NEW HAMPSHIRE HEALTH AND EDUCATION FINANCING

RSA tit. XV, ch. 195-D

in effect

RSA 195-D:1 Declaration of Policy.

195-D:1. Declaration of Policy. It is declared to be the policy of the state 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 youths be given the fullest opportunity to learn and develop their intellectual and mental capacities; that it is essential that participating educational institutions within the state be provided with appropriate additional means to assist such youths in achieving the required levels of learning and development of their intellectual and mental capacities; that it is essential that participating health care institutions within the state be provided with appropriate additional means to expand, enlarge and establish health care and other related facilities; that it is essential that participating health care institutions and participating educational institutions within the state be encouraged and assisted in reducing the costs of providing health care or education; that it is essential that powers be conferred on the New Hampshire business finance authority as will assure the successful completion of projects to be initiated by the corporation or the refinancing of existing indebtedness as provided in this chapter so as to accomplish the purposes of this chapter all to the public benefit and good. It is further declared that the exercise by the corporation of the powers conferred on the corporation under this chapter will constitute the performance of an essential governmental function. Source. 1969, 318:1. 1970, 16:1. 1979, 384:1. 1981, 532:1. 1982, 16:1. 1991, 298:1. 1999, 253:2, eff. July 9, 1999. 2026, 335:14, eff. July 1, 2026.

RSA 195-D:2 Citation.

195-D:2. Citation. This chapter as amended may be referred to as and cited as the "New Hampshire Health and Education Financing Act". Source. 1969, 318:1. 1970, 16:2. 1971, 198:1. 1999, 253:3, eff. July 9, 1999. 2026, 335:15, eff. July 1, 2026.

RSA 195-D:3 Definitions.

195-D:3. Definitions. As used in this chapter, the following words and terms have the following meanings, unless the context indicates another or different meaning or intent: I. "Corporation" means the New Hampshire business finance authority created and established as a corporation and constituted and established as a public body corporate and agency of the state under RSA 162-A:3, or any board, body, commission, department, or officer succeeding to the principal functions thereof or to whom the powers conferred upon the corporation by this chapter shall be given by law. II. "Project." (a) In the case of a participating educational institution, means any structure designed for use as a dormitory or other housing facility, dining facility, student union, academic building, administrative facility, library, classroom building, research facility, faculty office facility, athletic facility, health care facility, laboratory, maintenance, storage or utility facility, child day care facility, or other building or structure essential, necessary or useful for instruction in a program of education provided by a participating educational institution, or any multi-purpose structure designed to combine 2 or more of the functions performed by the types of structures enumerated above, and shall include all real and personal property, lands, improvements, driveways, roads, approaches, pedestrian access roads, rights-of-way, utilities, easements, machinery and equipment, and all other appurtenances and facilities either on, above or under the ground which are used or usable in connection with any of the aforementioned structures, and shall also include landscaping, site preparation, furniture, machinery, equipment 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, and; (b) In the case of a participating health care institution means any structures designed for use as a hospital, clinic, nursing home providing sheltered care, intermediate care, life-care, continuing care or medical services, health maintenance organization, home health care provider, ambulatory care clinic or other health care facility, laboratory, laundry, nurses' or interns' residence or other multi-unit housing facility for staff, employees, patients or relatives of patients admitted for treatment in such health care facility, doctors' office building, appropriately designed housing facilities for the residence or care of the elderly, administration building, research facility, maintenance, storage, or utility facility or other structures or facilities related to any of the foregoing or required or useful for the operation of a participating health care institution, including parking and other facilities or structures essential or convenient for the orderly conduct of such participating health care institution, and shall include all real and personal property, lands, improvements, driveways, roads, approaches, pedestrian access roads, rights-of-way, utilities, easements, parking lots, machinery and equipment, and all other appurtenances and facilities either on, above or under the ground which are used or usable in connection with any of the aforementioned structures, and shall also include landscaping, site preparation, furniture, machinery and equipment 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. (c) Subject to RSA 195-D:9 and RSA 195-D:21, a project, or any portion thereof, may be located within or outside the state. III. "Cost" as applied to a project or any portion thereof financed under the provisions of this chapter shall mean the cost of construction, building, acquisition, equipping, alteration, enlargement, reconstruction and remodeling of a project and acquisition of all lands, structures, property, real or personal, rights, rights-of-way, franchises, easements, and interests acquired, necessary, used for, or useful for or in connection with a project and all other undertakings which the corporation deems reasonable or necessary for the development of a project, including but not limited to the cost of demolishing or removing any buildings or structures on land so acquired, 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 and during construction, and if judged advisable by the corporation, for a period after completion of such construction the cost of financing the project, including interest on bonds and notes issued by the corporation to finance the project; provisions for working capital, whether or not in connection with a project; reserves for principal and interest and for extensions, enlargements, additions and improvements; cost of architectural, engineering, financial, legal or other special services, plans, specifications, studies, surveys, estimates of cost and revenues; administrative and operating expenses; expenses necessary or incident to determining the feasibility or practicability of constructing the project; and such other expenses 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 and all costs and expenses necessary or incidental to the acquisition of or commitment to acquire any federally guaranteed security and to the issuance and obtaining of any federally insured mortgage note. IV. "Bonds" or the words "revenue bonds" means revenue bonds of the corporation issued under the provisions of this chapter, including revenue refunding bonds, notwithstanding that the same may be secured by the mortgage or the full faith and credit of a participating educational institution or of a participating health care institution or any other lawfully pledged security of a participating educational institution or of a participating health care institution. V. "Institution for postsecondary education or higher education" means an educational institution which by virtue of law or charter is a public or other nonprofit educational institution empowered to provide a program of education beyond the high school level and awards a bachelor's or graduate degree or provides a program of not less than 2 years' duration which is accepted for full credit toward a bachelor's degree. Said definition shall include the university system of New Hampshire or any of its components when revenue bonds are to be issued for the acquisition, construction, renovation or refinancing of any structure designed for use as a dormitory or other housing facility, dining hall or other food service facility, student union, bookstore, or other revenue-producing facility of the university system of New Hampshire or any of its components, which revenue bonds are to be secured by the pledge of the revenue from such revenue-producing facilities, but not by the full faith and credit of the university system, any of its components, or the state of New Hampshire. VI. "Participating educational institution" means an institution for postsecondary education or higher education; an institution for secondary education; an institution providing an educational program; or a child care provider 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 bonds or other obligations or of a mortgage or of advances as provided in and permitted by this chapter. VI-a. "Institution providing an educational program" means a not-for-profit or charitable institution, public or private, which is exempt from federal taxation pursuant to section 501 of the Internal Revenue Code of 1986, as amended, and which provides a program of education for the purpose of enhancing the knowledge or abilities of its members or the general public. VII. "Hospital" means any nonprofit hospital licensed in the state in which the hospital is located. VIII. "Participating health care institution" means a hospital; nursing home; health maintenance organization; home health care provider; an institution providing a health care program; or ambulatory care clinic 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 bonds or other obligations or of a mortgage or of advances as provided in and permitted by this chapter. VIII-a. "Institution providing a health care program" means a not-for-profit or charitable institution, public or private, which is exempt from federal taxation pursuant to section 501 of the Internal Revenue Code of 1986, as amended, and which is either licensed to provide any health care service or function or provides a program involving or otherwise related to the delivery of healthcare by institutions or professionals, whether in the form of treatment, education, the provision or delivery of health care services or otherwise. IX. "Refinancing of existing indebtedness" means (a) liquidation, with the proceeds of bonds or notes issued by the corporation, of any indebtedness of a participating institution incurred to finance or aid in financing a lawful purpose of such participating institution which would constitute a project had it been undertaken and financed by the corporation; or (b) consolidation of such indebtedness with indebtedness of the corporation incurred for a project of such participating institution; or (c) purchase of a federally guaranteed security issued with respect to the financing of a lawful purpose of a participating institution which would constitute a project had it been undertaken and financed by the corporation. X. "Federally guaranteed security" means any security, investment or evidence of indebtedness which is issued pursuant to the national housing act or any successor provision of law, each as amended from time to time, and 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 instrumentality thereof. XI. "Federally insured mortgage note" means any loan secured by a mortgage for any facility of a participating institution 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 instrumentality thereof, or any commitment by the United States of America or any instrumentality thereof to so insure or guarantee such a loan secured by a mortgage. XII. "Nursing home," notwithstanding any other provision of law to the contrary, means any nonprofit or charitable institution or organization, public or private, which is exempt from federal taxation pursuant to section 501 of the United States Internal Revenue Code of 1986 as amended, and which is engaged in the operation of, or formed for the purpose of operating, a facility in which nursing care, sheltered care, intermediate care, life-care or continuing care, and medical services are prescribed by or performed under the general direction of persons licensed to practice medicine or surgery, and in whole or in part is, or shall be upon completion, licensed as a residential care facility under RSA 151:2, I(e) or licensed as a nursing home under the laws of New Hampshire or licensed by the state in which it is located. XIII. "Health maintenance organization" means the same as defined in RSA 420-B which is nonprofit and whether or not it is affiliated with a hospital or any other association of medical practitioners. XIV. "Institution for secondary education" means a nonprofit institution for education, which: (a) Provides a program of education which is preparatory for postsecondary or higher education; or (b) Is a residential facility which is licensed as a group home or child care institution by the state within which it is located. XV. "Participating institution" means a participating educational institution or a participating health care institution. XVI. "Home health care provider" means a home health care provider as defined in RSA 151:2-b which offers, and is licensed under RSA 151:2, I(b) or by the state within which it is located to offer health care services and which is a nonprofit or charitable institution or organization, public or private, which is exempt from federal taxation pursuant to section 501 of the United States Internal Revenue Code of 1986 as amended. XVII. "Ambulatory care clinic" means any nonprofit or charitable institution or organization, public or private, which is exempt from federal taxation pursuant to section 501 of the United States Internal Revenue Code of 1986 as amended, and which is engaged in the operation of, or formed for the purpose of operating, an ambulatory health care facility in which health care services are offered to the public on an outpatient basis by or under the direction of licensed physicians and licensed health care professionals. XVIII. "Child care provider" means a provider of child day care as defined in RSA 170-E:2, III, including a child day care agency as defined in RSA 170-E:2, IV, and any other not-for-profit or charitable institution, public or private, which is exempt from federal taxation pursuant to the Internal Revenue Code of 1986 as amended, 26 U.S.C. section 501 et seq., and which provides or otherwise assists in the provision of facilities, equipment, services, or economic assistance of any type to a child day care agency. XIX. "Affiliate" means any entity which controls or is controlled by, or is under common control with, another entity. For purposes of this definition, an entity controls another entity when the first entity possesses or exercises directly, or indirectly through one or more other affiliates or related entities, the power to direct the management and policies of the other entity, whether through the ownership of voting rights, membership, or the power to appoint members, trustees, or directors, by contract or otherwise. Source. 1969, 318:1. 1970, 16:3-6. 1971, 198:2-6. 1979, 384:2, 3. 1981, 532:2-4. 1982, 16:2-4. 1983, 291:1, I; 423:24-26. 1986, 151:1. 1990, 90:1. 1991, 298:2. 1992, 276:5-8. 1993, 335:17, 18. 1998, 303:3-5. 1999, 253:4-10, eff. July 9, 1999. 2012, 282:13, eff. June 30, 2015. 2018, 331:2-10, eff. June 25, 2018. 2026, 335:16, eff. July 1, 2026.

RSA 195-D:5 General Grant of Powers.

195-D:5. General Grant of Powers. The corporation has the following powers, together with all powers incidental thereto or necessary for the performance of those hereinafter stated: I. To have perpetual succession as a public body corporate and agency of the state and to adopt bylaws for the regulation of its affairs and the conduct of its business; II. To sue and be sued, plead and be impleaded; III. To adopt an official seal and alter the same at pleasure; IV. To maintain an office at such place or places as it may designate; V. To determine the location and character of any project to be financed under the provisions of this chapter, and to construct, reconstruct, 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 as its agent to determine the location and character of a project undertaken by such participating institution under the provisions of this chapter as its agent to construct, reconstruct, maintain, repair, operate, lease, as lessee or lessor, and regulate the same; and as its agent to enter into contracts for any or all of such purposes, including contracts for the management and operation of such projects; VI. To issue bonds, bond anticipation notes and other obligations of the corporation for any of its corporate purposes, and to fund or refund the same, all as provided in this chapter; VII. 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 and to designate a participating institution as its agent to fix, revise, charge and collect such rates, rents, fees and charges and to make such contracts; VIII. To establish rules and regulations for the use of a project or any portion thereof and to designate a participating institution as its agent to establish rules and regulations for the use of a project undertaken by such participating institution; IX. To employ consulting engineers, architects, attorneys, accountants, construction and financial experts, superintendents, managers, and such other employees and agents as are necessary in its judgment, and to fix their compensation; X. To receive and accept from any public agency 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; XI. To mortgage any project and the site thereof for the benefit of the holders of revenue bonds issued to finance the project; XII. To make loans to any participating institution for the construction of a project in accordance with an agreement between the corporation and the participating institution. However, no such loan shall exceed the total cost of construction and equipment of the project as determined by the participating institution and approved by the corporation; XIII. To acquire any federally guaranteed security with respect to the financing of a project or the refinancing of existing indebtedness and to pledge or otherwise use such federally guaranteed security in such manner as the corporation deems necessary or appropriate to secure or otherwise provide a source of repayment on any of its bonds or notes or to enter into any appropriate agreement with a participating institution whereby the corporation may make a loan to such participating institution for the purpose of acquiring and entering into commitments to acquire any federally guaranteed security with respect to financing of a project or the refinancing of existing indebtedness; provided, however, that the corporation, prior to making any such acquisition, commitment or loan with respect to financing a project, shall first determine, and thereafter shall enter into an agreement with any such participating institution to require, that the proceeds derived from the acquisition of any such federally guaranteed security will be used for the purpose of providing for a project; XIV. To charge to and equitably apportion between participating institutions its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter; XV. To accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality thereof or from the state or any agency or instrumentality thereof or from any other source, and to comply, subject to the provisions of this chapter, with the terms and conditions thereof; XVI. To do all things necessary or convenient to carry out the purposes of this chapter; and XVII. To provide for the refinancing of existing indebtedness or to make loans to a participating institution for the purpose of providing for the refinancing of existing indebtedness or repaying advances made or given by such participating institution with respect to the acquisition or construction of a project. XVIII. Before the university system of New Hampshire or any of its components may participate in any of the provisions of this chapter, each project must receive the approval of the capital project overview committee of the general court and the approval of the governor. XIX. To protect, indemnify, and hold harmless its members of the board of directors, officers and employees from any costs, damages, awards, judgments, or settlements arising from any claim, civil action, lawsuit, or other proceeding against them. Source. 1969, 318:1. 1970, 16:11-16. 1979, 384:4, 5. 1986, 151:2. 1991, 298:3. 1994, 86:2, eff. July 5, 1994. 2023, 192:4, eff. Aug. 4, 2023.

RSA 195-D:5-a Exemption From Rules of Other Agencies; Exemption From Administrative Procedure Act; Rulemaking Authority.

195-D:5-a. Exemption From Rules of Other Agencies; Exemption From Administrative Procedure Act; Rulemaking Authority. I. The corporation shall be exempt from the rules of any department, commission, board, bureau, or agency of the state except as provided in this chapter. II. The corporation shall be exempt from the provisions of RSA 541-A and may adopt rules in accordance with its own procedures to facilitate, implement, execute the powers, duties, and purposes of the corporation enumerated in this chapter, and such additional powers and duties as may be conferred upon it by the legislature. The corporation shall file in the office of legislative services a copy of all existing rules adopted by the corporation. Any rule adopted after July 9, 1999 or any amendment or repeal of any existing rule shall be filed in the office of legislative services within 7 days of such adoption, amendment, or repeal. Source. 1999, 253:13, eff. July 9, 1999.

RSA 195-D:6 Acquisition of Property.

195-D:6. Acquisition of Property. The corporation is authorized and empowered, directly or by and through a participating institution, as its agent to acquire by purchase, gift or devise, solely from funds provided under the authority of this chapter, such lands, structures, property, real or personal, rights, rights-of-way, franchises, easements and other interests in land, including lands lying under water and riparian rights, which are located within or without the state as it judges necessary or convenient for the construction or operation of a project, upon such terms and at such prices as 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 corporation. Source. 1969, 318:1. 1970, 16:17. 1991, 298:4, eff. Aug. 19, 1991.

RSA 195-D:7 Title to Projects.

195-D:7. Title to Projects. When the principal of and interest on revenue bonds of the corporation issued to finance the construction and acquisition of a particular project or projects at a participating institution, including any revenue refunding bonds issued to refund and refinance such revenue 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 corporation 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, free and clear of all liens and encumbrances, all to the extent that title to such project or projects is not, at the time, then vested in such participating institution. Source. 1969, 318:1. 1970, 16:18. 1991, 298:5, eff. Aug. 19, 1991.

RSA 195-D:8 Notes of the Corporation.

195-D:8. Notes of the Corporation. The corporation has the power and is hereby authorized from time to time to issue its negotiable notes for any corporate purpose, including the payment of all or any part of the cost of any project or the refinancing of existing indebtedness, 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 corporation 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 corporation or any issue thereof may contain any provisions which the corporation is authorized to include in any resolution or resolutions authorizing revenue bonds of the corporation or any issue thereof, and the corporation 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 solely from the revenues of the corporation, subject only to any contractual rights of the holders of any of its notes or other obligations then outstanding. Source. 1969, 318:1. 1971, 198:7. 1979, 384:6, eff. Aug. 22, 1979.

RSA 195-D:9 Bonds of the Corporation.

195-D:9. Bonds of the Corporation. I. The corporation is authorized to issue its negotiable revenue bonds from time to time for any corporate purposes, including the financing of all or part of the costs of any projects or the refinancing of existing indebtedness. II. In anticipation of the sale of such revenue bonds the corporation may issue negotiable bond anticipation notes and may renew the same from time to time, but the maximum maturity of any such note, including renewals thereof, shall not exceed 5 years from the date of issue of the original note. Such notes shall be paid from any revenues of the corporation available therefor and not otherwise pledged, or from the proceeds of sale of the revenue bonds of the corporation in anticipation of which they were issued. The notes shall be issued in the same manner as the revenue bonds. Such notes and the resolution or resolutions authorizing the same may contain any provisions, conditions, or limitations which a bond resolution of the corporation may contain. III. The revenue bonds and notes of every issue shall be payable solely out of revenue of the corporation, subject only to any agreements with the holders of particular revenue bonds or notes pledging any particular revenues. Notwithstanding that revenue bonds and notes may be payable from a special fund, if they are otherwise of such form and character as to be negotiable instruments under the terms of the uniform commercial code of the state the revenue bonds and notes shall be and are hereby made negotiable instruments within the meaning of and for all purposes of the uniform commercial code, subject only to the provisions of the revenue bonds and notes for registration. IV. The revenue bonds may be issued as serial bonds or as term bonds, or the corporation, in its discretion, may issue bonds of both types. The revenue bonds shall be authorized by resolution of the corporation and shall bear such date or dates, mature at such time or times, not exceeding 40 years from their respective dates, bear interest at such rate or rates, shall 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 provide. In the event that term bonds are issued, the resolution authorizing the same may make such provisions for the establishment and management of adequate sinking funds for the payment thereof, as the corporation judges necessary. The revenue bonds or notes may be sold at public or private sale for such price or prices as the corporation determines. Pending preparation of the definitive bonds, the corporation may issue interim receipts or certificates which shall be exchanged for such definitive bonds. V. Any resolution or resolutions authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which shall be a part of the contract with the holders of the revenue bonds to be authorized, as to: (a) Pledging all or any part of the revenues of a project or any revenue producing contract or contracts made by the corporation with any individual, partnership, corporation, or association or other body, public or private, to secure the payment of the revenue bonds or of any particular issue of revenue bonds, subject to such agreements with bondholders as then exist; (b) 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; (c) The setting aside of reserves or sinking funds, and the regulation and disposition thereof; (d) Limitations on the right of the corporation or its agent to restrict and regulate the use of the project; (e) Limitations on the purpose to which the proceeds of sale of any issue of revenue bonds then or thereafter to be issued may be applied and pledging such proceeds to secure the payment of the revenue bonds or any issue of the revenue bonds; (f) Limitations on the issuance of additional bonds; the terms upon which additional bonds may be issued and secured; the refunding of outstanding bonds; (g) 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; (h) Limitations on the amount of moneys derived from the project to be expended for operating, administrative or other expenses of the corporation; (i) Defining the acts or omissions to act which shall constitute a default in the duties of the corporation to holders of its obligations and providing the rights and remedies of such holders in the event of a default; (j) The mortgaging of a project and the site thereof for the purpose of securing the bondholders; (k) Such other additional covenants, agreements, and provisions as are judged desirable or necessary by the corporation for the security of the holders of such bonds. VI. Neither the members of the corporation nor any person executing the revenue bonds or notes shall be liable personally on the revenue bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof. VII. The corporation has the power, out of any funds available therefor, to purchase its bonds or notes. The corporation may hold, pledge, cancel, or resell such bonds, subject to and in accordance with agreements with bondholders. VIII. [Repealed.] IX. The proceeds of revenue bonds issued under this section may be used for a project in this state or another state, provided that if the proceeds of the bond are used for a project any portion of which is located in another state, the participating institution or affiliate shall (a) be organized under New Hampshire law; (b) have a facility located in New Hampshire; or (c) provide or plan to provide an educational program or health care program or services in this state. Source. 1969, 318:1. 1971, 198:8, 9. 1979, 384:7. 1991, 298:6. 1999, 253:18, eff. July 9, 1999. 2018, 331:11, eff. June 25, 2018.

RSA 195-D:10 Trust Agreement.

195-D:10. Trust Agreement. In the discretion of the corporation, any revenue bonds issued under the provisions of this chapter may be secured by a trust agreement by and between the corporation 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 revenue 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 revenue bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as are reasonable and proper and not in violation of law, including particularly such provisions as have been specifically authorized in this chapter to be included in any resolution or resolutions of the corporation authorizing revenue bonds thereof. It is lawful for any bank or trust company incorporated under the laws of the state which may act as depositary of the proceeds of bonds or of revenues or other moneys to furnish such indemnifying bonds or to pledge such securities as may be required by the corporation. 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 corporation judges 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. Source. 1969, 318:1, eff. Aug. 29, 1969.

RSA 195-D:11 Credit of State Not Pledged.

195-D:11. Credit of State Not Pledged. Revenue bonds issued under the provisions of this chapter do not and shall not be construed to constitute a debt or liability of the state or of any municipality or political subdivision thereof or a pledge of the faith and credit of the state or of any such municipality or political subdivision. These revenue bonds are payable solely from the revenue funds provided by this chapter for their payment. All such revenue bonds shall contain on the face thereof a statement to the effect that neither the state nor the corporation are obligated to pay the same or the interest thereon except from revenues of the project or projects for which they are issued and that neither the faith and credit nor the taxing power of the state or of any municipality or political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. The issuance of revenue bonds under the provisions of this chapter shall not directly or indirectly or contingently obligate the state or any municipality or political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Source. 1969, 318:1, eff. Aug. 29, 1969.

RSA 195-D:12 Revenues.

195-D:12. Revenues. The corporation 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, if any, (a) to pay the cost of maintaining, repairing, and operating the project and each and every portion thereof, to the extent that the corporation has not otherwise adequately provided for the payment thereof, (b) to pay the principal of and the interest on outstanding revenue bonds of the corporation issued in respect of such project as the same become due and payable, and (c) to create and maintain reserves required or provided for in any resolution authorizing, or trust agreement securing, such revenue bonds of the corporation. Such rates, rents, fees, and charges shall not be subject to supervision or regulation by any department, commission, board, body, bureau or agency of the state other than the corporation. 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 revenue bonds of the corporation 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 revenue bonds as the same 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 corporation are immediately subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the corporation, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the corporation. 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 otherwise provided in such resolution or such trust agreement, such sinking or other similar fund shall be a fund for all such revenue bonds issued to finance projects at a particular participating institution without distinction or priority of one over another. However, the corporation 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 a participating institution and for the revenue bonds issued to finance a particular project and may, additionally, permit and provide for the issuance of revenue bonds having a subordinate lien in respect of the security herein authorized to other revenue bonds of the corporation and, in such case, the corporation may create separate sinking or other similar funds in respect of such subordinate lien bonds. Source. 1969, 318:1. 1970, 16:19. 1991, 298:7, eff. Aug. 19, 1991.

RSA 195-D:13 Trust Funds.

195-D:13. Trust Funds. All moneys received pursuant to the authority of this chapter whether as proceeds from the sale of bonds or as revenues, are 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 are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes of this chapter, subject to such regulations as this chapter and the resolution authorizing the bonds of any issue or the trust agreement securing such bonds provide. Source. 1969, 318:1, eff. Aug. 29, 1969.

RSA 195-D:14 Remedies.

195-D:14. Remedies. Any holder of revenue bonds issued under the provisions of this chapter or of 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 such 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 under this chapter 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 corporation or by any officer, employee, or agent thereof, including the fixing, charging, and collecting of the rates, rents, fees and charges authorized in this chapter and required by the provisions of such resolution or trust agreement to be fixed, established, and collected. Source. 1969, 318:1, eff. Aug. 29, 1969.

RSA 195-D:15 Exemption From Taxation; Payments in Lieu of Taxes.

195-D:15. Exemption From Taxation; Payments in Lieu of Taxes. The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of the state, for the increase of their commerce, welfare and prosperity, and for the improvement of their health and living conditions, and will constitute the performance of an essential governmental function, and neither the corporation nor its agent shall or may be required to pay any taxes or assessment upon or in respect of a project or any property acquired or used by the corporation or its agent or under the jurisdiction, control, possession or supervision of the same or upon the activities of the corporation or its agent in the operation or maintenance of the project under the provisions of this chapter, or upon income or other revenues received therefrom, and any bonds, notes and other obligations issued under the provisions of this chapter, their transfer and the income therefrom, including any profit made on the sale thereof, as well as the income and property of the corporation, are at all times exempt from taxation of every kind by the state and by the municipalities and all other political subdivisions of the state; provided that the participating institution shall be required to make annual payments in lieu of taxes on; I. Any project or any portion thereof owned by such participating institution or by the corporation pursuant to the provisions of this chapter if said project or any portion thereof would not be exempt from taxation pursuant to RSA 72:23 as amended and as in effect on the date that the findings of the designee of the governor and council are made for the particular project pursuant to RSA 195-D:21; or II. Any portion or all of a project which provides permanent housing for married students, staff, or employees of a participating educational institution or permanent housing for staff, employees or relatives of patients of a participating health care institution. The amount of the annual payment in lieu of taxes shall be equal to that sum which would otherwise have been payable for real estate taxes on such project or part thereof pursuant to RSA 74 and RSA 75. All such payments in lieu of taxes shall be made to the city or town in which such project or portion thereof is located on December 1 of each year. The corporation shall not be liable to make any such payments in lieu of taxes, except to the extent that moneys have been deposited with it for the specific purpose of making such payments in lieu of taxes. The liability for such payments in lieu of taxes shall constitute a general obligation of the participating institution. Upon any failure of such participating institution to make such payments in lieu of taxes as herein provided, no liens of any nature shall attach against any project, or any portion thereof, or against the assets or revenues of such participating institution, pledged to secure bonds or other obligations of the corporation for the period during which bonds or other obligations issued to finance the project are outstanding; provided, however, the city or town shall have a lien to secure the making of such payments in lieu of taxes which lien shall attach against all real estate of the participating institution not pledged, mortgaged or otherwise encumbered to secure bonds or other obligations of the corporation and which lien shall further attach against all real estate comprising the project but only on the date the bonds or other obligations issued to finance such project or part thereof have been fully retired. The corporation shall within 5 days of such date notify such city or town of the date on which the bonds or other obligations issued to finance the project or part thereof have been fully retired. The city or town may enforce the foregoing liens by a collector's sale of property subject to such liens in the manner provided in RSA 80. Notwithstanding the foregoing provisions, the governing body of such city or town, as defined in RSA 203:3, III, may agree with such participating institution to waive its rights to such payments in lieu of taxes, or any portion thereof, over the period during which bonds or other obligations issued to finance the project are outstanding or for some lesser period of time. Source. 1969, 318:1. 1971, 198:10; 554:2. 1991, 298:8, eff. Aug. 19, 1991.

RSA 195-D:16 Revenue Refunding Bonds.

195-D:16. Revenue Refunding Bonds. I. The corporation is authorized to provide for the issuance of its revenue bonds for the purpose of refunding any revenue bonds of the corporation 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 revenue bonds, and, if judged advisable by the corporation, 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. II. The proceeds of any such revenue bonds issued for the purpose of refunding outstanding revenue bonds may, in the discretion of the corporation, be applied to the purchase or retirement at maturity or redemption of such outstanding revenue bonds either on their earliest or any subsequent redemption date, 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 corporation. III. Any such escrowed proceeds, pending such use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in obligations of agencies of the United States of America, or in certificates of deposit or time deposits secured by obligations of or guaranteed by the United States of America, maturing at such time or times that are appropriate to assure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding revenue 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 revenue 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 corporation for use by it in any lawful manner. IV. The portion of the proceeds of any such revenue bonds issued for the additional purpose of paying all or any part of the cost of construction and acquiring additions, improvements, extensions or enlargements of a project may be invested and reinvested in obligations of or guaranteed by the United States of America, or in obligations of agencies of the United States of America, or in certificates of deposit or time deposits secured by obligations of or guaranteed by the United States of America, 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 corporation in any lawful manner. V. All such revenue bonds shall be issued and secured and are subject to the provisions of this chapter in the same manner and to the same extent as any other revenue bonds issued pursuant to this chapter. Source. 1969, 318:1. 1970, 16:20, 21, eff. June 27, 1970.

RSA 195-D:17 Bonds Eligible for Investment.

195-D:17. Bonds Eligible for Investment. Bonds issued by the corporation under the provisions of this chapter are securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, trust companies, banking associations, credit unions, building and loan associations, investment companies, executors, administrators, trustees and other fiduciaries, pension, profit-sharing, and retirement funds may properly invest funds, including capital in their control or belonging to them. Such bonds are securities which may properly 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 other obligations of the state is now or may be authorized by law after August 29, 1969. Source. 1969, 318:1, eff. Aug. 29, 1969.

RSA 195-D:18 Biennial Report and Audit.

195-D:18. Biennial Report and Audit. I. Within 4 months after the close of the second fiscal year of the corporation and biennially thereafter, it shall make a report to the governor and council of its activities for both preceding fiscal years and such report shall set forth a complete operating and financial statement covering the corporation's operations during the 2 preceding fiscal years including a complete and detached report setting forth: (a) Its operations and accomplishments; (b) Its receipts and expenditures during each preceding fiscal year in accordance with the categories or classifications established by the corporation for its operating and capital outlay purposes; (c) Its assets and liabilities at the end of each preceding fiscal year; and (d) A schedule of its bonds and notes outstanding at the end of each preceding fiscal year, together with a statement of the amounts redeemed and incurred during each preceding fiscal year. II. The corporation shall cause an audit of its books and accounts to be made at least once each second fiscal year by certified public accountants and the cost thereof shall be paid by the corporation from funds available to it pursuant to this chapter. Source. 1969, 318:1. 1971, 198:11. 1973, 140:28, eff. Jan. 1, 1974.

RSA 195-D:19 Source of Payment of Expenses.

195-D:19. Source of Payment of Expenses. 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 corporation under this chapter, beyond the extent to which moneys shall have been provided under the provisions of this chapter. Source. 1969, 318:1, eff. Aug. 29, 1969.

RSA 195-D:20 State Not Liable.

195-D:20. State Not Liable. The state is not liable for the payment of the principal of or interest on any bonds of the corporation, or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the corporation, and none of the bonds of the corporation nor any of its agreements or obligations shall be construed to constitute an indebtedness of the state within the meaning of any constitutional or statutory provision whatsoever, nor shall the issuance of bonds under the provisions of this chapter directly or indirectly or contingently obligate the state or any municipality or political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment. Source. 1969, 318:1, eff. Aug. 29, 1969.

RSA 195-D:21 Procedure Before Issuance of Bonds.

195-D:21. Procedure Before Issuance of Bonds. Notwithstanding any other provision of this chapter, the corporation is not empowered to undertake any project or refinancing of existing indebtedness authorized by this chapter unless, prior to the issuance of any bonds hereunder, the governor and his council, or their designee, have found after a hearing thereon that: I. In the case of undertaking a project, the construction and acquisition of such project will enable or assist a participating educational institution to provide education or a participating health care institution to provide health care facilities; and II. Such project to be undertaken or a project to which the refinancing of existing indebtedness relates will be leased to, or owned by, a financially responsible participating institution or an affiliate thereof; and III. Adequate provision has been, or will be, made for the payment of the cost of the construction and acquisition of such project to be undertaken or for the refinancing of existing indebtedness and that under no circumstances will the state be obligated directly or indirectly, for the payment of the principal of, or interest on, any obligations issued to finance such construction and acquisition or to provide for the refinancing of existing indebtedness, or obligations to which such refinancing of existing indebtedness relates; and IV. Adequate provision has been, or will be, made in any lease or mortgage or financing of the project to be undertaken or any property leased or mortgaged or financed in connection with the issuance of bonds or notes hereunder for the payment of all costs of operation, maintenance and upkeep of such project or property by the lessee, sublessee, mortgagor, borrower or occupant so that under no circumstances will the state be obligated, directly or indirectly, for the payment of such costs; and V. In the case of undertaking a project, adequate provision has been made to obligate a participating educational institution to hold and use the project for educational purposes or to obligate a participating health care institution to hold and use the project for health care purposes so long as the principal of and interest on bonds or other obligations issued by the corporation to finance the cost of such project or projects, including any refunding bonds issued to refund and refinance such bonds, have not been fully paid and retired and all other conditions of the resolution or trust agreement authorizing and securing the same have not been satisfied and the lien of such resolution or trust agreement has not been released in accordance with the provisions thereof; and VI. The construction and acquisition of such project or projects or any refinancing of existing indebtedness will be within the authority conferred by this chapter upon the corporation; and VII. In the case of undertaking a project, the construction and acquisition of such project or projects serves a need presently not fulfilled in providing education or health care facilities and is of public use and benefit; and VIII. In the case of refinancing of existing indebtedness, such refinancing will assist the participating institution in either lowering the cost of providing education or health care facilities or such refinancing is in connection with a project being provided by the participating institution. Source. 1969, 318:1. 1970, 16:22, 23. 1971, 198:12. 1979, 384:8. 1981, 532:5-8. 1982, 16:5-8. 1991, 298:9, eff. Aug. 19, 1991. 2018, 331:12, 13, eff. June 25, 2018.

RSA 195-D:22 Agreement of the State.

195-D:22. Agreement of the State. The state does hereby pledge to and agree with the holders of any bonds, notes and other obligations issued under this chapter, and with those parties who may enter into contracts with the corporation pursuant to the provisions of this chapter, that the state will not limit, alter, restrict, or impair the rights hereby vested in the corporation and the participating institutions to acquire, construct, reconstruct, maintain and operate any project as defined in this chapter or to establish, revise, charge and collect rates, rents, fees and other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of maintenance and operation thereof and to fulfill the terms of any agreements made with the holders of bonds, notes or other obligations authorized and issued by this chapter, and with the parties who may enter into contracts with the corporation pursuant to the provisions of this chapter, or in any way impair the rights or remedies of the holders of such bonds, notes or other obligations or such parties until the bonds, notes and such other obligations, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any action or proceeding by or on behalf of the bondholders, are fully met and discharged and such contracts are fully performed on the part of the corporation. However, nothing in this chapter precludes such limitation or alteration if and when adequate provision is made by law for the protection of the holders of such bonds, notes or other obligations of the corporation or those entering into such contracts with the corporation. The corporation is authorized to include this pledge and undertaking for the state in such bonds, notes or other obligations or contracts. Source. 1969, 318:1. 1971, 198:13. 1991, 298:10, eff. Aug. 19, 1991.

RSA 195-D:23 Act Cumulative; No Notice Required.

195-D:23. Act Cumulative; No Notice Required. Neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers which the New Hampshire business finance authority might otherwise have under any laws of this state, and this chapter is cumulative of any such powers. This chapter does and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws. However, the issuance of revenue bonds, notes and other obligations and revenue refunding bonds under the provisions of this chapter need not comply with the requirements of any other state law applicable to the issuance of bonds, notes and other obligations and contracts for the construction and acquisition of any project undertaken pursuant to this chapter need not comply with the provisions of any other state law applicable to contracts for the construction and acquisition of state owned property. No proceedings, notice or approval shall be required for the issuance of any bonds, notes and other obligations or any instrument as security therefor, except as is provided in this chapter. Source. 1969, 318:1. 1970, 16:24. 1971, 198:14. 1999, 253:14, eff. July 9, 1999. 2026, 335:18, eff. July 1, 2026.

RSA 195-D:24 Act Liberally Construed.

195-D:24. Act Liberally Construed. This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed so as to effect its purposes. Source. 1969, 318:1, eff. Aug. 29, 1969.

Source: New Hampshire General Court (gc.nh.gov)URL: https://gc.nh.gov/rsa/html/NHTOC/NHTOC-XV-195-D.htmFetched: 10/20/2026