(a) The Virgin Islands Hotel Development Financing Corporation (“VIHDFC”) is established as a subsidiary of the Virgin Islands Public Finance Authority for the specific purpose of overseeing the development, operation and financing of hotels in the United States Virgin Islands, and shall have the same or similar rights, powers, obligations and responsibilities of Virgin Islands Public Finance Authority as provided in title 29 Virgin Islands Code, chapter 15. The issuance of bonds shall not be a general obligation of the VIHDFC, the issuer or the Government of the U.S. Virgin Islands.
(b) Notwithstanding any other law, neither the Government of the Virgin Islands, the Virgin Islands Public Finance Authority, nor any of their officers, employees, or agents shall be liable for any debt, obligation, or liability incurred by the VIHDFC.
(c) Bonds, notes, or other evidences of indebtedness issued by the VIHDFC pursuant to this act shall not constitute a debt of the Government of the Virgin Islands, nor a pledge of the full faith and credit of the Government of the Virgin Islands.
(d) Authority to Issue Bonds for 501(c)(3) Organizations. The VIHDFC may issue tax-exempt or taxable revenue bonds, notes, or other obligations as a conduit issuer on behalf of an organization described in section 501(c)(3) of the Internal Revenue Code (“Qualified Nonprofit”), for the purpose of financing, refinancing, or reimbursing the costs of capital projects, facilities, equipment, operating and debt service reserves, or other eligible expenditures undertaken by the Qualified Nonprofit.
(e) Public Purpose Determination. The VIHDFC shall ensure that:1. The Qualified Nonprofit is duly organized and recognized under Section 501(c)(3) of the Internal Revenue Code;2. The project serves a charitable, educational, health, cultural, or other public purpose;3. The financing complies with federal tax law governing 501(c)(3) conduit bonds; and4. The issuance does not expose the Government to financial risk.
1. The Qualified Nonprofit is duly organized and recognized under Section 501(c)(3) of the Internal Revenue Code;
2. The project serves a charitable, educational, health, cultural, or other public purpose;
3. The financing complies with federal tax law governing 501(c)(3) conduit bonds; and
4. The issuance does not expose the Government to financial risk.
(f) No Pledge of Government Credit. All bonds issued under this section shall be special, limited obligations of the VIHDFC. The full faith and credit of the Government of the Virgin Islands shall not be pledged, and the Government shall have no financial obligation or liability whatsoever with respect to repayment of the bonds.
(g) Payment Solely from Revenues of the 501 (c)(3) Borrower. Bonds issued under this section shall be payable solely from loan repayments, revenues, lease payments, or other security provided by the Qualified Nonprofit.