Effective 28 Aug 1975

360.105. Financing by purchase of securities of participating institution authorized — such securities to be secured, how. — 1. Any other provision of sections 360.010 to 360.140 to the contrary notwithstanding, the authority may finance the cost of a health or educational facility or of health or educational facilities or refund outstanding indebtedness incurred prior to or after September 28, 1975, for the construction or acquisition of a health or educational facility or of health or educational facilities by issuing its bonds for the purpose of purchasing the securities of a participating health institution or a participating educational institution. Any such securities shall have the same principal amounts, maturities, and interest rate or rates as the bonds so being issued, shall be secured by a first mortgage lien on the health or educational facility or facilities so being financed, subject to such exceptions as the authority may approve, and created by a mortgage instrument satisfactory to the authority, and may be insured or guaranteed by others. Any such bonds shall be secured by a pledge of the securities under the trust indenture or mortgage and deed of trust creating such bonds, shall be payable solely out of the payments to be made on the securities, and shall not exceed in principal amount the cost of the health or educational facility or facilities as determined by the participating health institution or the participating educational institution, as the case may be, and approved by the authority. In other respects any such bonds shall be subject to the provisions of section 360.060 and the trust indenture or mortgage and deed of trust creating such bonds may contain such of the provisions set forth in section 360.075 as the authority may deem appropriate.

2. In the event that a health or educational facility is financed pursuant to this section, the title to the facility shall remain in the participating health institution or the participating educational institution owning the same, subject to the lien of the mortgage securing the securities then being purchased, and there shall be no lease of the facility between the authority and the institution.

3. The provisions of section 360.100 shall not apply to any health facility or educational facility financed pursuant to this section, but the authority shall return the securities purchased through the issuance of bonds hereunder to the participating health institution or the participating educational institution, as the case may be, issuing the securities when such bonds shall have been fully paid and retired or when adequate provision shall have been made to pay and retire the same fully, and all other conditions of the trust agreement or indenture creating such bonds shall have been satisfied and the lien thereof shall have been released in accordance with the provisions thereof.

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(L. 1975 H.B. 70 § 19)