35-1004. Treatment, calculation and payment of
amounts due under swap agreements; exemptions from budget
A. A governmental entity may deduct amounts which the governmental entity is to
receive pursuant to swap agreements from the amounts due on its bonds or other long-term
obligations for the purposes of determining:
1. Whether a governmental entity has satisfied statutory requirements concerning
revenue coverage that are applicable to its bonds or other long-term obligations.
2. Whether a governmental entity has satisfied any maximum rate of interest that
may be paid on the bonds or other long-term obligations.
3. The amount of taxes, rates or charges to be levied or collected to pay amounts
due upon its bonds or other long-term obligations.
B. Until payment of all obligations under swap agreements and the expiration of the
fiscal year in which swap agreements are paid in full, no amounts collected for the
purpose of paying amounts due under the swap agreements shall be subject to the
provisions of title 42, chapter 17, article 2.
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