Sec. 7-574. Application by tier II municipality to Secretary of Office of Policy and Management for certification to issue general obligations. Regulations.
Sec. 7-574. Application by tier II 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 7-575 shall apply to
the secretary for certification. The secretary may certify as a tier II municipality any
municipality which applies to be certified to issue a general obligation authorized by
subsection (a) of section 7-394b and sections 7-560 to 7-579, inclusive, 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 obtain municipal bond insurance from any
bond insurance company on reasonable terms and conditions on the date the secretary
certifies such municipality, (3) has not issued a deficit obligation in the last five years,
(4) has no deficit obligations outstanding, and (5) 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. 15, 22.)
History: P.A. 93-421 effective July 1, 1993.