90-7-303. Procedure for issuance of bonds. (1) The authority may not undertake to finance any eligible facility unless, prior to the issuance of any bonds or notes, the members find that the facility will be operated by a health institution for the purpose of fulfilling its obligation to provide health care facilities or by a prerelease center for the purpose of preparing persons to reenter society.
     (2) The authority may not allow the proceeds of any bonds or notes to be expended for any health care facility unless the facility has been reviewed and approved by the appropriate regional and state health planning boards and has received any approval required by Title 50, chapter 5, part 3.
     (3) The authority may not allow the proceeds of any bonds or notes to be expended for any facility until it has been shown that the facility is financially feasible and that there will be sufficient revenues to ensure that principal and interest payments are made when they become due.
     (4) The authority may not allow the proceeds of any bonds or notes to be expended for any facility until it has considered the ability of the institution to operate the facility based on the institution's experience and expertise.
     (5) The authority shall ensure that its financings consistently provide fair and realistic terms and covenants sufficient to protect the position of the lenders or bondholders.

     History: En. Sec. 16, Ch. 703, L. 1983; amd. Sec. 1, Ch. 326, L. 1985; amd. Sec. 10, Ch. 477, L. 1997.