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repealed and the following is substituted in  lieu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