It is enacted by the General Assembly as follows:

SECTION 1. Sections 45-38.1-3, 45-38.1-5, 45-38.1-5.1, 45-38.1-5.2, 45-38.1-5.3, 45-38.1-7, 45-38.1-8, 45-38.1-9, 45-38.1-13, 45-38.1-16, 45-38.1-19, 45-38.1-20 and 45-38.1-21 of the General Laws in Chapter 45-38.1 entitled "Health And Educational Building Corporation" are hereby amended to read as follows:

45-38.1-3. Definitions -- As used in this chapter, the following words and terms have the following meaning unless the context indicates another or different meaning or intent:

(1) "Bonds" means bonds of the corporation issued under the provisions of this chapter, including refunding bonds, notwithstanding that the bonds may be secured by mortgage or the full faith and credit of the corporation or the full faith and credit of a participating institution for higher education or of a participating health care provider or any other lawfully pledged security of a participating educational institution or child day care center or of a participating health care provider;

(2) "Borrower" means a student or a parent who has received or agreed to pay an education loan;

(3) "Cooperative hospital service organization" means a corporation created pursuant to chapter 6 of title 7, which meets the requirements of section 501(e) of the Internal Revenue Code of 1954, 26 U.S.C. section 501(e), and is exempt from federal taxation of income in accordance with section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. section 501(c)(3);

(4) "Corporation" means the Rhode Island health and educational building corporation created and established as a nonbusiness corporation, under and pursuant to chapter 6 of title 7, as amended, and constituted and established as a public body corporate and agency of the state under section 45-38.1-4, or any board, body, commission, department, or officer succeeding to the principal functions of the corporation or to whom the powers conferred upon the corporation by this chapter are given by law;

(5) "Corporation loans" means loans by the corporation to an educational institution or child day care center for the purpose of funding education loans;

(6) "Cost" as applied to a project or any portion of it, financed under the provisions of this chapter, embraces all or any part of the cost of construction and acquisition of all lands, structures, real or personal property, rights, rights of way, franchises, easements, and interests acquired or used for a project, the cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved, the cost of all machinery and equipment, financing charges, interest prior to, during and for a period after completion of the construction, provisions for working capital, reserves for principal and interest and for extensions, enlargements, additions, replacements, renovations and improvements, cost of engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and of revenues, administrative expenses, expenses necessary or incident to determining the feasibility or practicability of constructing the project, and other expenses that may be necessary or incident to the construction and acquisition of the project, the financing of the construction and acquisition, and the placing of the project in operation;

(7) "Default insurance" means insurance insuring education loans, corporation loans, or bonds or notes of the corporation against default;

(8) "Default reserve fund" means a fund established pursuant to a resolution of the corporation for the purpose of securing education loans, corporation loans, or bonds or notes of the corporation;

(9) "Education loan" means a loan which is made by or on behalf of an educational institution or child day care center from the proceeds of a corporation loan, to a student or parents of a student or both, to finance the student's attendance at the institution;

(10) "Education loan series portfolio" means all education loans made by or on behalf of a specific educational institution or child day care center which are funded from the proceeds of a corporation loan to the institution out of the proceeds of a related specific bond or note issued through the corporation;

(11) "Health care provider" means:

(i) Any nonprofit hospital incorporated under the laws of the state, including any nonprofit subsidiary corporations formed by any hospital or formed by the parent corporation of the hospital; or

(ii) Any nonprofit corporation, the member or members of which consist solely of one or more hospitals or their parent corporations; or

(iii) Any other hospital, which is licensed as a general hospital or maternity hospital pursuant to chapter 17 of title 23, which is exempt from taxation; or

(iv) Any nonprofit group health association; or

(v) Any cooperative hospital service organization, or any nonprofit corporation that is licensed as a skilled nursing and/or intermediate care facility pursuant to chapter 17 of title 23, ,including any nonprofit subsidiary corporation formed by any of the foregoing skilled nursing and/or intermediate care facilities, or any nonprofit corporation eligible to receive funding, pursuant to chapter 8.5 of title 40.1, and/or a corporation created pursuant to chapter 6 of title 7; provided, that it is a real estate holding corporation created for the benefit of a nonprofit corporation eligible to receive funding under chapter 8.5 of title 40.1; or

(vi) Any nonprofit health care corporation whose purpose is to provide home care services or supplies to the citizens of this state including, but not limited to, nonprofit visiting nurse associations and nonprofit home care organizations; or

(vii) Any other not-for-profit corporation organized pursuant to chapter 6 of title 7 or pursuant to any special act of the general assembly and which is exempt from federal taxation of income in accordance with section 501(c)(3), 26 U.S.C. section 501(c)(3), of the Internal Revenue Code and which is licensed as:

(A) A health care facility pursuant to chapter 17 of title 23; or

(B) A "facility" pursuant to chapter 24 of title 40.1;

(C) A "residential care and assisted living facility" pursuant to chapter 17.4 of title 23; or

(D) An adult day-care facility.

(viii) Any not-for-profit corporation which is exempt from federal taxation of income in accordance with section 501(c)(3), 26 U.S.C. section 501(c)(3), of the Internal Revenue Code, or any successor section of the Internal Revenue Code, which under contract with the state educates, counsels or rehabilitates young people who have come subject to child welfare, juvenile justice or mental health systems in the state. or

(12) "Educational institution" means an educational institution situated within this state which, by virtue of law or charter, is a public or other nonprofit educational institution empowered to provide a program of education at the primary, secondary or high school level, beyond the high school level, and which is accredited by a nationally recognized educational accrediting agency or association and awards a bachelor's or advance degree or provides a program of not less than two (2) years' duration which is accepted for full credit toward a bachelor's degree;

(13) "Loan funding deposit" means monies or other property deposited by an educational institution or child day care center with the corporation, a guarantor, or a trustee for the purpose of:

(i) Providing security for bonds or notes;

(ii) Funding a default reserve fund;

(iii) Acquiring default insurance;

(iv) Defraying costs of the corporation, the monies or properties to be in amounts as deemed necessary by the corporation or a guarantor as a condition for the institution's participation in the corporation's programs;

(14) "Nonprofit group health association" means an association or a corporation established by an act of the general assembly, or created pursuant to chapter 6 of title 7, to provide all or any part of a project or property to the citizens of this state;

(15) "Parent" means any parent, legal guardian, or sponsor of the student at an educational institution or child day care center;

(16) "Participating hospital" means a hospital which, pursuant to the provisions of this chapter, undertakes the financing and construction or acquisition of a project or undertakes the refunding or refinancing of obligations or of a mortgage or of advances as provided in and permitted by this chapter;

(17) "Participating educational institution" means an educational institution or child day care center which, pursuant to the provisions of this chapter, undertakes the financing and construction or acquisition of a project, or undertakes the refunding or refinancing of obligations or of a mortgage or of advances or undertakes the financing, directly or indirectly, of education loans, all as provided in and permitted by this chapter;

(18) "Project," in the case of a participating educational institution or child day care center means a structure suitable for use as a dormitory or other housing facility, dining hall, student union, administration building, academic building, library, laboratory, research facility, classroom, athletic facility, health care facility, and maintenance, storage or utility facility, and other structures or facilities related to the educational institution or child day care center or required or useful for the instruction of students or the conducting of research or the operation of an educational institution or child day care center including parking and other facilities or structures essential or convenient for the orderly conduct of the educational institution or child day care center and also includes equipment and machinery and other similar items necessary or convenient for the operation of a particular facility or structure in the manner for which its use is intended, but does not include such items as books, fuel, supplies, or other items which are customarily deemed to result in a current operating charge; and, in the case of a participating health care provider, means a structure suitable for use as a hospital, clinic, nursing home, congregate housing for the elderly and/or infirm, mental health service unit, or other health care facility, laboratory, laundry, nurses', interns', or clients' residence, administration building, research facility, and maintenance, storage or utility facility, and other structures or facilities related to the health care provider or required or useful for the operation of the project, including parking and other facilities or structures essential or convenient for the orderly operation of the project, and also includes equipment and machinery and other similar items necessary or convenient for the operation of the project in the manner for which its use is intended, but does not include such items as fuel, supplies, or other items which are customarily deemed to result in a current operating charge;

(19) "State" means the state of Rhode Island and Providence Plantations.

(20) "Child day care center" means a child day care center as defined in section 23-28.1-5, which is a not-for-profit organization.

(22) "Capital Notes(s)" means a note or notes of the corporation not exceeding twelve (12) months in duration to maturity issued for the benefit of a health care provider or educational institution to purchase capital assets to be used in the operations of said health care provider or educational institution.

(23) "Revenue Anticipation Note(s)" means a note or notes of the corporation not exceeding twelve (12) months in duration to maturity issued for the benefit of a health care provider or educational institution in anticipation of revenues reasonably expected to be collected by the health care provider or educational institution within twelve (12) months from the date of the note or notes;

45-38.1-5. General grant of powers -- The corporation has the following powers, together with all powers incidental or necessary for the performance of the following:

(1) To have perpetual succession as a public body corporate and agency of the state and to adopt bylaws for the regulation of its affairs and the conduct of its business;

(2) To adopt an official seal and alter the seal at pleasure;

(3) To maintain an office at a place or places that it may designate;

(4) To sue and be sued, plead and be impleaded;

(5) To determine the location and character of any project to be financed under the provisions of this chapter, and to construct, reconstruct, renovate, replace, maintain, repair, operate, lease, as lessee or lessor, and regulate the project to pay its costs, to enter into contracts for any or all of those purposes, to enter into contracts for the management and operation of a project, and to designate a participating educational institution or child day care center, or a participating health care provider as its agent to determine the location and character of a project undertaken by the participating educational institution or child day care center, or by a participating health care provider under the provisions of this chapter, and as the agent of the corporation, to acquire, construct, reconstruct, renovate, replace, maintain, repair, operate, lease, as lessee or lessor, and regulate the project, and, as the agent of the corporation, to enter into contracts for any or all of those purposes, including contracts for the management and operation of the project;

(6) To issue bonds, notes, bond anticipation notes, revenue anticipation notes, capital notes and other obligations of the corporation including, but not limited to, interest rate exchange agreements and contracts to hedge interest rates, for any of its corporate purposes, and to fund or refund the bonds, all as provided in this chapter;

(7) Generally, to fix and revise from time to time and charge and collect rates, rents, fees, and charges for the use of and for the services furnished or to be furnished by a project or any portion of it, and to contract with any person, partnership, association, or corporation or other body public or private in respect to the project;

(8) To establish rules and regulations for the use of a project or any portion of it and to designate a participating educational institution or child day care center, or a participating health care provider as its agent to establish rules and regulations for the use of a project undertaken by the participating educational institution or child day care center or by the participating health care provider;

(9) Employ consulting engineers, architects, attorneys, accountants, construction and financial experts, superintendents, managers, and other employees and agents as may be necessary in its judgment, and to fix their compensation;

(10) To receive and accept from any public agency, loans or grants for or in aid of the construction of a project or any portion of it, and to receive and accept loans, grants, aid, or contributions from any source of either money, property, labor, or other things of value, to be held, used, and applied only for the purposes for which those loans, grants, aid, and contributions are made;

(11) To mortgage any project, and the site of the project, for the benefit of the holders of bonds issued to finance the project;

(12) To make loans to any participating educational institution or child day care center and to any participating health care provider for the cost of a project in accordance with an agreement, and any other security instrument required by the corporation between the corporation and the participating educational institution or child day care center or the participating health care provider; provided, that no loan exceeds the total cost of the projects as determined by the participating educational institution or child day care center or the participating hospital, and approved by the corporation;

(13) To make loans to a participating educational institution or child day care center or to a participating health care provider to refund outstanding obligations, mortgages, or advances issued, made or given by the participating educational institution or child day care center or the participating health care provider for the cost of a project;

(14) To charge to and equitably apportion, among participating educational institution or child day care center and participating health care provider, its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter;

(15) To accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality of the federal government, or from the state or any agency or instrumentality of the state, or from any other source and to comply, subject to the provisions of this chapter, with the terms and conditions of the gifts, grants, or loans;

(16) To do all things necessary or convenient to carry out the purposes of this chapter. In carrying out the purposes of this chapter, the corporation may undertake a project for two (2) or more participating health care providers jointly, or for any combination of providers, and, thereupon, all other provisions of this chapter shall apply to and for the benefit of the corporation and those joint participants; and

(17) To enter into contracts for the purpose of guaranteeing or insuring loans to any participating educational institution or child day care center or to any participating health care provider to carry out the purposes of the corporation, and to pledge, encumber, or advance funds of the corporation in connection with the loans.

(18) To make and effectuate gifts or grants of corporation funds for or in aid of the construction of or development of any project or any portion thereof or in furtherance of the policies, purposes and powers of the corporation set forth in this chapter 38.1 of Title 45 and to retain or appoint such agents or consultants deemed necessary or desirable by the corporation to effectuate, make and administer such gifts or grants.

45-38.1-5.1. Powers relative to education loan financing programs -- (a) The corporation has all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others granted by this chapter:

(1) To determine criteria and guidelines encompassing the type of, and qualifications for, education loan financing programs, and issuance of bonds or notes by the corporation, including eligibility standards for borrowers that the corporation determines are necessary or desirable in order to effectuate the purposes of this chapter;

(2) To establish specific criteria governing the eligibility of institutions for higher education to participate in its programs and for the making of corporation loans and education loans, the issuance of bonds or notes by the corporation, provisions for default, the establishment of default reserve funds, the purchase of default insurance, the provision by the institutions of prudent debt service reserves, and the furnishing, by participating institutions for higher education and others, of additional guarantees of the education loans, corporation loans, or bonds as the corporation determines;

(3) To establish rules and regulations with respect to corporation loans, education loans, and education loan series portfolios;

(4) To receive and accept from any source, loans, contributions, or grants for or in aid of a corporation education loan financing program, or any portion of it, and, when desirable, to use the funds, property, or labor only for the purposes for which it was loaned, contributed, or granted;

(5) To contract with guarantors, financial institutions, or other qualified loan origination and servicing organizations, which shall assist in prequalifying borrowers for education loans and service and administer each education loan. The corporation may require that each borrower be charged a fee to defray the costs of origination, servicing, and administration of education loans. The amount and method of collection of the fee shall be determined by the corporation. Participating institutions for higher education may perform these acts if authorized by the corporation;

(6) To contract with a guarantor to provide security for the payment of education loans through the issuance of insurance against default, or to provide a guarantee of payment covering all or a portion of each education loan made by or on behalf of the corporation or by or on behalf of an institution for higher education from the proceeds of a corporation loan;

(7) To make corporation loans to participating institutions for higher education and require that the proceeds be used for making education loans and paying costs and fees in connection with the loans;

(8) To charge and equitably apportion, among participating institutions for higher education, its administrative costs and expenses incurred in the exercise of the powers and duties granted by this section;

(9) Notwithstanding any other provisions in this chapter, to commingle and pledge as security for a series or issue of bonds, only with the consent of all of the institutions for higher education which are participating in the series or issue:

(i) The education loan series portfolios and some or all future education loan series portfolios of the institutions for higher education; and

(ii) The loan funding deposits of the institutions; provided, that education loan series portfolios and other security and monies set aside in any fund or funds pledged for any series of bonds or issue of bonds are held for the sole benefit of the series or issues, separate and apart from education loan series portfolios and other security and monies pledged for any other series or issue of bonds of the corporation. Bonds may be issued in series under one or more resolutions or trust agreements in the discretion of the corporation;

(10) To examine records and financial reports of participating institutions for higher education, and to examine records and financial reports of any person, organization, or institution retained under subsections (a)(5) or (a)(6);

(11) To do all things necessary or convenient to carry out the purposes of this chapter.

(b) In carrying out the purposes of this chapter, the corporation may issue bonds, the proceeds of which are loaned to two (2) or more participating institutions for higher education or for any combination of participating institutions for higher education and, thereupon, all other provisions of this chapter apply to and for the benefit of the corporation and the participants in the joint program or programs. Any joint participation requires the express approval of all participants.

(c) The corporation shall require that corporation loans be used solely for the purpose of education loans and in an amount not to exceed the total cost of attendance, as defined by the corporation, less other forms of student assistance that the corporation may determine. The corporation shall require that institutions for higher education insist that each borrower under an education loan use the proceeds solely for educational purposes and purposes reasonably related to education, and that each borrower shall so certify.

(d) Whenever refunding bonds are issued to refund bonds, the proceeds of which were used to make corporation loans, the corporation may reduce or increase the amount it is owed by the institution for higher education which had received corporation loans from the proceeds of the refunded bonds. The institutions for higher education may reduce or increase the amount of interest being paid on education loans which the institution has made pursuant to the corporation loans from the proceeds of the refunded bonds.

45-38.1-5.2. Acquisition of certain monies, endowments, properties, and guarantees -- The corporation is authorized and empowered to establish specific guidelines relating to the deposits of certain monies, endowments, or properties by institutions for higher education which would provide security for education loan funding programs, corporation loans, education loans, or for bonds or notes, and to establish guidelines relating to guarantees of or contracts to purchase education loans or bonds by the institutions or by financial institutions or others. A default reserve fund may be established for each series or issue of bonds. In this regard, the corporation is empowered to receive monies, endowments, properties, and guarantees as it deems appropriate and, if necessary, to take title in the name of the corporation or in the name of a participating institution for higher education or a trustee.

45-38.1-5.3. Conveyance of loan funding deposit after payment of bonds -- When the principal of, interest on, and premium, if any, due in connection with bonds or notes of the corporation issued to finance the cost of an education loan financing program or programs, including any refunding bonds or notes issued to refund and refinance those bonds, or notes have been fully paid and retired, or when adequate provision has been made to fully pay and retire the bonds, or notes, and all other conditions of the bond or note resolution authorizing the bonds or notes, have been satisfied and the security interest or lien created by the bond or note resolution has been released in accordance with the provisions of the resolution, the corporation shall promptly do those things and execute deeds and conveyances that are necessary and required to convey any remaining monies, properties, and other assets, comprising loan funding deposits, to the participating institutions for higher education which furnished the monies, properties, and other assets in proportion to the amounts furnished by the respective participating institutions for higher education.

45-38.1-7. Title to project -- When the principal of and interest on bonds of the corporation issued to finance the cost of a particular project or projects for a participating institution for higher education or for a participating health care provider, including any refunding bonds or notes issued to refund and refinance the bonds, or notes, have been fully paid and retired, or when adequate provision has been made to fully pay and retire the bonds, or notes, and all other conditions of the resolution or trust agreement authorizing and securing the bonds or notes have been satisfied and the lien of the resolution or trust agreement has been released in accordance with its provisions, the corporation shall promptly do things and execute deeds and conveyances that are necessary and required to convey title to the project or projects to the participating institution for higher education or the participating health care provider, free and clear of all liens and encumbrances, all to the extent that title to the project or projects shall not, at the time, then be vested in the participating institution for higher education or the participating health care provider.

45-38.1-8. Notes of the corporation -- The corporation has the power and is hereby authorized, from time to time, to issue its negotiable notes ,revenues anticipation notes and capital notes for any corporate purpose or project and renew, from time to time, any notes by the issuance of new notes, whether the notes to be renewed have or have not matured. The corporation may issue notes partly to renew notes or to discharge other obligations then outstanding, and partly for any other purpose. The notes may be authorized, sold, executed, and delivered in the same manner as bonds. Any resolution or resolutions authorizing notes of the corporation, or any issue of notes, may contain any provisions which the corporation is authorized to include in any resolution or resolutions authorizing revenue bonds of the corporation or any issue thereof, and the corporation may include, in any notes, any terms, covenants, or conditions which it is authorized to include in any bonds. All the notes are payable solely from the revenues of the corporation, subject only to any contractual rights of the holders of any of its notes or other outstanding obligations.

45-38.1-9. Bonds of the corporation -- (a) The corporation is authorized from time to time to issue its negotiable bonds for any corporate purpose or project. In anticipation of the sale of the bonds the corporation may issue negotiable bond anticipation notes and may renew those notes from time to time, but maximum maturity of the notes, including renewals of those notes, shall not exceed forty (40) years from the date of issue of the original notes. The notes shall be paid from any revenues of the corporation or other moneys available for payment and not otherwise pledged, or from the proceeds of the sale of the bonds of the corporation in anticipation of which they were issued. The notes shall be issued in the same manner as the bonds. The notes and the resolution, or resolutions authorizing the notes, may contain any provisions, conditions, or limitations which a bond resolution of the corporation may contain.

(b) The bonds, notes, or other obligations are payable from any revenues or moneys of the corporation available for payment and not otherwise pledged, subject only to any agreements with the holders of particular bonds, notes, or other obligations pledging any particular revenues or moneys, and subject to any agreements with any participating institution for higher education or any participating hospital, notwithstanding that the bonds, notes, or other obligations may be payable from a special fund, they shall be and be deemed to be for all purposes negotiable instruments, subject only to the provisions of the bonds, notes, or other obligations for registration.

(c) The bonds may be issued as serial bonds or as term bonds, or the corporation, in its discretion, may issue bonds of both types. The bonds shall be authorized by resolution of the corporation and bear a date or dates, mature at a time or times, not exceeding sixty-five (65) years from their respective dates, bear interest at rate or rates, be payable at a time or times, be in denominations, be in a form, either coupon or registered, carry registration privileges, be executed in a manner, be payable in lawful money of the United States of America at a place or places, and be subject to terms of redemption, that the resolution or resolutions may provide. In the event term bonds are issued, the resolution authorizing the term bonds may make provisions for the establishment and management of adequate sinking reserve funds for their payment as the corporation may deem necessary. The bonds or notes may be sold at public or private sale for a price or prices as the corporation determines. Pending preparation of the definitive bonds, the corporation may issue interim receipts or certificates which shall be exchanged for the definitive bonds.

(d) Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions, which are a part of the contract with the holders of the bonds to be authorized, as to:

(1) Pledging the full faith and credit of a participating institution for higher education or of a participating health care provider, all or any part of the revenues of a project of any revenue producing contract or contracts made by the corporation with any individual, partnership, corporation, or association or other body, public or private, or pledging all or any part of the revenues derived from corporation loans, education loans, payments by participating institutions for higher education, banks, guarantors, insurers, or others pursuant to letters of credit or purchase agreements, investment earnings, insurance proceeds, loan funding deposits, proceeds from the sale of education loans, proceeds of refunding bonds and fees, charges, and other revenues of the corporation, to secure the payment of the bonds or of any particular issue of bonds, subject to agreements with bondholders as may then exist;

(2) The rentals, revenues, fees and other charges to be charged, and the amounts to be raised in each year, and the use and disposition of the revenues;

(3) The setting aside of reserves or sinking funds, loan funding deposits, and their regulation and disposition;

(4) Limitations on the right of the corporation or its agent to restrict and regulate the use of the project or of education loans;

(5) Limitations on the purpose to which the proceeds of the sale of any issue, of bonds then or thereafter to be issued, may be applied and pledging the proceeds to secure the payment of the bonds or any issue of the bonds;

(6) Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;

(7) The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which the consent may be given;

(8) Limitations on the amount of moneys derived from the project or education loan program to be expended for operating, administrative, or other expenses of the corporation;

(9) Defining the acts or omissions to act which constitute a default in the duties of the corporation to holders of its obligations, and providing the rights and remedies of those holders in the event of a default;

(10) The mortgaging of a project and its site for the purpose of securing the bondholders;

(11) Any other additional covenants, agreements, and provisions that are deemed desirable or necessary by the corporation for the security of the holders of the bonds; and

(12) Providing for guarantees, pledges of endowment, letters of credit, property, or other security for the benefit of the holders of the bonds.

(e) Neither the members of the corporation nor any person executing the bonds or notes are personally liable on the bonds or notes, or are subject to any personal liability or accountability by reason of the issuance of the bonds or notes.

(f) The corporation has power out of any available funds, to purchase its bonds or notes. The corporation may hold, pledge, cancel, or resell the bonds, subject to and in accordance with agreements with bondholders.

45-38.1-13. Remedies -- Any holder of revenue bonds or notes issued under the provisions of this chapter or of any of the coupons appertaining thereto, and the trustee or trustees under any trust agreement, except to the extent the rights given under this chapter may be restricted by any resolution authorizing the issuance of, or any trust agreement securing the bonds, or notes, may, by suit, action, mandamus, or other proceedings, protect and enforce any and all rights under the laws of the state or granted under this chapter or under the resolution or trust agreement, and may enforce and compel the performance of all duties required by this chapter or by the resolution or trust agreement to be performed by the corporation or by any officer, employee, or agent of the corporation, including the fixing, charging, and collecting of the rates, rents, fees, and charges authorized under this chapter and required by the provisions of the resolution or trust agreement to be fixed, established, and collected.

45-38.1-16. Bonds eligible for investment -- Bonds or notes issued by the corporation under the provisions of this chapter are made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, trust companies, banking associations, credit unions, building and loan associations, investment companies, executors, administrators, trustees and other fiduciaries, pension, profit sharing, and retirement funds, may properly and legally invest funds, including capital in their control or belonging to them. The bonds or notes are made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or other obligations of the state is now or may hereafter be authorized by law.

45-38.1-19. State not liable -- (a) The state is not liable for the payment of the principal of or interest on any bonds or notes of the corporation, or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds or notes of the corporation nor any of its agreements or obligations are construed to constitute an indebtedness of the state within the meaning of any constitutional or statutory provision whatsoever, nor shall the issuance of bonds or notes, under the provisions of this chapter, directly or indirectly or continently obligate the state or any municipality or political subdivision of the state to levy or to pledge any form of taxation for them or to make any appropriation for their payment. All of the revenue bonds or notes shall contain on the face a statement to the effect that neither the state nor the corporation are obligated to pay the revenue bonds or notes, or their interest except from revenues of the project or projects for which they are issued, and that neither the faith and credit nor the taxing power of the state or of any municipality or political subdivision of the state is pledged to the payment of the principal of or the interest on those bonds or notes.

(b) Nothing contained in this section shall prevent nor be construed to prevent the corporation from pledging its full faith and credit or the full faith and credit of a participating institution for higher education or health care provider to the payment of bonds or notes, or or issue of bonds or notes authorized pursuant to this chapter.

45-38.1-20. Procedure before issuance of bonds -- Notwithstanding any other provisions of this chapter, the corporation is not empowered to undertake any project authorized by this chapter unless, prior to the issuance of any bonds or notes under this chapter, it has determined that:

(1) The acquisition, construction, or financing of the cost of the project will:

(i) With respect to an institution for higher education, enable or assist the institution to fulfill its obligations in providing education to the youth of this state; or

(ii) With respect to a health care provider, enable the health care provider to improve the health of the people it serves by means of expanded health care, health care provider, and other related services; and

(2) The project is leased to, or owned by, a financially responsible institution for higher education or health care provider within the state; and

(3) Adequate provision has been, or will be, made for the payment of the cost of the construction and/or acquisition of the project, and that under no circumstances will the state be obligated, directly or indirectly, for the payment of the cost of the construction and/or acquisition of the project, or for the payment of the principal of, or interest on, any obligations issued to finance the construction and/or acquisition; and

(4) Adequate provision has been, or will be made in any agreement with respect to or lease of the project for payment of all costs of operation, maintenance, and upkeep of the project by the lessee, sublessee, or occupant so that under no circumstances is the state obligated, directly or indirectly, for the payment of the costs; provided, that no findings shall be made and no financing effected under this chapter, with respect to health care providers, unless the proposed health care providers have first been approved by any state agency empowered to approve the construction of any health care providers in the manner provided in its general laws.

45-38.1-21. Agreement of the state -- The state pledges to and agrees with the holders of any bonds or notes issued under this chapter, and with those parties who may enter into contracts with the corporation pursuant to the provisions of this chapter, that the state will not limit or alter the rights vested in the corporation until any obligations under contracts, together with the interest, are fully met and discharged and the contracts are fully performed on the part of the corporation, provided, that nothing contained in this chapter precludes the limitation or alteration if and when adequate provision is be made by law for the protection of the holders of the bonds of the corporation or those entering into the contracts with the corporation. The corporation is authorized to include this pledge and undertaking for the state in the bonds, notes or contracts.

SECTION 2. This act shall take effect upon passage.