§ 1-124 — Treasurer's approval required for state contribution to or guarantee of bonds, notes, borrowed money. Determination of authority to moderate interest rate fluctuations.

Connecticut § 1-124

• Jurisdiction: Connecticut
• Title 1: Provisions of General Application
• Ch. 12: Quasi-Public Agencies

Text

(a) Connecticut Innovations, Incorporated, the Connecticut Health and Educational Facilities Authority, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the MIRA Dissolution Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, the Connecticut Municipal Redevelopment Authority and the State Education Resource Center shall not borrow any money or issue any bonds or notes which are guaranteed by the state of Connecticut or for which there is a capital reserve fund of any kind which is in any way contributed to or guaranteed by the state of Connecticut until and unless such borrowing or issuance is approved by the State Treasurer or the Deputy State Treasurer appointed pursuant to section 3-12. The approval of the State Treasurer or said deputy shall be based on documentation provided by the authority that it has sufficient revenues to (1) pay the principal of and interest on the bonds and notes issued, (2) establish, increase and maintain any reserves deemed by the authority to be advisable to secure the payment of the principal of and interest on such bonds and notes, (3) pay the cost of maintaining, servicing and properly insuring the purpose for which the proceeds of the bonds and notes have been issued, if applicable, and (4) pay such other costs as may be required. (b) To the extent Connecticut Innovations, Incorporated, the Connecticut Higher Education Supplemental Loan Authority, the Connecticut Student Loan Foundation, the Connecticut Housing Finance Authority, the Connecticut Housing Authority, the MIRA Dissolution Authority, the Connecticut Health and Educational Facilities Authority, the Connecticut Airport Authority, the Capital Region Development Authority, the Connecticut Health Insurance Exchange, the Connecticut Green Bank, the Connecticut Port Authority, the Connecticut Municipal Redevelopment Authority or the State Education Resource Center is permitted by statute and determines to exercise any power to moderate interest rate fluctuations or enter into any investment or program of investment or contract respecting interest rates, currency, cash flow or other similar agreement, including, but not limited to, interest rate or currency swap agreements, the effect of which is to subject a capital reserve fund which is in any way contributed to or guaranteed by the state of Connecticut, to potential liability, such determination shall not be effective until and unless the State Treasurer or his or her deputy appointed pursuant to section 3-12 has approved such agreement or agreements. The approval of the State Treasurer or his or her deputy shall be based on documentation provided by the authority that it has sufficient revenues to meet the financial obligations associated with the agreement or agreements. See Sec. 3-20e re provision of and indemnification for provision of secondary market disclosure information.

Legislative History

(P.A. 88-266, S. 43, 46; P.A. 93-33, S. 3, 4; P.A. 02-46, S. 16; May Sp. Sess. P.A. 04-1, S. 21; P.A. 10-117, S. 89; P.A. 11-53, S. 17; 11-84, S. 18; P.A. 12-147, S. 3; June 12 Sp. Sess. P.A. 12-1, S. 185; June 12 Sp. Sess. P.A. 12-2, S. 165; P.A. 14-94, S. 1, 29; 14-212, S. 7; 14-217, S. 36, 171; 14-222, S. 6; P.A. 15-18, S. 3; June Sp. Sess. P.A. 15-5, S. 38; P.A. 16-29, S. 16; May Sp. Sess. P.A. 16-3, S. 207; P.A. 19-117, S. 226; P.A. 22-118, S. 112; P.A. 23-170, S. 8.) History: P.A. 93-33 made existing section Subsec. (a) and added a new Subsec. (b) to provide authority for quasi-public agencies to moderate interest rate fluctuations, effective April 20, 1993; P.A. 02-46 amended Subsec. (a) to add “the Connecticut Resources Recovery Authority” and make technical changes, effective April 30, 2002; May Sp. Sess. P.A. 04-1 added the Capital City Economic Development Authority to the list of agencies whose borrowing or bonding requires approval under this section and made technical changes, effective July 1, 2004; P.A. 10-117 added “the Health Information Technology Exchange of Connecticut” in Subsecs. (a) and (b), effective June 8, 2010; P.A. 11-53 added “Connecticut Health Insurance Exchange” in Subsecs. (a) and (b), effective July 1, 2011; P.A. 11-84 added “Connecticut Airport Authority” in Subsecs. (a) and (b), effective July 1, 2011; P.A. 12-147 replaced “Capital City Economic Development Authority” with “Capital Region Development Authority”, effective June 15, 2012; June 12 Sp. Sess. P.A. 12-1 deleted “The Connecticut Development Authority”, added “Connecticut Innovations, Incorporated” in Subsec. (a) and made a technical change in Subsec. (b), effective July 1, 2012; June 12 Sp. Sess. P.A. 12-2 added “Clean Energy Finance and Investment Authority” and made technical changes, effective July 1, 2012; pursuant to P.A. 14-94, “Connecticut Resources Recovery Authority” and “Clean Energy Finance and Investment Authority” were changed editorially by the Revisors to “Materials Innovation and Recycling Authority” and “Connecticut Green Bank”, respectively, effective June 6, 2014; P.A. 14-212 added “State Education Resource Center” and made conforming changes, effective June 13, 2014; P.A. 14-217 deleted “the Health Information Technology Exchange of Connecticut”, added “the Connecticut Student Loan Foundation” and made technical changes, effective July 1, 2014; P.A. 14-222 added “the Connecticut Port Authority” and made technical changes, effective October 1, 2015; P.A. 15-18 added “the Connecticut Student Loan Foundation” and “the State Education Resource Center” and deleted “the Health Information Technology Exchange of Connecticut”; June Sp. Sess. P.A. 15-5 added “the Connecticut Port Authority”, effective July 1, 2015; P.A. 16-29 added “the Connecticut Retirement Security Authority,” effective July 1, 2016; May Sp. Sess. P.A. 16-3 changed effective date of P.A. 16-29, S. 16, from July 1, 2016, to January 1, 2017, effective June 2, 2016; P.A. 19-117 amended Subsecs. (a) and (b) to add “the Connecticut Municipal Redevelopment Authority”; P.A. 22-118 amended Subsecs. (a) and (b) by deleting “the Connecticut Retirement Security Authority,” effective July 1, 2022; pursuant to P.A. 23-170, “Materials Innovation and Recycling Authority” was changed editorially by the Revisors to “MIRA Dissolution Authority” throughout, effective July 1, 2023.