§ 9005 — Subsidy contract — Authorization; conditions for payments

(a) The issuing officers, upon receipt of a written favorable recommendation from the Department, shall determine the amount, terms, form and content of the subsidy contract. In making their determination, the issuing officers shall not approve a subsidy contract unless the reasonably expected cost of the eligible project, as determined by the Department, does not exceed the sum of $5,000,000; provided, however, that if the cost of such eligible project does exceed this amount, the issuing officers shall approve a subsidy contract for the first $5,000,000 of cost of the eligible project.

(b) The subsidy contract shall provide for payments on an annual basis in an amount not to exceed the difference between the yield on the loan obtained through the Delaware Health Facilities Authority and 25 basis points above the yield on the immediately preceding issue of state general obligation bonds. The issuing officers may, however, take into account in determining the yield, the amount of loan closing costs, if any, incurred by the health facilities corporation that could have been avoided if the loan were being made by the State. The determinations of yield by the issuing officers shall be conclusive.

Legislative History

16 Del. C. 1953, § 9005; 56 Del. Laws, c. 363 ; 57 Del. Laws, c. 655 ; 58 Del. Laws, c. 405 ; 59 Del. Laws, c. 455, § 4 ; 64 Del. Laws, c. 463, § 1 ; 70 Del. Laws, c. 149, § 202