6828 AMH  FRAS 49

SB 6828 - H AMD TO H AMD (H-4864.3/02)0548 FAILED 3-12-02

By Representative ___

     On page 6 of the striking amendment, after line 32, insert the following:

     "(2) Prior to issuing bonds pursuant to this section, the authority shall project the interest rate it expects to receive on the bonds.  If the authority determines that the annual rate of interest will exceed  six and one-tenth percent, then the authority's ability to issue bonds pursuant to this section is terminated, and any sales agreement between the state and the authority pursuant to section 7 of this act is null and void."

     Renumber remaining subsections consecutively and correct internal references accordingly.

EFFECT:  If the interest rate on the bonds exceeds 6.1%, then the Authority may not issue the bonds and the state's sale of the right to receive the tobacco revenues is null and void.