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| SPONSOR: | Burpo | DATE TYPED: | 02/07/01 | HB | 168 | ||
| SHORT TITLE: | Local Debt Service Account Contracts | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| NFI | ||||
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
This bill amends Section 6-18-8.1 "Contracts To Exchange Interest Rates, Cash Flows Or Limit Exposure".
The essence of the change is to allow public bodies to set terms in contract for long term debt obligations on bond issues that have a variable rate. The additional terms allowed would limit debt service on the principal amount of a bond issue to a maximum rate, a minimum rate or both. This change would provide some protection to the contracting parties in a volatile interest rate environment.
Board of Finance will review the contracts and determine at their discretion that the contract results in a long-term financial benefit for the public body.
JBE/ar