Sec. 10a-186a. Special capital reserve funds related to nursing homes, residential, food service and auxiliary service facilities and student centers and related
buildings and improvements. (a) In connection with the issuance of bonds to finance
a project at a participating nursing home or to refund bonds previously issued by the
authority to finance a project at a participating nursing home, or in connection with the
issuance of bonds to effect a refinancing or other restructuring with respect to one or more
participating nursing homes as permitted by subsection (b) of this section, to finance
dormitories, residential facilities, student centers, food service facilities and other auxiliary service facilities and related buildings and improvements at a public institution of
higher education, or to finance up to one hundred million dollars, in the aggregate, for
equipment, including installation and any necessary building renovations or alterations
for the installation and operation of such equipment, for participating health care institutions at the discretion of the Secretary of the Office of Policy and Management and the
Treasurer, the authority may create and establish one or more reserve funds to be known
as special capital reserve funds and may pay into such special capital reserve funds (1)
any moneys appropriated and made available by the state for the purposes of such funds,
(2) any proceeds of sale of notes or bonds for a project, to the extent provided in the
resolution of the authority authorizing the issuance thereof, and (3) any other moneys
which may be made available to the authority for the purpose of such funds from any
other source or sources. The moneys held in or credited to any special capital reserve
fund established under this section, except as hereinafter provided, shall be used solely
for the payment of the principal of and interest, when due, whether at maturity or by
mandatory sinking fund installments, on bonds of the authority secured by such capital
reserve fund as the same become due, the purchase of such bonds of the authority, the
payment of any redemption premium required to be paid when such bonds are redeemed
prior to maturity, including in any such case by way of reimbursement of a provider of
bond insurance or of a credit or liquidity facility that has paid such amounts; provided
the authority shall have power to provide that moneys in any such fund shall not be
withdrawn therefrom at any time in such amount as would reduce the amount of such
funds to less than the maximum amount of principal and interest becoming due by
reasons of maturity or a required sinking fund installment in the then current or any
succeeding calendar year on the bonds of the authority then outstanding or the maximum
amount permitted to be deposited in such fund by the Internal Revenue Code of 1986,
or any subsequent corresponding internal revenue code of the United States, as from
time to time amended, to permit the interest on said bonds to be excluded from gross
income for federal tax purposes and secured by such special capital reserve fund, such
amount being herein referred to as the "required minimum capital reserve", except for
the purpose of paying such principal of, redemption premium and interest on such bonds
of the authority secured by such special capital reserve becoming due and for the payment
of which other moneys of the authority are not available. The authority may provide
that it shall not issue bonds secured by a special capital reserve fund at any time if the
required minimum capital reserve on the bonds outstanding and the bonds then to be
issued and secured by the same special capital reserve fund at the time of issuance,
unless the authority, at the time of the issuance of such bonds, shall deposit in such
special capital reserve fund from the proceeds of the bonds so to be issued, or otherwise,
an amount which, together with the amount then in such special capital reserve fund,
will be not less than the required minimum capital reserve. On or before December first,
annually, there is deemed to be appropriated from the state General Fund such sums, if
any, as shall be certified by the chairman or vice-chairman of the authority to the Secretary of the Office of Policy and Management and the Treasurer of the state, as necessary
to restore each such special capital reserve fund to the amount equal to the required
minimum capital reserve of such fund, and such amounts shall be allotted and paid to
the authority. For the purpose of evaluation of any such special capital reserve fund,
obligations acquired as an investment for any such fund shall be valued at market.
Nothing contained in this section shall preclude the authority from establishing and
creating other debt service reserve funds in connection with the issuance of bonds or
notes of the authority which are not special capital reserve funds. Subject to any
agreement or agreements with holders of outstanding notes and bonds of the authority,
any amount or amounts allotted and paid to the authority pursuant to this section shall
be repaid to the state from moneys of the authority at such time as such moneys are not
required for any other of its corporate purposes and in any event shall be repaid to the
state on the date one year after all bonds and notes of the authority theretofore issued
on the date or dates such amount or amounts are allotted and paid to the authority or
thereafter issued, together with interest on such bonds and notes, with interest on any
unpaid installments of interest and all costs and expenses in connection with any action
or proceeding by or on behalf of the holders thereof, are fully met and discharged. No
bonds secured by a special capital reserve fund shall be issued to pay project costs unless
the authority is of the opinion and determines that the revenues from the project shall
be sufficient (A) to pay the principal of and interest on the bonds issued to finance the
project, (B) to establish, increase and maintain any reserves deemed by the authority to
be advisable to secure the payment of the principal of and interest on such bonds, (C)
to pay the cost of maintaining the project in good repair and keeping it properly insured,
and (D) to pay such other costs of the project as may be required.
(b) Notwithstanding the provisions of subsection (a) of this section, after June 4,
1998, no bonds secured by such a special capital reserve fund shall be issued by the
authority to finance a project at a participating nursing home, or to refund, refinance or
otherwise restructure bonds issued to finance a project at a participating nursing home,
except for bonds that meet the following requirements: (1) Such bonds, which may
be bonds issued on a pooled or obligated group basis with respect to more than one
participating nursing home, must, at least in part, refund, refinance or otherwise restructure bonds which are already secured by a special capital reserve fund pursuant to this
section; (2) the state must be released from any obligation to restore any special capital
reserve fund for the bonds being refunded, refinanced or otherwise restructured; and
(3) the authority and the State Treasurer and the Secretary of the Office of Policy and
Management must approve such bonds and must determine that the aggregate liability
of the state with respect to such bonds will be less than the aggregate liability of the
state with respect to the bonds being refunded, refinanced or otherwise restructured and
that such refunding, refinancing or restructuring is in the best interest of the state. Any
approval and determination by the authority, the State Treasurer and the secretary under
subdivision (3) of this subsection shall be in lieu of (A) the otherwise required opinion
of sufficiency by the authority set forth in subsection (a) of this section, and (B) the
approval of the State Treasurer and the documentation of the authority otherwise required under subsection (a) of section 1-124, and may provide for the waiver or modification of such other requirements of subsection (a) of this section as the authority, the
State Treasurer and the secretary determine to be necessary or appropriate in order
to effectuate such refunding, refinancing or restructuring, subject to all applicable tax
covenants of the authority and the state.
(P.A. 92-261, S. 8, 17; P.A. 95-270, S. 4, 11; P.A. 98-167, S. 5, 6; P.A. 04-167, S. 1; May Sp. Sess. P.A. 04-1, S. 17.)
History: P.A. 95-270 deleted reference to facilities for provision of student housing and added residential facilities,
student centers, food service facilities and auxiliary service facilities and related buildings and improvements and made
technical changes, effective June 22, 1995; P.A. 98-167 designated existing section as Subsec. (a), and expanded use of
special capital reserve funds to include refunding of bonds previously issued by the authority to finance a project at a
participating nursing home and added Subsec. (b) restricting issuance of bonds, effective June 4, 1998; P.A. 04-167 amended
Subsec. (a) to add provisions allowing use of a capital reserve fund for refinancing or restructuring of certain nursing
homes and provisions re use of the fund for reimbursement of providers of bond insurance and amended Subsec. (b) to
add provisions re the refinancing or restructuring of participating nursing homes, to add provisions re bonds issued for
such purpose on a pooled or obligated group basis, to require a determination that the issuance of bonds for such purpose
is in the best interests of the state and to allow for waiver of certain requirements of section, effective June 1, 2004; May
Sp. Sess. P.A. 04-1 amended Subsec. (a) to authorize creation of a special capital reserve fund in connection with financing
of equipment purchases at certain institutions at the discretion of the Secretary of the Office of Policy and Management
and the Treasurer and to make a technical change, effective July 1, 2004.
Sec. 10a-186b. Nursing home debt service assistance program established.
Definitions. Powers of State Treasurer and authority. (a) As used in this section,
section 10a-186c and subsection (k) of section 10a-179, the following words and terms
shall have the following meanings unless the context indicates another or different meaning or intent:
(1) "Amount available for debt service" means, for any accounting period, the net
revenues available for debt service for such period reduced by the qualified expenditures
for such period;
(2) "Authority" means the State of Connecticut Health and Educational Facilities
Authority as defined in section 10a-178;
(3) "Bonds" means revenue bonds of the authority issued to finance a project at a
participating nursing home, as defined in section 10a-178 which are secured by a special
capital reserve fund;
(4) "Bond documents" means all documents related to an issue of bonds including,
but not limited to, the trust indenture, the loan agreement, the bonds, the mortgage and
any other documents included in the closing transcript;
(5) "Deficiency" as used in connection with any bonds, means the total of the following: (A) For any completed accounting period, the difference between the amount available for debt service for such period and the payment required to be made to the subject
special capital reserve fund during such period so that the subject special capital reserve
fund is in compliance with the applicable bond documents; (B) the projected amount
necessary, after taking into account the estimated amount available for debt service, to
avoid a draw on the special capital reserve funds or such higher amount as provided in
the bond documents for the period selected by the authority so that the state has no
obligation to make payments to such special capital reserve fund; and (C) such additional
amounts as the authority may deem advisable to prevent the state from being obligated
to make any payment to the applicable special capital reserve fund;
(6) "Deficiency loan" means a loan made by the authority to a qualified nursing
home to fund all or a portion of the deficiency. The principal amount of the deficiency
loan shall not exceed the deficiency for the qualified nursing home receiving the deficiency loan. All other terms and conditions of the deficiency loan including the rate of
interest, if any, shall be set by the authority as it deems appropriate;
(7) "Net revenues available for debt service" means, for any accounting period, the
excess of operating and nonoperating revenues of the qualified nursing home, including
the proceeds of business interruption insurance over the operating and nonoperating
expenses of the qualified nursing home for such period. For the purposes of this subdivision such revenues and expenses shall exclude any depreciation, amortization and current interest expense, as determined in accordance with generally accepted accounting
principles, using either accrual or cash basis accounting, subject, to such adjustment
for extraordinary, nonrecurrent, capital and other expenditures as the authority deems
appropriate to determine actual funds available for debt service;
(8) "Qualified expenditures" means all expenditures of any kind and type of a qualified nursing home, including capital expenditures and repayment of debt, which are
necessary or advisable for the continued operation of a qualified nursing home in compliance with all applicable laws;
(9) "Qualified nursing home" means a nursing home financed by bonds issued by
the authority and secured by a special capital reserve fund pursuant to applicable bond
documents;
(10) "Special capital reserve funds" means the funds authorized under section 10a-186a and as incorporated in the bond documents;
(11) "Subject special capital reserve fund" means the special capital reserve fund
to which a specific qualified nursing home is required to make payments under applicable bond documents.
(b) There is established, within the office of the State Treasurer, a program to be
known as the "nursing home debt service assistance program". The State Treasurer may,
upon request of the Connecticut Health and Educational Facilities Authority advance
funds to the authority from amounts appropriated from the General Fund for debt service
or appropriated for said program, for a deficiency loan or payment of debt service on
nursing home bonds issued by the authority and secured by a special capital reserve
fund. The State Treasurer shall not advance funds unless there has been delivered to the
State Treasurer in connection with such advance, a certificate of the executive director
of the authority or any officer of the authority certifying: (1) That the board of directors
of the authority has authorized the deficiency loan to be funded and made all findings
required by public act 97-11 of the June 18 special session*; (2) the principal amount
of the deficiency loan; (3) the requested amount of the advance from the nursing home
debt service assistance program; and (4) the amount of all previous advances made in
respect of such deficiency loan. Upon receipt of such certificate, to the extent funds are
available, the State Treasurer is authorized to make the appropriate payment to the
authority for the purpose of funding the deficiency loan.
(c) The authority is authorized from time to time to extend deficiency loans to qualified nursing homes. Deficiency loans may be advanced in one or more installments and
multiple deficiency loans may be extended to the same qualified nursing home. The
terms and conditions of each deficiency loan shall be set forth in the authorizing resolution of the board of directors of the authority provided the board may delegate the power
to set such terms and conditions to the executive director and any managing director of
the authority. Prior to approving a deficiency loan, the board of directors of the authority
shall reasonably determine, based upon the projections and other information presented
to it that (1) there is a deficiency, and (2) any principal amount of the deficiency loan
does not exceed the amount of the deficiency. All proceeds of a deficiency loan shall
be made by the authority directly to the trustee of the bonds.
(d) The authority shall have all powers, right and authority granted to it by this
chapter or otherwise to administer and enforce any deficiency loan including the right
to waive defaults and payments, extend maturities and release collateral. Subject to the
approval of the State Treasurer, the authority is specifically empowered in its discretion,
to forgive up to one-half of the principal amount of a deficiency loan if it finds that the
financial condition of the qualified nursing home has substantially improved and the
risk that the state will be required to make payments to restore the subject special capital
reserve fund has been substantially reduced. All repayments made on deficiency loans
shall be paid by the authority to the State Treasurer for deposit in the General Fund.
(June 18 Sp. Sess. P.A. 97-11, S. 39-41, 65; P.A. 98-167, S. 2, 3, 6.)
*Public act 97-11 of the June 18 special session is entitled "An Act Concerning Computerized Information Sharing,
the Mashantucket Pequot and Mohegan Fund, Early Retirement, School Construction, State Buildings, Nursing Homes,
Executive and Legislative Councils, Commissions and Task Forces, Appropriations for the Fiscal Years Ending June 30,
1997, 1998 and 1999, Spring and Well Water Collection, Project Concern, Notice Requirements for Psychiatric Admissions,
the Tax on Net Direct Subscriber Charges of Health Care Centers, Elimination of Certain Wage Inequities, Sheriffs' Fees
and Expenses of the Connecticut Siting Council". (See Reference Table captioned "Public Acts of June 18, 1997" in
Volume 16 which lists the sections amended, created or repealed by the act.)
History: June 18 Sp. Sess. P.A. 97-11 effective July 1, 1997; P.A. 98-167 amended Subdiv. (8) of Subsec. (a) to delete
requirement that a qualified nursing home must be outside of bankruptcy, amended Subdiv. (9) of Subsec. (a) to provide
that a qualified nursing home means a nursing home financed by bonds issued by the authority and secured by a special
capital reserve fund, rather than a nursing home required to make payments to a special capital reserve fund, and amended
Subsec. (b) to change name of program from "nursing home loan program" to "nursing home debt service assistance
program" to expand funds available for advancement by the State Treasurer to include amounts appropriated from the
General Fund for debt service, to expand use of funds to include payment of debt service on nursing home bonds issued
by the authority and secured by a special capital reserve fund and to authorize State Treasurer to advance funds upon
delivery of a certificate of the executive director or any officer of the authority, rather than a certificate of the executive
director and any officer of the authority, effective June 4, 1998 (Revisor's note: In Subsec. (a) the Revisors changed the
punctuation by inserting a colon before the first definition and semicolons following definitions (1) to (10), inclusive).
Sec. 10a-186c. State Treasurer may advance funds re qualified nursing
homes. In the event that a qualified nursing home, as defined in section 10a-186b, is
disposed of as the result of a receivership, bankruptcy or insolvency, or upon determination by the State Treasurer that the state's liability for debt service has been reduced
through sale of a qualified nursing home, or in order to otherwise avoid a draw on the
special capital reserve fund for any bonds issued by the authority for such qualified
nursing home, the State Treasurer may advance funds to the authority from amounts
appropriated for the nursing home debt service assistance program, or from other General Fund debt service appropriations, for any principal and interest payments on bonds
not retired from the proceeds of the sale of the home or which remain outstanding for
any other reason. The State Treasurer shall not advance funds unless there has been
delivered to the State Treasurer in connection with such advance, a certificate of the
executive director of the authority or any officer of the authority certifying: (1) That the
board of directors of the authority has determined that a draw on the special capital
reserve fund would occur in the absence of the advance; (2) the requested amount of
the advance required; and (3) the amount of all previous advances made relative to the
bond issue.
(P.A. 98-167, S. 4, 60.)
History: P.A. 98-167 effective June 4, 1998.
Sec. 10a-187. (Formerly Sec. 10-346). Payment of bonds. Bonds issued under
the provisions of this chapter shall not be deemed to constitute a debt or liability of the
state or of any political subdivision thereof other than the authority or a pledge of the
full faith and credit of the state or of any such political subdivision other than the authority, but shall be payable solely from the funds herein provided therefor. All such bonds
shall contain on the face thereof a statement to the effect that neither the state of Connecticut nor any political subdivision thereof other than the authority shall be obligated to
pay the same or the interest thereon except from revenues of the project or the portion
thereof for which they are issued and that neither the faith and credit nor the taxing
power of the state of Connecticut or of any political subdivision thereof other than the
authority is pledged to the payment of the principal of or the interest on such bonds.
The issuance of bonds under the provisions of this chapter shall not directly or indirectly
or contingently obligate the state or any political subdivision thereof to levy or to pledge
any form of taxation whatever therefor or to make any appropriation for their payment
except as provided in subsection (d) of section 10a-185 and section 10a-186a. Nothing
contained in this section shall prevent nor be construed to prevent the authority from
pledging its full faith and credit or the full faith and credit of a participating institution
for higher education, the full faith and credit of a participating health care institution,
the full faith and credit of a participating corporation, the full faith and credit of a participating nursing home or the full faith and credit of a participating qualified nonprofit
organization to the payment of bonds or issue of bonds authorized pursuant to this
chapter.
(February, 1965, P.A. 170, S. 12; 1967, P.A. 368, S. 11; P.A. 79-568, S. 9, 11; P.A. 80-483, S. 48, 186; P.A. 82-16, S.
17, 19; P.A. 92-261, S. 11, 17; P.A. 95-270, S. 5, 11.)
History: 1967 act deleted "revenue" as descriptive of bonds, clarified responsibility of authority for bonds and specifically allowed authority to pledge its full faith and credit and full faith and credit of participating institution to payment of
bonds; P.A. 79-568 allowed authority to pledge full faith and credit of participating corporation; P.A. 80-483 made technical
changes; P.A. 82-16 changed "hospital" to "health care institution"; Sec. 10-346 transferred to Sec. 10a-187 in 1983
pursuant to reorganization of higher education system; P.A. 92-261 added exception re Subsec. (d) of Sec. 10a-185 and
reference to nursing homes and qualified nonprofit organizations; P.A. 95-270 added reference to Sec. 10a-186a, effective
June 22, 1995.
Sec. 10a-187a. Pledge by state as to limitation or alteration of rights vested in
authority. The state of Connecticut does hereby pledge to and agree with the holders
of any bonds and notes issued under this chapter and with those parties who may enter
into contracts with the authority or its successor agency pursuant to the provisions of
this chapter that the state will not limit or alter the rights hereby vested in the authority
until such obligations, together with the interest thereon, are fully met and discharged
and such contracts are fully performed on the part of the authority, provided nothing
contained herein shall preclude such limitation or alteration if and when adequate provision shall be made by law for the protection of the holders of such bonds and notes of
the authority or those entering into such contracts with the authority. The authority is
authorized to include this pledge and undertaking for the state in such bonds and notes
or contracts.
(P.A. 92-261, S. 9, 17.)
Sec. 10a-188. (Formerly Sec. 10-347). Rents and charges. The authority is authorized to fix, revise, charge and collect rates, rents, fees and charges for the use of
and for the services furnished or to be furnished by each project and to contract with
any person, partnership, association or corporation, or other body, public or private, in
respect thereof. Such rates, rents, fees and charges shall be fixed and adjusted in respect
of the aggregate of rates, rents, fees and charges from such project so as to provide funds
sufficient with other revenues or moneys available therefor, if any, (1) to pay the cost
of maintaining, repairing and operating the project and each and every portion thereof,
to the extent that the payment of such cost has not otherwise been adequately provided
for, (2) to pay the principal of and the interest on outstanding bonds of the authority
issued in respect of such project as the same shall become due and payable and (3) to
create and maintain reserves required or provided for in any resolution authorizing, or
trust agreement securing, such bonds of the authority. Such rates, rents, fees and charges
shall not be subject to supervision or regulation by any department, commission, board,
body, bureau or agency of this state other than the authority. A sufficient amount of the
revenues derived in respect of a project, except such part of such revenues as may be
necessary to pay the cost of maintenance, repair and operation and to provide reserves
and for renewals, replacements, extensions, enlargements and improvements as may be
provided for in the resolution authorizing the issuance of any bonds of the authority or
in the trust agreement securing the same, shall be set aside at such regular intervals as
may be provided in such resolution or trust agreement in a sinking or other similar fund
which is hereby pledged to, and charged with, the payment of the principal of and the
interest on such bonds as the same shall become due, and the redemption price or the
purchase price of bonds retired by call or purchase as therein provided. Such pledge
shall be valid and binding from the time when the pledge is made; the rates, rents, fees
and charges and other revenues or other moneys so pledged and thereafter received by
the authority shall immediately be subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such pledge shall be valid and binding
as against all parties having claims of any kind in tort, contract or otherwise against the
authority, irrespective of whether such parties have notice thereof. Notwithstanding any
provision of the Connecticut Uniform Commercial Code, neither the resolution nor any
trust agreement nor any other agreement nor any lease by which a pledge is created need
be filed or recorded except in the records of the authority. The use and disposition of
moneys to the credit of such sinking or other similar fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such trust agreement.
Except as may otherwise be provided in such resolution or such trust agreement, such
sinking or other similar fund may be a fund for all such bonds issued to finance projects
at a particular institution for higher education, a particular health care institution or a
particular participating corporation without distinction or priority of one over another;
provided the authority in any such resolution or trust agreement may provide that such
sinking or other similar fund shall be the fund for a particular project at an institution
for higher education, a health care institution or a participating corporation and for the
bonds issued to finance a particular project and may, additionally, permit and provide
for the issuance of bonds having a subordinate lien in respect of the security herein
authorized to other bonds of the authority, and, in such case, the authority may create
separate sinking or other similar funds in respect of such subordinate lien bonds.
(February, 1965, P.A. 170, S. 13; 1967, P.A. 368, S. 12; P.A. 79-568, S. 10, 11; P.A. 82-16, S. 18, 19.)
History: 1967 act deleted "revenue" as descriptive of bonds and included hospitals; P.A. 79-568 included participating
corporations; P.A. 82-16 amended provision re filing of any resolution, agreement or lease creating pledge of revenues
from project for payment of principal and interest on bonds by providing that the existing procedure of filing only in the
records of the authority is adequate notwithstanding the Connecticut Uniform Commercial Code and changed "hospital"
to "health care institution"; Sec. 10-347 transferred to Sec. 10a-188 in 1983 pursuant to reorganization of higher education system.
Sec. 10a-189. (Formerly Sec. 10-348). Use of bond proceeds and revenues. All
moneys received pursuant to the authority of this chapter, whether as proceeds from the
sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied
solely as provided in this chapter. Any officer with whom, or any bank or trust company
with which, such moneys shall be deposited shall act as trustee of such moneys and
shall hold and apply the same for the purposes hereof, subject to such regulations as
this chapter and the resolution authorizing the bonds of any issue or the trust agreement
securing such bonds may provide.
(February, 1965, P.A. 170, S. 14.)
History: Sec. 10-348 transferred to Sec. 10a-189 in 1983 pursuant to reorganization of higher education system.
Sec. 10a-190. (Formerly Sec. 10-349). Enforcement of rights and duties. Any
holder of bonds, bond anticipation notes, other notes or other obligations issued under
the provisions of this chapter or any of the coupons appertaining thereto, and the trustee
or trustees under any trust agreement, except to the extent the rights herein given may
be restricted by any resolution authorizing the issuance of, or any such trust agreement
securing, such bonds, may, either at law or in equity, by suit, action, mandamus or other
proceedings, protect and enforce any and all rights under the laws of the state or granted
hereunder or under such resolution or trust agreement, and may enforce and compel the
performance of all duties required by this chapter or by such resolution or trust agreement
to be performed by the authority or by any officer, employee or agent thereof, including
the fixing, charging and collecting of the rates, rents, fees and charges herein authorized
and required by the provisions of such resolution or trust agreement to be fixed, established and collected.
(February, 1965, P.A. 170, S. 15; 1967, P.A. 368, S. 13.)
History: 1967 act deleted "revenue" as descriptive of bonds and added bond anticipation notes, other notes and other
obligations issued under chapter; Sec. 10-349 transferred to Sec. 10a-190 in 1983 pursuant to reorganization of higher
education system.
Sec. 10a-190a. Contracts with bondholders regarding funds of the authority.
The authority shall have power to contract with the holders of any of its bonds or notes
as to the custody, collection, securing, investment and payment of any reserve funds of
the authority, or of any moneys held in trust or otherwise for the payment of bonds or
notes, and to carry out such contracts. Any officer with whom, or any bank or trust
company with which, such moneys shall be deposited as trustee thereof shall hold,
invest, reinvest and apply the same for the purposes thereof, subject to such provisions
as this chapter and the resolution authorizing the issue of the bonds or notes or the trust
agreement securing such bonds or notes may provide.
(P.A. 92-261, S. 10, 17; May Sp. Sess. P.A. 04-1, S. 30.)
History: May Sp. Sess. P.A. 04-1 specified that an officer with whom funds are deposited may invest or reinvest such
funds, effective June 8, 2004.
Sec. 10a-191. (Formerly Sec. 10-350). Tax exemption. The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of this state,
for the increase of their commerce, welfare and prosperity, and for the improvement of
their health and living conditions, and as the operation and maintenance of a project by
the authority or its agent will constitute the performance of an essential public function,
neither the authority nor its agent shall be required to pay any taxes or assessments upon
or in respect of a project or any property acquired or used by the authority or its agent
under the provisions of this chapter or upon the income therefrom, and any bonds issued
under the provisions of this chapter, their transfer and the income therefrom, including
any profit made on the sale thereof, shall at all times be free from taxation of every kind
by the state and by the municipalities and other political subdivisions in the state.
(February, 1965, P.A. 170, S. 16.)
History: Sec. 10-350 transferred to Sec. 10a-191 in 1983 pursuant to reorganization of higher education system.
Sec. 10a-192. (Formerly Sec. 10-351). Refunding bonds. (a) The authority is
hereby authorized to provide for the issuance of bonds of the authority for the purpose
of refunding any bonds of the authority then outstanding, including the payment of any
redemption premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds, and, if deemed
advisable by the authority, for the additional purpose of paying all or any part of the
cost of constructing and acquiring additions, improvements, extensions or enlargements
of a project or any portion thereof.
(b) The proceeds of any such bonds issued for the purpose of refunding outstanding
bonds may, in the discretion of the authority, be applied to the purchase or retirement
at maturity or redemption of such outstanding bonds either on their earliest or any subsequent redemption date or upon the purchase or at the maturity thereof and may, pending
such application, be placed in esc