SF0097H3001

[TO ENGROSSED COPY]

Page 6-line 12 After "treasurer" insert ". To protect the state's interest, the state treasurer may negotiate protections with respect to any accepted collateral, including but not limited to, escrow accounts, debt limitations, cash sweeps, pledge rights, corporate approval rights and other mechanisms the state treasurer deems appropriate".

Page 7-lines 18 through 24 Delete entirely including the Northrup committee of the whole amendment (SF0097HW001/AE) to these lines and insert:

"(viii) Except as provided in this paragraph, the state treasurer shall secure a first security interest in the entire project sufficient to adequately protect the investment of loan proceeds or proceeds guaranteed by the state under this section. If necessary, the state treasurer may accept substitute security which will protect repayment to the state on a basis substantially equivalent to a first security interest on the project. The state treasurer shall insure that any alternate security is sufficient to prudently protect the state's interest in the entire project and any alternate security places the state before any other lender in priority of payment on the entire project in the event of default; and". NORTHRUP, JAGGI