Bill No.: HB0309 Drafter: JHR
LSO No.: 05LSO-0663 Effective Date: 2/24/2005
Enrolled Act No.: HEA0059
Chapter No.: 109
Prime Sponsor: Representative Cohee
Catch Title: Reducing terms of bonds.
Subject: Authorizes the reduction in the terms of payment of bonds issued by governmental entities as specified.
Summary/Major Elements:
· This bill authorizes the state treasurer or a treasurer of a political subdivision, municipality, special district and boards of trustees and boards of directors of county hospitals, airports, fairs and other county boards and commissions to enter into contracts to hedge risk or to place the obligation of bonds on the interest rate, cash flow or other basis desired, including contracts known as interest rate swap agreements, interest rate caps or floors, forward payment conversion agreement futures or hedge contracts.