House Bill No. 5658
House Bill No. 5658
PUBLIC ACT NO. 98-124
AN ACT CONCERNING INTEREST RATE RISK MANAGEMENT
AGREEMENTS IN CONNECTION WITH STATE BONDS AND
EXPANDING CERTAIN INVESTMENT OPTIONS FOR STATE
BOND PROCEEDS.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Subsection (f) of section 3-20 of
the general statutes, as amended by section 1 of
public act 97-1 of the June 5 special session, is
repealed and the following is substituted in lieu
thereof:
(f) With the exception of refunding bonds,
the proceeds of the sale of the bonds and any
moneys held or otherwise set aside for the
repayment of the bonds shall be deposited with the
Treasurer or, at the direction of the Treasurer,
with a commercial bank or trust company, in trust
for the benefit of the state, pending the use or
application thereof, for the purpose and projects
specified in the bond act empowering the State
Bond Commission to authorize such bonds. Any
expense incurred in connection with the carrying
out of the provisions of this section, including
the issuance of refunding bonds, shall be paid
from the accrued interest and premiums or from the
proceeds of the sale of such bonds or refunding
bonds and in the same manner as other obligations
of the state, except that expenses incurred in
connection with the preparation, issuance and
delivery of general obligation bonds issued in
accordance with sections 3-17 and 10-183m, and
delivered to the retirement fund provided for in
section 10-183r shall be paid out of the General
Fund if sufficient accrued interest and premiums
are not available to pay such expenses. With the
exception of the proceeds of refunding bonds
deposited in a defeasance escrow fund, pending the
use or application of any such bond proceeds or
any such funds, such proceeds or funds may be
deposited with the Treasurer in such fund or funds
of the state as appropriate or at the direction of
the Treasurer in a commercial bank or trust
company with or without security to the credit of
such fund or funds, or may be invested by, or at
the direction of the Treasurer in bonds or
obligations of, or guaranteed by, the state or the
United States, or agencies or instrumentalities of
the United States, in certificates of deposit,
commercial paper, savings accounts and bank
acceptances, in the obligations of any state of
the United States or any political subdivision
thereof or the obligations of any instrumentality,
authority or agency of any state OR POLITICAL
SUBDIVISION THEREOF, provided that at the time of
investment such obligations are rated within one
of the top two rating categories of any nationally
recognized rating service or of any rating service
recognized by the state Commissioner of Banking,
and applicable to such obligations, in the
obligations of any regional school district in
this state, of any municipality in this state or
any metropolitan district in this state, provided
that at the time of investment such obligations of
such government entity are rated within one of the
top three rating categories of any nationally
recognized rating service or of any rating service
recognized by the state Commissioner of Banking,
and applicable to such obligations, or in any fund
in which a trustee may invest pursuant to section
36a-353, or in investment agreements with
financial institutions whose long-term obligations
are rated within the top two rating categories of
any nationally recognized rating service or of any
rating service recognized by the state
Commissioner of Banking or whose short-term
obligations are rated within the top rating
category of any nationally recognized rating
service or of any rating service recognized by the
state Commissioner of Banking, or investment
agreements fully secured by obligations of, or
guaranteed by, the United States or agencies or
instrumentalities of the United States. Except as
may be provided herein or in any other public or
special act, net earnings of investments of
proceeds of bonds and such funds, and accrued
interest and premiums on the issuance of such
bonds shall, after payment of expenses incurred by
the Treasurer or State Bond Commission in
connection with their issuance, if any, be
deposited to the credit of the General Fund.
Sec. 2. Section 3-20a of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) PROVISIONS OF THIS SECTION SHALL APPLY TO
GENERAL OBLIGATION BONDS OR NOTES ISSUED PURSUANT
TO SECTION 3-20, AS AMENDED, SPECIAL TAX
OBLIGATION BONDS OR NOTES ISSUED PURSUANT TO
SECTIONS 13b-74 TO 13b-77, INCLUSIVE, AS AMENDED
BY THIS ACT, CLEAN WATER FUND BONDS OR NOTES
ISSUED PURSUANT TO SECTION 22a-483, AS AMENDED BY
SECTION 9 OF THIS ACT, BRADLEY INTERNATIONAL
AIRPORT BONDS OR NOTES ISSUED PURSUANT TO SECTIONS
15-101k TO 15-101p, INCLUSIVE, AS AMENDED BY THIS
ACT, UNEMPLOYMENT COMPENSATION BONDS OR NOTES
ISSUED PURSUANT TO SECTIONS 31-264a AND 31-264b,
AS AMENDED BY THIS ACT, UCONN 2000 BONDS OR NOTES
ISSUED PURSUANT TO SECTIONS 10a-109a TO 10a-109y,
INCLUSIVE, AS AMENDED BY THIS ACT, AND SECOND
INJURY FUND BONDS OR NOTES ISSUED PURSUANT TO
SECTIONS 7 TO 9, INCLUSIVE, OF PUBLIC ACT 96-242,
AS AMENDED BY THIS ACT.
(b) The STATE Treasurer may obtain from a
commercial bank or insurance company authorized to
do business within or without this state a letter
of credit, line of credit or other LIQUIDITY
FACILITY OR credit facility [upon such terms and
conditions as shall be approved by the State Bond
Commission,] for the purpose of providing funds
for the payments in respect of bonds, notes or
other obligations required by the holder thereof
to be redeemed or repurchased prior to maturity or
for providing additional security for such bonds,
notes or other obligations. In connection
therewith, WITH THE AUTHORIZATION OF THE STATE
BOND COMMISSION, the STATE Treasurer may
[authorize the execution of] ENTER INTO
reimbursement agreements, remarketing agreements,
standby bond purchase agreements [, agreements for
the purpose of moderating interest rate
fluctuations] and any other necessary or
appropriate agreements [. As part of the contract
of the state with the other parties to any
agreement entered into pursuant to this section,
appropriation of all amounts necessary for the
punctual payment of the obligations of the state
under any such agreement is hereby made and the
Treasurer shall pay such amounts as the same
become due] ON BEHALF OF THE STATE. The State Bond
Commission may, at its discretion, AUTHORIZE THE
STATE TREASURER TO pledge the full faith and
credit of the state, TO THE EXTENT THE FULL FAITH
AND CREDIT OF THE STATE IS PLEDGED TO SECURE THE
BONDS OR NOTES FOR WHICH THE LIQUIDITY OR CREDIT
FACILITY IS OBTAINED, OR TO PLEDGE THE COLLATERAL
THAT SECURES THE APPLICABLE BONDS OR NOTES, to the
state's payment obligations under any agreement
entered into pursuant to this section. AS PART OF
THE CONTRACT OF THE STATE WITH THE OTHER PARTIES
TO ANY AGREEMENT ENTERED INTO PURSUANT TO THIS
SECTION FOR WHICH THE FULL FAITH AND CREDIT OF THE
STATE IS PLEDGED TO THE STATE'S PAYMENT
OBLIGATIONS UNDER SUCH AGREEMENT, APPROPRIATION OF
ALL AMOUNTS NECESSARY FOR THE PUNCTUAL PAYMENT OF
THE OBLIGATIONS OF THE STATE UNDER ANY SUCH
AGREEMENT IS HEREBY MADE AND THE STATE TREASURER
SHALL PAY SUCH AMOUNTS AS THE SAME BECOME DUE. THE
INITIAL COSTS OF SUCH AGREEMENTS MAY BE PAID FROM
THE ACCRUED INTEREST AND PREMIUM RECEIVED ON THE
SALE OF SUCH BONDS.
(c) IN CONNECTION WITH OR INCIDENTAL TO THE
CARRYING OF BONDS OR NOTES OR IN CONNECTION WITH
OR INCIDENTAL TO THE SALE AND ISSUANCE OF BONDS OR
NOTES, THE STATE TREASURER, WITH THE AUTHORIZATION
OF THE STATE BOND COMMISSION, MAY ENTER INTO SUCH
CONTRACTS AS THE STATE TREASURER MAY DETERMINE TO
BE NECESSARY OR APPROPRIATE TO PLACE THE
OBLIGATION OF THE STATE, AS REPRESENTED BY THE
BONDS OR NOTES, IN WHOLE OR IN PART, ON SUCH
INTEREST RATE OR CASH FLOW BASIS AS THE STATE
TREASURER MAY DETERMINE, INCLUDING WITHOUT
LIMITATION, INTEREST RATE SWAP AGREEMENTS,
INSURANCE AGREEMENTS, FORWARD PAYMENT CONVERSION
AGREEMENTS, FUTURES CONTRACTS, CONTRACTS PROVIDING
FOR PAYMENTS BASED ON LEVELS OF, OR CHANGES IN,
INTEREST RATES OR MARKET INDICES, CONTRACTS TO
MANAGE INTEREST RATE RISK, INCLUDING WITHOUT
LIMITATION INTEREST RATE FLOORS OR CAPS, OPTIONS,
PUTS, CALLS AND SIMILAR ARRANGEMENTS. SUCH
CONTRACTS SHALL CONTAIN SUCH PAYMENT, SECURITY,
DEFAULT, REMEDY AND OTHER TERMS AND CONDITIONS AS
THE STATE TREASURER MAY DEEM APPROPRIATE AND SHALL
BE ENTERED INTO WITH SUCH PARTY OR PARTIES AS THE
STATE TREASURER MAY SELECT, AFTER GIVING DUE
CONSIDERATION, WHERE APPLICABLE, FOR THE
CREDITWORTHINESS OF THE COUNTER PARTY OR COUNTER
PARTIES, INCLUDING ANY RATING BY A NATIONALLY
RECOGNIZED RATING AGENCY, THE IMPACT ON ANY RATING
ON OUTSTANDING BONDS OR NOTES OR ANY OTHER
CRITERIA AS THE STATE TREASURER MAY DEEM
APPROPRIATE, PROVIDED THE UNSECURED LONG-TERM
OBLIGATIONS OF THE COUNTER PARTY IS RATED THE SAME
OR HIGHER THAN THE UNDERLYING RATING OF THE STATE
ON THE APPLICABLE BONDS OR NOTES BY AT LEAST ONE
NATIONALLY RECOGNIZED RATING AGENCY. THE STATE
BOND COMMISSION MAY, AT ITS DISCRETION, AUTHORIZE
THE STATE TREASURER TO PLEDGE THE FULL FAITH AND
CREDIT OF THE STATE, TO THE EXTENT THE FULL FAITH
AND CREDIT OF THE STATE IS PLEDGED TO SECURE THE
APPLICABLE BONDS OR NOTES, OR TO PLEDGE ALL OF ANY
PART OF THE COLLATERAL THAT SECURES THE APPLICABLE
BONDS OR NOTES, TO THE STATE'S PAYMENT OBLIGATIONS
UNDER ANY CONTRACT ENTERED INTO PURSUANT TO THIS
SECTION. AS PART OF THE CONTRACT OF THE STATE WITH
THE OTHER PARTIES TO ANY AGREEMENT ENTERED INTO
PURSUANT TO THIS SECTION FOR WHICH THE FULL FAITH
AND CREDIT OF THE STATE IS PLEDGED TO THE STATE'S
PAYMENT OBLIGATIONS UNDER SUCH AGREEMENT,
APPROPRIATION OF ALL AMOUNTS NECESSARY FOR THE
PUNCTUAL PAYMENT OF THE OBLIGATIONS OF THE STATE
UNDER ANY SUCH AGREEMENT IS HEREBY MADE AND THE
STATE TREASURER SHALL PAY SUCH AMOUNTS AS THE SAME
BECOME DUE. THE INITIAL COSTS OF SUCH CONTRACTS
MAY BE PAID FROM THE ACCRUED INTEREST AND PREMIUM
RECEIVED ON THE SALE OF SUCH BONDS.
Sec. 3. Section 3-20c of the general statutes
is repealed and the following is substituted in
lieu thereof:
The provisions of section 4-89 shall not
apply to any appropriations for debt service on
bonds, notes or other obligations of the state not
expended during the fiscal year used to fund an
account established to moderate the effect of
interest rate fluctuations on variable rate debt
of the state issued under section 3-20, AS
AMENDED, OR TO PLACE THE OBLIGATION OF THE STATE,
AS REPRESENTED BY ANY BONDS OR NOTES, ON AN
INTEREST RATE OR CASH FLOW BASIS AS PROVIDED BY
SUBSECTION (c) OF SECTION 3-20a, AS AMENDED BY
SECTION 2 OF THIS ACT. Such appropriations shall
not lapse except pursuant to the provisions of any
trust instrument OR OTHER AGREEMENT established in
connection with [the issuance of] such variable
rate debt, OR SUCH DIFFERENT INTEREST RATE OR CASH
FLOW BASIS.
Sec. 4. Section 3-21 of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) No bonds, notes or other evidences of
indebtedness for borrowed money payable from
general fund tax receipts of the state shall be
authorized by the General Assembly OR ISSUED
except such as shall not cause the aggregate
amount of (1) the total amount of bonds, notes or
other evidences of indebtedness payable from
General Fund tax receipts authorized by the
General Assembly but which have not been issued
and (2) the total amount of such indebtedness
which has been issued and remains outstanding to
exceed one and six-tenths times the total General
Fund tax receipts of the state for the fiscal year
in which any such authorization will become
effective OR IN WHICH SUCH INDEBTEDNESS IS ISSUED,
as estimated for such fiscal year by the joint
standing committee of the General Assembly having
cognizance of finance, revenue and bonding in
accordance with section 2-35. In computing such
aggregate amount of indebtedness at any time,
there shall be excluded or deducted, as the case
may be, (1) the principal amount of all such
obligations as may be certified by the Treasurer
(A) as issued in anticipation of revenues to be
received by the state during the period of twelve
calendar months next following their issuance and
to be paid by application of such revenue, or (B)
as [issued to refund or replace any such
indebtedness then existing and outstanding in an
amount not exceeding such existing indebtedness]
HAVING BEEN REFUNDED OR REPLACED BY OTHER
INDEBTEDNESS THE PROCEEDS AND PROJECTED EARNINGS
ON WHICH OR OTHER FUNDS ARE HELD IN ESCROW TO PAY
AND ARE SUFFICIENT TO PAY THE PRINCIPAL, INTEREST
AND ANY REDEMPTION PREMIUM UNTIL MATURITY OR
EARLIER PLANNED REDEMPTION OF SUCH INDEBTEDNESS,
or (C) as issued and outstanding in anticipation
of particular bonds then unissued but fully
authorized to be issued in the manner provided by
law for such authorization, provided, so long as
any of said obligations are outstanding, the
entire principal amount of such particular bonds
thus authorized shall be deemed to be outstanding
and be included in such aggregate amount of
indebtedness, or (D) as payable solely from
revenues of particular public improvements, (2)
the amount which may be certified by the Treasurer
as the aggregate value of cash and securities in
debt retirement funds of the state to be used to
meet principal of outstanding obligations included
in such aggregate amount of indebtedness, (3)
every such amount as may be certified by the
Secretary of the Office of Policy and Management
as the estimated payments on account of the costs
of any public work or improvement thereafter to be
received by the state from the United States or
agencies thereof and to be used, in conformity
with applicable federal law, to meet principal of
obligations included in such aggregate amount of
indebtedness, [and] (4) all authorized and issued
indebtedness to fund any budget deficits of the
state for any fiscal year ending on or before June
30, 1991, [and] (5) all authorized indebtedness to
fund the program created pursuant to section
32-285, AND (6) ANY INDEBTEDNESS REPRESENTED BY
ANY AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION
(b) OR (c) OF SECTION 3-20a, AS AMENDED BY SECTION
2 OF THIS ACT, AS CERTIFIED BY THE TREASURER,
PROVIDED THE INDEBTEDNESS IN CONNECTION WITH WHICH
SUCH AGREEMENTS WERE ENTERED INTO SHALL BE
INCLUDED IN SUCH AGGREGATE AMOUNT OF INDEBTEDNESS.
In computing the amount of outstanding
indebtedness, only the accreted value of any
capital appreciation obligation or any zero coupon
obligation which has accreted and been added to
the stated initial value of such obligation as of
the date of any computation shall be included.
(b) The foregoing limitation on the aggregate
amount of indebtedness of the state shall not
prevent the issuance of (1) obligations to refund
or replace any such indebtedness existing at any
time in an amount not exceeding such existing
indebtedness, or (2) obligations in anticipation
of revenues to be received by the state during the
period of twelve calendar months next following
their issuance, or (3) obligations payable solely
from revenues of particular public improvements.
(c) For the purposes of this section, but
subject to the exclusions or deductions herein
provided for, the state shall be deemed to be
indebted upon, and to issue, all bonds and notes
issued or guaranteed by it and payable from
General Fund tax receipts. To the extent necessary
because of the debt limitation herein provided,
priorities with respect to the issuance or
guaranteeing of bonds or notes by the state shall
be determined by the State Bond Commission.
(d) The General Assembly shall not approve
any bill which authorizes the issuance of any
bonds, notes or other evidences of indebtedness
unless such bill has attached to it a
certification by the Treasurer that the amount of
authorizations within the bill will not cause the
total amount of indebtedness calculated in
accordance with this section to exceed the limit
for indebtedness set forth in this section.
(e) The State Bond Commission shall not adopt
any resolution which authorizes the issuance of
any bonds, notes or other evidences of
indebtedness unless such resolution has attached
to it a certification by the Treasurer that the
amount of such authorization will not cause the
total amount of indebtedness calculated in
accordance with this section to exceed the limit
for indebtedness set forth in this section.
(f) The provisions of this section shall not
apply to any bonds, notes or other evidences of
indebtedness for borrowed money which are issued
for the purpose of: (1) Meeting cash flow needs;
or (2) covering emergency needs in times of
natural disaster.
Sec. 5. Section 3-21a of the general statutes
is repealed and the following is substituted in
lieu thereof:
The Superior Court shall have jurisdiction to
enter judgment against the state founded (1) upon
any express contract between the state and the
purchasers and subsequent owners and transferees
of bonds and notes issued or contracted to be
issued by the state, [or] (2) between the state
and any other parties to any agreement entered
into PRIOR TO THE EFFECTIVE DATE OF THIS ACT
pursuant to section 3-20a, AS AMENDED BY SECTION 2
OF THIS ACT, section 31-264b, AS AMENDED BY
SECTION 10 OF THIS ACT, or any agreement entered
into in connection with special tax obligation
bonds or notes issued under chapter 243, OR (3)
UPON ANY AGREEMENT ENTERED INTO PURSUANT TO SAID
SECTION 3-20a. Any action brought under this
section shall be brought in the superior court for
the judicial district of Hartford-New Britain*.
The jurisdiction conferred upon the Superior Court
by this section includes any set-off, claim or
demand whatever on the part of the state against
any plaintiff commencing an action under this
section. Such action shall be tried to the court
without a jury. All legal defenses except
governmental immunity shall be reserved to the
state. Any action brought under this section shall
be privileged in respect to assignment for trial
upon motion of either party.
Sec. 6. Subsection (d) of section 10a-109g of
the general statutes is repealed and the following
is substituted in lieu thereof:
(d) The resolution or indenture pursuant to
which securities are issued shall provide for the
dates of the securities, the maturity dates, which
in the case of securities issued to finance
equipment and collections, shall not exceed five
years and, in the case of securities issued for
any other purpose shall not exceed thirty years
from their dated dates, the special debt service
requirements and dates thereof, the rate or rates
of interest or the manner of varying or
determining such rate or rates, the cash flow
requirements to cover the cost of UConn 2000 or
components thereof to be funded from the proceeds
of such securities, and by whom, on behalf of the
university, such securities shall be delivered,
signed or countersigned, and by whom, on behalf of
the university, disbursements and investments may
be made and all other particulars thereof and may
contain for the benefit of holders, from time to
time and as a contract therewith, any agreements
and the provisions deemed necessary or appropriate
by the university in connection with the issuance
of such securities and may provide for the terms
and security thereof, including, without
limitation, (1) terms and pledges respecting
assured revenues or project revenues and
respecting the fixing and collection of other
revenues of the university or from any project
covered by such resolution or indenture
provisions, if any; (2) provisions respecting
custody of the proceeds from the sale of such
securities; (3) provisions for the investment and
reinvestment of proceeds of the securities until
used to pay costs of a project and for the
disposition of any excess proceeds of the
securities or investment earnings thereon; (4)
provisions for the execution of reimbursement
agreements or similar agreements in connection
with credit facilities, including, but not limited
to, letters of credit or policies of bond
insurance, remarketing agreements and, subject to
the approval of the State Treasurer under section
10a-109j, agreements for the purpose of moderating
interest rate fluctuations, AND OF SUCH OTHER
AGREEMENTS ENTERED INTO PURSUANT TO SECTION 3-20a,
AS AMENDED BY SECTION 2 OF THIS ACT; (5)
provisions for the collection, custody,
investment, reinvestment and use of revenues or
other receipts, funds or moneys pledged therefor;
(6) provisions regarding the establishment and
maintenance of reserves, sinking funds and any
other funds and accounts as shall be approved by
the university in such amounts as the university
may establish and the requirements, investments
and application thereof; (7) covenants for the
establishment of pledged revenue coverage
requirements for such securities; (8) covenants
for the establishment of maintenance and insurance
requirements with respect to a project or
projects; (9) provision for the issuance of
additional securities on a parity with securities
theretofore issued, including establishment of
coverage requirements with respect thereto; (10)
the terms to be incorporated in any loan of the
proceeds of such securities, and in any lease of a
project or projects; (11) the creation and
maintenance of special funds from the revenues of
a project or projects; (12) the rights and
remedies available to the holder or holders of
securities in the event of default, the vesting in
a trustee or trustees of such property, rights,
powers and duties in trust as the university may
determine, which may include any or all of the
rights, powers and duties of any trustee appointed
by the holders of any securities and limiting or
abrogating the right of the holders of any
securities of the university to appoint a trustee
under sections 10a-109a to 10a-109y, inclusive, AS
AMENDED BY THIS ACT, or limiting the rights,
powers and duties of such trustee; (13) provision
for a trust indenture by and between the
university and a corporate trustee which may be
any trust company or bank having the powers of a
trust company within or without the state, which
agreement may provide for the pledging or
assigning of any revenues, assets or income from
assets to which or in which the university has any
rights or interest, and may further provide for
such other rights and remedies exercisable by the
trustee as may be proper for the protection of the
holders of any securities and not otherwise in
violation of law, and such agreement may provide
for the restriction of the rights of any
individual holder of securities of the university
and may contain any further provisions which are
reasonable to delineate further the respective
rights, duties, safeguards, responsibilities and
liabilities of the university, persons and
collective holders of securities of the university
and the trustee; (14) covenants to do or refrain
from doing such acts and things as may be
necessary or convenient or desirable in order to
better secure any securities of the university or
to maintain the federal or state tax exemption
thereon, or which, in the discretion of the
university, will tend to make any securities to be
issued more marketable notwithstanding that such
covenants, acts or things may not be enumerated
above; (15) and any other matters of like or
different character, which in any way affect the
security or protection of the securities of the
university, all as the university shall deem
advisable and not in conflict with the provisions
of sections 10a-109a to 10a-109y, inclusive, AS
AMENDED BY THIS ACT.
Sec. 7. Subsection (e) of section 13b-76 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(e) The proceedings under which bonds are
authorized to be issued may, subject to the
provisions of the general statutes, contain any or
all of the following: (1) Provisions respecting
custody of the proceeds from the sale of the bonds
and any bond anticipation notes, including any
requirements that such proceeds be held separate
from or not be commingled with other funds of the
state; (2) provisions for the investment and
reinvestment of bond proceeds until used to pay
transportation costs and for the disposition of
any excess bond proceeds or investment earnings
thereon; (3) provisions for the execution of
reimbursement agreements or similar agreements in
connection with credit facilities including but
not limited to, letters of credit or policies of
bond insurance, remarketing agreements and
agreements for the purpose of moderating interest
rate fluctuations, AND OF SUCH OTHER AGREEMENTS
ENTERED INTO PURSUANT TO SECTION 3-20a, AS AMENDED
BY SECTION 2 OF THIS ACT; (4) provisions for the
collection, custody, investment, reinvestment and
use of the pledged revenues or other receipts,
funds or moneys pledged therefor as provided in
sections 3-21a, AS AMENDED BY SECTION 5 OF THIS
ACT, 3-27a, 3-27f, 12-458, AS AMENDED, and
12-458d, subsection (c) of section 13a-80a,
sections 13a-175p to 13a-175u, inclusive,
subsection (f) of section 13b-42, sections 13b-59,
AS AMENDED, 13b-61, AS AMENDED, 13b-69, AS
AMENDED, 13b-71, 13b-74 to 13b-77, inclusive, AS
AMENDED BY THIS ACT, 13b-80, subsection (a) of
section 13b-97, AS AMENDED, subsection (a) of
section 14-12, sections 14-15, 14-16a, AS AMENDED,
and 14-21c, subsection (a) of section 14-25a,
section 14-28, subsection (b) of section 14-35,
subsection (b) of section 14-41, section 14-41a,
subsection (a) of section 14-44, sections 14-47,
14-48b, 14-49, AS AMENDED, and 14-50, AS AMENDED,
subsection (a) of section 14-50a, AS AMENDED,
sections 14-52, 14-53 and 14-58, subsection (c) of
section 14-66, AS AMENDED, subsection (e) of
section 14-67, sections 14-67a, 14-67d, 14-67l and
14-69, subsection (e) of section 14-73, subsection
(c) of section 14-96q, sections 14-103a and
14-160, subsection (a) of section 14-164a,
subsection (a) of section 14-192, sections 14-319,
14-320 and 14-381, subsection (b) of section
14-382 and sections 14-383, 15-14 and 16-299; (5)
provisions regarding the establishment and
maintenance of reserves, sinking funds and any
other funds and accounts as shall be approved by
the State Bond Commission in such amounts as may
be established by the State Bond Commission, and
the regulation and disposition thereof, including
requirements that any such funds and accounts be
held separate from or not be commingled with other
funds of the state; (6) covenants for the
establishment of pledged revenue coverage
requirements for the bonds and bond anticipation
notes, provided, that no such covenant shall
obligate the state to provide coverage in any year
with respect to any bonds or bond anticipation
notes in excess of four times the aggregate debt
service on bonds and bond anticipation notes, as
described in subparagraph (A) of subdivision (3)
of section 13b-75, during such year; (7) covenants
for the establishment of maintenance requirements
with respect to state transportation facilities
and properties; (8) provisions for the issuance of
additional bonds on a parity with bonds
theretofore issued, including establishment of
coverage requirements with respect thereto as
herein provided; (9) provisions regarding the
rights and remedies available in case of a default
to the bondowners, noteowners or any trustee under
any contract, loan agreement, document, instrument
or trust indenture, including the right to appoint
a trustee to represent their interests upon
occurrence of an event of default, as defined in
said proceedings, provided that if any bonds or
bond anticipation notes shall be secured by a
trust indenture, the respective owners of such
bonds or notes shall have no authority except as
set forth in such trust indenture to appoint a
separate trustee to represent them and (10)
provisions or covenants of like or different
character from the foregoing which are consistent
with sections 3-21a, AS AMENDED BY SECTION 5 OF
THIS ACT, 3-27a, 3-27f, 12-458, AS AMENDED, and
12-458d, subsection (c) of section 13a-80a,
sections 13a-175p to 13a-175u, inclusive,
subsection (f) of section 13b-42, sections 13b-59,
AS AMENDED, 13b-61, AS AMENDED, 13b-69, AS
AMENDED, 13b-71, 13b-74 to 13b-77, inclusive, AS
AMENDED BY THIS ACT, 13b-80, subsection (a) of
section 13b-97, AS AMENDED, subsection (a) of
section 14-12, sections 14-15, 14-16a, AS AMENDED,
and 14-21c, subsection (a) of section 14-25a,
section 14-28, subsection (b) of section 14-35,
subsection (b) of section 14-41, section 14-41a,
subsection (a) of section 14-44, sections 14-47,
14-48b, 14-49, AS AMENDED, and 14-50, AS AMENDED,
subsection (a) of section 14-50a, AS AMENDED,
sections 14-52, 14-53 and 14-58, subsection (c) of
section 14-66, AS AMENDED, subsection (e) of
section 14-67, sections 14-67a, 14-67d, 14-67l and
14-69, subsection (e) of section 14-73, subsection
(c) of section 14-96q, sections 14-103a and
14-160, subsection (a) of section 14-164a,
subsection (a) of section 14-192, sections 14-319,
14-320 and 14-381, subsection (b) of section
14-382 and sections 14-383, 15-14 and 16-299 and
which the State Bond Commission determines in such
proceedings are necessary, convenient or desirable
in order to better secure the bonds or bond
anticipation notes, or will tend to make the bonds
or bond anticipation notes more marketable, and
which are in the best interests of the state. Any
provision which may be included in proceedings
authorizing the issuance of bonds hereunder may be
included in an indenture of trust duly approved in
accordance with subsection (g) of this section
which secures the bonds and any notes issued in
anticipation thereof, and in such case the
provisions of such indenture shall be deemed to be
a part of such proceedings as though they were
expressly included therein.
Sec. 8. Subsection (f) of section 15-101l of
the general statutes is repealed and the following
is substituted in lieu thereof:
(f) The proceedings under which the bonds are
authorized to be issued pursuant to subsection (a)
of this section, and any mortgage given to secure
the same, may, subject to the provisions of the
general statutes, contain any agreements and
provisions customarily contained in instruments
securing bonds, including, but not limited to: (1)
Provisions respecting custody of the proceeds from
the sale of the bonds, including their investment
and reinvestment until used for the cost of the
project; (2) provisions respecting the fixing and
collection of rents or payments with respect to
the facilities of Bradley International Airport;
(3) the terms to be incorporated in the lease,
sale contract or loan agreement with respect to
the project; (4) the maintenance and insurance of
the project; (5) the creation, maintenance,
custody, investment and reinvestment and use of
the revenues derived from the operation of Bradley
International Airport; (6) establishment of
reserves or sinking funds, and such accounts
thereunder as may be established by the State Bond
Commission, and the regulation and disposition
thereof; (7) the rights and remedies available in
case of a default to the bondholders or to any
trustee under any lease, sale contract, loan
agreement, mortgage or trust indenture; (8)
reimbursement agreements or similar agreements in
connection with credit facilities including, but
not limited to, letters of credit or policies of
bond insurance, remarketing agreements and
agreements for the purpose of moderating interest
rate fluctuations, AND OF SUCH OTHER AGREEMENTS
ENTERED INTO PURSUANT TO SECTION 3-20a, AS AMENDED
BY SECTION 2 OF THIS ACT; (9) provisions for the
issuance of additional bonds on a parity with
bonds theretofore issued, including establishment
of coverage requirements with respect thereto; and
(10) provisions or covenants of like or different
character from the foregoing which are consistent
with the provisions of this chapter and which the
State Bond Commission determines in such
proceedings are necessary, convenient or desirable
in order to better secure the bonds or bond
anticipation notes, or will tend to make the bonds
or bond anticipation notes more marketable, and
which are in the best interests of the state. The
proceedings under which the bonds are authorized,
and any mortgage given to secure the same, may
further provide that any cash balances not
necessary [(i)] (A) to pay the cost of
maintaining, repairing and operating the
facilities of Bradley International Airport,
[(ii)] (B) to pay the principal of and interest on
the bonds as the same shall become due and
payable, and [(iii)] (C) to create and maintain
reserve and sinking funds as provided in any
authorizing resolution, shall be deposited into
the General Fund of the state at designated
intervals, or be deposited in a Bradley
International Airport working fund to be held in
trust by the treasurer and applied to future debt
service requirements.
Sec. 9. Subsection (i) of section 22a-483 of
the general statutes is repealed and the following
is substituted in lieu thereof:
(i) The proceedings under which bonds are
authorized to be issued may, subject to the
provisions of the general statutes, contain any or
all of the following: (1) Provisions respecting
custody of the proceeds from the sale of the bonds
and any bond anticipation notes, including any
requirements that such proceeds be held separate
from or not be commingled with other funds of the
state; (2) provisions for the investment and
reinvestment of bond proceeds utilized to pay
project costs and for the disposition of any
excess bond proceeds or investment earnings
thereon; (3) provisions for the execution of
reimbursement agreements or similar agreements in
connection with credit facilities, including, but
not limited to, letters of credit or policies of
bond insurance, remarketing agreements and
agreements for the purpose of moderating interest
rate fluctuations, AND OF SUCH OTHER AGREEMENTS
ENTERED INTO PURSUANT TO SECTION 3-20a, AS AMENDED
BY SECTION 2 OF THIS ACT; (4) provisions for the
collection, custody, investment, reinvestment and
use of the pledged revenues or other receipts,
funds or moneys pledged therefor as provided in
sections 22a-475 to 22a-483, inclusive, AS AMENDED
BY THIS ACT; (5) provisions regarding the
establishment and maintenance of reserves, sinking
funds and any other funds and accounts as shall be
approved by the State Bond Commission in such
amounts as may be established by the State Bond
Commission, and the regulation and disposition
thereof, or the establishment of a reserve fund of
the state into which may be deposited any moneys
appropriated and made available by the state for
such fund, any proceeds of the sale of bonds or
notes, to the extent provided in the resolution of
the state authorizing the issuance thereof, and
any other moneys which may be made available to
the state for the purpose of such fund from any
source whatever and, in lieu of the deposit of any
such moneys, evidence by the state of the
satisfaction of a federal matching requirement on
the part of the state pursuant to the federal
Water Quality Act of 1987 or the federal Safe
Drinking Water Act or other related federal act,
as applicable, including requirements that any
such funds and accounts be held separate from or
not be commingled with other funds of the state;
(6) covenants for the establishment of pledged
revenue coverage requirements for the bonds and
state bond anticipation notes; (7) provisions for
the issuance of additional bonds on a parity with
bonds theretofore issued, including establishment
of coverage requirements with respect thereto as
herein provided; (8) provisions regarding the
rights and remedies available in case of a default
to bondowners, noteowners or any trustee under any
contract, loan agreement, document, instrument or
trust indenture, including the right to appoint a
trustee to represent their interests upon
occurrence of an event of default, as defined in
said proceedings, provided that if any bonds or
state bond anticipation notes shall be secured by
a trust indenture, the respective owners of such
bonds or notes shall have no authority except as
set forth in such trust indenture to appoint a
separate trustee to represent them; (9) provisions
for the payment of rebate amounts; and (10)
provisions or covenants of like or different
character from the foregoing which are consistent
with sections 22a-475 to 22a-483, inclusive, AS
AMENDED BY THIS ACT, and which the State Bond
Commission determines in such proceedings are
necessary, convenient or desirable in order to
better secure the bonds or state bond anticipation
notes, or will tend to make the bonds or state
bond anticipation notes more marketable, and which
are in the best interests of the state. Any
provision which may be included in proceedings
authorizing the issuance of bonds hereunder may be
included in an indenture of trust duly approved in
accordance with sections 22a-475 to 22a-483,
inclusive, AS AMENDED BY THIS ACT, which secures
the bonds and any notes issued in anticipation
thereof, and in such case the provisions of such
indenture shall be deemed to be a part of such
proceedings as though they were expressly included
therein.
Sec. 10. Subsection (f) of section 31-264b of
the general statutes is repealed and the following
is substituted in lieu thereof:
(f) The proceedings under which bonds are
authorized to be issued may contain any or all of
the following: (1) Provisions respecting custody
of the proceeds from the sale of the bonds,
including any requirement that the proceeds be
deposited in the unemployment compensation advance
fund and held separate from, or not be commingled
with, other funds of the state; (2) provisions for
the investment and reinvestment of bond proceeds
and after the disposition of any excess bond
proceeds or investment earnings thereon; (3)
provisions for the execution of reimbursement
agreements or similar agreements in connection
with credit facilities, including, but not
necessarily limited to, letters of credit or
policies of bond insurance, remarketing agreements
and agreements for the purpose of moderating
interest rate fluctuations, AND OF SUCH OTHER
AGREEMENTS ENTERED INTO PURSUANT TO SECTION 3-20a,
AS AMENDED BY SECTION 2 OF THIS ACT; (4)
provisions for the collection, custody,
investment, reinvestment and use of the pledged
revenues or other receipts, funds or moneys
pledged therefor as provided in this section and
sections 3-21a, AS AMENDED BY SECTION 5 OF THIS
ACT, 31-222, 31-225a, 31-231a, 31-232b, 31-232d,
31-232f, 31-236, 31-250a, 31-259, 31-263, 31-264a
and 31-274j; (5) provisions regarding the
establishment and maintenance of reserves, sinking
funds and any other funds and accounts of the
unemployment compensation advance fund pursuant to
said sections and in the amounts and on the terms
approved by the State Bond Commission in the
amounts established by the State Bond Commission;
(6) covenants for the establishment of pledged
revenue coverage requirements for the bonds; (7)
provisions for the issuance of additional bonds on
a parity with bonds theretofore issued, including
establishment of coverage requirements with
respect thereto as herein provided; (8) provisions
regarding the rights and remedies available in
case of a default to bondowners, noteowners or any
trustee under any contract, loan agreement,
document, instrument or trust indenture, including
the right to appoint a trustee to represent their
interests upon occurrence of an event of default,
as defined in said proceedings, provided if any
revenue bonds are secured by a trust indenture,
the respective owners of the bonds shall have no
authority, except as set forth in the trust
indenture, to appoint a separate trustee to
represent them; (9) provisions for the payment of
rebate amounts; and (10) provisions of covenants
of like or different character from the foregoing
which are consistent with this section and
sections 3-21a, AS AMENDED BY SECTION 5 OF THIS
ACT, 31-222, 31-225a, 31-231a, 31-232b, 31-232d,
31-232f, 31-236, 31-250a, 31-259, 31-263, 31-264a
and 31-274j, and which the State Bond Commission
determines in such proceedings are necessary,
convenient or desirable in order to better secure
the revenue bonds, or will tend to make the
revenue bonds more marketable, and which are in
the best interests of the state. Any provision
which may be included in proceedings authorizing
the issuance of bonds hereunder may be included in
an indenture of trust duly approved in accordance
with said sections, which secures the revenue
bonds issued in anticipation thereof, and in such
case the provision of the indenture shall be
deemed to be a part of the proceedings as though
they were expressly included therein.
Sec. 11. Subsection (f) of section 8 of
public act 96-242 is repealed and the following is
substituted in lieu thereof:
(f) The proceedings under which bonds are
authorized to be issued may contain any or all of
the following: (1) Provisions respecting custody
of the proceeds from the sale of the bonds; (2)
provisions for the investment and reinvestment of
bond proceeds and after the disposition of any
excess bond proceeds or investment earnings
thereon; (3) provisions for the execution of
reimbursement agreements or similar agreements in
connection with credit facilities, including, but
not necessarily limited to, letters of credit or
policies of bond insurance, remarketing agreements
and agreements for the purpose of moderating
interest rate fluctuations, AND OF SUCH OTHER
AGREEMENTS ENTERED INTO PURSUANT TO SECTION 3-20a,
AS AMENDED BY SECTION 2 OF THIS ACT; (4)
provisions regarding the establishment and
maintenance of reserves and sinking funds in the
amounts and on the terms approved by the State
Bond Commission; (5) covenants for the
establishment of pledged revenue coverage
requirements for the bonds; (6) provisions for the
issuance of additional bonds on a parity with
bonds theretofore issued, including establishment
of coverage requirements with respect thereto as
provided in this section; (7) provisions regarding
the rights and remedies available in case of a
default to bondowners, noteowners or any trustee
under any contract, loan agreement, document,
instrument or trust indenture, including the right
to appoint a trustee to represent their interests
upon occurrence of an event of default, as defined
in said proceedings, provided if any revenue bonds
are secured by a trust indenture, the respective
owners of the bonds shall have no authority,
except as set forth in the trust indenture, to
appoint a separate trustee to represent them; (8)
provisions for the payment of rebate amounts; and
(9) provisions of covenants of like or different
character from subdivisions (1) to (8), inclusive,
of this subsection which are consistent with this
section and section 3-21a, AS AMENDED BY SECTION 5
OF THIS ACT, and which the State Bond Commission
determines in such proceedings are necessary,
convenient or desirable in order to better secure
the revenue bonds, or will tend to make the
revenue bonds more marketable, and which are in
the best interests of the state. Any provision
which may be included in proceedings authorizing
the issuance of bonds under this section may be
included in an indenture of trust duly approved in
accordance with said section, which secures the
revenue bonds issued in anticipation thereof, and
in such case the provision of the indenture shall
be deemed to be a part of the proceedings as
though they were expressly included therein.
Sec. 12. This act shall take effect from its
passage.
Approved May 27, 1998