§ 69-c. Variable rate bonds. Notwithstanding any other provision of\nlaw to the contrary, any State-supported debt may be issued as variable\nrate bonds.\n Notwithstanding any other provision of law to the contrary, for\npurposes of calculating the present value of debt service and\ncalculating savings in connection with the issuance of refunding\nindebtedness, (i) the effective interest rate and debt service payable\non variable rate bonds in connection with which, and to the extent that,\nan authorized issuer has entered into an interest rate exchange or\nsimilar agreement pursuant to which the authorized issuer makes payments\nbased on a fixed rate and receives payments based on a variable rate\nthat is reasonably expected by such authorized issuer to be equivalent\nover time to the variable rate paid on the related variable rate bonds,\nshall be calculated assuming that the rate of interest on such variable\nrate bonds is the fixed rate payable by the authorized issuer on such\ninterest rate exchange or similar agreement for the scheduled term of\nsuch agreement; (ii) the effective interest rate and debt service on\nvariable rate bonds in connection with which, and to the extent that, an\nauthorized issuer has not entered into such an interest rate exchange or\nsimilar agreement shall be calculated assuming that interest on such\nvariable interest rate bonds is payable at a rate or rates reasonably\nassumed by the authorized issuer; (iii) the effective interest rate and\ndebt service on any bonds subject to optional or mandatory tender shall\nbe a rate or rates reasonably assumed by the authorized issuer; (iv) any\nvariable rate bonds that are converted or refunded to a fixed rate,\nwhether or not financed on an interim basis with bond anticipation\nnotes, shall be assumed to generate a present value savings; and (v)\notherwise, the effective interest rate and debt service on any bonds\nshall be calculated at a rate or rates reasonably assumed by the\nauthorized issuer. Notwithstanding any other provision of law to the\ncontrary, for calculating the present value of debt service and\ncalculating savings in connection with the issuance of refunding\nindebtedness, the refunding of variable rate debt instruments with new\nvariable rate debt instruments shall be excluded from any such\nrequirements, if effectuated for sound business purposes.\n
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