[§206M-8] Project agreement. (a) No bonds shall be issued unless at the time of issuance the development corporation shall have entered into a project agreement with respect to the project or industrial park for the financing of which such bonds are to be issued. Any project agreement entered into by the development corporation with a qualified person shall contain provisions unconditionally obligating such qualified person to pay the development corporation during the period or term of the project agreement, exclusive of any renewal or extension thereof and whether or not the project or industrial park to which such project agreement relates is used or occupied by the qualified person, at such time or times and in such amount or amounts that will be at least sufficient:
(1) To pay the principal of, and premium, if any, and interest on all bonds issued to finance the cost of the project, or an allocable portion of the bonds issued to finance the industrial park, as the case may be, as and when the bonds become due, including upon any required redemption thereof;
(2) To establish or maintain such reserves, if any, as may be required by the instrument authorizing or securing the bonds, or an allocable portion of such reserves, if less than all of the proceeds of the bonds are utilized for such qualified person;
(3) To pay the fees and expenses of the paying agents and trustees for the bonds, or an allocable portion of such fees and expenses, if less than all of the proceeds of the bonds are utilized for such qualified person; and
(4) To pay the expenses incurred by the development corporation in administering the bonds or in carrying out the project agreement, or an allocable portion of such expenses, if less than all of the proceeds of such bonds are utilized for such qualified person.
(b) Any project agreement entered into by the development corporation may contain such provisions as the development corporation deems necessary or desirable to obtain or permit the participation of the state and federal government in the project or industrial park or in the financing of the cost thereof.
(c) A project agreement also shall provide that the development corporation shall have all rights and remedies generally available at law or in equity to re-enter and take possession of a project upon the breach or default by a qualified person of any term, condition, or provision of a project agreement.
Moneys received by the development corporation pursuant to subsection (a)(4) shall not be, nor be deemed to be, revenues or receipts derived under the project agreement which may be pledged as security for bonds and shall be paid to the development corporation free and clear of any lien.
A qualified person may comply with the unconditional obligation to make payments required by subsection (a), if such obligations are unconditionally guaranteed or insured by, or the performance thereof assigned to, or guaranteed or insured by, a person or persons other than the qualified person which is satisfactory to the development corporation. [L 1983, c 152, pt of §2]