§39A-195 Project agreement. No special purpose revenue bonds shall be issued unless at the time of issuance the department shall have already entered into a project agreement with respect to the energy project for the financing of which such bonds are to be issued. Any project agreement entered into by the department shall contain provisions unconditionally obligating the project party:
(1) To pay to the department during the period or term of the project agreement, exclusive of any renewal or extension thereof and whether or not the energy project is used or occupied by the project party, such sum or sums, at such time or times, and in such amount or amounts that will be at least sufficient:
(A) To pay the principal and interest on all special purpose revenue bonds issued to finance the energy project as and when the bonds become due, including any premium payable upon any required redemption of such bonds;
(B) To establish or maintain such reserve, if any, as may be required by the instrument authorizing or securing the special purpose revenue bonds;
(C) To pay all fees and expenses (including the fees and expenses of the paying agents and trustees) incurred in connection with such special purpose revenue bonds; and
(D) To pay the expenses (direct or indirect) incurred by the State in administering such bonds or in carrying out the project agreement, as determined by the department.
(2) To operate, maintain, and repair the energy project as long as the same is used in the business of local furnishing of electric energy or gas, and to pay all costs of such operation, maintenance, and repair.
Moneys received by the department pursuant to paragraph (1)(D) shall not be, nor be deemed to be, revenues of the energy project and shall be paid into the general fund of the State. [L 1981, c 151, pt of §2]