Section 42.40.630. Payment of bonds.

   (a) The principal and interest on bonds of the corporation is payable from corporation money or assets.  Bonds may be additionally secured by a pledge of a grant or contribution from the federal or state government, a municipality, a corporation, an association, an institution, or a person, or a pledge of money, income, or revenue of the corporation from any source.
   (b) Before issuing bonds to provide the financing described in AS 42.40.560 for a facility to be owned in whole or in part by an entity other than the corporation, the corporation shall enter into a contract, lease, or other form of agreement that will, in the judgment of the corporation, provide sufficient consideration to
        (1) pay the principal of and interest on the bonds as they become due;
        (2) create and maintain the reserves for the bond payments that the corporation considers necessary or desirable; and
        (3) pay all costs necessary to service or additionally secure the bonds, including trustee's fees and bond insurance premiums, unless these costs are to be paid by a party other than the corporation.
   (c) Before issuing bonds to provide the financing described in AS 42.40.570 for real or personal property to be owned in whole or in part by an entity other than the corporation, the corporation shall enter into one or more contracts, leases, or other forms of agreement that will, in the judgment of the corporation, provide sufficient consideration to
        (1) pay the principal of and interest on the bonds as they become due;
        (2) create and maintain any reserves for the bond payments that the corporation considers necessary or desirable; and
        (3) pay all costs necessary to issue, service, or additionally secure the bonds, including trustee's fees and bond insurance premiums, unless these costs are to be paid from bond proceeds or by a party other than the corporation.

Notes

History

(Sec. 2 ch 153 SLA 1984; am Sec. 3 ch 71 SLA 2003; am Sec. 3 ch 65 SLA 2007)