§ 69-d. Interest rate exchange or similar agreements. 1. Authorized\nissuer; powers. In connection with the issuance of State-supported debt,\nor in connection with such State-supported debt already outstanding, an\nauthorized issuer shall have the power to:\n (a) enter into interest rate exchange or similar agreements with any\nperson under such terms and conditions as the authorized issuer may\ndetermine, including provisions as to default or early termination and\nindemnification by the authorized issuer or any other party thereto for\nloss of benefits as a result thereof;\n (b) procure insurance, letters of credit or other credit enhancement\nwith respect to agreements described in paragraph (a) of this\nsubdivision;\n (c) provide security for the payment or performance of its obligations\nwith respect to agreements described in paragraph (a) of this\nsubdivision from such sources and with the same effect as is authorized\nby applicable law with respect to security for its bonds, notes or other\nobligations, provided, however, that any payment or performance of\nobligations with respect to agreements described in paragraph (a) of\nthis subdivision in connection with debt obligations which carry the\nfull faith and credit of the state shall be subject to appropriation;\n (d) the state, acting through the director of the budget or other\nstate officials who are so authorized by applicable law with respect to\nsuch bonds, notes or other obligations, shall also be authorized to\nenter into or amend agreements related to such State-supported debt to\nprovide for payment, subject to appropriation, to such authorized issuer\nof any amounts required to be paid by such authorized issuer under any\nsuch interest rate exchange or similar agreement;\n (e) if such funds are available, provide collateral for its own\nobligations under any such interest rate exchange or similar agreement;\nand\n (f) modify, amend, or replace, such agreements.\n 2. Interest rate exchange; limitations. Any interest rate exchange or\nsimilar agreements entered into pursuant to subdivision one of this\nsection shall be subject to the following limitations:\n (a) the counterparty thereto shall have credit ratings from at least\none nationally recognized statistical rating agency that is within the\ntwo highest investment grade categories and ratings which are obtained\nfrom any other nationally recognized statistical rating agencies shall\nalso be within the three highest investment grade categories, or the\npayment obligations of the counterparty shall be unconditionally\nguaranteed by an entity with such credit ratings;\n (b) the written contract shall require that should the rating: (i) of\nthe counterparty, if its payment obligations are not unconditionally\nguaranteed by another entity, or (ii) of the entity unconditionally\nguaranteeing its payment obligations, if so secured, fall below the\nrating required by paragraph (a) of this subdivision, that the\nobligations of such counterparty shall be fully and continuously\ncollateralized by direct obligations of, or obligations the principal\nand interest on which are guaranteed by, the United States of America,\nwith a net market value of at least one hundred two percent of the net\nmarket value of the contract to the authorized issuer and such\ncollateral shall be deposited with the authorized issuer or an agent\nthereof;\n (c) the total notional amount of all interest rate exchange or similar\nagreements for all authorized issuers to be in effect shall not exceed\nan amount equal to fifteen percent of the total amount of\nstate-supported debt outstanding as of the initial date of entering into\neach new agreement; provided, however, that such total notional amount\nshall not include any excluded agreements.\n (d) no interest rate exchange or similar agreement shall have a\nmaturity exceeding the maturity of the related State-supported debt;\n (e) each interest rate exchange or similar agreeme
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