Sec. 7-572. Application by Tier I municipality to Secretary of Office of Policy and Management for certification to issue general obligations. Regulations.
Sec. 7-572. Application by Tier I municipality to Secretary of Office of Policy
and Management for certification to issue general obligations. Regulations. Any
municipality that desires to issue general obligations under section 7-573 shall apply to
the secretary for certification. The secretary may certify as a Tier I municipality any
municipality which applies to be certified, provided such municipality (1) has a long-term bond rating from at least one bond rating agency which is investment grade or
higher, (2) is unable to secure municipal bond insurance from any bond insurance company on reasonable terms and conditions on the date the secretary certifies such municipality, and (3) otherwise meets the standards established by the secretary. Such standards
shall be adopted as regulations by the secretary, in consultation with the Treasurer, and
shall provide for a level of supervision over such municipality which the secretary deems
to be sufficient to minimize the risk of a draw upon the special capital reserve fund and
a transfer from the state General Fund. The secretary may recertify and decertify any
municipality then certified, provided the secretary shall not automatically decertify any
municipality which is able to secure bond insurance after it has been certified by the
secretary.
(P.A. 93-421, S. 13, 22.)
History: P.A. 93-421 effective July 1, 1993.