Rep. Joe Sosnowski
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AMENDMENT TO HOUSE BILL 3407
AMENDMENT NO. ______. Amend House Bill 3407 on page 5, line
9, by replacing "interest" with "
on page 5, by replacing line 10 with "
forward payment conversion agreements
on page 6, line 23, by replacing "and" with "
on page 8, line 15, by replacing "
" with "25"; and
by replacing line 16 on page 26 through line 18 on page 27 with
The resolution of the governing board authorizing the
issuance of the bonds may provide that interest rates may vary
from time to time depending upon criteria established by the
governing board, which may include, without limitation, a
variation in interest rates as may be necessary to cause bonds
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to be remarketable from time to time at a price equal to their
principal amount, and may provide for appointment of a national
banking association, bank, trust company, investment banker,
or other financial institution to serve as a remarketing agent
in that connection. The resolution of the governing board
authorizing the issuance of the bonds may provide that
alternative interest rates or provisions will apply during such
times as the bonds are held by a person providing a letter of
credit or other credit enhancement arrangement for those bonds.
Without limiting the terms which may be included in any such
credit agreements or remarketing agreements, the ordinance may
or, if hereinafter so required, shall provide as follows:
(a) Interest rates on the bonds may vary from time to time
depending upon criteria established by the governing body,
which may include, without limitation: (i) a variation in
interest rates as may be necessary to cause bonds to be
remarketed from time to time at a price equal to their
principal amount plus any accrued interest; (ii) rates set by
auctions; or (iii) rates set by formula.
(b) A national banking association, bank, trust company,
investment banker or other financial institution may be
appointed to serve as a remarketing agent in that connection,
and such remarketing agent may be delegated authority by the
governing body to determine interest rates in accordance with
criteria established by the governing body.
(c) Alternative interest rates or provisions may apply
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during such times as the bonds are held by the person or
persons (financial providers) providing a credit agreement or
remarketing agreement for those bonds and during such times,
the interest on the bonds may be deemed not exempt from income
taxation under the Internal Revenue Code for purposes of State
law, as contained in the Bond Authorization Act, relating to
the permissible rate of interest to be borne thereon.