§ 242. Financing documents

(a) A financing document shall:

(1) provide for payments by the user at such times and in such amounts as are necessary in order to pay the debt service on all bonds issued to finance the project as they become due; and

(2) obligate the user to pay all the costs and expenses of operation, maintenance, upkeep, and insurance of the eligible facility.

(b) A financing document may:

(1) provide for payments by the user that include amounts in addition to the amounts required to pay debt service;

(2) obligate a user to make payments before the eligible facility exists or becomes functional and to make payments after the eligible facility has ceased to exist or be functional to any extent and from any cause whatsoever;

(3) obligate a user to make payments regardless of whether the user is in possession or is entitled to be in possession of the eligible facility;

(4) allocate responsibility between the municipality and the user for making purchases and contracts required for the project;

(5) contain an option for the user to acquire any ownership or possessory interest that the municipality may have in the eligible facility for nominal consideration upon payment of the bonds or upon the user’s making adequate and secure provision for their payment and provide for the automatic transfer of the municipality’s interest in the facility upon the effective exercise of the option;

(6) provide that some or all of the user’s obligations shall be unconditional and shall be binding and enforceable in all circumstances whatsoever notwithstanding any other provision of law; and

(7) contain such other provisions and covenants relating to the use, maintenance, repair, insurance, and replacement of the eligible facility as the municipality and the user deem necessary for the protection of themselves or others. (Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 9, eff. March 27, 1975; 1993, No. 89, § 3(b), eff. June 15, 1993.)