CHAPTER 1-16A

HEALTH AND EDUCATIONAL FACILITIES AUTHORITY

1-16A-1    Legislative findings and intent.

1-16A-2    Definitions.

1-16A-2.1    Repealed.

1-16A-2.2    Out-of-state participating health institution--Eligibility for financing.

1-16A-3    Authority created--Public function.

1-16A-3.1    Authority continued within Bureau of Finance and Management--Records and reports.

1-16A-4    Appointment of members of authority--Qualifications.

1-16A-5    Terms of office of members--Vacancies.

1-16A-6    Business interests not disqualifying for membership--Abstention where conflict of interest.

1-16A-7    Annual election of chairman and vice-chairman.

1-16A-8    Meetings open to public--Notice--Resolutions not published.

1-16A-9    Quorum of authority--Vote required for action.

1-16A-10    Expenses of members of authority.

1-16A-11    Removal of member from authority.

1-16A-12    Executive director and associate--Compensation.

1-16A-13    Employment of consultants and agents--Compensation.

1-16A-14    Surety bonds required--Payment of cost.

1-16A-15    Corporate powers of authority.

1-16A-15.1    Authority to approve financing of facilities in the state by out-of-state issuers-Public hearing.

1-16A-15.2    Determination of minimum amount of cash and investment reserves.

1-16A-16    Delegation of powers and duties.

1-16A-17    Records maintained by authority--Certified copies.

1-16A-17.1    Informational budget required.

1-16A-18    Acceptance of loans and gifts.

1-16A-19    Investment of surplus funds--Maturity of securities--Manner of investment.

1-16A-20    Location, construction, operation and maintenance of facilities--Designation of agent.

1-16A-21    Acquisition of property--Title taken.

1-16A-22    Restrictions of other laws not applicable.

1-16A-23    Public works laws not applicable--Competitive bidding not required.

1-16A-24    Mortgages for security of bondholders.

1-16A-25    Operation of facilities restricted to leasing.

1-16A-26    Leasing of facilities--Terms of lease--Option to purchase.

1-16A-27    Duration of leases--Rentals required.

1-16A-28    Establishment of rents and charges.

1-16A-29    Rules and regulations for use of facilities.

1-16A-30    Laws and ordinances applicable to facilities.

1-16A-31    Loans to participating institutions--Maximum amount.

1-16A-32    Refunding loans to participating institutions--Findings required.

1-16A-33    Initial planning service fee to accompany applications.

1-16A-34    Annual planning service fee payable to authority.

1-16A-35    Purpose of planning service fees--Agencies used in planning.

1-16A-36    Planning services and surveys obtained from other agencies.

1-16A-37    Proration of planning service fees between institutions.

1-16A-38    Issuance and refunding of bonds and obligations.

1-16A-39    Terms and form of bonds issued.

1-16A-40    Sale of bonds--Expenses of issuance.

1-16A-41    Negotiability of bonds.

1-16A-42    Bonds payable only from revenues.

1-16A-43    Pledge of revenues to secure bonds.

1-16A-44    Pledge continuing until bonds paid.

1-16A-45    Maintenance, rental and funding agreements in bond resolution.

1-16A-46    Pooling of leases for pledge of revenues.

1-16A-47    Bond redemption privileges retained.

1-16A-48    Additional bonds for facilities or HEAL loans--Protection of prior bondholders.

1-16A-49    Remedies of bondholders on default.

1-16A-50    General obligation not created by issuance of bonds--Tax levy not promised.

1-16A-51    State debt not created--Disclaimer in bonds.

1-16A-52    Pledge of full faith and credit of authority or institution.

1-16A-52.1    Financing through federally guaranteed securities authorized.

1-16A-52.2    Commitments and agreements for financing through federally guaranteed securities.

1-16A-52.3    Bonds not to exceed cost of facility--Expenses included--Terms and sale of bonds.

1-16A-52.4    Title to facility financed through federally guaranteed securities--Mortgage--Lease prohibited.

1-16A-52.5    Return of securities to issuer when provision made for payment.

1-16A-53    Refunding bonds authorized--Amount.

1-16A-54    Methods of refunding--Maturity dates.

1-16A-54.1    Bond issue authorized to refund securities of participating institution.

1-16A-54.2    Amount and terms of securities purchased--Mortgage--Insurance and guaranties.

1-16A-54.3    Pledge of securities to secure bonds--Income used for payment--Maximum principal--Bonds subject to other provisions of chapter.

1-16A-54.4    Title of financed facility to remain in participating institution--Mortgage--Lease prohibited.

1-16A-55    Bonds of authority as legal investments.

1-16A-56    Conveyance of facility to participating institution when debt paid.

1-16A-56.1    Conveyance provisions inapplicable to refinanced facility--Return of securities when bonds paid or payment provided for.

1-16A-57    Expenses paid from authority funds--Borrowing for initial operation.

1-16A-58    Tax exemption of authority.

1-16A-59    Securities regulation.

1-16A-60    Additional proceedings not required--Police power reserved.

1-16A-61    Powers supplementary.

1-16A-62    Powers under other law unimpaired.

1-16A-63    Liberal construction of chapter.

1-16A-64    Short title of chapter.

1-16A-65    Health education assistance loan program established.

1-16A-66    Health education assistance loan program--Powers of authority.

1-16A-67    Health education assistance loan program--Funding of HEAL loan purchases by bonds, notes or other obligations of authority.

1-16A-68    Health education assistance loan program--Payment of bonds.

1-16A-69    Health education assistance loan program--Security for principal and interest of bonds.

1-16A-70    Health education assistance loan program--Repayment fund created.

1-16A-71    1-16A-71. Repealed by SL 1988, ch 12, § 8; SL 1988, ch 18.

1-16A-71.1    Repealed by SL 2012, ch 179, § 10.

1-16A-72    1-16A-72. Repealed by SL 1988, ch 12, § 9.

1-16A-72.1    Repealed by SL 2012, ch 179, § 11.

1-16A-73    1-16A-73. Repealed by SL 1988, ch 12, § 10.

1-16A-73.1    Repealed by SL 2012, ch 179, §§ 12 to 23.

1-16A-73.13    Repealed by SL 2012, ch 180, §§ 9 to 15.

1-16A-73.20    Repealed by SL 2012, ch 179, §§ 24 to 31.

1-16A-74    Power to act as public instrumentality.

1-16A-74.1    Establishment of funding program for financing of property by public bodies--Assistance--Pledging of payments--Compliance with statutory limitations.

1-16A-75    Funding program for purchase of notes--Issuance of bonds or notes.

1-16A-76    Jurisdiction of federal bankruptcy courts--Written contracts concerning bonds or notes enforceable.

1-16A-77    1-16A-77. Repealed by SL 2013, ch 6, § 7.

1-16A-78    Authority to issue education savings bonds.

1-16A-79    Criteria for issuance of education savings bonds.

1-16A-80    Additional criteria for issuance of education savings bonds.

1-16A-81    Discounted sale of education savings bonds--Interest--Payment at maturity.

1-16A-82    Sale of education savings bonds--Computation of aggregate principal.

1-16A-83    Plan of implementation for issuance and sale of education savings bonds.

1-16A-84    Designation by authority required for education savings bonds.

1-16A-85    Pool arrangement defined.

1-16A-86    Authority as funding authority for pool arrangement.

1-16A-87    Program for issuance of bonds or certificates of participation that constitute debt of participating agencies--Secured for payment by proceeds of irrepealable tax levies.

1-16A-88    Bonds or certificates of participation not secured for payment by proceeds of irrepealable tax levies.

1-16A-89    Credit enhancement obligation--Conditions.

1-16A-90    Agreements with other entities involving credit enhancement obligations.

1-16A-91    Issued indebtedness for accounts receivable program.

1-16A-92    Authority may contract to manage payment or interest rate risk for bonds.

1-16A-93    Proposed issuance of obligations--Determination of board.

1-16A-94    Promulgation of rules establishing forecasting methodology.

1-16A-95    Issuance of additional obligations--Legislative approval.

1-16A-96    Appropriation for payments pursuant to lease purchase agreements--Agreement dated August 1, 1988 ratified.

1-16A-97    Procedures to facilitate school district issuance of capital outlay certificates and terms for lease purchase agreements secured by pledge of state aid to education funds.

1-16A-98    State not liable for capital outlay certificates and lease purchase agreements sponsored by authority or secured by pledge of state aid to education.

1-16A-99    Contracts made by school district, state, or authority not to be impaired.

1-16A-1. Legislative findings and intent.

For the benefit of the people of this state and the improvement of their health, welfare, safety, trade, commerce, industry, economy, and living conditions, it is essential that the people of this state have access, both geographically and financially, to adequate and affordable medical care and health facilities and 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 and it is essential that health institutions within the state and outside the state, subject to the limitations set forth in this chapter, and educational institutions within the state be provided with appropriate additional means to assist in the development and maintenance of public health and public education, respectively. It is the purpose of this chapter to provide a measure of assistance and alternative methods to enable health institutions within the state and outside the state, subject to the limitations set forth in this chapter, and educational institutions in the state to refund or refinance outstanding indebtedness incurred for health facilities or educational facilities and to provide additional facilities and structures which are sorely needed to accomplish the purposes of this chapter, including securing access by the people of this state to adequate and affordable health care within this state and other states, all to the public benefit and good as more fully provided herein.

It is the intent of the Legislature, by the passage of this chapter, to create a state authority to lend money to health institutions and educational institutions and to authorize the state authority to acquire, construct, reconstruct, repair, alter, improve, extend, own, lease, and dispose of properties to the end that the state authority may be able to promote the health, welfare, safety, trade, commerce, industry, economy and education and welfare of the people of this state and to vest such state authority with all powers to enable such state authority to accomplish such purpose.

It is the further intent of the Legislature to provide a measure of assistance and alternative methods of financing to participating health institutions to aid them in providing needed health facilities that will assure admission and care of high quality and affordability to all who need it and to aid them in dealing with the cash requirements of such participating health institutions, whether resulting from capital expenditures, operating expenditures, delays in the receipt of payments for services, or otherwise.

It is the intent of the Legislature to ensure the availability of the most efficient and affordable financing alternatives to health institutions that are located outside this state but owned, operated, leased, or managed by, or otherwise affiliated with, health institutions located within this state, to promote the economy of this state and the access of the people of this state to adequate and affordable health care within this state and other states, all for the benefit of the health, welfare, safety, trade, commerce, industry, and economy of the people of this state.

It is not intended by this chapter that the state authority shall itself be authorized to operate any such health or educational facilities.

It is also determined that the availability of improved access to health professions schools will benefit the people of this state and improve their health, welfare, and living conditions and that the establishment of a health education loan bond program, with proceeds of bonds to be used for the purchase or making of loans to students, or certain former students, of health professions schools will enhance the availability of improved access to such schools and assist such persons in meeting the expenses incurred in availing themselves of health education opportunities.

Source: SL 1972, ch 10, § 1; SL 1982, ch 10, § 1; SL 1994, ch 8, § 1; SL 2004, ch 9, § 1; SL 2020, ch 2, § 1.

1-16A-2. Definitions.

As used in this chapter, unless the context otherwise requires:

(1)    "Authority" means the South Dakota Health and Educational Facilities Authority created by this chapter;

(2)    "Costs," as applied to facilities financed in whole or in part under this chapter, include the sum total of all reasonable or necessary costs incidental to the acquisition, construction, reconstruction, repair, alteration, improvement, and extension of such facilities, including without limitation the cost of studies and surveys; the costs for land title and mortgage guaranty policies; plans, specifications, architectural, and engineering services; legal, organization, marketing, or other special services; financing, acquisition, demolition, construction, equipment, and site development of new and rehabilitated buildings; rehabilitation, reconstruction, repair, or remodeling of existing buildings; costs of acquiring or reacquiring accounts receivable; and all other necessary and incidental expenses, including working capital and an initial bond and interest reserve, together with interest on bonds issued to finance such facilities to a date six months subsequent to the estimated date of completion;

(3)    "Credit enhancement obligation" means an agreement, instrument, or other arrangement described in chapter 6-8B, pursuant to which any municipality or county covenants or agrees to levy taxes or pledge its full faith and credit or other revenues, funds, fees, or property, in amounts necessary to pay debt service and related charges on or in connection with bonds or other obligations issued to finance or refinance property, real or personal, and related costs for a health institution that owns or operates a hospital in this state;

(4)    "Educational institution" means any private nonprofit corporation or institution authorized by law to provide or operate educational facilities and to provide a program of education beyond the high school level in this state. A "participating educational institution" means a nonprofit educational institution that, pursuant to this chapter, shall undertake the financing and construction or acquisition of educational facilities or shall undertake the refunding or refinancing of outstanding obligations or of a mortgage or of advances or loans, as provided in and permitted by this chapter. A "participating educational institution" also means any school district or LEA in the state authorized to enter into a lease-purchase agreement with the health and educational facilities authority pursuant to chapter 13-19 or 13-39;

(5)    "Facilities," in the case of a participating health institution, means a structure or building suitable for use as a hospital, clinic, nursing facility, home for the aged, or other health care facility, laboratory, laundry, residence for nurses, doctors, or interns, administration building, research facility, maintenance, storage or utility facility, auditorium, dining hall, food service and preparation facility, fire prevention facility, mental and physical health care facility, dental care facility, nursing school, medical teaching facility, offices, parking lots, and garages, and other supporting service structures, and all necessary, useful, and related equipment, furnishings, and appurtenances, and including without limitation the acquisition, preparation, and development of all lands necessary or convenient as a site or sites for any of the foregoing. Facilities, in the case of a participating health institution, also means any accounts receivable, working capital, or operating expense, financing, or refinancing program, of a participating health institution or institutions, with or involving funds provided in whole or in part hereunder, or any combination thereof. Facilities, in the case of a participating educational institution, means a structure suitable for use as a dormitory or other housing facility, 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 the institution for higher education, and includes 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, but does not include such items as books, fuel, supplies, or other items that are customarily deemed to result in a current operating charge. Facilities does not include any property used or to be used primarily for sectarian instruction or study, or as a place for devotional activities or religious worship, or any property that is used or to be used primarily in connection with any part of a program of a school or department of divinity of any religious denomination;

(6)    "HEAL loans" means loans to finance the graduate education of health professionals, which have been made pursuant to the Federal Health Education Assistance Loan Program created pursuant to P.L. 94-484, and which are fully insured or guaranteed as to principal and interest by the United States, its agencies or instrumentalities;

(7)    "Health institution" means any private nonprofit corporation or institution authorized by law to provide or operate health facilities in this state, or any private nonprofit corporation or institution authorized by law to provide or operate health facilities outside this state;

(8)    "Participating health institution" means a nonprofit health institution that, pursuant to this chapter, shall undertake the financing and construction or acquisition of health facilities or shall undertake the refunding or refinancing of outstanding obligations or of a mortgage or of advances or loans, as provided in and permitted by this chapter, whether located within this state or in another state;

(9)    "Participating public agency" means any public agency, as defined in chapter 1-24, which has elected to participate in a pool arrangement;

(10)    "Public body" means any county, municipality, or township, or any school district, hospital district, sanitary district, irrigation district, drainage district, or water user district; and

(11)    "Revenues," with respect to facilities, means the rents, fees, charges, and other income or profit derived therefrom, and with respect to HEAL loans, means all amounts received in repayment of such loans, including any insurance benefits.

Source: SL 1972, ch 10, § 2; SL 1982, ch 10, § 2; SL 1986, ch 124, § 4; SL 1987, ch 144, § 6; SL 1988, ch 13, § 1; SL 1991, ch 11, § 7; SL 1992, ch 3, § 1; SL 1994, ch 8, §§ 2, 3; SL 2004, ch 9, § 2; SL 2020, ch 2, § 2.

1-16A-2.1. Repealed.

Source: SL 1997, ch 4, § 8; SL 2020, ch 2, § 4.

1-16A-2.2 . Out-of-state participating health institution--Eligibility for financing.

To be eligible for financing under this chapter, any participating health institution located outside of this state shall, at the time of issuance:

(1) Be financing or refinancing health facilities located within the United States;

(2) Control, be controlled by, or be under common control with, a health institution located within this state; and

(3) Be engaged, by itself or through an affiliate located within this state, in a financing or refinancing on behalf of a health institution located within this state.

In connection with such a financing or refinancing of any such health facilities, the authority shall find that the financing or refinancing would promote the economy of this state and the access of the people of this state to adequate and affordable health care within this and other states, all for the benefit of the health, welfare, safety, trade, commerce, industry, economy, and living conditions of the people of this state by creating employment opportunities in this state or the lowering of the cost of accessing health care or reducing the cost of financing, refinancing, or operating such health facilities and such out-of-state health facilities owned, operated, leased, or managed by, or otherwise affiliated with, a health institution located within this state.

For purposes of this section, the authority's findings must be deemed conclusive.

Source: SL 2020, ch 2, § 3.

1-16A-3. Authority created--Public function.

There is hereby created a body politic and corporate to be known as the "South Dakota Health and Educational Facilities Authority." The authority is constituted a public instrumentality 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 function.

Source: SL 1972, ch 10, § 3.

1-16A-3.1. Authority continued within Bureau of Finance and Management--Records and reports.

The health and educational facilities authority shall continue within the Bureau of Finance and Management, and shall retain all its prescribed functions, including administrative functions. The authority shall submit such records, information, and reports in the form and at such times as required by the commissioner of finance and management, except that the authority shall report at least annually.

Source: SL 1973, ch 2, § 16 (b).

1-16A-4. Appointment of members of authority--Qualifications.

The authority shall consist of seven members to be appointed by the Governor who are residents of the state. Not more than four of the seven members of the authority may be of the same political party. At least one of the members to be appointed by the Governor must be or must have been a trustee, director, comptroller, or other employee of a public or of a private nonprofit hospital knowledgeable in hospital and health care construction and financing. At least one of the appointed members must be or must have been a trustee, director, comptroller, or other employee of a public or nonprofit private college or university knowledgeable in the construction and financing of such educational facilities. At least one appointed member must be a person experienced in and having a favorable reputation for skill, knowledge, and experience in the field of state and municipal finance. At least one of the appointed members must be a person experienced in and having a favorable reputation for skill, knowledge, and experience in the field of health facility architecture. At least one of the appointed members must be a person experienced in and having a favorable reputation for skill, knowledge, and experience in the field of higher educational facility architecture. In making appointments, the Governor shall take into consideration nominees recommended for appointment by professional organizations of hospitals, long term care facilities, higher education associations, investment banking, and architects.

Source: SL 1972, ch 10, § 3; SL 2023, ch 3, § 7.

1-16A-5. Terms of office of members--Vacancies.

Upon the expiration of the term of any appointed member his successor shall be appointed for a term of five years expiring on June thirtieth and until his successor has been appointed and has qualified. Any member shall be eligible for reappointment. The Governor shall fill any vacancy for the remainder of any unexpired term.

Source: SL 1972, ch 10, § 3.

1-16A-6. Business interests not disqualifying for membership--Abstention where conflict of interest.

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 any health institution, educational institution, financial institution, investment banking firm, brokerage firm, commercial bank or trust company, architectural firm, insurance company, or any other firm, person, or corporation to serve as a member of the authority, provided such trustee, director, officer, or employee shall abstain from deliberation, action and vote by the authority in each instance where the business affiliation of any such trustee, director, officer, or employee is involved.

Source: SL 1972, ch 10, § 6.

1-16A-7. Annual election of chairman and vice-chairman.

Annually after the appointment of a member or members, the authority shall elect one of its members as chairman and one as vice-chairman.

Source: SL 1972, ch 10, § 5.

1-16A-8. Meetings open to public--Notice--Resolutions not published.

Each meeting of the authority for any purpose whatsoever shall be open to the public. Notice of meetings shall be as provided in the bylaws of the authority. Resolutions need not be published or posted.

Source: SL 1972, ch 10, § 4.

1-16A-9. Quorum of authority--Vote required for action.

Four members of the authority shall constitute a quorum for the purpose of conducting business and exercising its powers. Action may be taken by the authority upon the affirmative vote of at least four of its members.

Source: SL 1972, ch 10, § 4.

1-16A-10. Expenses of members of authority.

Members of the authority shall receive no compensation for services but shall be entitled to the necessary expenses including traveling and lodging expenses incurred in the discharge of their duties. Any payments for compensation and expenses shall be paid from funds of the authority.

Source: SL 1972, ch 10, § 4.

1-16A-11. Removal of member from authority.

Any member of the authority may be removed by the Governor for misfeasance, malfeasance, or willful neglect of duty or other cause after notice and a public hearing unless such notice or hearing shall be expressly waived in writing.

Source: SL 1972, ch 10, § 3.

1-16A-12. Executive director and associate--Compensation.

The authority shall appoint an executive director and may appoint an associate executive director, who shall not be members of the authority and shall serve at its pleasure. They shall receive such compensation as shall be fixed by the authority.

Source: SL 1972, ch 10, § 5.

1-16A-13. Employment of consultants and agents--Compensation.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, 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 compensation.

Source: SL 1972, ch 10, § 7 (10).

1-16A-14. Surety bonds required--Payment of cost.

Each member of the authority shall execute a surety bond in the penal sum of fifty thousand dollars and the executive director shall execute a surety bond in the penal sum of one hundred thousand dollars or, in lieu thereof, the chairman of the authority shall execute a blanket bond covering each member, the executive director and the employees or other officers 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 state. The cost of each such bond shall be paid by the authority.

Source: SL 1972, ch 10, § 6.

1-16A-15. Corporate powers of authority.

The authority has the following powers together with all powers incidental or necessary for the performance thereof:

(1)    To have perpetual succession as a body politic and corporate;

(2)    To adopt bylaws for the regulation of its affairs and the conduct of its business;

(3)    To sue and be sued and to prosecute and defend, at law or in equity, in any court having jurisdiction of the subject matter and of the parties;

(4)    To have and to use a corporate seal and to alter the same at pleasure;

(5)    To maintain an office at such place or places as it may designate;

(6)    To do all things necessary and convenient to carry out the purposes of this chapter;

(7)    To establish a minimum amount of cash and investment reserves; and

(8)    [Repealed July 1, 2019 by SL 2018, ch 8, § 1.]

Source: SL 1972, ch 10, § 7 (1) to (5), (15); SL 2018, ch 8, § 1.

1-16A-15.1. Authority to approve financing of facilities in the state by out-of-state issuers-Public hearing.

The authority shall have the power to assist, coordinate and participate with governmental authorities and issuers of states other than the State of South Dakota (for purposes of this section, "out-of-state issuers") in connection with issuance of bonds, notes or other evidence of indebtedness by such out-of-state issuers for educational and health facilities located within the State of South Dakota.

In connection with such financing by out-of-state issuers, the authority is designated as the only entity in the State of South Dakota which may conduct the public hearing of the applicable governmental unit required by section 147(f) of the Internal Revenue Code of 1986, as amended, or any successor provision of the Internal Revenue Code, and the Governor of the State of South Dakota is designated as the only person in the State of South Dakota who may be the applicable elected representative pursuant to section 147(f) of the Internal Revenue Code of 1986, as amended.

Following such hearing, the authority shall determine whether the financing should proceed with respect to educational or health facilities located within the State of South Dakota by an out-of-state issuer. If the authority determines that the financing should not proceed, the financing shall not proceed by an out-of-state issuer with respect to the South Dakota facilities.

Source: SL 2004, ch 9, § 5.

1-16A-15.2. Determination of minimum amount of cash and investment reserves.

Any determination of a minimum amount of cash and investment reserves and the existence of excess funds available for transfer, grant, or use pursuant to subdivision 1-16A-15(7), shall be evidenced by a resolution of the authority. In establishing the minimum amount of cash and investment reserves the authority shall include in the minimum amount of cash and investment reserves:

(1)    Any funds that the authority determines are necessary for any expected operating expenses of the authority; and

(2)    Any funds that are pledged to or otherwise reserved for payment of any amounts in respect of any issue of bonds or other obligations issued by the authority.

The authority may require further findings or procedures that the authority deems necessary or appropriate regarding the establishment of a minimum amount of cash and investment reserves.

Source: SL 2018, ch 8, § 2.

1-16A-16. Delegation of powers and duties.

The authority may delegate by resolution to one or more of its members or to its executive director or associate executive director such powers and duties as it may deem proper.

Source: SL 1972, ch 10, § 5.

1-16A-17. Records maintained by authority--Certified copies.

The executive director or associate executive director, or other person designated by the authority, shall keep a record of the proceedings thereof and shall be custodian of all books, documents and papers filed with the authority, the minute books or journal thereof and its official seal. The executive director or associate executive director, or other person, 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 on such certificates.

Source: SL 1972, ch 10, § 5.

1-16A-17.1. Informational budget required.

Notwithstanding any other provisions of law, all funds received by the authority shall be set forth in an informational budget as described in § 4-7-7.2 and be annually reviewed by the Legislature.

Source: SL 1984, ch 4, § 1.

1-16A-18. Acceptance of loans and gifts.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to receive and accept from any public agency loans or grants for or in aid of the construction of facilities or any portion thereof, or for equipping the same, and to receive and accept grants, gifts or other contributions from any source.

Source: SL 1972, ch 10, § 7 (11).

1-16A-19. Investment of surplus funds--Maturity of securities--Manner of investment.

The authority may invest any funds, including funds made available to the authority pursuant to § 1-16A-75, in the following:

(1)    Bonds, notes, certificates of indebtedness, treasury bills, or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully guaranteed or insured by, the United States of America;

(2)    In obligations issued by or obligations the principal of and interest on which are fully guaranteed or insured by any agency or instrumentality of the United States of America;

(3)    In certificates of deposit or time deposits constituting direct obligations of any bank which is a "qualified public depository" or any savings and loan association which is a "savings and loan depository" under the Public Deposit Insurance Act pursuant to chapter 4-6A, unless sufficient volume of such certificates is not available at competitive interest rates. In that event, the authority may purchase noncollateralized direct obligations of any bank or savings institution or holding company if such institution or holding company is rated in the highest two quality categories by a nationally recognized rating agency;

(4)    In obligations of any solvent insurance company or other corporation or business entity existing under the laws of the United States or any state thereof, provided the long term obligations of such insurance company or other corporation or business entity (or of any affiliate thereof which guarantees timely payment of the obligations to be in invested in) shall be rated in one of the two highest rating classifications established by a standard rating service of insurance companies or a nationally recognized rating agency;

(5)    In short term discount obligations of the Federal National Mortgage Association;

(6)    In obligations issued by any state of the United States or any political subdivision, public instrumentality, or public authority of any state of the United States, which obligations are not callable before the date the principal thereof will be required to be paid and which obligations are fully secured as to both sufficiency and timely payment by, and payable solely from, securities described in subdivision (1) and which obligations are rated in the highest investment classification by at least two standard rating services of such obligations.

Any such securities may be purchased at the offering or market price thereof at the time of such purchase. All such securities so purchased shall mature or be redeemable on a date or dates prior to the time when, in the judgment of the authority, the funds so invested will be required for expenditure. The express judgment of the authority as to the time when any funds will be required for expenditure or be redeemable is final and conclusive. Investment in any obligation enumerated in this section may be made either directly or in the form of securities of, or other interests in, an investment company registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933 and whose investments are limited to these obligations.

Source: SL 1972, ch 10, § 19; SL 1977, ch 10; SL 1979, ch 7, § 1; SL 1984, ch 5, § 1; SL 1986, ch 13, § 5; SL 1988, ch 13, § 5; SL 1998, ch 7, § 1; SL 2003, ch 11, § 1.

1-16A-20. Location, construction, operation and maintenance of facilities--Designation of agent.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to determine the location and construction of any facility to be financed under the provisions of this chapter and to construct, reconstruct, renovate, replace, maintain, repair, operate, lease and regulate the same, to designate a participating health institution or a participating educational institution, as the case may be, as its agent to determine the location and construction of a facility undertaken by such participating health institution or a participating educational institution, as the case may be, under the provisions of this chapter and, as agent of the authority, to construct, reconstruct, renovate, replace, maintain, repair, operate, lease and regulate the same and as agent of the authority, to enter into contracts for any and all of such purposes including contracts for the management and operation of such facility.

Source: SL 1972, ch 10, § 7 (6).

1-16A-21. Acquisition of property--Title taken.

The authority is authorized and empowered directly or by or through a participating health institution or participating educational institution, as the case may be, as its agent, to acquire by purchase, lease, gift, devise or otherwise such lands, structures, property, real or personal, rights-of-way, franchises, easements, and other interests in lands, within or without the state, 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 acquisition or operation of facilities but upon such terms as may be considered by the authority to be reasonable, and to take title thereto in the name of the authority or in the name of such participating health institution or participating educational institution, as the case may be, as its agent.

Source: SL 1972, ch 10, § 9; SL 2004, ch 9, § 3.

1-16A-22. Restrictions of other laws not applicable.

Facilities may be acquired, purchased, constructed, reconstructed, improved, bettered and extended and bonds may be issued under this chapter for said purposes notwithstanding that any other law may provide for the acquisition, purchase, construction, reconstruction, improvement, betterment, and extensions of like facilities, or the issuance of bonds for like purposes, and without regard to the requirements, restrictions, limitations, or other provisions contained in any other law.

Source: SL 1972, ch 10, § 22.

1-16A-23. Public works laws not applicable--Competitive bidding not required.

Facilities are not subject to any requirements relating to public buildings, structures, grounds, works, or improvements imposed by the laws of this state or any other similar requirements which may be lawfully waived by this section and any requirement of competitive bidding or other restriction imposed on the procedure for award of contracts for the purposes of the authority or the lease, sale, or other disposition of property of the authority is not applicable to any action taken under authority of this chapter.

Source: SL 1972, ch 10, § 21; SL 1982, ch 10, § 3.

1-16A-24. Mortgages for security of bondholders.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to mortgage all or any portion of the facilities and the site or sites thereof, whether then owned or thereafter acquired, for the benefit of the holders of bonds issued to finance such facilities or any portion thereof.

Source: SL 1972, ch 10, § 7 (12).

1-16A-25. Operation of facilities restricted to leasing.

The authority shall not have the power to operate the facilities as a business other than as a lessor.

Source: SL 1972, ch 10, § 8.

1-16A-26. Leasing of facilities--Terms of lease--Option to purchase.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to lease to a participating health institution or a participating educational institution, as the case may be, any or all of the facilities upon such terms and conditions as the authority shall deem proper, and to charge and collect rent therefor and to terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; and to include in any such lease, if desired, provisions that the lessee thereof shall have options to renew the term of the lease for such period or periods and at such rent as shall be determined by the authority or to purchase any or all of the facilities or that upon payment of all of the indebtedness incurred by the authority for the financing of such facilities the authority may convey any or all of the facilities to the lessee or lessees thereof with or without consideration.

Source: SL 1972, ch 10, § 7 (7).

1-16A-27. Duration of leases--Rentals required.

Any lease of the facilities entered into pursuant to the provisions of this chapter shall be for a term not shorter than the longest maturity of any bonds issued to finance such facilities or a portion thereof and shall provide for rentals adequate to pay principal and interest on such bonds as the same fall due and to create and maintain such reserves and accounts for depreciation as the authority shall determine to be necessary.

Source: SL 1972, ch 10, § 8.

1-16A-28. Establishment of rents and charges.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, generally to fix and revise from time to time and charge and collect rates, rents, fees, and charges for the use of and services furnished or to be furnished by facilities or any portion thereof and to contract with any person, firm, or corporation or other body public or private in respect thereof, provided that the authority shall have no jurisdiction over rates, rents, fees, and charges established by a participating educational institution for its students or established by a participating health institution for its patients.

Source: SL 1972, ch 10, § 7 (9).

1-16A-29. Rules and regulations for use of facilities.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to establish rules and regulations for the use of facilities and to designate a participating health institution or participating educational institution, as the case may be, as its agent, to establish rules and regulations for the use of the facilities undertaken or operated by such participating health institution or participating educational institution, as the case may be.

Source: SL 1972, ch 10, § 7 (10).

1-16A-30. Laws and ordinances applicable to facilities.

All facilities shall be subject to the planning, zoning, sanitary, and building laws, ordinances and regulations applicable to the locality in which any such facilities are to be situated.

Source: SL 1972, ch 10, § 18.

1-16A-31. Loans to participating institutions--Maximum amount.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to make loans to or for the benefit of any participating health institution or participating educational institution, as the case may be, for the cost of the facilities in accordance with an agreement between the authority and such participating health institution or participating educational institution, as the case may be. No such loan may exceed the total cost of such facilities as determined by such participating health institution or participating educational institution, as the case may be, and approved by the authority. Such loans may be made to an entity affiliated with a participating health institution or participating educational institution, as the case may be, if the proceeds of such loans are made available to or otherwise applied for the benefit of such participating health institution or participating educational institution, as the case may be.

Source: SL 1972, ch 10, § 7 (13); SL 1998, ch 7, § 2.

1-16A-32. Refunding loans to participating institutions--Findings required.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to make loans to or for the benefit of a participating health institution or participating educational institution, as the case may be, to refund outstanding obligations, mortgages or advances issued, made or given by such institution for the cost of its facilities including the function to issue bonds and make loans to a participating health institution or participating educational institution, as the case may be, to refinance indebtedness incurred for facilities undertaken and completed prior to or after the enactment of this chapter whenever the authority finds that such financing is in the public interest, alleviates a financial or contractual hardship upon the participating health institution or participating educational institution, as the case may be, or results in a lesser cost of patient care or cost of education and a saving to third parties, including state or federal governments, and to others who must pay for such care or education. Such loans may be made to any entity affiliated with a participating health institution or participating educational institution, as the case may be, if the proceeds of such loans are made available to or otherwise applied for the benefit of such participating health institution or participating educational institution, as the case may be.

Source: SL 1972, ch 10, § 7 (14); SL 1998, ch 7, § 3; SL 2004, ch 9, § 4.

1-16A-33. Initial planning service fee to accompany applications.

When any application is made to the authority by any participating health institution or participating educational institution for financial assistance to provide for its facilities, such application shall be accompanied by an initial planning service fee in an amount determined by the authority, but in any event not exceeding the lesser of ten thousand dollars or one-fourth of one percent of the principal amount of bonds covered by such application. Such initial planning service fee shall be included in the cost of the facilities to be financed and shall not be refundable by the authority whether or not any such application is approved.

Source: SL 1972, ch 10, § 15.

1-16A-34. Annual planning service fee payable to authority.

In addition to such initial fee, an annual planning service fee shall be paid to the authority by each participating health institution and each participating educational institution in an amount not exceeding one-fourth of one percent of the principal amount of bonds issued on behalf of such institution and outstanding on the first rental payment date under its lease and on each anniversary date thereafter. Such annual planning service fee shall be paid on said dates or in installments as may be satisfactory to the authority.

Source: SL 1972, ch 10, § 15.

1-16A-35. Purpose of planning service fees--Agencies used in planning.

It is anticipated the fees required by §§ 1-16A-33 and 1-16A-34 shall be used for necessary expenses to determine the need of facilities in the area concerned and to that end the authority may utilize recognized voluntary and official health planning and educational planning organizations and agencies at local, regional and state levels as well as the state statutory bodies having health or educational facilities planning responsibilities and also for necessary administrative expenses.

Source: SL 1972, ch 10, § 15.

1-16A-36. Planning services and surveys obtained from other agencies.

In addition the authority may, for a negotiated fee, retain the services of any other public or private person, firm or corporation for the furnishing of services and data for use by the authority in determining the need and location of any such facilities for which application is being made or for such other services or surveys as the authority deems necessary to carry out the purposes of this chapter.

Source: SL 1972, ch 10, § 15.

1-16A-37. Proration of planning service fees between institutions.

In the event bonds are issued by the authority for the concurrent benefit of two or more participating health institutions or two or more participating educational institutions then the fees to be paid to the authority under §§ 1-16A-33 and 1-16A-34 shall be prorated among the institutions involved in accordance with the amount of bond proceeds allocated to each participating institution respectively.

Source: SL 1972, ch 10, § 15.

1-16A-38. Issuance and refunding of bonds and obligations.

The authority shall have the power, together with all powers incidental thereto or necessary for the performance thereof, to issue bonds, notes, or other obligations for any of its corporate purposes and to refund the same, all as provided for in this chapter.

Source: SL 1972, ch 10, § 7 (8).

1-16A-39. Terms and form of bonds issued.

The bonds may be issued as serial bonds or as term bonds or a combination of both types. Such bonds may be executed and delivered by the authority at any time and from time to time, may be in such form and denominations and of such terms and maturities, may be in fully registered form or in bearer form registrable either as to principal or interest or both, may bear such conversion privileges and be payable in such installments and at such time or times not exceeding forty years from the date thereof, may be payable at such place or places whether within or without the State of South Dakota, may bear interest at such rate or rates per annum as shall be determined by the authority and without regard to any interest rate limitation appearing in any other law, payable at such time or times and at such place or places and evidenced in such manner, may be executed by such officers of the authority, either manually or by facsimile, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the authority, and may contain such provisions not inconsistent herewith, all as shall be provided in the resolutions of the authority whereunder the bonds shall be authorized to be issued or as shall be provided in a trust indenture authorized by the authority.

Source: SL 1972, ch 10, § 10.

1-16A-40. Sale of bonds--Expenses of issuance.

The bonds of the authority may be sold at public or private sale for such price and in such manner and from time to time as may be determined by the authority, and the authority may pay all expenses, premiums, and commissions which it may deem necessary or advantageous in connection with the issuance thereof.

Source: SL 1972, ch 10, § 10.

1-16A-41. Negotiability of bonds.

All bonds of the authority and the interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.

Source: SL 1972, ch 10, § 11.

1-16A-42. Bonds payable only from revenues.

All bonds issued by the authority shall be payable solely out of the revenues and receipts derived from the leasing or sale by the authority of the facilities concerned or of any thereof as may be designated in the resolutions of the authority under which the bonds shall be authorized to be issued or as may be designated in a trust indenture authorized by the authority.

Source: SL 1972, ch 10, § 10.

1-16A-43. Pledge of revenues to secure bonds.

The principal of and interest on any bonds issued by the authority shall be secured by a pledge of the revenues, rentals, and receipts out of which the same shall be made payable and may be secured by a trust indenture or mortgage or deed of trust (including assignment of leases or other contract rights of the authority thereunder) covering all or any part of the facilities from which the revenues, rentals, or receipts so pledged may be derived, including any enlargements of and additions to any such facilities thereafter made.

Source: SL 1972, ch 10, § 12.

1-16A-44. Pledge continuing until bonds paid.

Each pledge, agreement, lease, indenture, mortgage and deed of trust made for the benefit or security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid or provision for such payment duly made.

Source: SL 1972, ch 10, § 12.

1-16A-45. Maintenance, rental and funding agreements in bond resolution.

The resolution under which the bonds are authorized to be issued and any such trust indenture, mortgage, or deed of trust may contain any agreements and provisions respecting the maintenance of the properties covered thereby, the fixing and collection of rents for any portions thereof leased by the authority to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default, including the designation of a trustee, all as the authority shall deem advisable and not in conflict with the provisions hereof.

Source: SL 1972, ch 10, § 12.

1-16A-46. Pooling of leases for pledge of revenues.

In addition to the foregoing, bonds of the authority may be secured by a pooling of leases whereby the authority may assign its rights, as lessor, and pledge rents under two or more leases of the facilities with two or more participating health institutions or participating educational institutions, as lessees respectively, upon such terms as may be provided for in the resolutions of the authority or as may be provided for in a trust indenture authorized by the authority.

Source: SL 1972, ch 10, § 12.

1-16A-47. Bond redemption privileges retained.

If deemed advisable by the authority there may be retained in the resolutions or the trust indenture under which any bonds of the authority are authorized to be issued an option to redeem all or any part thereof as may be specified in such resolutions or in such trust indenture, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such resolutions or in such trust indenture, and as may be briefly recited in the face of the bonds, but nothing herein contained shall be construed to confer on the authority the right or option to redeem any bonds except as may be provided in the resolutions or in such trust indenture under which they shall be issued.

Source: SL 1972, ch 10, § 10.

1-16A-48. Additional bonds for facilities or HEAL loans--Protection of prior bondholders.

Issuance by the authority of one or more series of bonds for one or more purposes shall not preclude it from issuing other bonds in connection with the same facilities or HEAL loans or any other facilities or HEAL loans or any other purpose hereunder, but the resolutions or trust indenture whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds.

Source: SL 1972, ch 10, § 11; SL 1982, ch 10, § 10.

1-16A-49. Remedies of bondholders on default.

In the event of default in payment of the principal of or interest on any bonds of the authority or in any agreements of the authority made as a part of the contract under which the bonds were issued, whether contained in the resolutions authorizing the bonds or in any trust indenture, mortgage, or deed of trust executed as security therefor, said payment or agreement may be enforced by suit, mandamus, the appointment of a receiver in equity or by foreclosure of any mortgage and deed of trust, or any one or more of said remedies.

Source: SL 1972, ch 10, § 12.

1-16A-50. General obligation not created by issuance of bonds--Tax levy not promised.

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 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. 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 any form of taxation therefor or to make any appropriation for their payment.

Source: SL 1972, ch 10, § 13.

1-16A-51. State debt not created--Disclaimer in bonds.

Nothing in this chapter shall be construed to authorize the authority to create a debt of the state within the meaning of the Constitution or statutes of South Dakota and all bonds issued by the authority pursuant to the provisions of this chapter are payable and shall state that they are payable solely from the funds pledged for their payment in accordance with the resolution authorizing their issuance or in any trust indenture or mortgage or deed of trust executed as security therefor. The state shall not in any event be liable for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation, or agreement of any kind whatsoever which may be undertaken by the authority. No breach of any such pledge, mortgage, obligation, or agreement may impose any pecuniary liability upon the state or any charge upon their general credit or against their taxing power.

Source: SL 1972, ch 10, § 13.

1-16A-52. Pledge of full faith and credit of authority or institution.

Nothing contained in § 1-16A-50 or 1-16A-51 shall prevent or be construed to prevent the authority from pledging its full faith and credit or the full faith and credit of a participating health institution or participating educational institution, as the case may be, to the payment of bonds authorized pursuant to this chapter.

Source: SL 1972, ch 10, § 13.

1-16A-52.1. Financing through federally guaranteed securities authorized.

Notwithstanding any other provisions of this chapter to the contrary, the authority may finance the cost of an educational or health facility, or refund outstanding indebtedness incurred prior to or after the effective date of this section for the construction or acquisition of an educational or health facility, by issuing its bonds pursuant to a plan of financing involving the acquisition of any federally guaranteed security or securities or the acquisition or entering into of commitments to acquire any federally guaranteed security or securities. For the purposes of this chapter, "federally guaranteed security" shall mean any direct obligation of, or obligation the principal of and interest on which are fully guaranteed or insured by, the United States of America or any obligation issued by or the principal of and interest on which are fully guaranteed or insured by any agency or instrumentality of the United States of America, including without limitation any such obligation that is issued pursuant to the National Housing Act (12 U.S.C. § 1701 et seq.), or any successor provision of law, each as amended from time to time.

Source: SL 1979, ch 7, § 2.

1-16A-52.2. Commitments and agreements for financing through federally guaranteed securities.

In furtherance of the powers granted in § 1-16A-52.1, the authority may acquire or enter into commitments 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 of any of its bonds issued to finance or refinance health or educational facilities or to enter into any appropriate agreement with any participating health or educational institution whereby the authority may make a loan to any such participating health or educational institution for the purpose of acquiring or entering into commitments to acquire any federally guaranteed security. Any agreement entered into pursuant to this section may contain such provisions which are deemed necessary or desirable by the authority for the security or protection of the authority or the holders of such bonds. However, the authority, prior to making any such acquisition, commitment or loan, shall first determine, and shall first enter into an agreement with any such participating health or educational institution 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, directly or indirectly, for the purpose of financing or refinancing a health or educational facility.

Source: SL 1979, ch 7, § 3.

1-16A-52.3. Bonds not to exceed cost of facility--Expenses included--Terms and sale of bonds.

Any bonds issued pursuant to § 1-16A-52.1 shall not exceed in principal amount the cost of such educational or health facility as determined by the participating educational or health institution and approved by the authority. However such costs may include, without limitation, 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 insurance or guarantee of any obligation issued or incurred in connection with any federally guaranteed security. In other respects any such bonds shall be subject to the provisions of §§ 1-16A-39 to 1-16A-41, inclusive, and the trust agreement or indenture creating such bonds may contain such of the provisions set forth in § 1-16A-45 as the authority may deem appropriate.

Source: SL 1979, ch 7, § 4.

1-16A-52.4. Title to facility financed through federally guaranteed securities--Mortgage--Lease prohibited.

If an educational or health facility is financed or refinanced pursuant to §§ 1-16A-52.1 to 1-16A-52.3, inclusive, the title to the facility shall remain in the participating educational or health institution owning the facility. The title is subject to the lien of any mortgage, if any, securing the federally guaranteed securities being purchased. There may not be a lease of the facility between the authority and the institution.

Source: SL 1979, ch 7, § 5; SL 2013, ch 5, § 1.

1-16A-52.5. Return of securities to issuer when provision made for payment.

The provisions of § 1-16A-56 shall not apply to any educational or health facility financed pursuant to §§ 1-16A-52.1 to 1-16A-52.5, inclusive, but the authority shall return the securities purchased through the issuance of bonds thereunder to the issuer of such securities when such securities have been fully paid or when such bonds have been fully paid and retired or when adequate provision, not involving the application of such securities, has been made to pay and retire the same fully, all other conditions of the trust agreement or indenture creating such bonds have been satisfied and the lien thereof has been released in accordance with the provisions hereof.

Source: SL 1979, ch 7, § 6.

1-16A-53. Refunding bonds authorized--Amount.

Any bonds of the authority at any time outstanding may at any time and from time to time be refunded by the authority by the issuance of its refunding bonds in such amount as the authority may deem necessary but not exceeding an amount sufficient to refund the principal of the bonds so to be refunded, together with any unpaid interest thereon and any premiums, commissions, service fees and other expenses necessary to be paid in connection therewith.

Source: SL 1972, ch 10, § 11.

1-16A-54. Methods of refunding--Maturity dates.

Any such refunding may be effected whether the bonds to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof for the payment of the bonds to be refunded thereby, or by the exchange of the refunding bonds for the bonds to be refunded thereby with the consent of the holders of the bonds so to be refunded, and regardless of whether or not the bonds to be refunded were issued in connection with the same facilities or separate facilities or for any other purpose hereunder, and regardless of whether or not the bonds proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.

Source: SL 1972, ch 10, § 11.

1-16A-54.1. Bond issue authorized to refund securities of participating institution.

Notwithstanding any other provisions of this chapter to the contrary, the authority may finance the cost of an educational or health facility, or refund outstanding indebtedness incurred prior to or after July 1, 1976, for the construction or acquisition of an educational or health facility, by issuing its bonds for the purpose of purchasing the securities of a participating educational institution or participating health institution.

Source: SL 1976, ch 9, § 1.

1-16A-54.2. Amount and terms of securities purchased--Mortgage--Insurance and guaranties.

Any securities purchased pursuant to § 1-16A-54.1 shall have the same principal amounts, maturities, and interest rates as the bonds being issued pursuant to § 1-16A-54.1. If the authority deems it advisable, the securities may be secured by a first mortgage lien on the educational or health facility being financed. If a mortgage is required, the securities are subject to any exception approved by the authority and created by a mortgage instrument satisfactory to the authority. The securities may be insured or guaranteed by others.

Source: SL 1976, ch 9, § 1; SL 2013, ch 5, § 2.

1-16A-54.3. Pledge of securities to secure bonds--Income used for payment--Maximum principal--Bonds subject to other provisions of chapter.

Any bonds issued pursuant to § 1-16A-54.1 shall be secured by a pledge of the securities purchased pursuant to § 1-16A-54.1 under the trust agreement or indenture creating such bonds, shall be payable solely out of the payments to be made on such securities, and shall not exceed in principal amount the cost of such educational or health facility as determined by the participating educational or health institution and approved by the authority. In other respects any such bonds shall be subject to the provisions of §§ 1-16A-39 to 1-16A-41, inclusive, and the trust agreement or indenture creating such bonds may contain such of the provisions set forth in § 1-16A-45 as the authority may deem appropriate.

Source: SL 1976, ch 9, § 1.

1-16A-54.4. Title of financed facility to remain in participating institution--Mortgage--Lease prohibited.

If an educational or health facility is financed pursuant to §§ 1-16A-54.1 to 1-16A-54.3, inclusive, the title to the facility shall remain in the participating educational or health institution owning the facility. The title is subject to the lien of the mortgage, if any, securing the securities being purchased. There may not be a lease of the facility between the authority and the institution.

Source: SL 1976, ch 9, § 2; SL 2013, ch 5, § 3.

1-16A-55. Bonds of authority as legal investments.

The state and all counties, municipalities, political subdivisions and public bodies, and public officers of any thereof, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, insurance companies, and associations, and all personal representatives, conservators, trustees, and other fiduciaries may legally invest any debt service funds, moneys or other funds belonging to them or within their control in any bonds issued pursuant to this chapter.

Source: SL 1972, ch 10, § 20; SL 1992, ch 60, § 2; SL 1993, ch 213, § 73.

1-16A-56. Conveyance of facility to participating institution when debt paid.

When the principal of and interest on bonds issued by the authority to finance the cost of facilities or to refinance outstanding indebtedness of one or more participating health institutions or participating educational institutions, as the case may be, 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, the lease, the trust indenture and the mortgage or deed of trust, if any, authorizing and securing the same have been satisfied and the lien of such mortgage or deed of trust has been released in accordance with the provisions thereof, the authority shall promptly do all things and execute such deeds and conveyances as are necessary and required to convey its right, title and interest in such facilities so financed, and any other facilities mortgaged to secure the bonds, to such participating health institution or institutions or to such participating educational institution or institutions, as the case may be.

Source: SL 1972, ch 10, § 16.

1-16A-56.1. Conveyance provisions inapplicable to refinanced facility--Return of securities when bonds paid or payment provided for.

The provisions of § 1-16A-56 shall not apply to any educational or health facility financed pursuant to §§ 1-16A-54.1 to 1-16A-54.4, inclusive, but the authority shall return the securities purchased through the issuance of bonds thereunder to the participating educational or health institution issuing such securities when such bonds have been fully paid and retired or when adequate provision has been made to pay and retire the same fully and all other conditions of the trust agreement or indenture creating such bonds have been satisfied and the lien thereof has been released in accordance with the provisions hereof.

Source: SL 1976, ch 9, § 3.

1-16A-57. Expenses paid from authority funds--Borrowing for initial operation.

All expenses of the authority 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 shall be incurred by the authority beyond the extent to which moneys shall have been provided under this chapter, except that for the purposes of meeting the necessary expenses of initial organization and operation until such date as the authority derives moneys from funds provided hereunder, the authority shall be empowered to borrow moneys as may be required for such necessary expenses of organization and operation. Such borrowed moneys shall be repaid within a reasonable time after the authority receives funds provided for under this chapter.

Source: SL 1972, ch 10, § 15.

1-16A-58. Tax exemption of authority.

The authority is hereby declared to be performing a public function in behalf of the state and to be a public instrumentality of the state. Accordingly, the income of the authority, and all properties at any time owned by the authority, shall be exempt from all taxation in the State of South Dakota.

Source: SL 1972, ch 10, § 14.

1-16A-59. Securities regulation.

For purposes of chapter 47-31B, bonds issued by the authority are deemed to be securities issued by a public instrumentality of the State of South Dakota.

Source: SL 1972, ch 10, § 14; SL 1989, ch 30, § 3; SL 2004, ch 278, § 54.

1-16A-60. Additional proceedings not required--Police power reserved.

No proceedings, referendum, notice, or approval shall be required for the creation of the authority or the issuance of any bonds or any instrument as security therefor, except as herein provided, any other law to the contrary notwithstanding; provided, that nothing herein shall be construed to deprive the state and its governmental subdivisions of their respective police powers over properties of the authority, or to impair any power thereover of any official or agency of the state and its governmental subdivisions which may be otherwise provided by law.

Source: SL 1972, ch 10, § 17.

1-16A-61. Powers supplementary.

The powers conferred by this chapter shall be in addition and supplementary to, and the limitations by this chapter shall not affect the powers conferred by any other law.

Source: SL 1972, ch 10, § 22.

1-16A-62. Powers under other law unimpaired.

Neither this chapter nor anything herein contained shall be construed as a restriction or limitation upon any powers which the authority might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers.

Source: SL 1972, ch 10, § 17.

1-16A-63. Liberal construction of chapter.

This chapter shall be liberally construed to accomplish the intentions expressed herein.

Source: SL 1972, ch 10, § 23.

1-16A-64. Short title of chapter.

This chapter may be referred to and cited as the "South Dakota Health and Educational Facilities Authority Act."

Source: SL 1972, ch 10, § 24.

1-16A-65. Health education assistance loan program established.

There is established to be financed by the health and educational facilities authority created by this chapter, a South Dakota health education loan program pursuant to P.L. 94-484.

Source: SL 1982, ch 10, § 4.

1-16A-66. Health education assistance loan program--Powers of authority.

The authority may, together with all powers incidental thereto or necessary for the performance thereof:

(1)    Participate in the financing of HEAL loans;

(2)    Purchase or participate in the purchase of HEAL loans;

(3)    Sell or participate in the sale of HEAL loans;

(4)    Collect and pay reasonable fees and charges in connection with making, purchasing and servicing or causing to be made, purchased or serviced HEAL loans;

(5)    Do all things necessary and convenient to carry out the purposes of §§ 1-16A-65 to 1-16A-70, inclusive, in connection with the administering and servicing of HEAL loans, including contracting with any person, firm or other body public or private in respect thereof;

(6)    Enter into agreements necessary to effect the guarantee, administering and servicing of HEAL loans; and

(7)    Promulgate rules, establish standards for participation in the program administered by the authority under P.L. 94-484, and establish other administrative procedures consistent with P.L. 94-484.

Source: SL 1982, ch 10, § 5.

1-16A-67. Health education assistance loan program--Funding of HEAL loan purchases by bonds, notes or other obligations of authority.

Any HEAL loan made, caused to be made, purchased or caused to be purchased under §§ 1-16A-65 to 1-16A-70, inclusive, may be funded with the proceeds of bonds, notes or other obligations of the authority issued pursuant to §§ 1-16A-38 to 1-16A-41, inclusive, and the trust agreement or indenture creating such bonds may contain such of the provisions set forth in § 1-16A-45 as the authority may deem appropriate, and in addition may contain such other provisions as the authority may deem reasonable and proper for the security of the holders of any such bonds, notes or other obligations of the authority. The proceeds of any bonds, notes or other obligations of the authority issued pursuant to this section may be used and applied by the authority to make, cause to be made, purchase or cause to be purchased, HEAL loans, to the payment of financing costs, including legal, underwriting and investment banking, accounting, rating agencies, printing and other similar costs; the funding of any reserve funds deemed necessary or advisable by the authority; interest on such bonds, notes or other obligations for any period deemed necessary or advisable by the authority; and all other necessary and incidental costs and expenses.

Source: SL 1982, ch 10, § 6.

1-16A-68. Health education assistance loan program--Payment of bonds.

Notwithstanding § 1-16A-42, all bonds issued by the authority pursuant to § 1-16A-67 shall be payable out of the revenues with respect to HEAL loans funded under this chapter, or from reserves or other money available for such purpose as may be designated in the resolution of the authority under which the bonds shall be authorized to be issued or as may be designated in a trust indenture authorized by the authority.

Source: SL 1982, ch 10, § 7.

1-16A-69. Health education assistance loan program--Security for principal and interest of bonds.

Notwithstanding § 1-16A-43, the principal of and interest on any bonds issued by the authority pursuant to § 1-16A-67 shall be secured by a pledge of the revenues and other money out of which the same shall be made payable and may be secured by a trust indenture or mortgage or deed of trust, including an assignment of the HEAL loans or other contract rights of the authority thereunder, covering all or any part of the HEAL loans from which the revenues or receipts so pledged may be derived.

Source: SL 1982, ch 10, § 8.

1-16A-70. Health education assistance loan program--Repayment fund created.

There is created a separate trust fund designated the South Dakota health education loan repayment fund consisting of all revenues with respect to HEAL loans funded under this chapter. The authority may pledge revenues received or to be received by the fund to secure bonds, notes or other obligations issued under § 1-16A-67. The authority may create sub-funds or accounts within the repayment fund created under this section as the authority deems necessary or advisable.

Source: SL 1982, ch 10, § 9.