease, manage or operate any project for a use specified in this subchapter;
(15) To borrow money and issue bonds (the interest on which may be taxable or exempt from tax under the Internal Revenue Code of 1986, as amended) as provided in this subchapter, and provide for the rights of the holders thereof;
(16) To pledge the full faith and credit of the State to the payment of the principal, premium, if any, and interest on bonds, but only to the extent permitted under this subchapter;
(17) To invest any funds or moneys of the Authority pending the application of such funds or moneys to the purposes specified in this subchapter;
(18) To employ consulting engineers, architects, attorneys (in accordance with § 2507 of this title), real estate counselors, appraisers and such other consultants and employees, who shall not be members of the classified service, as may be required in the judgment of the Authority to carry out the purposes of this subchapter, and to fix and pay their compensation from funds available to the Authority therefor;
(19) To do and perform any acts and things authorized by this subchapter under, through or by means of its own officers, agents and employees, or by contracts with any person; and
(20) To procure insurance against any losses in connection with its property, operations or assets in such amounts and from such insurers as it deems desirable.
(21) Repealed by 81 Laws 2018, ch. 374, § 15.
(f) Notwithstanding any other provision in this subchapter, the Authority shall have the power to issue bonds for the benefit of any exempt person, subject only to the following conditions:
(1) The Authority may not pledge the full faith and credit of the State to the payment of principal, premium, if any, or interest due on such bonds; and
(2) Prior to approving an application for the issuance of such bonds, the Authority shall find and determine, which finding and determination shall be conclusive, on the basis of all information reasonably available to it, that any proposed financing for an exempt person will effectuate the purpose set forth in § 8751A(a)(10) of this title. With respect to such applications, the Authority need not make the findings and determinations otherwise required under this subchapter.
Cite this article: FindLaw.com - Delaware Code Title 29. State Government § 8754A. Deauthorization of state-guaranteed bonds - last updated January 01, 2019 | https://codes.findlaw.com/de/title-29-state-government/de-code-sect-29-8754a/
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