SB21: Bill Text

SB21,1432,9 235.409 (2) Bonds issued under the authority of this section are payable out of revenues or moneys received from the repayment of veterans housing loans and related funds made available in ss. 234.42 235.42 and 234.43 235.43. All assets and liabilities created through the issuance of bonds to purchase mortgage loans representing veterans housing loans are to be separate from all other assets and liabilities of the authority. No funds of the veterans housing loan program may be commingled with any other funds of the authority.

SB21,1432,14 (3) It is the intent of the legislature that the authority be used to finance the veterans housing program. Nothing in this chapter subchapter shall be construed to supersede the powers vested by subch. III of ch. 45 in the department of veterans affairs for carrying out program responsibilities for which debt has been incurred by the authority.

SB21,1432,19 (4) The limitations established in ss. 234.18, 234.50, 234.60, 234.61, and 234.65 235.0255, 235.50, 235.60, and 235.61 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for veterans housing loans in an aggregate principal amount exceeding $61,945,000, excluding bonds being issued to refund outstanding bonds.

SB21,3875 Section 3875. 234.41 of the statutes is renumbered 235.41, and 235.41 (3), as renumbered, is amended to read:

SB21,1433,3 235.41 (3) Moneys of the veterans housing loan fund may be invested as provided in s. 234.03 (18) policies and procedures established by the authority. All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund, paid over to the department of veterans affairs and deposited in the veterans trust fund after payment or repayment of any deficits arising in the veterans capital reserve fund and after payment of expenses contained in sub. (4).

SB21,3876 Section 3876. 234.42 of the statutes is renumbered 235.42, and 235.42 (1s) and (4), as renumbered, are amended to read:

SB21,1433,12 235.42 (1s) The authority shall establish the veterans capital reserve fund to secure the veterans housing bonds sold pursuant to s. 234.40 235.409, and shall pay into the veterans capital reserve fund any moneys appropriated and made available by the state for the purposes of such fund, any proceeds of sale of bonds, to the extent provided in the resolution of the authority authorizing the issuance thereof and any other moneys which are made available to the authority for the purpose of such fund from any other source.

SB21,1434,3 (4) To assure the continued operation and solvency of the authority for the carrying out of the veterans housing loan program of this chapter subchapter, the authority shall accumulate in the veterans capital reserve fund an amount equal to the veterans capital reserve fund requirement. If at any time the veterans capital reserve fund requirement exceeds the amount of the veterans capital reserve fund, the chairperson of the authority shall certify to the secretary of administration, the governor and the joint committee on finance, the amount necessary to restore the veterans capital reserve fund to an amount equal to the veterans capital reserve fund requirement. If such certification is received by the secretary of administration in an even-numbered year prior to the completion of the budget compilation under s. 16.43, the secretary shall include the certified amount in the budget compilation. In any case, the joint committee on finance shall introduce in either house, in bill form, an appropriation of the amount so certified to the veterans capital reserve fund of the authority. Recognizing its moral obligation to do so, the legislature hereby expresses its expectation and aspiration that, if ever called upon to do so, it shall make such appropriation.

SB21,3877 Section 3877. 234.43 of the statutes is renumbered 235.43, and 235.43 (1), as renumbered, is amended to read:

SB21,1434,11 235.43 (1) The authority shall establish the veterans housing bond redemption fund. All mortgages purchased with moneys from the veterans housing loan fund shall be the exclusive property of the bond redemption fund. All moneys received by the authority from the repayment of veterans housing loans shall be deposited into such fund to be used for the repayment of veterans housing bonds issued pursuant to s. 234.40 235.409.

SB21,3878 Section 3878. 234.44 of the statutes is renumbered 235.44 and amended to read:

SB21,1435,2 235.44 Validation of certain obligations and proceedings. Notwithstanding any provision of this chapter or any other law, in the absence of fraud, all obligations issued prior to May 4, 1976 purportedly pursuant to this chapter ch. 234, 2013 stats., and all proceedings prior to such time taken purportedly pursuant to this chapter ch. 234, 2013 stats., for the authorization and issuance of such obligations or of obligations not yet issued, and the sale, execution, and delivery of such obligations issued prior to May 4, 1976, are hereby validated, ratified, approved, and confirmed, notwithstanding any lack of power, however patent, other than constitutional, of the issuing authority or the governing body or officer thereof, to authorize such obligations, or to sell, execute, or deliver the same, and notwithstanding any defects or irregularities, however patent, other than constitutional, in such proceeding or in such sale, execution, or delivery of such obligations. All such obligations issued prior to May 4, 1976 are binding, legal obligations in accordance with their terms.

SB21,3879 Section 3879. 234.49 of the statutes is renumbered 235.49, and 235.49 (1) (intro.) and (2) (a) (intro.), 6. and 8., as renumbered, are amended to read:

SB21,1435,5 235.49 (1) Definitions. (intro.) In ss. 234.49 235.49 to 234.55 235.55:

SB21,1435,8 (2) (a) (intro.) The authority has the following powers for the purpose of implementing this section, in addition to all other powers granted by this chapter subchapter:

SB21,1435,15 6. To enter into contracts or agreements with authorized lenders and sponsors providing for the maximum and minimum acceptable rates of interest to be charged for various classifications of housing rehabilitation loans. In no event may the stated rate of interest on any housing rehabilitation loan under this section exceed the greater of 8% per year or 3% plus the rate necessary to fully repay interest and principal on housing rehabilitation loan program bonds issued pursuant to s. 234.50 235.50.

SB21,1435,17 8. To adopt procedures and forms necessary to effectuate the rehabilitation program or to facilitate the marketing of bonds issued under s. 234.50 235.50.

SB21,3880 Section 3880. 234.50 of the statutes is renumbered 235.50, and 235.50 (1), (2) and (4), as renumbered, are amended to read:

SB21,1436,5 235.50 (1) The authority may issue its negotiable bonds in such principal amount and of such length of maturity as, in the opinion of the authority, is necessary to provide sufficient funds for purchasing housing rehabilitation loans or for funding commitments for loans to lenders for housing rehabilitation loans; for purchasing property tax deferral loans under s. 234.49 235.49 (2) (a) 10.; for the establishment of reserves to secure such bonds; and for all other expenditures of the authority incident to or necessary and convenient in connection therewith. The authority may, whenever it deems refunding expedient, refund any bonds by the issuance of new bonds whether the bonds to be refunded have or have not matured, and issue bonds partly to refund bonds then outstanding and partly for the purpose authorized by this section.

SB21,1436,15 (2) Bonds issued under the authority of this section shall be special obligations of the authority payable solely out of revenues, moneys or other property received in connection with the housing rehabilitation loan program, including, without limitation, repayments of housing rehabilitation loans, federal insurance or guarantee payments, the proceeds of bonds issued under the authority of this section, and the amounts made available under ss. 234.54 235.54 and 234.55 235.55. All assets and liabilities created through the issuance of bonds to purchase housing rehabilitation loans shall be separate from all other assets and liabilities of the authority. No funds of the housing rehabilitation loan program may be commingled with any other funds of the authority.

SB21,1436,22 (4) The limitations established in ss. 234.18, 234.40, 234.60, 234.61, and 234.65 235.0255, 235.409, 235.60, and 235.61 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for housing rehabilitation loans in an aggregate principal amount exceeding $100,000,000, excluding bonds being issued to refund outstanding bonds. The authority shall consult with and coordinate the issuance of bonds with the building commission prior to the issuance of bonds.

SB21,3881 Section 3881. 234.51 of the statutes is renumbered 235.51, and 235.51 (1), (2) (a) and (3), as renumbered, are amended to read:

SB21,1437,6 235.51 (1) There is established under the jurisdiction of the authority a housing rehabilitation loan program administration fund. There shall be paid into such fund the amounts appropriated under s. 20.490 20.885 (2) (a) (ad), the amounts provided in s. 234.55 235.55, any amounts transferred by the authority to such fund from other funds or sources and any other moneys which may be available to the authority for the purpose of such fund from any other source.

SB21,1437,10 (2) (a) To pay all administrative costs, expenses, and charges, including origination fees and servicing fees, incurred in conducting the housing rehabilitation loan program other than those described in ss. 234.53 235.53 (4) and 234.55 235.55 (2) (b).

SB21,1437,14 (3) Moneys of the fund may be invested as provided in s. 234.03 (18) policies and procedures established by the authority. All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.

SB21,3882 Section 3882. 234.52 of the statutes is renumbered 235.52, and 235.52 (1), (2) and (3), as renumbered, are amended to read:

SB21,1437,22 235.52 (1) There is established under the jurisdiction of the authority a housing rehabilitation loan program loan-loss reserve fund. There shall be paid into such fund the amounts appropriated under s. 20.490 20.885 (2) (q), the amounts provided under s. 234.55 235.55, any amounts transferred by the authority to such fund from other funds or sources and any other moneys which may be available to the authority for the purposes of such fund from any other source.

SB21,1438,5 (2) Subject to agreements with bondholders, the authority shall use moneys in the fund solely for transfer to the housing rehabilitation loan program bond redemption fund in amounts equal to losses on housing rehabilitation loans owned by that fund which are not made good by federal insurance or guarantee payments, and solely for the purposes described in s. 234.55 235.55 (2) (a). Any balance remaining after payment or due provision for payment of all outstanding bonds issued under the authority of s. 234.50 235.50 shall be transferred to the housing rehabilitation loan program administration fund.

SB21,1438,9 (3) Moneys of the fund may be invested as provided in s. 234.03 (18) policies and procedures established by the authority. All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.

SB21,3883 Section 3883. 234.53 of the statutes is renumbered 235.53, and 235.53 (1), (2) and (3), as renumbered, are amended to read:

SB21,1438,16 235.53 (1) The authority shall establish the housing rehabilitation loan fund. All moneys resulting from the sale of bonds issued under the authority of s. 234.50 235.50, not including bonds issued to refund outstanding bonds, and unless credited to the housing rehabilitation loan program capital reserve or bond redemption funds, shall be credited to such fund.

SB21,1438,21 (2) The authority shall use moneys in the fund for the purpose of purchasing housing rehabilitation loans or for funding commitments for loans to lenders for housing rehabilitation loans. All disbursements of funds under this section for purchasing such loans shall be made payable to an authorized lender as defined in s. 234.49 235.49 (1) (b) or a duly authorized agent thereof.

SB21,1438,25 (3) Moneys of the fund may be invested as provided in s. 234.03 (18) policies and procedures established by the authority. All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.

SB21,3884 Section 3884. 234.54 of the statutes is renumbered 235.54, and 235.54 (1r) and (4) (a), as renumbered, are amended to read:

SB21,1439,9 235.54 (1r) The authority shall establish the housing rehabilitation loan program capital reserve fund to secure the bonds issued under the authority of s. 234.50 235.50, and shall pay into such fund any moneys appropriated and made available by the state for the purposes of such fund, any proceeds of sale of housing rehabilitation bonds to the extent provided in the resolution of the authority authorizing the issuance thereof and any other moneys which are made available to the authority for the purpose of such fund from any other source.

SB21,1439,13 (4) (a) To assure the continued operation and solvency of the authority for the carrying out of the public purposes of this chapter subchapter, the authority shall accumulate in the capital reserve fund an amount equal to the capital reserve fund requirement for such fund.

SB21,3885 Section 3885. 234.55 of the statutes is renumbered 235.55, and 235.55 (1) and (4), as renumbered, are amended to read:

SB21,1440,3 235.55 (1) The authority shall establish the housing rehabilitation loan program bond redemption fund. All housing rehabilitation loans purchased with moneys from the housing rehabilitation loan fund or notes evidencing loans to lenders from such fund for housing rehabilitation loans shall be the exclusive property of such redemption fund. All moneys received from the repayment of such loans, any amounts transferred by the authority to such fund pursuant to s. 234.52 235.52 or from other funds or sources, any federal insurance or guarantee payments with respect to such loans, all moneys resulting from the sale of bonds for the purpose of refunding outstanding housing rehabilitation bonds unless credited to the housing rehabilitation loan program capital reserve fund, and any other moneys which may be available to the authority for the purpose of such fund, shall be deposited into such fund to be used for the repayment of housing rehabilitation bonds issued under the authority of s. 234.50 235.50.

SB21,1440,7 (4) Moneys of the fund may be invested as provided in s. 234.03 (18) policies and procedures established by the authority. All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.

SB21,3886 Section 3886. 234.59 of the statutes is renumbered 235.59, and 235.59 (2) (e) and (3) (bc) 3., as renumbered, are amended to read:

SB21,1440,12 235.59 (2) (e) May enter into agreements to insure or provide additional security for homeownership mortgage loans or bonds or notes issued under s. 234.60 235.60.

SB21,1440,17 (3) (bc) 3. If the authority sets aside at least 20% of the proceeds of a bond or note issuance under s. 234.60 235.60 to fund home ownership mortgage loans for eligible properties that are targeted area residences, the authority may apply up to 33% of the proceeds that are set aside for that purpose without regard to the income of the applicant.

SB21,3887 Section 3887. 234.592 of the statutes is renumbered 235.592, and 235.592 (1) (a), (b) and (c) and (2) (c), as renumbered, are amended to read:

SB21,1440,21 235.592 (1) (a) "Authorized lender" has the meaning given in s. 234.59 235.59 (1) (a).

SB21,1440,22 (b) "Eligible property" has the meaning given in s. 234.59 235.59 (1) (d) 1.

SB21,1440,23 (c) "Principal residence" has the meaning given in. s. 234.59 235.59 (1) (j).

SB21,1440,25 (2) (c) May enter into agreements to insure or provide additional security for loans or bonds or notes issued under s. 234.60 235.60.

SB21,3888 Section 3888. 234.60 of the statutes is renumbered 235.60, and 235.60 (1), (2), (5) (c) and (9), as renumbered, are amended to read:

SB21,1441,5 235.60 (1) The authority may issue its bonds or notes to fund homeownership mortgage loans or the refinancing of qualified subprime loans under s. 234.592 235.592.

SB21,1441,7 (2) The limitations in ss. 234.18, 234.40, 234.50, 234.61, and 234.65 235.0255, 235.409, 235.50, and 235.61 do not apply to bonds or notes issued under this section.

SB21,1441,10 (5) (c) The secretary of administration shall determine the date after which no bond or note may be issued under this section for the purpose of financing the acquisition or replacement of an existing mortgage under s. 234.592 235.592.

SB21,1441,13 (9) The executive director of the authority shall make every effort to encourage participation in the homeownership mortgage loan program and the qualified subprime loan refinancing program by women and minorities.

SB21,3889 Section 3889. 234.605 of the statutes is renumbered 235.605, and 235.605 (1) (a) and (2), as renumbered, are amended to read:

SB21,1441,17 235.605 (1) (a) "Eligible property" has the meaning given in s. 234.59 235.59 (1) (d) 1.

SB21,1441,21 (2) Subject to the approval of all members of the board of directors of the authority, the authority may establish and administer a homeowner eviction and lien protection program to encourage the refinancing of mortgage loans by lenders in order to facilitate the retention of eligible property by persons and families.

SB21,3890 Section 3890. 234.61 of the statutes is renumbered 235.61, and 235.61 (1), as renumbered, is amended to read:

SB21,1442,6 235.61 (1) Upon the authorization of the department of health services, the authority may issue bonds or notes and make loans for the financing of housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the development costs of those housing projects, if the department of health services has approved the residential facilities for financing under s. 46.28 (2). The limitations in ss. 234.18, 234.40, 234.50, 234.60, and 234.65 235.0255, 235.409, 235.50, and 235.60 do not apply to bonds or notes issued under this section. The definition of "nonprofit corporation" in s. 234.01 235.40 (9) does not apply to this section.

SB21,3891 Section 3891. 234.621 of the statutes is renumbered 235.621.

SB21,3892 Section 3892. 234.622 (intro.) of the statutes is renumbered 235.622 (intro.) and amended to read:

SB21,1442,10 235.622 Definitions. (intro.) In ss. 234.621 to 234.626 235.621 to 235.626:

SB21,3893 Section 3893. 234.622 (1) of the statutes is renumbered 235.622 (1).

SB21,3894 Section 3894. 234.622 (2m) of the statutes is repealed.

SB21,3895 Section 3895. 234.622 (3) of the statutes is renumbered 235.622 (3).

SB21,3896 Section 3896. 234.622 (3m) of the statutes is renumbered 235.622 (3m).

SB21,3897 Section 3897. 234.622 (4) of the statutes is renumbered 235.622 (4).

SB21,3898 Section 3898. 234.622 (5) of the statutes is renumbered 235.622 (5) and amended to read:

SB21,1442,24 235.622 (5) "Permitted obligations" means the total amount of outstanding liens and judgments on the qualifying dwelling unit if that amount does not exceed 33% of the value of the unit as determined by the most recent assessment for property tax purposes. For purposes of ss. 234.621 235.621 to 234.626 235.626, housing and rehabilitation loans under s. 234.49 235.49 and liens arising under ss. 234.621 235.621 to 234.626 235.626 shall not be considered outstanding liens or judgments in computing the amount of permitted obligations.

SB21,3899 Section 3899. 234.622 (6) of the statutes is renumbered 235.622 (6) and amended to read:

SB21,1443,4 235.622 (6) "Program" means the program under ss. 234.621 235.621 to 234.626 235.626.

SB21,3900 Section 3900. 234.622 (7) of the statutes is renumbered 235.622 (7) and amended to read:

SB21,1443,16 235.622 (7) "Qualifying dwelling unit" means a dwelling unit, not including a mobile home as defined in s. 101.91 (10), located in this state, habitable as a permanent residence and to which property taxes or special assessments are, or may conveniently be, allocated and up to one acre of land appertaining to it held in the same ownership as the dwelling unit. For purposes of ss. 234.621 235.621 to 234.626 235.626, "qualifying dwelling unit" includes a unit in a condominium or in a cooperative or an unincorporated cooperative association or in a multiunit dwelling with 4 or fewer units, but in all of these 3 cases only the portion of taxes or special assessments allocable to the unit lived in by the participant may qualify for loans under ss. 234.621 235.621 to 234.626 235.626.

SB21,3901 Section 3901. 234.623 of the statutes is renumbered 235.623, and 235.623 (1) and (3), as renumbered, are amended to read:

SB21,1443,22 235.623 (1) The participant applies on forms prescribed by the authority for a loan to pay property taxes or special assessments by June 30 of the year in which the taxes or special assessments are payable on a qualifying dwelling unit and, except as provided in s. 234.625 235.625 (5), specifies the names of all co-owners.

SB21,1444,2 (3) The participant keeps continuously in effect during the period that a loan is outstanding under ss. 234.621 235.621 to 234.626 235.626 a fire and extended casualty insurance policy on the qualifying dwelling unit satisfactory to the authority and permits the authority to be named on the policy as a lienholder.

SB21,3902 Section 3902. 234.624 of the statutes is renumbered 235.624.

SB21,3903 Section 3903. 234.625 of the statutes is renumbered 235.625, and 235.625 (1), (2), (3), (4) (b) 1. and 6., (5), (9) and (10), as renumbered, are amended to read:

SB21,1444,17 235.625 (1) The authority shall enter into agreements with participants and their co-owners to loan funds to pay property taxes and special assessments on their qualifying dwelling units. The maximum loan under ss. 234.621 235.621 to 234.626 235.626 in any one year is limited to the lesser of $3,525 or the amount obtained by adding the property taxes levied on the qualifying dwelling unit for the year for which the loan is sought, the special assessments levied on the dwelling unit, and the interest and penalties for delinquency attributable to the property taxes or special assessments. Loans shall bear interest at a rate equal to the prime lending rate at the time the rate is set, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 1%. The executive director authority shall set the rate no later than October 15 of each year, and that rate shall apply to loans made in the following year.

SB21,1444,23 (2) The authority shall have all powers under s. 234.03 that are necessary or convenient to the operation of a loan program, including, without limitation because of enumeration, the power to enter into contracts, to pay or be paid for the performance of services, to exercise all rights of a lienholder under subch. I of ch. 779, and to perform other administrative actions that are necessary in the conduct of its duties under ss. 234.621 235.621 to 234.626 235.626.

SB21,1445,3 (3) The authority shall adopt rules policies and establish procedures under which applications for loans under this section may be submitted, reviewed, and approved; under which repayment of the loans are to be obtained; under which disputes and claims concerning the loans are to be settled; and under which records concerning are to be maintained.

SB21,1445,6 (4) (b) 1. Transfer of the qualifying dwelling unit by any means except upon transfer to a co-owner who resides in the unit and who is permitted to assume the participant's account as provided in s. 234.624 235.624.

SB21,1445,8 6. The participant ceases to meet the eligibility requirements of s. 234.623 235.623, except as provided in sub. (5).

SB21,1445,16 (5) If a participant in the program ceases to meet the eligibility requirements of this section, the authority, rather than demanding repayment under sub. (4) (b), may allow the participant to continue in the program, may allow the participant to continue in the program but be ineligible for additional loans, or may require partial settlement. The authority may also allow co-owners to be added to the loan agreement if, in the judgment of the executive director, the authority determines that the addition of co-owners does not significantly increase the authority's exposure to risk under the loan agreement.

SB21,1446,14 (9) Upon the making of the initial loan, a nonconsensual statutory lien in favor of the authority to secure payment of the principal, interest, fees and charges due on all loans, including loans made after the lien is filed, to the participant made under ss. 234.621 235.621 to 234.626 235.626 shall attach to the qualifying dwelling unit in respect to which the loan is made. The qualifying dwelling unit shall remain subject to the statutory lien until the payment in full of all loans and charges. If the authority funds such loans from the proceeds of notes or bonds under s. 234.626 235.626, its right under the lien shall automatically accrue to the benefit of the holders of those notes or bonds, without any action or assignment by the authority. When a loan becomes due and payable, the statutory lien hereby conferred may be enforced by the authority or the holders of the notes or bonds or their representative, as the case may be, in the same manner as a construction lien under ss. 779.09 to 779.12, except that neither the participant nor any co-owners or their personal representatives, successors or assigns shall be personally liable for any deficiency which may arise from the sale. At the time of disbursing the initial loan to a participant, the authority shall record with the register of deeds of the county in which the qualifying dwelling unit is located, on a form prescribed by the authority which shall contain a legal description of the qualifying dwelling unit, a notice of the loan made under ss. 234.621 235.621 to 234.626 235.626 and the existence of the statutory lien arising therefrom. The register of deeds shall record the notice in the land records and index it in the indexes maintained by the register of deeds. The statutory lien created by this section shall have priority over any lien that originates subsequent to the recording of the notice.

SB21,1446,19 (10) If the property taxes or special assessments are paid, using a loan made under ss. 234.621 235.621 to 234.626 235.626, after the taxes or assessments are due, the participant shall be liable for interest and penalty charges for delinquency under ch. 74. Subject to sub. (1), the principal amount of loans made under this program may include delinquency charges.

SB21,3904 Section 3904. 234.626 of the statutes is renumbered 235.626, and 235.626 (1), (2), (2m), (4), (6) and (7), as renumbered, are amended to read:

SB21,1446,25 235.626 (1) Loans made or authorized to be made under ss. 234.621 235.621 to 234.626 235.626 may be funded from the proceeds of notes and bonds issued subject to and in accordance with ss. 234.08 to 234.14 235.02 to 235.0235 and from the fund under s. 234.165 235.025.

SB21,1447,9 (2) The authority may create a system of funds and accounts, separate and distinct from all other funds and accounts of the authority, consisting of moneys received from notes and bonds, all revenues received in the repayment of loans made under ss. 234.621 235.621 to 234.626 235.626, except as provided in sub. (2m), and any other revenues dedicated to it by the authority. The authority may pledge moneys and revenues received or to be received by this system of funds and accounts to secure bonds or notes issued for the program. The authority shall have all other powers necessary and convenient to distribute the proceeds of the bonds, notes, and loan repayments in accordance with its powers under this chapter subchapter.

SB21,1447,11 (2m) Revenues received in the repayment of loans made under s. 234.165 235.025 shall be paid into the fund under s. 234.165 235.025.

SB21,1447,16 (4) The authority may adopt rules policies and procedures that restrict eligibility in addition to the requirements of s. 234.623 235.623 or require the provision of additional security if, in the executive director's judgment, the authority determines that the rules or security are required for the satisfactory issuance of bonds or notes.