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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BOSCOLA, BROWNE, GORDNER, BAKER, RAFFERTY, VOGEL, STOUT, M. WHITE, EARLL, FERLO, MENSCH, WOZNIAK AND VANCE, MARCH 29, 2010 |
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| REFERRED TO FINANCE, MARCH 29, 2010 |
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| AN ACT |
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1 | Amending Title 53 (Municipalities Generally) of the Pennsylvania |
2 | Consolidated Statutes, in municipal authorities, further |
3 | providing for purposes and powers; and, in interest rate risk |
4 | and interest cost management, further providing for qualified |
5 | interest rate management agreements. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Sections 5607(d)(13) and 8281(a) of Title 53 of |
9 | the Pennsylvania Consolidated Statutes are amended to read: |
10 | § 5607. Purposes and powers. |
11 | * * * |
12 | (d) Powers.--Every authority may exercise all powers |
13 | necessary or convenient for the carrying out of the purposes set |
14 | forth in this section, including, but without limiting the |
15 | generality of the foregoing, the following rights and powers: |
16 | * * * |
17 | (13) To make contracts of every name and nature and to |
18 | execute all instruments necessary or convenient for the |
19 | carrying on of its business, provided that no authority may |
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1 | enter into a qualified interest rate management agreement as |
2 | defined in section 8002 (relating to definitions). |
3 | * * * |
4 | § 8281. Qualified interest rate management agreements. |
5 | (a) General rule.-- |
6 | (1) Except as set forth in [paragraph] paragraphs (4) |
7 | and (5), notwithstanding any other law to the contrary, a |
8 | local government unit may negotiate and enter into qualified |
9 | interest rate management agreements consistent with the |
10 | provisions of this subchapter. |
11 | (2) The local government unit must authorize and award |
12 | by resolution each qualified interest rate management |
13 | agreement or any confirmation of a transaction. The |
14 | resolution is subject to section 8003(a) and (b) (relating to |
15 | advertisement and effectiveness of ordinances) but may be |
16 | valid and effective for all purposes immediately upon |
17 | adoption or as otherwise provided in the resolution. |
18 | (3) A local government unit has the power to contract |
19 | for insurance covering the risks of nonpayment of amounts due |
20 | under qualified interest rate management agreements. |
21 | (4) The authority granted in this subchapter shall not |
22 | apply to any local government unit which has been declared |
23 | distressed by the Department of Community and Economic |
24 | Development. |
25 | (5) After the effective date of this paragraph, no local |
26 | government unit may negotiate or enter into a qualified |
27 | interest rate management agreement. |
28 | * * * |
29 | Section 2. Nothing in this act shall be construed to affect |
30 | any qualified interest rate management agreement entered into by |
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1 | a local government unit prior to the effective date of this |
2 | section. |
3 | Section 3. This act shall take effect immediately. |
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