Section 41-1-40 Legislative findings. The Legislature finds and declares that the making and managing of investments or the borrowing of money by governmental entities involves a variety of interest rate, investment, payment, and similar risks. A number of financial instruments are available to hedge against those risks. Many governmental entities lack express statutory authority to […]
Section 41-1-41 Definitions. In this article, the following terms shall have the following respective meanings: (1) COUNTERPARTY. The provider of the interest rate floor, cap or collar, or the other party to the swap agreement. (2) GOVERNMENTAL ENTITY. The state (or equivalent thereof) or any political subdivision thereof, or any department, agency, board, commission, or […]
Section 41-1-42 When governmental entities authorized to enter into agreements. Notwithstanding any other provision of law, governmental entities shall be authorized to enter into swap agreements as follows: (1) Subject only to subdivision (2) of this section, any governmental entity may enter into one or more swap agreements which the governmental entity determines to be […]
Section 41-1-43 Credit enhancement or liquidity agreements. Except as specifically required by paragraph (2)b of Section 41-1-42, in connection with entering into any swap agreement, any governmental entity may enter into credit enhancement or liquidity agreements with payment, term, security (including the pledge of collateral by the governmental entity), substitution of collateral, valuation of collateral […]
Section 41-1-44 Liberal construction. This article shall be liberally construed to effect its purpose. (Acts 1992, No. 92-589, p. 1214, §5.)
