Section 41-10-27

Issuance and sale of bonds for purpose of making grants for certain purposes authorized; terms and conditions of grants.

(a) The authority is hereby authorized from time to time to sell and issue its bonds, not exceeding $2,600,000.00 in aggregate principal amount, for the purpose of making the grants of money authorized in Section 41-10-26. The grantees may use the said grants authorized in the said section for the following purposes:

(1) The making of surveys to determine the location of suitable industrial sites in the locality of the grantee;

(2) The making of surveys to determine the availability of labor in the locality of the grantee and to classify such labor in terms of skills and educational level;

(3) The preparation of industrial sites; or

(4) Any combination of any of the foregoing which the grantees consider appropriate and necessary for the promotion of industrial development in their respective localities.

(b) Every grant of money made by the authority pursuant to Section 41-10-26 shall be made subject to the following terms and conditions, which are hereby declared to be legally enforceable in any court of competent jurisdiction:

(1) No part of any such grant or grants shall be used with respect to the preparation of industrial sites in excess of one and one-half percent of the amount that it is anticipated will be spent for the construction and equipment of the facilities that will occupy the said industrial sites as such anticipated amount shall be certified to the authority by the architect or engineer for the facilities to be constructed and equipped or by the chief executive officer of the grantee;

(2) No part of any such grant or grants shall be used with respect to the preparation of industrial sites in any case where any individual, private association or private corporation has received or is to receive an option to purchase such industrial sites or any part of any thereof from the grantee or any nominal transferee of the grantee for less than the fair market value of such industrial sites;

(3) The authority shall have power to audit the disbursements by the grantee from such grant or grants; and

(4) Any other appropriate terms and conditions to facilitate the enforcement of the foregoing provisions of this subsection.

(Acts 1965, No. 662, p. 1187, §8)