Sec. 8-265bb. Contract for state assistance to authority.
Sec. 8-265bb. Contract for state assistance to authority. (a) For purposes of this
section "state assistance" means a payment by the state of actual debt service, comprised
of principal, interest, interest rate swap payments, liquidity fees, letter of credit fees,
trustee fees and other similar bond-related expenses.
(b) Not later than July 1, 2008, the state, acting by and through the Secretary of the
Office of Policy and Management and the State Treasurer, shall enter into a contract or
contracts with the Connecticut Housing Finance Authority that provide for the state to
pay to said authority state assistance on bonds issued by said authority for purposes of
providing funds for the emergency mortgage assistance program in sections 8-265cc to
8-265kk, inclusive, as an additional purpose pursuant to the provisions of section 8-252
and costs of issuance in an aggregate principal amount not to exceed fifty million dollars.
Any provision of such a contract entered into providing for payments equal to annual
debt service shall constitute a full faith and credit obligation of the state and as part of
the contract of the state with the holders of any bonds or refunding bonds, as applicable,
appropriation of all amounts necessary to meet punctually the terms of such contract
shall be made and the State Treasurer shall pay such amounts as the same become due.
The Connecticut Housing Finance Authority may pledge such state assistance as security
for the payment of such bonds or refunding bonds issued by said authority for such
purposes. Any bonds so issued by the Connecticut Housing Finance Authority for the
emergency mortgage assistance program pursuant to sections 8-265cc to 8-265kk, inclusive, and at any time outstanding, may at any time or from time to time, be refunded,
in whole or in part, by the Connecticut Housing Finance Authority by the issuance of
its refunding bonds in such amounts as the authority may deem necessary or appropriate
but not exceeding an amount sufficient to refund the principal amount of the bonds to
be so refunded, any unpaid interest thereon, and any premiums, commissions and costs
of issuance necessary to be paid in connection therewith. The state, acting by and through
the Office of Policy and Management and the State Treasurer and without further authorization, may execute an amendment to any contract providing state assistance as required in connection with such refunding bonds.
(c) Notwithstanding any contract entered into by the state with the Connecticut
Housing Finance Authority for state assistance, the bonds or refunding bonds to which
such state assistance applies shall not constitute bonds or notes issued or guaranteed by
the state within the meaning of section 3-21.
(P.A. 08-176, S. 11.)
History: P.A. 08-176 effective June 12, 2008.