Sec. 3-27h. Notes.
Sec. 3-27h. Notes. The Treasurer is authorized to borrow funds, by the issuance
of notes as he may determine to be necessary for the purposes of the Short Term Investment Fund and to issue and sell such notes, signed by the Treasurer as said official for
the payment of the principal of and interest on which the full faith and credit of the state
is hereby pledged and which notes shall be redeemed by the Treasurer first from funds
to the extent available from the Short Term Investment Fund and secondly from the
state's General Fund. As part of the contract with the holders of such notes the Treasurer
may make such covenants as the Treasurer shall determine will make the notes more
marketable or will tend to insure that the moneys payable to the Short Term Investment
Fund will be sufficient to pay the principal of and interest on the bonds as the same
become due and payable, including such covenants with respect to interest exemptions
on the notes in the hands of the holders thereof as he determines is necessary. In case
it becomes necessary to pay from the General Fund all or any portion of the principal
or interest, or both, the Treasurer shall reimburse the General Fund from the first moneys
which become available for that purpose in the Short Term Investment Fund. The proceeds of such borrowings shall be paid over to the Short Term Investment Fund, providing any expense incurred in connection with selling of said notes shall be paid from the
accrued interest and premiums or from the proceeds of the sale of such notes.
(1972, P.A. 236, S. 8; P.A. 73-569, S. 4, 5; 73-575, S. 14, 15; P.A. 78-236, S. 15, 20.)
History: P.A. 73-569 authorized issuance of one-year notes for purposes of combined investment pool; P.A. 73-575
deleted provision limiting bonds to one-year maturity date; P.A. 78-236 replaced combined investment pool with Short
Term Investment Fund.