Chapter 162-I: Business Finance Authority Revenue Bonds

I. It is hereby declared that there is a need for the development of industrial facilities, including pollution control facilities, commercial facilities in redevelopment project areas, water powered electric generating facilities and aircraft hangar facilities within the state in order to create or preserve employment opportunities, protect the physical environment, preserve or increase the social or economic prosperity of the state and its political subdivisions and promote the general welfare of the state's citizens.

II. It is hereby declared that there is a need for the acquisition, construction and reconstruction of railroad line facilities in order to maintain or improve the transportation capacity of the railroad system in the state, facilitate the economical shipment of goods for commerce and industry, preserve or increase the social or economic prosperity of the state and its political subdivisions and promote the general welfare of the state's citizens.

III. It is hereby declared that there is need for the development of recreational facilities in order to create or preserve employment opportunities or increase the opportunities for public recreational activities and to preserve or increase the social or economic prosperity of the state and its political subdivisions and promote the general welfare of the state's citizens.

IV. It is hereby declared that there is a need for the development of small scale power facilities in the state in order to reduce the state's dependence on fossil fuels, better utilize the state's energy sources, provide stable and affordable sources of energy for businesses and citizens of the state, preserve or increase the social or economic prosperity of the state and its political subdivisions and promote the general welfare of the state's citizens.

V. It is the purpose of this chapter to authorize the state, acting through the business finance authority, to foster and encourage the development of eligible facilities, as defined in this chapter, in the state without the use of public funds by issuing revenue bonds to assist the financing of the eligible facilities. It is further declared that the actions authorized by this chapter serve a public purpose and that in carrying out the provisions of this chapter the business finance authority shall be regarded as performing an essential governmental function.

VI. It is hereby declared that there is a need for the development, acquisition, construction, expansion, and replacement of water facilities in the state in order to maintain and improve the supply of water for domestic, industrial, agricultural or other uses by the public, preserve or increase the social or economic prosperity of the state and its political subdivisions, and promote the general welfare of the state's citizens.

VII. It is hereby declared that there is a need for the acquisition, construction and reconstruction of commercial fishing vessels and the development of related shoreside facilities in order to promote the growth of the fishing industry in the state, create or preserve employment opportunities, preserve or increase the social or economic prosperity of the state and its political subdivisions, and promote the general welfare of the state's citizens.

VIII. It is hereby declared that there is a need for the development of intrastate energy pipeline facilities to make use of the additional capacity provided by the construction of additional interstate energy pipeline facilities in the state, thereby increasing the state's ability to meet the energy needs of its citizens and businesses at the lowest reasonable cost while providing for the reliability and diversity of energy sources, and creating or preserving employment opportunities, protecting the physical environment, preserving or increasing the social or economic prosperity of the state and its political subdivisions, and promoting the general welfare of the state's citizens.

IX. It is hereby declared that there is a need for development in unincorporated places which lack local controls, incentives, tax structures, and other mechanisms usually used to promote growth, in order to create, revive, or preserve employment opportunities, preserve or increase the social or economic prosperity of the state and its political subdivisions, or promote the general welfare of the state's citizens.

In this chapter:

I. "Aircraft hangar facility" shall be an eligible facility and means any privately owned structure used for housing or repairing aircraft.

I-a. "Authority" means the business finance authority created under RSA 162-A:3.

II. "Board" means the board of directors of the authority.

III. "Bond" means any bond, note, or other obligation evidencing indebtedness issued or entered into or acquired or incurred by the authority under this chapter, including any certificate of participation or lease or lease-purchase, installment sale, or other financing agreement, and any refunding bond or other indebtedness with respect to a bond or any other evidence of indebtedness issued by the authority or another party.

III-a. "Commercial facility" shall be an eligible facility and means any facility, whether tangible or intangible, which is to be used in a trade or business whether or not such business is operated for profit.

IV. "Debt service" means the amounts required to pay bonds according to their terms and includes amounts representing principal, premium and interest, including interest on overdue payments.

V. "Eligible facility" means a facility which consists of real property, personal property or other assets, or any combination thereof, whether tangible or intangible. An eligible facility may include appurtenances and structures such as pumping machinery, storage accommodations, transportation facilities or utility lines which are incidental to the operation of the facility. If less than an entire eligible facility is to be financed under this chapter, the portion of the facility which is to be financed may also be called an eligible facility.

VI. "Financing document" means a written instrument establishing the rights and responsibilities of the authority and the user with respect to an eligible facility financed by the issue of bonds under this chapter.

VII. (a) "Industrial facility" shall be an eligible facility and means any facility which shall be suitable for any of, or any combination of, the following activities, uses or purposes:

(1) Manufacturing, processing, assembling or warehousing goods or materials for sale or distribution, but shall not include raw materials, work in process or stock in trade.

(2) The conduct of research and development activities.

(3) Use as the national or regional headquarters for a multistate business enterprise.

(4) Collecting or processing any kind of waste material for reuse or disposal or for converting any kind of waste material or derivative of any waste material, whether by itself or in combination with other material, into other products of any kind, including steam and electricity.

(5) Reducing, mitigating or eliminating pollution of land, air or water by substances, heat or sound.

(b) "Industrial facility" shall also include any facility described in Section 142(a) of the Internal Revenue Code of 1986 as in effect on July 1, 1993, other than residential rental projects.

VII-a. "Intrastate energy pipeline facility" means a pipeline, right of way, facility, building, or equipment used in the transportation, distribution, or sale of natural gas or petroleum, and which is situated wholly within this state.

VII-b. "Intrastate energy pipeline facility revolving loan fund" means the fund established by RSA 162-I:3-b.

VII-c. "Natural gas" means any manufactured or natural gas or any combination thereof.

VII-d. "Petroleum" means crude petroleum, refined petroleum products, or combinations of petroleum products.

VIII. "Project" means any capital improvement, purchase of receivables, property, assets, commodities, bonds, or other revenue streams or related assets, working capital program or liability or other insurance program. The term "project" shall include the creation, establishment, acquisition, construction, expansion, remodeling or replacement of an eligible facility, or of one or more structural or operational components of an eligible facility, financed by the issue of bonds under this chapter.

IX. "Project costs" means any costs or expenses reasonably incidental to a project and may, without limitation, include the costs of:

(a) Issuing bonds to finance a project;

(b) Acquiring land, buildings, structures and facilities, whether by lease, purchase, construction or otherwise;

(c) Acquiring rights in or over land, air or water;

(d) Improving land and improving buildings, structures and facilities by remodeling, reconstruction, replacement or enlargement;

(e) Acquiring and installing machinery and equipment;

(f) Obtaining professional or advisory services;

(g) Interest prior to and during construction and, if determined advisable by the authority, for a period after completion of such construction the cost of financing the project, including interest on bonds and notes issued by the authority to finance a project;

(h) Working capital, whether or not related to a project, or to an eligible facility; and

(i) Creating reserves.

IX-a. "Railroad line facility" shall be an eligible facility and means any railroad right of way within the state and all other kinds of property or structures installed on the right of way such as rails, ties, ballast, switches, signals, interlockers, bridges and tunnels which are necessary or useful for the effective functioning of a segment of a railroad system, but the term shall not include rolling stock. Any project with respect to a railroad line facility may, but need not, include the acquisition by purchase, lease, or otherwise of an existing railroad right of way with associated property as described in the preceding sentence and may consist of the construction or reconstruction, which shall include restoration or upgrading, of the facility. Acquisitions under this chapter shall not be subject to RSA 228:54-75. A user which engages in a project with respect to a railroad line facility need not be the owner of the facility and need not be entitled to the exclusive use of the facility.

IX-b. "Recreational facility" shall be an eligible facility and means any indoor or outdoor facility suitable for use by the general public for any of, or any combination of, the following activities, uses or purposes:

(a) Sports, assembly, arena or exposition purposes, whether or not now in existence, including, but not limited to, spectator or participation recreation or sports, such as ice hockey, basketball, horse racing, dog racing, tennis or other recreational or sports purposes; or

(b) Alpine or nordic skiing and other forms of outdoor recreation, including slopes and trails, passenger tramways, snow making systems, base lodges and other associated buildings, and similar equipment and improvements.

IX-c. "Redevelopment district in an unincorporated place" means an eligible facility in an unincorporated place designated as a redevelopment district by the county commissioners, with the approval of the county delegation, provided the county commissioners have determined that redevelopment within the redevelopment district is likely to promote growth, create, revive, or preserve employment opportunities, preserve or increase the social or economic prosperity of the state and its political subdivisions, or promote the general welfare of the state's citizens.

X. "Security document" means a written instrument establishing the rights and responsibilities of the authority and the holders of bonds issued to finance an eligible facility.

X-a. "Small scale power facility" shall be an eligible facility and means any facility which is suitable for producing electric energy from biomass, waste, geothermal energy, or renewable resources including, but not limited to, the flow of water, and which has a rated capacity of not more than 80 megawatts, or any facility that is used to produce, collect, generate, transmit, store, distribute, or convey electric energy or gas and is part of a system providing service to the general populace of one or more communities or municipalities, but in no event more than 2 contiguous counties.

XI. "User" means the person entitled to the use or occupancy of an eligible facility and primarily responsible for making payments sufficient to meet the debt service on the bonds issued to finance the facility. The term shall include 2 or more persons who are parties to the financing document and who are in the aggregate so entitled and so responsible.

XII. "Water-powered electric generating facility" shall be an eligible facility and means any facility which is suitable for converting energy from the movement of water by gravity or tide into electric energy.

XIII. "Water facility" shall be an eligible facility and means any facility suitable for collecting, purifying, storing, or distributing water for domestic, industrial, agricultural, or other uses, if the water for such uses is to be available on reasonable demand to members of the general public.

XIV. "Commercial fishing facility" shall be an eligible facility and means any commercial fishing vessel documented or to be documented as such under the laws of the United States and any commercial fishing vessel registered or to be registered as such under the laws of the state, which is designed to be used for the catching, packaging, processing, storing or shipping of fish; and any shoreside facility which is functionally related and subordinate to the operation of such commercial fishing vessel.

I. The authority shall have the following powers in addition to any other powers conferred upon it:

(a) To engage in projects, to acquire and dispose of ownership or possessory interests in eligible facilities and related property within the state.

(b) To issue bonds:

(1) To pay project costs;

(2) To reimburse a user or a related person for payments for project costs made before or after the bonds are issued; or

(3) To refund, refinance, or acquire indebtedness previously issued by or on behalf of the authority, a user, or a related person.

(c) To execute financing documents and security documents and perform obligations and exercise powers created by the documents.

(d) In the event of default by a user under a financing document, but only to the extent authorized by the financing document or security document, to dispose of all or part of the eligible facility by sale or otherwise for the benefit of the bondholders under the security documents.

(e) To make contracts or take any other action which is necessary or desirable in connection with the exercise of the powers granted under this section.

(f) To take all actions necessary or appropriate in its administration of the intrastate energy pipeline facility revolving loan fund established in this chapter, including, but not limited to, underwriting loan applications and exercising any of the other powers granted to the authority under this section or elsewhere.

II. The authority may authorize its officers to take such actions as may be reasonably necessary to carry out its powers. The authority may from time to time by resolution delegate to the chairman, vice chairman, or executive director, or any combination of these officers, the power to grant waivers and consents, approve amendments, and take all other actions with respect to financing documents, security documents, and other documents pertaining to bonds previously issued by the authority; provided, however, that all such actions shall be consistent with the findings and approval of the governor and council made under RSA 162-I:9 and with the purposes of this chapter.

Bonds issued under this chapter relative to railroad lines may finance the upgrading, construction or repair of railroad lines in the state.

I. There is hereby established in the office of the state treasurer a fund to be known as the intrastate energy pipeline facility revolving loan fund which shall be kept separate and distinct from all other funds. Moneys in the fund shall be nonlapsing and shall be continually appropriated to the authority, and shall be used to provide loans for the construction of intrastate energy pipeline facilities in the state in order to increase the state's ability to meet the energy needs of its citizens and businesses at the lowest reasonable cost, while providing for the reliability and diversity of energy sources. The intrastate energy pipeline facilities shall be eligible for the revolving funds upon the operator receiving all applicable local, state, and federal permits. Loans provided to operators of intrastate energy pipeline facilities shall be approved by the governor and council.

II. The operator of the intrastate energy pipeline facility provided a loan under this section shall furnish assurance to the authority by a signed agreement that the facility intends to operate as an intrastate energy provider for the life of the capital improvement for which the funds are loaned.

III. The operator of the intrastate energy pipeline facility shall repay any loan made pursuant to this section upon such terms and conditions as are required by the authority. The term of the loan shall be no less than 5 years and no longer than 20 years, and shall to the extent possible consistent with this section be determined so as to match the useful life of the improvements funded by the loan. The terms and conditions shall be contained in the binding agreement between the state and the operator of the intrastate energy pipeline facility and shall be sufficient to fully reimburse the state for the principal and interest payments on that portion of the bonds authorized to fund the loan. The authority shall execute all such binding agreements on behalf of the state. All money received through reimbursement shall be deposited by the state treasurer in the intrastate energy pipeline facility revolving loan fund.

IV. In addition to such other terms and conditions that the authority may impose with regard to collateral for a loan, a lien on the property and equipment of the operator of the intrastate energy pipeline facility, including the improved property or equipment, shall be created in favor of the state in an amount which equals the sum of principal and interest to be repaid by the operator of the intrastate energy pipeline facility. The lien shall be recorded in the registry of deeds of the county or counties in which the improved property is situated and shall not supersede any pre-existing lien created by a mortgage, bond indenture, or similar form of security instrument affecting such property. The lien shall expire only when the loan has been fully repaid.

V. To provide funds for the revolving loan fund established pursuant to this section, the state treasurer, as may be requested from time to time by the authority, is authorized to borrow from time to time upon the credit of the state such amounts so that the aggregate principal amount of the bonds outstanding at any time shall not exceed $10,000,000 and for said purposes may issue bonds and notes at such time in the name and on behalf of the state of New Hampshire in accordance with the provisions of RSA 6-A. The authority shall request and the treasurer shall issue bonds only for such amounts from time to time as are required for the purposes of this section and provided that the principal and interest payments can be satisfied from sums in the fund established in paragraph I.

VI. The payments of principal and interest on the bonds issued under paragraph V shall be made when due from the special fund established by paragraph I.

VII. While the authority shall administer the fund as set forth in this section, and shall have the authority to charge borrowers to whom funds are loaned a fee to reimburse the authority for the services provided by it and costs incurred by it, the authority shall have no financial responsibility for the bonds issued under this section, said bonds being the obligation of the state as set forth in this section.

VIII. The operator of the intrastate pipeline facility shall reimburse the state treasurer for any expenses incurred in connection with the issuance of bonds under this section.

IX. The state treasurer shall submit a report by December 1 of each even-numbered year to the governor, to the chairperson of the house commerce committee, and to the chairperson of the senate economic development committee. The report shall be prepared in consultation with the executive director of the business finance authority and shall describe the activity of the revolving loan fund established pursuant to this section.

Nothing in this chapter shall be construed to authorize the authority to operate an eligible facility itself or to conduct any business enterprise in connection with an eligible facility.

The authority's interest in the facility under a financing document may be that of owner, lessor, lessee, conditional or installment vendor, mortgagor, secured party or otherwise, but the authority need not have any ownership, possessory or security interest in the facility.

I. Every financing document shall:

(a) 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

(b) Obligate the user to pay all the costs and expenses of operation, maintenance and upkeep of the eligible facility.

II. Any financing document may:

(a) Bear any appropriate title;

(b) Involve property in addition to the property financed by the bonds;

(c) Be in the nature of:

(1) A sale and leaseback;

(2) A lease purchase;

(3) A conditional sale;

(4) An installment sale;

(5) A secured or unsecured loan;

(6) A loan and mortgage; or

(7) Other similar transaction;

(d) Provide for payments by the user which include amounts in addition to the amounts required to pay debt service;

(e) 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 to be functional to any extent and from any cause;

(f) 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;

(g) Allocate responsibility between the authority and the user for making purchases and contracts required for the project;

(h) Contain an option for the user to acquire any ownership or possessory interest which the authority 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 authority's interest in the facility upon the effective exercise of the option;

(i) Provide that some or all of the user's obligations under the document shall be unconditional and shall be binding and enforceable in all circumstances, notwithstanding any other provision of law; or

(j) Contain other provisions and covenants relating to the use, maintenance and replacement of the eligible facility which the authority and the user deem necessary for the protection of themselves or others.

I. A security document may:

(a) Contain an assignment, pledge, mortgage or other encumbrance of all or part of the authority's interest in, or right to receive payments with respect to, an eligible facility under a financing document;

(b) Bear any appropriate title;

(c) Provide for a trustee for the benefit of holders of bonds issued to finance an eligible facility;

(d) Be combined with a financing document as one instrument;

(e) Contain covenants of the authority as to:

(1) The creation and maintenance of reserves;

(2) The issuance of other bonds with respect to the eligible facility;

(3) The custody, investment and application of moneys;

(4) The disposition of insurance or condemnation proceeds;

(5) The use of surplus bond proceeds;

(6) Action by the authority in the event of a default by the user under the financing document;

(7) The subjecting of additional property to the lien of the security document; or

(8) Any other matter which affects the security for the bonds in any way; or

(f) Limit the rights of bondholders to enforce obligations of the authority under the security documents or the financing document.

II. A pledge of property, revenues, or other collateral by the authority to secure the payment of principal or redemption price of, or interest on, any bonds, or any reimbursement or similar agreement with any provider of credit enhancement for bonds, or any swap or other agreement entered into in connection with bonds, is binding on the parties and on any successors. The collateral shall immediately be subject to the pledge, and the pledge shall constitute a lien and security interest which shall attach immediately to the collateral and be effective, binding, and enforceable against the pledgor, its successors, purchasers of the collateral, creditors, and all others, to the extent set forth, and in accordance with, the pledge document, irrespective of whether those parties have notice of the pledge and without the need for any physical delivery, recordation, filing or further act.

I. Bonds authorized under this chapter may be issued:

(a) In one or more series of one or more denominations and bearing one or more rates of interest;

(b) In bearer form or registered form with or without privileges of conversion and reconversion from one form to the other;

(c) Payable in serial installments or as term bonds, and any series may consist of both types of bond, provided that all of the bonds of every series shall mature no later than 40 years after their dates; and

(d) Subject to redemption prior to maturity, with or without the payment of any redemption premium, in accordance with the provisions of the security document.

II. Bonds shall be executed in the manner provided in the resolution therefor and may be executed by one person designated by the board, provided that such execution may be by facsimile so long as the bond is signed by an authentication agent appointed by the authority. Any person so designated to execute a bond shall be a member of the board, or the executive director, senior credit officer, non-profit bonding and lending officer, or the chief financial officer of the authority.

III. Every bond shall bear a statement on its face that it does not constitute an indebtedness of the state or the authority except to the extent permitted by this chapter. Bonds may be sold at public or private sale. The price at which bonds are sold may be par or may be more or less than par, but the original purchaser thereof shall be obligated to pay accrued interest for the period, if any, from the date of the bonds to the date of delivery. All bonds issued under this chapter and interest coupons applicable thereto, if any, shall be deemed to be negotiable instruments and to be investment securities under RSA 382-A.

IV. No purchaser of bonds shall in any way be bound to see to the proper application of the proceeds thereof.

V. The signature of the state treasurer on an endorsement of a state guarantee of a bond may be manual or facsimile.

I. The authority shall not acquire any interest in a project or an eligible facility or execute any financing or security document or issue any bonds with respect to the project or facility, unless the governor and council have found after a hearing that the proposed financing, operation and use of the project or facility will serve a public use and provide a public benefit and have determined that the authority's financing of the project will be within the policy of, and the authority conferred by, this chapter.

II. Nothing in this section shall prevent the authority from giving preliminary official approval of a proposed project or eligible facility and the financing of the proposed project or eligible facility. The finding and determination by the governor and council may be made upon the written recommendation of the authority supported by any documentation and information which the governor and council may request.

I. The governor and council may award an unconditional state guarantee of the principal of and interest on bonds issued under this chapter. Any guarantee awarded pursuant to this section shall be solely for the purpose of financing a redevelopment district, and only to the extent the bonds are to be self-supporting for purposes of RSA 6-C:1, II. The full faith and credit of the state shall be pledged for any such guarantee, but the total outstanding principal amount of bonds guaranteed by the state under this section at any time shall not exceed $30,000,000. For the purpose of determining the amount of bonds guaranteed by the state pursuant to this section, the amount of any issue of bonds sold at a discount shall be equal to the net proceeds thereof, determined by adding to the face amount of the bond issue the premium, if any, related to bonds of that issue and then subtracting the discount related to bonds of that issue. The amount of bonds of any such issue considered outstanding at any time shall be determined by multiplying the face amount of the bonds of that issue then outstanding by a fraction, the numerator of which is the net proceeds of the issue as determined above, and the denominator of which is the face amount of the issue. The governor, with the advice and consent of the council, is authorized to draw his warrant for such sum as may be necessary out of any money in the treasury, not otherwise appropriated, for the purpose of honoring any guarantee awarded under this section. The state's guarantee shall be evidenced on each guaranteed bond by an endorsement signed by the state treasurer in substantially the following form:

The state of New Hampshire hereby unconditionally guarantees the payment of the whole of the principal and interest on the within bond and for the performance of such guarantee the full faith and credit of the state are pledged.

________________

State Treasurer

In connection with the award of a state guarantee, the governor and council may impose such terms and conditions as they may deem appropriate concerning the bonds, the use and operation of the eligible facilities, the reimbursement to the state if any state funds are used to honor the guarantee and any other matters necessary or desirable to carry out the purposes of this section. Such terms and conditions may be contained in an agreement among the state, the authority and user of the eligible facility to be executed on behalf of the state by the governor and the state treasurer and on behalf of the authority by any 2 persons authorized to execute bonds under RSA 162-I:8.

II. The governor and council shall not award any state guarantee under this section unless they have found after a hearing that such guarantee will serve a public use and provide a public benefit and have determined that the authority's financing of the project and the state's guarantee of the bonds will be within the policy of, and the authority conferred by, this chapter.

III. Before awarding any state guarantee of bonds under this section the governor and council shall first make the findings required by RSA 162-I:9, except the finding required by RSA 162-I:9, II(b)(4), taking into account the state guarantee. In addition, the governor and council shall also find that:

(a) The financing of the facility is of vital importance to the economic well being and general welfare of a substantial number of the state's citizens and will minimize the risk of permanent economic damage to the state or a region of the state;

(b) The award of a state guarantee will contribute significantly to the success of the financing; and

(c) Reasonable and appropriate measures have been taken to minimize the risk of loss to the state and to ensure that any private benefit from the award of a state guarantee will be only incidental to the public purpose served thereby.

IV. The hearing required by this section may be held and the findings and determinations so required may be made in conjunction with the proceedings required by RSA 162-I:9.

V. Whenever a state guarantee of bonds is awarded under this section the statement required by the first sentence of RSA 162-I:8, III shall be appropriately modified and the finding required by RSA 162-I:9, II(b)(4) shall not be made.

I. (a) The governor and council may award an unconditional state guarantee of the principal of and interest on bonds issued under this chapter. The full faith and credit of the state shall be pledged for any such guarantee, but the total amount of bonds guaranteed by the state under this section shall not cause the contingent credit limit under RSA 162-A:22 to be exceeded. The governor, with the advice and consent of the council, is authorized to draw his warrant for such sum as may be necessary out of any money in the treasury not otherwise appropriated, for the purpose of honoring any guarantee awarded under this section. The state's guarantee shall be evidenced on each guaranteed bond by an endorsement signed by the state treasurer in substantially the following form:

The state of New Hampshire hereby unconditionally guarantees the payment of the whole of the principal and interest on the within bond and for the performance of such guarantee the full faith and credit of the state are pledged.

________________

State Treasurer

(b) In connection with the award of a state guarantee, the governor and council may impose such terms and conditions as they may deem appropriate concerning the bonds, the use and operation of the eligible facilities, the reimbursement to the state if any state funds are used to honor the guarantee and any other matters necessary or desirable to carry out the purposes of this section. Such terms and conditions may be contained in an agreement entered into by the state, the authority, and user of the eligible facility to be executed on behalf of the state by the governor and the state treasurer and on behalf of the authority by any 2 persons authorized to execute bonds under RSA 162-I:8.

II. [Repealed.]

III. [Repealed.]

III-a. [Repealed.]

IV. The governor and council shall not award any state guarantee under this section unless they have found after a hearing that such guarantee will serve a public use and provide a public benefit and have determined that the authority's financing of the project and the state's guarantee of the bonds will be within the policy of, and the authority conferred by, this chapter.

V. Before awarding any state guarantee of bonds under this section the governor and council shall first make the findings required by RSA 162-I:9, except the finding required by RSA 162-I:9, II(b)(4), taking into account the state guarantee. In addition, the governor and council shall also find that:

(a) The award of a state guarantee will contribute significantly to the success of the financing; and

(b) Reasonable and appropriate measures have been taken to minimize the risk of loss to the state and to ensure that any private benefit from the award of a state guarantee will be only incidental to the public purpose served thereby.

VI. The hearing required by this section may be held and the findings and determinations so required may be made in conjunction with the proceedings required by RSA 162-I:9.

VII. Whenever a state guarantee of bonds is awarded under this section, the statement requirement in the first sentence of RSA 162-I:8, III shall be appropriately modified and the finding required by RSA 162-I:9, II(b)(4) shall not be made.

VIII. [Repealed.]

I. No financing or security document, bond or other instrument shall in any way obligate the state to raise any money by taxation or use other public funds for any purpose in relation to an eligible facility, and neither the state nor the authority shall pay or promise to pay any debt or meet any financial obligation to any person at any time in relation to an eligible facility financed in whole or in part by the issue of bonds except:

(a) From moneys received or to be received under the provisions of a financing or security document entered into under this chapter or derived from the exercise of the authority's rights under those instruments;

(b) As permitted by RSA 162-I:9, RSA 162-I:9-a, or RSA 162-I:9-b; or

(c) As may be required by law other than the provisions of this chapter.

II. Notwithstanding paragraph I, the authority may accept and expend with respect to an eligible facility any gifts or grants received from any source in accordance with the terms of the gifts or grants. Bonds issued under this chapter shall not be deemed obligations of the authority for the purposes of RSA 162-A:12.

All actions by the authority under this chapter may be authorized by resolutions adopted by a majority of the members of the board in attendance at a meeting at which a quorum is present pursuant to RSA 162-A:20.

Any bank, trust company, or any other financial institution which has power to act as a trustee, whether within or outside the state may serve as trustee for the benefit of bondholders under a security document. Such trustee may at any time own all or any part of the bonds issued under that security document, unless otherwise provided therein. All moneys received or held by the authority or by a trustee pursuant to a financing or security document, other than funds received or held by the authority for its own use, shall be deemed to be trust funds and shall be held and applied solely in accordance with the applicable document, but the person paying such money to the authority or the trustee shall not in any way be bound to see to the proper application thereof.

Bonds issued under this chapter shall be legal investments for all persons without limit as to the amount held, regardless of whether they are acting for their own account or in a fiduciary capacity. No person offering to buy or sell or buying or selling such bonds shall be required to obtain any license or register any transaction in connection therewith, nor shall any person purchasing such bonds be required to furnish any statement of financing charges.

All bonds and the interest thereon shall be exempt from taxation in this state.

Any eligible facility while owned by the authority is declared to be public property and shall be exempt from all taxes and special assessments of the state or any political subdivision of the state. In lieu of such taxes and special assessments the state or the political subdivision shall require any tenant, occupant or user of the eligible facility to make payments annually to the municipality in which the eligible facility is located, for its just share of the public expense, including, but not limited to, education, highway maintenance, fire and police protection and other similar public expenses and governmental services. The board of tax and land appeals shall determine, after a hearing, that the payments constitute a just share of the public expense.

In an unincorporated place, the county commissioners, with the approval of the county delegation, may establish redevelopment districts to ensure that projects benefiting from the issuance of bonds guaranteed pursuant to RSA 162-I:9-a, I repay such bonds. The boundaries of the redevelopment district shall be configured so that it includes, but is limited to, all of the property available to be developed, redeveloped, or revitalized using such bonds. Every owner, tenant, or occupant of each lot or parcel located within the redevelopment district shall be subject to an assessment. The amount of the assessment shall be sufficient to provide for repayment of the debt service related to the bond. The amount of the assessment, payment terms, and method for collection shall be established in a financing plan prepared by the bond recipient, approved by the commissioner of the department of revenue administration, and adopted by the county commissioners. The financing plan shall include the delegation of collection responsibilities to the county. The county commissioners may enter into such agreements with the authority, the user, and the state as they deem necessary to ensure repayment under this chapter and to implement the financing plan and including without limitation such terms and conditions as the state shall deem necessary to provide for the segregation and pledge of the assessments to secure repayment of the bonds. The assessment shall be used solely to pay off debt service related to the bond. This payment shall be independent of, and in addition to, any other taxes including property taxes. Any unpaid assessment under this chapter shall constitute a lien pursuant to RSA 80:19 on the assessed property. Collection and enforcement of assessments under this section shall be in accordance with RSA 80:19.

I. The powers conferred by this chapter are supplemental and alternative to other powers conferred by law, and this chapter is intended as an independent and comprehensive conferral of powers to accomplish the purposes set forth in RSA 162-I:1.

II. No notice, hearing, proceedings or approval shall be required with respect to any action taken under this chapter except as provided in this chapter. Any hearing required by RSA 162-I:9 or RSA 162-I:9-b shall be informational and shall not be treated as determining the rights, duties, or privileges of any entity or person. Neither the authority nor the governor and council shall be required to conduct adjudicative proceedings under RSA 541-A:31 to 36 in connection with any action taken under this chapter.

III. Purchases and contracts required in connection with a project may be made or let without regard to any provision of law relating to public purchases or contracts.

IV. The provisions of this chapter shall be liberally construed in order to effect its purposes.

V. If any provision of this chapter shall be held invalid in any circumstance, such invalidity shall not affect any other provisions or circumstances.

VI. This chapter shall be construed in all respects so as to meet all constitutional requirements. In carrying out the purposes and provisions of this chapter, all steps shall be taken which are necessary to meet constitutional requirements whether or not such steps are required by statute.