2006 New Mexico Statutes - Section 11-3A-8 — Requirements respecting lease.

11-3A-8. Requirements respecting lease.

A.     Prior to the leasing of any housing project, the authority shall determine and find the following:   

(1)     the amount necessary in each year to pay the principal of and the interest on the bonds proposed to be issued to finance the housing project; and   

(2)     the amount necessary to be paid each year into any reserve funds that the authority may deem advisable to establish in connection with the retirement of the proposed bonds and the maintenance of the housing project and, unless the terms under which the housing project is to be leased provide that the lessee shall maintain the housing project and carry all proper insurance with respect to it, the estimated cost of maintaining the housing project in good repair and keeping it properly insured.   

B.     The determinations and findings of the authority required to be made in this section shall be set forth in the proceedings under which the proposed bonds are to be issued.   

C.     Prior to the issuance of the bonds, the authority shall lease or sell the housing project to a lessee or purchaser under an agreement that is conditioned upon completion of the housing project and that provides for payment to the authority of rentals or payments in an amount that is found, based on the determinations and findings, to:   

(1)     pay the principal of and interest on the bonds issued to finance the housing project;   

(2)     build up and maintain any reserve deemed by the authority to be advisable in connection with the housing project; and   

(3)     pay the costs of maintaining the housing project in good repair and keeping it properly insured, unless the agreement of lease obligates the lessee to pay for the maintenance and insurance of the housing project.