§ 39:99.16 — Ancillary contracts and swaps

Louisiana § 39:99.16

• Jurisdiction: Louisiana
• Title 39: Procurement and Contract

Text

§99.16. Ancillary contracts and swaps
A. The corporation may enter into, amend, or terminate, as it
determines to be necessary or appropriate, any ancillary contracts (i) to
facilitate the issuance, sale, resale, purchase, repurchase, or payments of
bonds, including without limitation bond insurance, letters of credit and
liquidity facilities, or (ii) to attempt to hedge risk or achieve a desirable
effective interest rate or cash flow, subject to approval of the State Bond
Commission and the Joint Legislative Committee on the Budget. The
determination of the board, so approved, that an ancillary contract or the
amendment or termination thereof is necessary or appropriate as aforesaid shall
be conclusive. Such contracts shall be made upon the terms and conditions
established by the board and approved by the State Bond Commission and the
Joint Legislative Committee on the Budget, including without limitation
provisions as to security, default, termination, payment, remedy, and consent
to service of process.
B. The corporation may enter into, amend, or terminate any swap
contract that it determines to be necessary or appropriate to place the
obligations or investments of the corporation, as represented by the bonds or
the investment of their proceeds, in whole or in part, on the interest rate, cash
flow or other basis desired by the board, which contract may include without
limitation contracts commonly known as interest rate swap agreements, and
futures or contracts providing for payments based on levels of, or changes in,
interest rates, subject to approval of the State Bond Commission. These
contracts or arrangements may be entered into by the corporation, subject to
approval of the State Bond Commission and the Joint Legislative Committee
on the Budget, in connection with, or incidental to, entering into, or
maintaining any (i) agreement which secures bonds or (ii) investment or
contract providing for investment otherwise authorized by law. The
determination of the board, so approved, that a swap contract or the
amendment or termination thereof is necessary or appropriate as aforesaid shall
be conclusive. These contracts and arrangements may contain such payment,
security, default, remedy, and other terms and conditions as determined by the
board and approved by the State Bond Commission and the Joint Legislative
Committee on the Budget, after giving due consideration to the
creditworthiness of the counterparty or other obligated party, including any
rating by any nationally recognized rating agency, and any other criteria as may
be appropriate.

Legislative History

Acts 2001, No. 1145, §1.