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CHAPTER 187
CONNECTICUT HEALTH AND
EDUCATIONAL FACILITIES AUTHORITY
Table of Contents
Sec. 10a-176. (Formerly Sec. 10-335). Declaration of policy.
Sec. 10a-177. (Formerly Sec. 10-336). Short title.
Sec. 10a-178. (Formerly Sec. 10-337). Definitions.
Sec. 10a-179. (Formerly Sec. 10-338). Health and Educational Facilities Authority. Executive director.
Sec. 10a-180. (Formerly Sec. 10-339). Powers of authority.
Sec. 10a-181. (Formerly Sec. 10-340). Payment of expenses.
Sec. 10a-182. (Formerly Sec. 10-341). Acquisition of property by authority.
Sec. 10a-183. (Formerly Sec. 10-342). Conveyance of title to participating institutions.
Sec. 10a-184. (Formerly Sec. 10-343). Notes of authority.
Sec. 10a-185. (Formerly Sec. 10-344). Bonds.
Sec. 10a-186. (Formerly Sec. 10-345). Trust agreement to secure bonds.
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.
Sec. 10a-186b. Nursing home debt service assistance program established. Definitions. Powers of State Treasurer and authority.
Sec. 10a-186c. State Treasurer may advance funds re qualified nursing homes.
Sec. 10a-187. (Formerly Sec. 10-346). Payment of bonds.
Sec. 10a-187a. Pledge by state as to limitation or alteration of rights vested in authority.
Sec. 10a-188. (Formerly Sec. 10-347). Rents and charges.
Sec. 10a-189. (Formerly Sec. 10-348). Use of bond proceeds and revenues.
Sec. 10a-190. (Formerly Sec. 10-349). Enforcement of rights and duties.
Sec. 10a-190a. Contracts with bondholders regarding funds of the authority.
Sec. 10a-191. (Formerly Sec. 10-350). Tax exemption.
Sec. 10a-192. (Formerly Sec. 10-351). Refunding bonds.
Sec. 10a-193. (Formerly Sec. 10-352). Bonds declared legal investments.
Sec. 10a-194. (Formerly Sec. 10-353). Report to Governor by authority.
Sec. 10a-194a. Report to Commissioner of Social Services by authority regarding nursing homes.
Sec. 10a-194b. Withholding of certain funds of nursing homes which are in default. Notification of other agencies.
Sec. 10a-194c. Connecticut Child Care Facilities Program.
Sec. 10a-194d. Subsidiary.
Sec. 10a-195. (Formerly Sec. 10-354). Pledge by state to bondholders and contractors.
Sec. 10a-196. (Formerly Sec. 10-355). Chapter supplemental to other laws. Power of authority not subject to supervision or regulation.
Sec. 10a-197. (Formerly Sec. 10-356). Liberal construction.
Sec. 10a-198. (Formerly Sec. 10-357). Chapter controlling over inconsistent law.
Secs. 10a-199 and 10a-200.
It is declared that
for the benefit of the people of the state, the increase of their commerce, welfare and
prosperity and the improvement of their health and living conditions it is essential that
this and future generations of youth be given the fullest opportunity to learn and to
develop their intellectual and mental capacities; that it is essential that institutions for
higher education within the state be provided with appropriate additional means to assist
such youth in achieving the required levels of learning and development of their intellectual and mental capacities; that it is essential that health care institutions within the state
be provided with appropriate additional means to expand, enlarge and establish health
care, hospital and other related facilities; that it is essential that nursing homes be provided with the means to care for persons in need of assistance and that it is the purpose
of this chapter to provide a measure of assistance and an alternative method to enable
institutions for higher education in the state, health care institutions and qualified nonprofit organizations to provide and finance the facilities, structures and equipment which
are needed to accomplish the purposes of this chapter, all to the public benefit and good,
to the extent and manner provided herein.
(February, 1965, P.A. 170, S. 1; 1967, P.A. 368, S. 1; P.A. 79-568, S. 1, 11; P.A. 82-16, S. 1, 19; P.A. 87-487, S. 1, 7;
P.A. 92-261, S. 1, 17.)
History: 1967 act included provision re hospitals; P.A. 79-568 added provision re aid to finance facilities and included
aid for equipment; P.A. 82-16 changed "hospitals" to "health care institutions"; Sec. 10-335 transferred to Sec. 10a-176
in 1983 pursuant to reorganization of higher education system; P.A. 87-487 inserted reference to qualified nonprofit
organizations; P.A. 92-261 included the reference to nursing home care for persons needing assistance.
This chapter may be referred to
and cited as the "State of Connecticut Health and Educational Facilities Authority Act".
(February, 1965, P.A. 170, S. 2; 1967, P.A. 368, S. 2.)
History: 1967 changed act name to include health as well as educational facilities; Sec. 10-336 transferred to Sec. 10a-
177 in 1983 pursuant to reorganization of higher education system.
As used in this chapter, the
following words and terms shall have the following meanings unless the context indicates another or different meaning or intent:
(a) "Authority" means the State of Connecticut Health and Educational Facilities
Authority created by section 10a-179 or any board, body, commission, department or
officer succeeding to the principal functions thereof or to whom the powers conferred
upon the authority by this chapter shall be given by law;
(b) "Project", in the case of a participating institution for higher education, means
a structure suitable for use as a dormitory or other housing facility, including housing
for staff members, employees or students at such institution of higher education, 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 thereto or required or useful
for the instruction of students or the conducting of research or the operation of an institution for higher education, including parking and other facilities or structures essential or
convenient for the orderly conduct of such institution for higher education, also including
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, or
items of equipment having a purchase price or lease rental value in excess of twenty-
five thousand dollars and an estimated useful life of four years or longer which are
necessary or desirable for the operation of a participating institution for higher education,
or any combination thereof, but shall not include such items as books, fuel, supplies or
other items which are customarily deemed to result in a current operating charge; in the
case of a participating health care institution, means a structure suitable for use as a
hospital, clinic, or other health care facility, laboratory, laundry, residence facility, including housing for nurses, interns, staff members, employees or students at such health
care institution and their immediate families and for physically or mentally handicapped
persons, administration building, research facility, and maintenance, storage or utility
facility and other structures or facilities related thereto 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 such project, also including 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, or items of equipment having a
purchase price or lease rental value in excess of twenty-five thousand dollars and an
estimated useful life of four years or longer which are necessary or desirable for the
operation of a participating health care institution, or any combination thereof, but shall
not include such items as fuel, supplies or other items which are customarily deemed
to result in a current operating charge; in the case of a participating qualified nonprofit
organization, means a structure or facility owned in its entirety by, or suitable for use in
accordance with the charitable or nonprofit status of the qualified nonprofit organization,
also including 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; and, in the
case of a participating nursing home, means a structure or facility suitable for use as a
nursing home, residential care home, rest home, health care facility for the handicapped,
mental health facility or independent living facility subject to the licensing requirements
of chapter 368v and appurtenant facilities and equipment necessary or convenient for
the operation of such homes and facilities in the manner for which its use is intended;
(c) "Cost" as applied to a project or any portion thereof 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 such 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
such 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 such
other expenses as may be necessary or incident to the construction and acquisition of
the project, the financing of such construction and acquisition and the placing of the
project in operation;
(d) "Bonds" means bonds of the authority issued under the provisions of this chapter, including refunding bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit of the authority or the full faith and credit of a participating
institution for higher education or of a participating hospital or any other lawfully
pledged security of a participating institution for higher education or of a participating
hospital;
(e) "Institution for higher education" means (1) an educational institution situated
within this state which by virtue of law or charter is a nonprofit educational institution
empowered to provide a program of education beyond the high school level; (2) a public
educational institution, which, shall be the state colleges, known collectively as Connecticut State University;
(f) "Participating institution for higher education" means an institution for higher
education which, pursuant to the provisions of this chapter, shall undertake the financing
and construction or acquisition of a project or shall undertake the refunding or refinancing of obligations or of a mortgage, or advances made or given for the costs of a project,
as provided in and permitted by this chapter;
(g) "Health care institution" means (i) any nonprofit, state-aided hospital or other
health care institution which is entitled, under the laws of the state, to receive assistance
from the state by means of a grant made pursuant to a budgetary appropriation made
by the general assembly, (ii) any other hospital or other health care institution which is
licensed, or any nonprofit, nonstock corporation which shall receive financing or shall
undertake to construct or acquire a project which is or will be eligible to be licensed,
as an institution under the provisions of sections 19a-490 to 19a-503, inclusive, or any
nonprofit, nonstock, nonsectarian facility which is exempt from taxation under the provisions of section 12-81 or 38a-188 and which is a health care center under the provisions
of sections 38a-175 to 38a-191, inclusive, or (iii) any nonprofit corporation wholly
owned by two or more hospitals or other health care institutions which operates for
and on behalf of such hospitals or other health care institutions a project as defined in
subsection (b) hereof or is a nursing home;
(h) "Nursing home" means any institution which is or will be eligible to be licensed
as an institution under sections 19a-490 to 19a-503, inclusive, or a facility which (1)
provides chronic and convalescent nursing care, (2) is a rest home with nursing facilities,
(3) provides health care facilities for the handicapped, (4) is a home for elderly persons
or physically handicapped or mentally handicapped persons or (5) is a continuing care
facility registered with the Department of Social Services, pursuant to chapter 319f;
(i) "Participating nursing home" means a nursing home 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, loans
or advances made or given for the costs of a project as provided in and permitted by
this chapter;
(j) "Participating health care institution" means a health care institution 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, loan or advances made or given for the cost of a project as provided in and
permitted by this chapter;
(k) "Participating corporation" means any nonprofit corporation created by a participating health care institution or a participating institution for higher education, or by
one or more of them in combination, and to which there has been or will be transferred
all right, title and interest in a project for the sole purpose of operating such project on
behalf of such participating institution or institutions for the life of the bonds issued to
finance such project, provided upon retirement of all of such bonds, all right, title and
interest in the project shall revert to and vest in the participating institution for higher
education or the participating health care institution or jointly in both such institutions;
(l) "Federally guaranteed security" means any security, investment or evidence of
indebtedness which is either directly or indirectly insured or guaranteed, in whole or in
part, as to the payment of principal and interest, by the United States of America or any
agency or instrumentality thereof;
(m) "Federally insured mortgage loan" means any loan secured by a mortgage from
any participating institution for higher education or participating health care institution
or participating nursing home which is either directly or indirectly insured or guaranteed,
in whole or in part, as to the repayment of principal and interest, by the United States
of America or any agency or instrumentality thereof, or by any commitment by the
United States of America or any agency or instrumentality thereof to so insure or guarantee;
(n) "Qualified nonprofit organization" means any private, nonprofit organization
qualified under Section 501(c)(3) of the Internal Revenue Code of 1986, as the same
may be amended from time to time, other than a health care institution, nursing home
or institution for higher education;
(o) "Participating qualified nonprofit organization" means a qualified nonprofit organization which, pursuant to the provisions of this chapter, shall undertake the financing
and construction or acquisition of a project or shall undertake the refunding or refinancing of obligations, or of a mortgage, loan or advances made or given to it to finance, in
anticipation of permanent financing or donation from an outside source, the cost of a
project, as provided in and permitted by this chapter.
(February, 1965, P.A. 170, S. 3; 1967, P.A. 368, S. 3; 1969, P.A. 586, S. 1; 1971, P.A. 104; 773; P.A. 75-64; P.A. 77-
569, S. 1; P.A. 79-62, S. 1, 4; 79-568, S. 2, 3, 11; 79-610, S. 26; P.A. 80-483, S. 47, 186; P.A. 82-16, S. 2—6, 19; P.A.
87-487, S. 2, 7; P.A. 92-261, S. 2, 17; P.A. 93-262, S. 1, 87; P.A. 95-230, S. 30, 45; P.A. 97-112, S. 2.)
History: 1967 act redefined "authority", "project" and "bonds" to reflect inclusion of hospitals, included replacements
and renovations under Subsec. (c), allowed securing of bonds by full faith and credit of the authority in Subsec. (d) and
added Subsecs. (g) and (h) defining "hospital" and "participating hospital"; 1969 act included hospitals for mental illness
in Subsec. (g); 1971 acts included nonprofit corporations wholly owned by two or more hospitals which operate projects
on their behalf and nonprofit, nonstock, nonsectarian facilities which provide chronic and convalescent nursing care or
which are rest homes with nursing facilities or homes for the elderly in Subsec. (g); P.A. 75-64 included nonprofit, nonstock
corporations "which shall receive financing or shall undertake to construct or acquire a project which is or will be eligible
to be licensed" in Subsec. (g); P.A. 77-569 included nonprofit, nonstock, nonsectarian facilities which provide health care
for the handicapped in Subsec. (g); P.A. 79-62 added Subsecs. (i) and (j), (codified as (j) and (k)), defining "federally
guaranteed security" and "federally insured mortgage loan"; P.A. 79-568 included equipment costing more than one
hundred thousand dollars to purchase or lease with estimated useful life of eight years or more in definition of "project"
and added Subsec. (i) defining "participating corporation"; P.A. 79-610 substituted Secs. 19-576 to 19-586 for Sec. 17-
227 in Subsec. (g); P.A. 80-483 made technical changes; P.A. 82-16 changed "hospital" to "health care institution" where
applicable and changed definition of "hospital" as necessary to be applicable as definition of "health care institution",
including any hospital or health care center; Sec. 10-337 transferred to Sec. 10a-178 in 1983 pursuant to reorganization
of higher education system; P.A. 87-487 amended definition of "project" to include housing for staff members, employees
or students at institutions of higher education, to decrease minimum price or rental value of equipment from one hundred
thousand dollars to twenty-five thousand dollars and the minimum useful life from eight years to four years and to include
structures, facilities, equipment and machinery for participating qualified nonprofit organizations, and added definition of
"qualified nonprofit organization" and "participating qualified nonprofit organization"; P.A. 92-261 added definitions of
"nursing home" and "participating nursing home" and amended various definitions to include the specific references to
nursing homes and amended the definition of "institution for higher education" to clarify the definition of a public educational institution; P.A. 93-262 authorized substitution of commissioner and department of social services for commissioner
and department on aging, effective July 1, 1993; P.A. 95-230 redefined "institution for higher education" to delete reference
to The University of Connecticut, effective June 7, 1995; P.A. 97-112 replaced "home for the aged" with "residential
care home".
(a) There is created a body politic and corporate to be
known as the "State of Connecticut Health and Educational Facilities Authority". Said
authority is constituted a public instrumentality and political subdivision of the state
and the exercise by the authority of the powers conferred by this chapter shall be deemed
and held to be the performance of an essential public and governmental function. Notwithstanding the provisions of the general statutes or any public or special act, the board
of directors of said authority shall consist of ten members, two of whom shall be the
Secretary of the Office of Policy and Management and the State Treasurer, ex officio,
and eight of whom shall be residents of the state appointed by the Governor, not more
than four of such appointed members to be members of the same political party. Three
of the appointed members shall be trustees, directors, officers or employees of institutions for higher education, two of the appointed members shall be trustees, directors,
officers or employees of health care institutions and one of such appointed members
shall be a person having a favorable reputation for skill, knowledge and experience in
state and municipal finance, either as a partner, officer or employee of an investment
banking firm which originates and purchases state and municipal securities, or as an
officer or employee of an insurance company or bank whose duties relate to the purchase
of state and municipal securities as an investment and to the management and control
of a state and municipal securities portfolio. On or before the first day of July, annually,
the Governor shall appoint a member or members to succeed those whose terms expire,
each for a term of five years and until a successor is appointed and has qualified. The
Governor shall fill any vacancy for the unexpired term. A member of the board shall
be eligible for reappointment. Any member of the board may be removed by the Governor for misfeasance, malfeasance or wilful neglect of duty. Each member of the board
shall take and subscribe the oath or affirmation required by article XI, section 1, of the
State Constitution prior to assuming such office. A record of each such oath shall be
filed in the office of the Secretary of the State. Each ex-officio member may designate
his deputy or any member of his staff to represent him as a member at meetings of the
board with full power to act and vote in his behalf.
(b) The chairperson of the board shall be appointed by the Governor, with the advice
and consent of both houses of the General Assembly. The board shall annually elect
one of its members as vice chairman, and shall also appoint an executive director who
shall not be a member of the board and who shall serve at the pleasure of the board and
receive such compensation as shall be fixed by the board.
(c) The executive director shall supervise the administrative affairs and technical
activities of the authority in accordance with the directives of the board. The executive
director shall keep a record of the proceedings of the authority and shall be custodian
of all books, documents and papers filed with the authority and of the minute book or
journal of the authority and of its official seal. He may cause copies to be made of all
minutes and other records and documents of the authority and may give certificates
under the official seal of the authority to the effect that such copies are true copies, and
all persons dealing with the authority may rely upon such certificates.
(d) (1) The powers of the authority shall be vested in and exercised by a board of
directors. Five members of the board shall constitute a quorum at any meeting of the
board. No vacancy in the membership of the board shall impair the right of such members
to exercise all the rights and perform all the duties of the board. Any action taken by
the board under the provisions of this chapter may be authorized by resolution approved
by a majority of the members present at any regular or special meeting, which resolution
shall take effect immediately or by a resolution circularized or sent to each member of
the board, which shall take effect at such time as a majority of the members shall have
signed an assent to such resolution. Resolutions of the board need not be published or
posted. (2) The board may delegate by resolution to three or more of its members such
powers and duties as it may deem proper. At least one of such members shall not be a
state employee.
(e) Each member of the board shall execute a surety bond in the penal sum of fifty
thousand dollars and the executive director and the other officers of the authority shall
execute a surety bond in the penal sum of one hundred thousand dollars, or, in lieu
thereof, the chairman of the board shall execute a blanket position bond covering each
member, the executive director and the employees of the authority, each surety bond to
be conditioned upon the faithful performance of the duties of the office or offices covered, to be executed by a surety company authorized to transact business in this state
as surety and to be approved by the Attorney General and filed in the office of the
Secretary of the State. The cost of each such bond shall be paid by the authority.
(f) The members of the board shall receive no compensation for the performance
of their duties hereunder but each such member shall be paid his necessary expenses
incurred while engaged in the performance of such duties.
(g) Notwithstanding any other law to the contrary, it shall not be or constitute a
conflict of interest for a trustee, director, officer or employee of an institution for higher
education or a health care institution, or for any person having a financial interest in
such an institution, to serve as a member of the board of directors of the authority;
provided such trustee, director, officer, employee or person shall abstain from deliberation, action and vote by the board under this chapter in specific respect to the institution
for higher education or the health care institution of which such member is a trustee,
director, officer or employee or in which such member has a financial interest.
(h) The board of directors of the authority shall adopt written procedures, in accordance with the provisions of section 1-121, for: (1) Adopting an annual budget and plan
of operations, including a requirement of board approval before the budget or plan
may take effect; (2) hiring, dismissing, promoting and compensating employees of the
authority, including an affirmative action policy and a requirement of board approval
before a position may be created or a vacancy filled; (3) acquiring real and personal
property and personal services, including a requirement of board approval for any nonbudgeted expenditure in excess of five thousand dollars; (4) contracting for financial,
legal, bond underwriting and other professional services, including a requirement that
the authority solicit proposals at least once every three years for each such service which
it uses; (5) issuing and retiring bonds, bond anticipation notes and other obligations
of the authority; (6) awarding loans, grants and other financial assistance, including
eligibility criteria, the application process and the role played by the authority's staff
and board of directors; and (7) the use of surplus funds to the extent authorized under
this chapter or other provisions of the general statutes.
(i) The authority shall not be construed to be a department, institution, or agency
of the state.
(j) The authority shall continue as long as it shall have bonds or other obligations
outstanding and until its existence is terminated by law. Upon termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state
of Connecticut.
(k) (1) The authority may incorporate one or more subsidiaries and may transfer
to any such subsidiary any moneys and real or personal property of any kind or nature.
Each such subsidiary shall have all the privileges, immunities, tax exemptions and other
exemptions of the authority, including the privileges, immunities, tax exemptions and
other exemptions provided under the general statutes for special capital reserve funds.
Each such subsidiary shall be subject to suit provided its liability shall be limited solely
to the assets, revenues and resources of the subsidiary and without recourse to the general
funds, revenues, resources or any other assets of the authority. Each such subsidiary is
authorized to assume or take title to property subject to any existing lien, encumbrance
or mortgage and to mortgage, convey or dispose of its assets and pledge its revenues in
order to secure any borrowing, for the purpose of refinancing, rehabilitating or improving its assets, provided each such borrowing or mortgage shall be a special obligation
of the subsidiary, which obligation may be in the form of bonds, bond anticipation notes
and other obligations to the extent permitted under this chapter to fund and refund the
same and provide for the rights of the holders thereof, and to secure the same by pledge
or revenues, notes and other assets and which shall be payable solely from the assets,
revenues and other resources of the subsidiary. The authority shall have the power to
assign to a subsidiary any rights, moneys or other assets it has under any governmental
program including the nursing home loan program. No borrowing shall be undertaken
by a subsidiary of the authority without the approval of the authority.
(2) Each such subsidiary shall act through its board of directors at least one-half of
which shall be members of the board of directors of the authority, or their designees or
officers or employees of the authority. A resolution of the authority shall prescribe the
purposes for which each such subsidiary is formed.
(3) The provisions of section 1-125, subsection (e) of section 10a-185 and this subsection shall apply to any officer, director, designee or employee appointed as a member,
director or officer of any such subsidiary. Any such persons so appointed shall not be
personally liable for the debts, obligations or liabilities of any such subsidiary as provided in said section 1-125. The subsidiary shall and the authority may provide for the
indemnification to protect, save harmless and indemnify such officer, director, designee
or employee as provided by said section 1-125.
(4) The authority or such subsidiary may take, such actions as are necessary to
comply with the provisions of the Internal Revenue Code of 1986 or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
to qualify and maintain any such subsidiary as a corporation exempt from taxation under
said internal revenue code.
(5) The authority may make loans to each such subsidiary, following standard authority procedures, from its assets and the proceeds of its bonds, notes and other obligations, provided the source and security for the repayment of such loans is derived from
the assets, revenues and resources of the subsidiary.
(February, 1965, P.A. 170, S. 4; 1967, P.A. 368, S. 4; 1969, P.A. 586, S. 2; P.A. 77-614, S. 19, 610; P.A. 82-16, S. 7—
10, 19; P.A. 87-487, S. 3, 7; P.A. 88-225, S. 10, 14; 88-266, S. 19, 46; P.A. 89-29, S. 1, 2; P.A. 90-118; June 18 Sp. Sess.
P.A. 97-11, S. 42, 65.)
History: 1967 act changed authority name to reflect inclusion of health facilities, increased number of members from
seven to nine, increased number to be appointed by governor from six to eight with maximum of four, rather than three,
from same political party, required two members to be trustees, directors, officers or employees of hospitals, revised
appointment schedule and allowed finance and control commissioner to designate deputy to act for him in Subsec. (a),
increased number required for quorum from four to five in Subsec. (d), amended Subsec. (e) to allow issuance of blanket
bond and deleted phrase requiring surety bonds before issuance of revenue bonds and amended Subsec. (g) to include
members representing hospitals and deleted prohibition on members entering in discussion of issues respecting the institutions of which they are trustees, directors, etc.; 1969 act amended Subsec. (d) to include provisions for circularized resolutions and to allow delegation of powers and duties to one or more members or to executive director; P.A. 77-614 substituted
secretary of the office of policy and management for commissioner of finance and control; P.A. 82-16 changed "hospital"
to "health care institutions" where applicable and made surety bond requirements applicable to executive director of the
authority applicable to "other officers of the authority" as well; Sec. 10-338 transferred to Sec. 10a-179 in 1983 pursuant
to reorganization of higher education system; P.A. 87-487 inserted the phrase "Notwithstanding the provisions of the
general statutes or any public or special act" before the description of the authority membership and provided that members
should take and subscribe the oath or affirmation prior to assuming office, rather than before entering upon his duties; P.A.
88-225 amended Subsec. (g) by applying provisions to persons "having a financial interest" in higher education or health
care institutions; P.A. 88-266 amended Subsec. (a) by specifying authority is a political subdivision of the state and performs
a governmental function, adding reference to the board of directors and repealing provision allowing secretary of office
of policy and management to designate deputy or staff member to represent him at authority meetings, amended Subsec.
(b) to require chairperson of board to be appointed by governor, with advice and consent of general assembly, instead of
being elected by the authority, amended Subsec. (c) to require executive director to supervise administrative affairs and
technical activities of the authority, amended Subsec. (d) to make board of directors the governing body of the authority
and authorized board to delegate powers and duties to three or more of its members, at least one of whom shall not be a
state employee, instead of one or more of its members or its executive director or other officers, substituted "board" for
"authority" in Subsecs. (a) to (g), inclusive, inserted "board of directors of the" in Subsec. (g) and added Subsecs. (h), (i)
and (j), re adoption of written procedures by the board, how the authority is construed, and existence and termination of
the authority; P.A. 89-29 amended Subsec. (a) to authorize the secretary to appoint a designee; P.A. 90-118 added the state
treasurer to the board of directors; June 18 Sp. Sess. P.A. 97-11 added Subsec. (k) re subsidiaries, effective July 1, 1997.
Subsec. (a):
Cited. 230 C. 24, 33.
The purpose of the
authority shall be to assist institutions for higher education, health care institutions,
nursing homes, child care or child development facilities, and qualified nonprofit organizations in the construction, financing and refinancing of projects, and for this purpose
the authority is authorized and empowered:
(a) To have perpetual succession as a body politic and corporate and to adopt bylaws
for the regulation of its affairs and the conduct of its business;
(b) To adopt an official seal and alter the same at pleasure;
(c) To maintain an office at such place or places as it may designate;
(d) To sue and be sued in its own name, and plead and be impleaded;
(e) 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 same, to enter into contracts
for any or all of such purposes, to enter into contracts for the management and operation
of a project, and to designate a participating institution for higher education, a participating health care institution, a participating corporation, a participating nursing home or
a participating qualified nonprofit organization as its agent to determine the location
and character of a project undertaken by such participating institution for higher education, by such participating health care institution, by such participating corporation, by
such participating nursing home or by such participating qualified nonprofit organization under the provisions of this chapter and as the agent of the authority, to construct,
reconstruct, renovate, replace, maintain, repair, operate, lease, as lessee or lessor, and
regulate the same, and, as the agent of the authority, to enter into contracts for any or
all of such purposes, including contracts for the management and operation of such
project;
(f) To issue bonds, bond anticipation notes and other obligations of the authority
for any of its corporate purposes, and to fund or refund the same, all as provided in this
chapter;
(g) 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 thereof and to contract with any person, partnership, association
or corporation or other body public or private in respect thereof;
(h) To establish rules and regulations for the use of a project or any portion thereof
and to designate a participating institution for higher education, a participating health
care institution, a participating corporation, a participating nursing home or qualified
nonprofit organization as its agent to establish rules and regulations for the use of a
project undertaken by such participating institution for higher education, by such participating health care institution, by such participating corporation or by such participating
nursing home or by such participating qualified nonprofit organization;
(i) To employ consulting engineers, architects, attorneys, accountants, construction
and financial experts, superintendents, managers, and such other employees and agents
as may be necessary in its judgment, and to fix their qualifications, duties and compensation;
(j) To receive and accept from any public agency insurance, loans or grants for or
in aid of the construction of a project or any portion thereof, 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 such
loans, grants, aid and contributions are made;
(k) To mortgage any project and the site thereof for the benefit of the holders of
bonds issued to finance such project;
(l) To make loans to any participating institution for higher education, to any participating health care institution, to any participating corporation, to any participating nursing home and to any participating qualified nonprofit organization for the cost of a
project in accordance with an agreement between the authority and such participating
institution for higher education, such participating health care institution, such participating corporation, such participating nursing home or such participating qualified nonprofit organization and to utilize the services of an agent in making such loans or to
agree to purchase federally guaranteed securities from any third parties making such
loans; provided no such loan shall exceed the total cost of the project as determined by
the participating institution for higher education, the participating health care institution,
the participating corporation, the participating nursing home or the participating qualified nonprofit organization, and approved by the authority;
(m) To make loans to a participating institution for higher education, to a participating health care institution, to a participating corporation, to a participating nursing home
or to a participating qualified nonprofit organization, to refinance or refund outstanding
obligations or mortgages on the project, or advances issued for the cost of a project,
made or given by such participating institution for higher education, such participating
health care institution, such participating corporation, such participating nursing home
or such participating qualified nonprofit organization, to utilize the services of an agent
in making such loans or to agree to purchase federally guaranteed securities from any
third parties making such loans and to create a security interest in revenues to be pledged
to the authority;
(n) To charge to and equitably apportion among participating institutions for higher
education, participating health care institutions, participating corporations, participating
nursing homes and participating qualified nonprofit organizations its administrative
costs and expenses incurred in the exercise of the powers and duties conferred by this
chapter;
(o) To acquire and to agree to acquire any federally guaranteed security and to
pledge or otherwise use any such federally guaranteed security in such manner as the
authority deems in its best interest to secure or otherwise provide a source of repayment
on any of its bonds or notes or to agree to make a loan to any participating institution
for higher education, participating health care institution, participating corporation, participating nursing home or participating qualified nonprofit organization for the purpose
of acquiring and entering into commitments to acquire any federally guaranteed security;
provided that any agreement entered into pursuant to this subdivision may contain such
provisions as are deemed necessary or desirable by the authority for the security or
protection of the authority or the holders of its bonds or notes; provided further that the
authority, prior to making any such acquisition, commitment or loan, shall agree with any
such participating institution for higher education, participating health care institution,
participating corporation, participating nursing home or participating qualified nonprofit organization or any other appropriate institution or corporation to require that the
proceeds derived from the acquisition of any such federally guaranteed security will
be used for the purpose of financing or refinancing any project for such participating
institution for higher education, participating health care institution, participating corporation, participating nursing home or participating qualified nonprofit organization;
(p) To do all things necessary or convenient to carry out the purposes of this chapter.
In carrying out the purposes of this chapter, the authority may undertake a project for two
or more participating institutions for higher education jointly, two or more participating
health care institutions jointly, two or more participating corporations jointly, two or
more participating nursing homes jointly or two or more participating qualified nonprofit
organizations jointly, or for any combination thereof of participating institutions for
higher education, participating health care institutions, participating corporations, participating nursing homes or participating qualified nonprofit organizations, and, thereupon, all other provisions of this chapter shall apply to and for the benefit of the authority
and such joint participants;
(q) To make loans to any participating health care institution, to any participating
institution for higher education, to any participating corporation, or to any participating
qualified nonprofit organization which is organized, controlled or supervised by a health
care institution or an institution of higher education to finance or refinance the cost of
a project to be used to provide housing and auxiliary facilities for staff members, employees or students of any such health care institution or institution of higher education and
their immediate families, for physically or mentally handicapped persons or for any one
or more of the above purposes;
(r) To make and enter into all contracts and agreements necessary or incidental to the
performance of its duties and the execution of its powers under its enabling legislation,
including contracts and agreements for such professional services as financial consultants, bond counsel, underwriters, technical specialists, as the board of directors shall
deem necessary;
(s) To invest any funds not needed for immediate use or disbursement, including
reserve funds, in obligations issued or guaranteed by the United States of America or
the state of Connecticut, including the state's Short-Term or Long-Term Investment
Fund, and in other obligations which are legal investments for savings banks in this state,
or in investment agreements with financial institutions whose short-term obligations are
rated within the top two rating categories of any nationally recognized rating service or
of any rating service recognized by the state Commissioner of Banking, or investment
agreements fully secured by obligations of, or guaranteed by, the United States or agencies or instrumentalities of the United States or in securities or obligations which are
legal investments for savings banks in this state, subject to repurchase agreements in
the manner in which such agreements are negotiated in sales of securities in the market
place, provided that the authority shall not enter into any such agreement with any
securities dealer or bank acting as a securities dealer unless such dealer or bank is included in the list of primary dealers, effective at the time of such agreement, as prepared
by the Federal Reserve Bank of New York;
(t) To adopt regular procedures for exercising its power under its enabling legislation not in conflict with existing statutes.
(February, 1965, P.A. 170, S. 5; 1967, P.A. 368, S. 5; P.A. 79-62, S. 2, 4; 79-568, S. 4, 11; P.A. 82-16, S. 11, 19; P.A.
87-487, S. 4, 7; P.A. 88-266, S. 20, 21, 46; P.A. 92-261, S. 3, 17; P.A. 93-102, S. 2; P.A. 97-259, S. 23, 41.)
History: 1967 act included hospitals in provisions, included projects of renovation or replacement and allowed projects
for two or more participating institutions jointly; P.A. 79-62 included provisions concerning federally guaranteed securities;
P.A. 79-568 included references to participating corporations; P.A. 82-16 changed "hospital" to "health care institution";
Sec. 10-339 transferred to Sec. 10a-180 in 1983 pursuant to reorganization of higher education system; P.A. 87-487 inserted
references to qualified nonprofit organizations and participating qualified nonprofit organizations, added Subsec. (q) concerning loans for certain types of housing and made various technical changes; P.A. 88-266 inserted reference to establishment of qualifications and duties in Subsec. (i) and added Subsecs. (r), (s) and (t), re authority and power to make and
enter into contracts, invest funds, and adopt regular procedures; P.A. 92-261 included references to nursing homes and
qualified nonprofit organizations, amended Subsec. (s) to include investment agreements with certain financial institutions
and made certain technical changes; P.A. 93-102 amended Subsec. (s) to allow the authority to invest in the state's long-
term investment fund; P.A. 97-259 included assisting child care or child development facilities in authority's duties,
effective July 1, 1997.
All expenses incurred in carrying out the provisions of this chapter shall be payable solely from funds
provided under the authority of this chapter and no liability or obligation shall be incurred
by the authority hereunder beyond the extent to which moneys shall have been provided
under the provisions of this chapter.
(February, 1965, P.A. 170, S. 6.)
History: Sec. 10-340 transferred to Sec. 10a-181 in 1983 pursuant to reorganization of higher education system.
See Sec. 10a-180(n) re authority's power to charge and apportion expenses incurred by it.
The authority is authorized and empowered, directly or by and through a participating
institution for higher education, a participating health care institution, a participating
corporation or a participating nursing home or a participating qualified nonprofit organization, as its agent, to acquire by purchase or by gift or devise such lands, structures,
property, real or personal, rights-of-way, franchises, easements and other interests in
lands, including lands lying under water and riparian rights, which are located within
or without the state as it may deem necessary or convenient for the construction or
operation of a project, upon such terms and at such prices as may be considered by it
to be reasonable and can be agreed upon between it and the owner thereof, and to take
title thereto in the name of the authority or in the name of a participating institution for
higher education, a participating health care institution, a participating corporation, or
a participating nursing home or participating qualified nonprofit organization as its
agent.
(February, 1965, P.A. 170, S. 7; 1967, P.A. 368, S. 6; P.A. 79-568, S. 5, 11; P.A. 82-16, S. 12, 19; P.A. 92-261, S. 4, 17.)
History: 1967 act included participating hospitals and removed restriction that purchases be "solely from funds provided
under the authority of this chapter"; P.A. 79-568 included participating corporations; P.A. 82-16 changed "hospital" to
"health care institution"; Sec. 10-341 transferred to Sec. 10a-182 in 1983 pursuant to reorganization of higher education
system; P.A. 92-261 included the references to nursing homes and qualified nonprofit organizations.
When the principal of and interest on bonds of the authority issued to finance
the cost of a particular project or projects for a participating institution for higher education, for a participating health care institution, for a participating corporation, for a
participating nursing home or for a participating qualified nonprofit organization, including any refunding bonds issued to refund and refinance such bonds, have been fully
paid and retired or when adequate provision has been made to fully pay and retire the
same, and all other conditions of the resolution or trust agreement authorizing and securing the same have been satisfied and the lien of such resolution or trust agreement has
been released in accordance with the provisions thereof, the authority shall promptly
do such things and execute such deeds and conveyances as are necessary and required
to convey title to such project or projects to such participating institution for higher
education, such participating health care institution, such participating corporation, or
such participating nursing home or such participating qualified nonprofit organization,
free and clear of all liens and encumbrances, all to the extent that title to such project
or projects shall not, at the time, then be vested in such participating institution for higher
education, such participating health care institution, such participating corporation, or
such participating nursing home or such participating qualified nonprofit organization.
(February, 1965, P.A. 170, S. 8; 1967, P.A. 368, S. 7; P.A. 79-568, S. 6, 11; P.A. 82-16, S. 13, 19; P.A. 87-487, S. 5,
7; P.A. 92-261, S. 5, 17.)
History: 1967 act included participating hospitals and deleted "revenue" as term describing bonds; P.A. 79-568 included
participating corporations; P.A. 82-16 changed "hospital" to "health care institution"; Sec. 10-342 transferred to Sec. 10a-
183 in 1983 pursuant to reorganization of higher education system; P.A. 87-487 inserted references to participating qualified
nonprofit organizations; P.A. 92-261 included the references to nursing homes.
The authority is authorized from time to time to issue its negotiable notes for any corporate purpose 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 authority 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 authority or any issue thereof may
contain any provisions which the authority is authorized to include in any resolution or
resolutions authorizing bonds of the authority or any issue thereof, and the authority
may include in any notes any terms, covenants or conditions which it is authorized to
include in any bonds. All such notes shall be payable from the revenues of the authority
or other moneys available therefor and not otherwise pledged, subject only to any contractual rights of the holders of any of its notes or other obligations then outstanding.
(February, 1965, P.A. 170, S. 9; 1967, P.A. 368, S. 8.)
History: 1967 act deleted "revenue" as descriptive of bonds and allowed payment of notes through unpledged moneys
as well as by revenues of authority; Sec. 10-343 transferred to Sec. 10a-184 in 1983 pursuant to reorganization of higher
education system.
(a) The authority is authorized
from time to time to issue its negotiable bonds for any corporate purpose. In anticipation
of the sale of such bonds the authority may issue negotiable bond anticipation notes and
may renew the same from time to time. Such notes shall be paid from any revenues of
the authority or other moneys available therefor and not otherwise pledged, or from the
proceeds of sale of the bonds of the authority in anticipation of which they were issued.
The notes shall be issued in the same manner as the bonds. Such notes and the resolution
or resolutions authorizing the same may contain any provisions, conditions or limitations
which a bond resolution of the authority may contain.
(b) Except as may otherwise be expressly provided by the authority, every issue of
its bonds, notes or other obligations shall be general obligations of the authority payable
from any revenues or moneys of the authority available therefor 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, any participating
health care institution or any participating corporation. Notwithstanding that such 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
such bonds, notes or other obligations for registration.
(c) The bonds may be issued as serial bonds or as term bonds, or the authority, in
its discretion, may issue bonds of both types. The bonds shall be authorized by resolution
of the members of the board of directors of the authority and shall bear such date or
dates, mature at such time or times, not exceeding fifty years from their respective
dates, bear interest at such rate or rates, be payable at such time or times, be in such
denominations, be in such form, either coupon or registered, carry such registration
privileges, be executed in such manner, be payable in lawful money of the United States
of America at such place or places, and be subject to such terms of redemption, as such
resolution or resolutions may provide. The bonds or notes may be sold at public or
private sale for such price or prices as the authority shall determine. The power to fix
the date of sale of bonds, to receive bids or proposals, to award and sell bonds, and to
take all other necessary action to sell and deliver bonds may be delegated to the chairman
or vice-chairman of the board or the executive director or other officers of the authority
by resolution of the board. The exercise of such delegated powers may be made subject
to the approval of a majority of the members of the board which approval may be given in
the manner provided in the bylaws of the authority. Pending preparation of the definitive
bonds, the authority may issue interim receipts or certificates which shall be exchanged
for such definitive bonds.
(d) Any resolution or resolutions authorizing any bonds or any issue of bonds may
contain provisions, which shall be a part of the contract with the holders of the bonds
to be authorized, as to: (1) Pledging the full faith and credit of the authority, the full
faith and credit of a participating institution for higher education, a participating health
care institution, a participating corporation or of a participating nursing home, all or
any part of the revenues of a project or any revenue-producing contract or contracts
made by the authority with any individual, partnership, corporation or association or
other body, public or private, any federally guaranteed security and moneys received
therefrom purchased with bond proceeds or any other legally available moneys to secure
the payment of the bonds or of any particular issue of bonds, subject to such agreements
with bondholders as may then exist; (2) the rentals, fees and other charges to be charged,
and the amounts to be raised in each year thereby, and the use and disposition of the
revenues; (3) the setting aside of reserves or sinking funds, and the regulation and disposition thereof; (4) limitations on the right of the authority or its agent to restrict and
regulate the use of the project; (5) the purpose and limitations to which the proceeds of
sale of any issue of bonds then or thereafter to be issued may be applied, including as
authorized purposes, all costs and expenses necessary or incidental to the issuance of
bonds, to the acquisition of or commitment to acquire any federally guaranteed security
and to the issuance and obtaining of any federally insured mortgage note, and pledging
such 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
such consent may be given; (8) limitations on the amount of moneys derived from the
project to be expended for operating, administrative or other expenses of the authority;
(9) defining the acts or omissions to act which shall constitute a default in the duties of
the authority to holders of its obligations and providing the rights and remedies of such
holders in the event of a default, and (10) the mortgaging of a project and the site thereof
for the purpose of securing the bondholders.
(e) Neither the members of the board of directors of the authority nor any person
executing the bonds or notes shall be liable personally on the bonds or notes or be subject
to any personal liability or accountability by reason of the issuance thereof.
(f) The authority shall have power out of any funds available therefor to purchase
its bonds or notes. The authority may hold, pledge, cancel or resell such bonds, subject
to and in accordance with agreements with bondholders.
(February, 1965, P.A. 170, S. 10; 1967, P.A. 368, S. 9; 1969, P.A. 586, S. 3; P.A. 79-62, S. 3, 4; 79-568, S. 7, 8, 11;
P.A. 82-16, S. 14—16, 19; P.A. 88-266, S. 22, 23, 46; P.A. 92-261, S. 6, 17.)
History: 1967 act deleted "revenues" with reference to bonds throughout section, amended Subsec. (a) to delete provision
setting maturity limit on notes at five years from date of issuance and to allow payment with moneys other than revenues,
amended Subsec. (b) to clarify that bonds, notes, etc. are general obligations of the authority, amended Subsec. (c) to delete
six per cent limit on interest and amended Subsec. (d) to specify that full faith and credit of authority and participating
institution pledged to secure bonds; 1969 act amended Subsec. (c) to allow delegation of bonding powers to chairman,
vice chairman or executive director; P.A. 79-62 amended Subsec. (d) to include provisions re federally guaranteed securities
and federally guaranteed mortgage notes; P.A. 79-568 amended Subsecs. (b) and (d) to include participating corporations;
P.A. 82-16 changed "hospital" to "health care institution" and amended power of chairman, vice chairman and executive
officer of authority to make decisions re sale of authority bonds to include "other officers of the authority"; Sec. 10-344
transferred to Sec. 10a-185 in 1983 pursuant to reorganization of higher education system; P.A. 88-266 amended Subsec.
(c) by substituting references to board of directors for references to the authority and inserted reference to the board of
directors in Subsec. (e); P.A. 92-261 amended Subsec. (d) to include the reference to nursing homes.
See Secs. 10a-192, 10a-193, 10a-195, 10a-196 re authority's power to issue refunding bonds.
In the
discretion of the authority any bonds issued under the provisions of this chapter may
be secured by a trust agreement by and between the authority and a corporate trustee
or trustees, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or the resolution providing for
the issuance of such bonds may pledge or assign the revenues to be received or proceeds
of any contract or contracts pledged and may convey or mortgage the project or any
portion thereof. Such trust agreement or resolution providing for the issuance of such
bonds may contain such provisions for protecting and enforcing the rights and remedies
of the bondholders as may be reasonable and proper and not in violation of law, including
particularly such provisions as have hereinabove been specifically authorized to be included in any resolution or resolutions of the authority authorizing bonds thereof. Any
bank or trust company incorporated under the laws of this state which may act as depositary of the proceeds of bonds or of revenues or other moneys may furnish such indemnifying bonds or pledge such securities as may be required by the authority. Any such
trust agreement may set forth the rights and remedies of the bondholders and of the
trustee or trustees, and may restrict the individual right of action by bondholders. In
addition to the foregoing, any such trust agreement or resolution may contain such other
provisions as the authority may deem reasonable and proper for the security of the
bondholders. All expenses incurred in carrying out the provisions of such trust agreement
or resolution may be treated as a part of the cost of the operation of a project.
(February, 1965, P.A. 170, S. 11; 1967, P.A. 368, S. 10.)
History: 1967 act deleted "revenue" as descriptive of bonds; Sec. 10-345 transferred to Sec. 10a-186 in 1983 pursuant
to reorganization of higher education system.
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 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, 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; 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 qualified nursing home, or to refund bonds issued to
finance a project at a qualified nursing home, except for refunding bonds that meet the
following requirements: (1) The refunding bonds must refund 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 the special capital reserve fund for the refunded
bonds; and (3) the authority and the State Treasurer must approve the refunding bonds
and must determine that the aggregate debt service on the refunding bonds will be less
than the aggregate debt service on the refunded bonds and that the economic benefit
derived from the refunding will inure to the state. In the event of a refunding undertaken
in the context of a receivership, bankruptcy or insolvency, any approval and determination by the authority and the State Treasurer 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. Any other refunding of outstanding bonds shall require such opinion, approval
and documentation.
(P.A. 92-261, S. 8, 17; P.A. 95-270, S. 4, 11; P.A. 98-167, S. 5, 6.)
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.
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.
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.)
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.
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.
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.
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 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.)
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.
(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 escrow to be applied to such purchase or retirement at
maturity or redemption on such date as may be determined by the authority.
(c) Any such escrowed proceeds, pending such use, may be invested and reinvested
in direct obligations of, or obligations unconditionally guaranteed by, the United States
of America and certificates of deposit or time deposits secured by direct obligations of,
or obligations unconditionally guaranteed by, the United States of America, or obligations of a state, a territory, or a possession of the United States of America, or any
political subdivision of any of the foregoing, or of the District of Columbia, within the
meaning of Section 103(a) of the Internal Revenue Code of 1986, or any subsequent
corresponding internal revenue code of the United States, as from time to time amended,
the full and timely payment of the principal of and interest on which are secured by an
irrevocable deposit of direct obligations of the United States of America which, if the
outstanding bonds are then rated by a nationally recognized rating agency, are rated in
the highest rating category by such rating agency, maturing at such time or times as shall
be appropriate to assure the prompt payment, as to principal, interest and redemption
premium, if any, of the outstanding bonds to be so refunded. The interest, income and
profits, if any, earned or realized on any such investment may also be applied to the
payment of the outstanding bonds to be so refunded. After the terms of the escrow have
been fully satisfied and carried out, any balance of such proceeds and interest, income
and profits, if any, earned or realized on the investments thereof may be returned to the
authority for use by it in any lawful manner.
(d) The portion of the proceeds of any such bonds issued 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 may be invested and reinvested in direct
obligations of, or obligations unconditionally guaranteed by, the United States of
America and certificates of deposit or time deposits secured by direct obligations of, or
obligations unconditionally guaranteed by, the United States of America, or obligations
of a state, a territory, or a possession of the United States of America, or any political
subdivision of any of the foregoing, or of the District of Columbia, within the meaning of
Section 103(a) of the Internal Revenue Code of 1986, or any subsequent corresponding
internal revenue code of the United States, as from time to time amended, the full and
timely payment of the principal of and interest on which are secured by an irrevocable
deposit of direct obligations of the United States of America which, if the outstanding
bonds are then rated by a nationally recognized rating agency, are rated in the highest
rating category by such rating agency, maturing not later than the time or times when
such proceeds will be needed for the purpose of paying all or any part of such cost. The
interest, income and profits, if any, earned or realized on such investment may be applied
to the payment of all or any part of such cost or may be used by the authority in any
lawful manner.
(e) All such bonds shall be subject to the provisions of this chapter in the same
manner and to the same extent as other bonds issued pursuant to this chapter.
(February, 1965, P.A. 170, S. 17; 1967, P.A. 368, S. 14; P.A. 92-261, S. 7, 17.)
History: 1967 act deleted "revenue" as descriptive of bonds and deleted references to "direct" obligations of U.S.,
replacing these with "obligations of, or guaranteed by" the U.S.; Sec. 10-351 transferred to Sec. 10a-192 in 1983 pursuant
to reorganization of higher education system; P.A. 92-261 expanded investment options under Subsecs. (c) and (d).
Bonds
issued by the authority under the provisions of this chapter are hereby made securities
in which all public officers and public bodies of the state and its political subdivisions,
all insurance companies, state banks and trust companies, national banking associations,
savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including
capital in their control or belonging to them. Such bonds are hereby 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 obligations of the state is now or may hereafter be authorized by law.
(February, 1965, P.A. 170, S. 18; 1967, P.A. 321; 368, S. 15.)
History: 1967 acts allowed investments by state banks, savings banks and savings and loan associations and specified
"national" banking associations; Sec. 10-352 transferred to Sec. 10a-193 in 1983 pursuant to reorganization of higher
education system.
Within the first ninety days of each fiscal year of the authority, the authority shall make
a report to the Governor of its activities for the p |
