Bill Text: CT HB05479 | 2010 | General Assembly | Introduced

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Bill Title: An Act Concerning The Amortization Schedule For Bonds Issued By Municipalities.

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2010-03-11 - Public Hearing 03/15 [HB05479 Detail]

Download: Connecticut-2010-HB05479-Introduced.html

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General Assembly		Raised Bill No. 5479
February Session, 2010		LCO No. 2024
		*02024_______FIN*
Referred to Committee on Finance, Revenue and Bonding
Introduced by:
(FIN)

AN ACT CONCERNING THE AMORTIZATION SCHEDULE FOR BONDS ISSUED BY MUNICIPALITIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 7-371 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2010):

Unless otherwise provided by the general statutes or any special act, bonds issued by any municipality, as defined in section 7-369, by authority of any provision of the general statutes or of any special act shall be serial bonds [maturing in annual or semiannual installments of principal that shall substantially equalize the aggregate amount of principal and interest due in each annual period commencing with the first annual period in which an installment of principal is due, or maturing in annual or semiannual installments of principal no one of which shall exceed by more than fifty per cent the amount of any prior installment,] or shall be term bonds with mandatory deposit of sinking fund payments into a sinking fund of amounts sufficient to redeem or amortize the principal of the bonds. [in annual or semiannual installments that shall substantially equalize the aggregate amount of principal redeemed or amortized and interest due in each annual period commencing with the first annual period in which a mandatory sinking fund payment becomes due, or sufficient to redeem or amortize the principal of the bonds in annual or semiannual installments no one of which shall exceed by more than fifty per cent the amount of any prior installment.] The first installment of any series of bonds shall mature or the first sinking fund payment of any series of bonds shall be due not later than three years from the date of the issue of such series, and the last installment of such series shall mature or the last sinking fund payment of such series shall be due not later than twenty years therefrom.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2010	7-371

Statement of Purpose:

To allow flexibility in the amortization schedule for municipal bonds, which will allow municipalities to issue debt within existing resources and provide a more stable and predictable mill levy over the life of the bond.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]