Delaware Code Title 16 Sec. 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.
Terms Used In Delaware Code Title 16 Sec. 9005
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Eligible project: shall mean any health facility which has been approved by the Board pursuant to this chapter, or any refinancing of bonds or notes issued by the Delaware Health Facilities Authority for the benefit of a health facility. See Delaware Code Title 16 Sec. 9002
- Issuing officers: shall mean the Governor, the Secretary of State and the State Treasurer as defined in § 7401 of Title 29. See Delaware Code Title 16 Sec. 9002
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Subsidy contract: shall mean a contract by the State, approved by the issuing officers, providing a subsidy to a health facilities corporation. See Delaware Code Title 16 Sec. 9002
(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.
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;