HB3407ham001 100TH GENERAL ASSEMBLY

Rep. Joe Sosnowski

Filed: 4/4/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3407

2    AMENDMENT NO. ______. Amend House Bill 3407 on page 5, line
39, by replacing "interest" with ""interest"; and
 
4on page 5, by replacing line 10 with "derivative agreements",
5"forward payment conversion agreements","; and
 
6on page 6, line 23, by replacing "and" with "and"; and
 
7by replacing line 16 on page 26 through line 18 on page 27 with
8the following:
9    "The resolution of the governing board authorizing the
10issuance of the bonds may provide that interest rates may vary
11from time to time depending upon criteria established by the
12governing board, which may include, without limitation, a
13variation in interest rates as may be necessary to cause bonds
14to be remarketable from time to time at a price equal to their
15principal amount, and may provide for appointment of a national

 

 

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1banking association, bank, trust company, investment banker,
2or other financial institution to serve as a remarketing agent
3in that connection. The resolution of the governing board
4authorizing the issuance of the bonds may provide that
5alternative interest rates or provisions will apply during such
6times as the bonds are held by a person providing a letter of
7credit or other credit enhancement arrangement for those bonds.
8Without limiting the terms which may be included in any such
9credit agreements or remarketing agreements, the ordinance may
10or, if hereinafter so required, shall provide as follows:
11    (a) Interest rates on the bonds may vary from time to time
12depending upon criteria established by the governing body,
13which may include, without limitation: (i) a variation in
14interest rates as may be necessary to cause bonds to be
15remarketed from time to time at a price equal to their
16principal amount plus any accrued interest; (ii) rates set by
17auctions; or (iii) rates set by formula.
18    (b) A national banking association, bank, trust company,
19investment banker or other financial institution may be
20appointed to serve as a remarketing agent in that connection,
21and such remarketing agent may be delegated authority by the
22governing body to determine interest rates in accordance with
23criteria established by the governing body.
24    (c) Alternative interest rates or provisions may apply
25during such times as the bonds are held by the person or
26persons (financial providers) providing a credit agreement or

 

 

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1remarketing agreement for those bonds and during such times,
2the interest on the bonds may be deemed not exempt from income
3taxation under the Internal Revenue Code for purposes of State
4law, as contained in the Bond Authorization Act, relating to
5the permissible rate of interest to be borne thereon.".