§ 280u.
206 words·~1 min read·
/vt/title-10/chapter-12/280uA research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 280u. Guarantees; other credit enhancement
(a)The Board may provide guarantees secured solely by, or purchase of insurance or other enhancements through, amounts on deposit in the program, to qualified borrowers in accordance with the provisions of this section.
(b)All of the assets and obligations directly covered by guarantees or other forms of credit enhancement shall be assets or obligations of governmental units or private entities that are, without guarantee or enhancement, listed by a nationally recognized statistical rating organization at a rating not below the third highest rating of such organization.
(c)The assets and obligations that may be directly covered by guarantees issued by the Board are:
(1)bonds, debentures, notes, evidence of debt, loans, and interest therein, of qualified borrowers, the proceeds of which are to be used for a qualified project; and
(2)leases of personal, real, or mixed property to be used for a qualified project.
(d)The Program may charge and collect premiums or other fees for the guarantees or other credit enhancement provided pursuant to this subchapter, including fees for services performed in connection with the approval and processing of the guarantees or the credit enhancement provided pursuant to this subchapter. (Added 1997, No. 43, § 1.)