§ 45-38.1-20. Procedure before issuance of bonds or notes. Notwithstanding any other provisions of this chapter, the corporation is not empowered to undertake any project authorized by this chapter unless, prior to the issuance of any bonds or notes under this chapter, it has determined that:

(1) The acquisition, construction, or financing of the cost of the project will:

(i) With respect to an institution for higher education, enable or assist the institution to fulfill its obligations in providing education to the youth of this state; or

(ii) With respect to a health care provider, enable the health care provider to improve the health of the people it serves by means of expanded health care, health care provider, and other related services; and

(2) The project is leased to, or owned by, a financially responsible institution for higher education or health care provider within the state; and

(3) Adequate provision has been, or will be, made for the payment of the cost of the construction and/or acquisition of the project, and, except with regard to those bonds issued through the corporation related to school housing project financing, that under no circumstances will the state be obligated, directly or indirectly, for the payment of the cost of the construction and/or acquisition of the project, or for the payment of the principal of, or interest on, any obligations issued to finance the construction and/or acquisition; and

(4) Adequate provision has been, or will be made in any agreement with respect to or lease of the project for payment of all costs of operation, maintenance, and upkeep of the project by the lessee, sublessee, or occupant so that under no circumstances is the state obligated, directly or indirectly, for the payment of the costs except with regard to state reimbursement for school housing projects; provided, that no findings shall be made and no financing effected under this chapter, with respect to health care providers, unless the proposed health care providers have first been approved by any state agency empowered to approve the construction of any health care providers in the manner provided in its general laws.

History of Section. (P.L. 1967, ch. 56, § 1; P.L. 1968, ch 224, § 2; P.L. 1991, ch. 292, § 1; P.L. 2000, ch. 184, § 1; P.L. 2004, ch. 595, art. 23, § 1.)