S0903B1513A05320 JKL:CDM 01/28/14 #90 A05320







Printer's No. 1513


1Amend Bill, page 1, lines 16 through 20, by striking out ", 
2for the" in line 16, all of lines 17 through 19 and "an 
3authority" in line 20

4Amend Bill, page 2, line 12, by striking out "sections" and

6 a section

7Amend Bill, page 2, lines 18 through 30; page 3, lines 1 and
82, by striking out all of said lines on said pages

9Amend Bill, page 3, lines 7 through 30, by striking out all
10of said lines

11Amend Bill, page 4, lines 10 through 21, by striking out 
12"(b)" in line 10 and all of lines 11 through 21

13Amend Bill, page 23, line 16, by striking out "8281(b)(2)" 
14and inserting

15 8281(a)(1), (b)(2)

16Amend Bill, page 23, by inserting between lines 21 and 22

17(1) Except as set forth in paragraph (4), 
18notwithstanding any other law to the contrary, a local 
19government unit may negotiate and enter into qualified 
20interest rate management agreements consistent with the 
21provisions of this subchapter. A local government unit may 
22only authorize a qualified interest rate management agreement 
23under this subchapter.

24Amend Bill, page 23, lines 28 and 29, by striking out "three" 
25in line 28 and all of line 29 and inserting

1 one year after the effective date of the

2Amend Bill, page 24, lines 4 through 6, by striking out all
3of said lines and inserting

4 a fixed or variable rate of interest determined using either an 
5index published by the Securities Industry and Financial Markets 
6Association or an index that references the London Interbank 
7Offered Rate.

8Amend Bill, page 24, lines 9 and 10, by striking out ", 
9taking into account any netting of offsetting transactions,"

10Amend Bill, page 24, line 14, by striking out "capacity"

11Amend Bill, page 24, lines 15 through 17, by striking out 
12"This paragraph shall not apply to a" in line 15 and all of 
13lines 16 and 17

14Amend Bill, page 26, lines 13 through 24, by striking out all
15of said lines and inserting

16(iv) Certifies that the information provided to the
17local government unit, whether in solicitations or in
18response to requests for information from the local
19government unit as to potential positive or negative
20impacts of entering into the qualified interest rate
21management agreement, is mathematically correct and
22conforms to Title VII of the Dodd-Frank Wall Street
23Reform and Consumer Financial Protection Act (Public Law
24111-203, 124 Stat. 1641).

25(v) Certifies that it acted in good faith and made
26full and fair disclosure of the material facts and any
27conflicts of interest regarding the qualified interest
28management agreement.

29(vi) Believes that the interest rate management
30agreement is consistent with the policy of the
31Commonwealth that a local government unit not enter into
32the agreement if it involves unreasonable speculation.

33Amend Bill, page 26, lines 28 through 30; page 27, lines 1
34and 2, by striking out all of said lines on said pages and

36(viii) (Reserved).

37Amend Bill, page 27, lines 12 and 13, by striking out "a city

1or county of the first class and"

2Amend Bill, page 27, lines 21 and 22, by striking out "a city 
3or county of the first class and"

4Amend Bill, page 27, lines 27 and 28, by striking out "a city 
5or county of the first class and"

6Amend Bill, page 28, lines 3 and 4, by striking out "a city 
7or county of the first class and"

8Amend Bill, page 28, by inserting between lines 13 and 14

9(b) Quarterly report.--A local government unit that
10authorizes a qualified interest rate management agreement shall
11report on the performance of the qualified interest rate
12management agreement quarterly at a public meeting. At a
13minimum, the reporting shall include a current mark to market
14valuation of the agreement.

15Amend Bill, page 28, line 14, by striking out "(b)" and 

17 (c)

18Amend Bill, page 28, lines 16 and 17, by striking out "a city 
19or county of the first class and"

20Amend Bill, page 28, lines 18 through 21, by striking out all
21of said lines and inserting

22Section 6. Applicability.

23The following shall apply:

24(1) This act shall apply to all interest rate management
25agreements entered into on or after the effective date of
26this act.

27(2) This act shall not apply to any amendment,
28termination or novation of an interest rate management
29agreement where the interest rate management agreement was
30entered into prior to the effective date of this act as long
31as the term of the interest rate management agreement is not


See A05320 in
the context
of SB0903