meeting at which the local government unit demonstrates
the due diligence. A local government unit may only issue
a guaranty to an authority or other local government unit
for projects which are expressly authorized by statute,
including projects under section 5607 (relating to
purposes and powers).
(ii) Notwithstanding the provisions of subparagraph
(i), a local government unit may not issue a guaranty to
an authority or other local government unit for sums due
under a qualified interest rate management agreement, nor
may guaranties be issued for projects which involve
untested technology or experimentation.
(3) A local government unit is prohibited from
collecting a fee to guaranty the debt of an authority or
another local government unit.
§ 8007. Cost of project.
The cost of a project includes the amount of all payments to
contractors or for the acquisition of a project or for lands,
easements, rights and other appurtenances deemed necessary for
the project, fees of architects, engineers, appraisers,
consultants, financial advisors and attorneys incurred in
connection with the project financing costs, costs of necessary
printing and advertising, costs of preliminary feasibility
studies and tests, cost estimates and interest on money borrowed
to finance the project, if capitalized, to the date of
completion of construction and, if deemed necessary, for one
year thereafter, amounts to be placed in reserve funds, if any,
a reasonable initial working capital for operating the project
and a proper allowance for contingencies and any amount which
constitutes, under generally accepted accounting principles, a
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