under paragraph (1) or (2).
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Interest rate management agreement." An agreement,
including a confirmation evidencing a transaction effected under
a master agreement, entered into by a contracting authority in
accordance with and fulfilling the requirements of section 3,
which agreement in the judgment of the contracting authority is
designed to manage interest rate risk or interest cost of the
contracting authority on any debt or other debt-related
obligations a contracting authority is authorized to incur,
including, but not limited to, swaps, interest rate caps,
collars, corridors, ceiling and floor agreements, forward
agreements, float agreements and other similar arrangements
which in the judgment of the contracting authority will assist
the contracting authority in managing the interest rate risk or
interest cost of the contracting authority.
Section 3. Interest rate management agreement requirements.
(a) General rule.--Notwithstanding any other law to the
contrary, any interest rate management agreement entered into by
a contracting authority shall comply with the provisions of this
section.
(b) Requirements.--The following requirements shall apply:
(1) A contracting authority shall authorize and award by
resolution each interest rate management agreement or any
confirmation of a transaction. The resolution is subject to
53 Pa.C.S. ยง 8003(a) and (b) (relating to advertisement and
effectiveness of ordinances) but may be valid and effective
for all purposes immediately upon adoption or as otherwise
provided in the resolution. The resolution authorizing and
A00781 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30