(1) The board is authorized to issue economic development bonds under its MOBP program and to:

(a) use the proceeds to purchase loans from approved financial institutions for projects located in the state;

(b) acquire projects located in the state from financial institutions;

(c) make loans to financial institutions, requiring the proceeds to be used by the financial institution for the purpose of financing projects located in the state;

(d) finance projects located in the state upon such terms and conditions as determined by the board.

(2) The board is authorized to issue economic development bonds under its SABP program and to:

(a) finance projects located in the state upon such terms and conditions as determined by the board as set forth in these rules; and

(b) repay the bonds solely from loan repayments and one or more reserve funds or such other security pledged thereto.

(3) For both the SABP and MOBP programs, the board may issue bonds that do or do not qualify for tax exemption under the Federal Tax Reform Act of 1986.

(4) As required by 2-4-305, MCA, notice is given that the descriptions contained in subsections (1) and (3) above repeat 17-5-1505, MCA, in order to assist in fully describing the board's bond programs.