PROPOSED AMENDMENT
SENATE AMENDMENTS TO H.B. 2408
(Reference to House engrossed bill)
Page 1, line 43, after “loan” insert “repayment”
Page 3, line 35, after “loan” insert “repayment”
Page 13, after line 41, insert:
“F. A loan
made to a political subdivision under this section after June 30, 2001 may be
secured additionally by an irrevocable pledge of the shared state revenues due
to the political subdivision for the duration of the loan as prescribed by a
resolution of the authority's board.
If the authority’s board requires an irrevocable pledge of the shared
state revenues for FINANCIAL assistance loan repayment agreements after June
30, 2001, the authority’s board shall enter into an intercreditor agreement
with the greater Arizona development authority to define the allocation of
shared state revenues in relation to individual borrowers. If a pledge is required and a political
subdivision fails to make any payment due to the authority under its loan
repayment agreement or bonds, the authority shall certify to the state
treasurer and notify the governing body of the defaulting political subdivision
that the political subdivision has failed to make the required payment and
shall direct a withholding of state shared revenues as prescribed in subsection
G of this section. The certificate of default shall be in the form determined
by the authority, except that the certificate shall specify the amount required
to satisfy the unpaid payment obligation of the political subdivision.
G. On receipt of a certificate of default from the authority, the state treasurer to the extent not expressly prohibited by law shall withhold the monies due to the defaulting political subdivision from the next succeeding distribution of monies pursuant to section 42-5029. In the case of a city or town, the state treasurer shall also withhold from the monies due to the defaulting city or town from the next succeeding distribution of monies pursuant to section 43-206 the amount specified in the certificate of default and shall immediately deposit the monies in the fund. The state treasurer shall continue to withhold and deposit monies until the authority certifies to the state treasurer that the default has been cured. The state treasurer shall not withhold any amount that is necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision if so certified by the defaulting political subdivision to the state treasurer and the authority. The political subdivision shall not certify deposits as necessary for payment for bonds unless the bonds were issued before the date of the loan repayment agreement and the bonds were secured by a pledge of distribution made pursuant to sections 42-5029 and 43-206.”
Page 15, between lines 27 and 28, insert:
“F. A loan
made to a political subdivision under this section after June 30, 2001 may be
secured additionally by an irrevocable pledge of the shared state revenues due
to the political subdivision for the duration of the loan as prescribed by a
resolution of the authority's board.
If the authority’s board requires an irrevocable pledge of the shared
state revenues for FINANCIAL assistance loan repayment agreements after June
30, 2001, the authority’s board shall enter into an intercreditor agreement
with the greater Arizona development authority to define the allocation of
shared state revenues in relation to individual borrowers. If a pledge is required and a political
subdivision fails to make any payment due to the authority under its loan
repayment agreement or bonds, the authority shall certify to the state
treasurer and notify the governing body of the defaulting political subdivision
that the political subdivision has failed to make the required payment and
shall direct a withholding of state shared revenues as prescribed in subsection
G of this section. The certificate of default shall be in the form determined
by the authority, except that the certificate shall specify the amount required
to satisfy the unpaid payment obligation of the political subdivision.
G. On receipt of a certificate of default from the authority, the state treasurer to the extent not expressly prohibited by law shall withhold the monies due to the defaulting political subdivision from the next succeeding distribution of monies pursuant to section 42-5029. In the case of a city or town, the state treasurer shall also withhold from the monies due to the defaulting city or town from the next succeeding distribution of monies pursuant to section 43-206 the amount specified in the certificate of default and shall immediately deposit the monies in the fund. The state treasurer shall continue to withhold and deposit monies until the authority certifies to the state treasurer that the default has been cured. The state treasurer shall not withhold any amount that is necessary to make any required deposits then due for the payment of principal and interest on bonds of the political subdivision if so certified by the defaulting political subdivision to the state treasurer and the authority. The political subdivision shall not certify deposits as necessary for payment for bonds unless the bonds were issued before the date of the loan repayment agreement and the bonds were secured by a pledge of distribution made pursuant to sections 42-5029 and 43-206.”
Amend title to conform