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He urged the SFC board to move quickly to conclude the price
assistance agreement with the partnership. Similarly, in a May
21, 1985, letter to SFC, DOE Secretary Herrington also supported
an SFC assistance agreement; he urged that any support agreement
should ensure the long-term operation of the plant. By letter
dated May 22, 1985, SFC Chairman Edward Noble responded that to
ensure the long-term operation of the plant, DOE should
restructure the debt repayment schedule. Mr. Noble requested
further response from DOE before committing to final negotiations
with the partnership.
Also on May 22, 1985, DOE Assistant Secretary Mares gave
congressional testimony, describing the need for the price
guarantee assistance agreement. He testified that DOE believed
that, if SFC provided the intended financial assistance for the
project, the sponsors would be able to continue operating the
project beyond the year 2000. He testified that, in the event of
foreclosure on the project assets, the partnership would be
entitled by North Dakota law to a 1-year redemption period and
would be entitled to possession of the property and to its rents
and profits during that time. He testified that under North
Dakota law, although the partnership may have voluntarily waived
those rights in the loan documents, contracts in restraint of the
right of redemption are void and unenforceable.
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