6656-S AMS SCHO CARD 007

SSB 6656 - S AMD 102

By Senator Schoesler

PULLED 2/15/2010

    On page 4, line 36, after "39.53 RCW" insert the following:

    "No municipality may enter into a contract to sell loans financed by an energy services conservation utility to a third party for the purpose of securitizing those loans without approval by the municipal legislative authority.  Any contract that requires a municipality to service loans that it originated must limit the liability of the municipality by prohibiting the commingling of its loans in a securities instrument with loans issued by other parties."

EFFECT:  (1) Requires approval of the municipal legislative authority before a municipality may enter into a contract to sell loans financed by an energy service conservation utility to a third party for the purpose of securitizing those loans. (2) Requires that a municipality  must limit its liability in any contract requiring the municipality to service loans that it originated. 

--- END ---