§206M-7 Conditions precedent to negotiating and entering into a project agreement.

275 words·~1 min read·/hi/206m-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)The development corporation prior to entering into negotiations with respect to a project agreement or at any time during such negotiations shall require that as a condition to such negotiations or the continuation thereof the State shall be reimbursed for any and all costs and expenses incurred by it even though a project agreement may not be entered into and may further require the deposit of moneys with the development corporation as security for such reimbursement. Any amount of such deposit in excess of the amount required to reimburse the State shall be returned by the development corporation to the party which has made such deposit.

(b)The development corporation shall not enter into any project agreement with respect to any project or economic zone unless the legislature shall have first authorized the issuance of special purpose revenue bonds to finance a project or projects, an economic zone or economic zones, or a multi-project program pursuant to section 206M-9, and the development corporation has thereafter found and determined either that:

(1)The qualified person is a responsible party, whether by reason of economic assets or experience in the type of enterprise to be undertaken through the project, or otherwise; or

(2)The obligations of the qualified person under the project agreement will be unconditionally guaranteed by a person who is a responsible party, whether by reason of economic assets or experience in the type of enterprise to be undertaken through the project or otherwise. [L 1983, c 152, pt of §2; am L 2000, c 72, §11; am L 2022, c 55, §2]