Z-1331               _______________________________________________

                                                   SENATE BILL NO. 4971

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senators McDermott, Lee and Thompson;by request of Finance Committee

Read first time 1/24/86 and referred to Committee on Ways & Means.

AN ACT Relating to state bonds, notes, and other evidences of indebtedness; and amending RCW 39.42.030.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 3, chapter 184, Laws of 1971 ex. sess. as amended by section 104, chapter 167, Laws of 1983 and RCW 39.42.030 are each amended to read as follows:

          The state finance committee shall by resolution determine the amount, date or dates, terms, conditions, denominations, maximum interest rate or rates, price or prices which may be fixed or variable, maturity or maturities, redemption rights, registration privileges, manner of execution, manner of sale, covenants, and form, including bearer or registered as provided in RCW 39.46.030, of all evidences of indebtedness including the funding or refunding of any existing indebtedness.  Such evidences of indebtedness shall be sold in such manner, at such time or times, in such amounts and at such price or prices as the state finance committee shall determine.  The state finance committee may obtain insurance, letters of credit, or other credit facility devices with respect to such evidences of indebtedness and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability of such evidences of indebtedness.  The costs of obtaining insurance, letters of credit, or other credit enhancement devices shall be considered to be a cost of issuance and sale of such evidences of indebtedness.  Promissory notes or other obligations issued under this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the failure of the state to pay the principal of or interest on the evidences of indebtedness with respect to which the promissory notes or other obligations relate.  The state finance committee may authorize the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower total interest costs, and increased marketability and for the purposes of retiring the evidences of indebtedness during the life of the project for which they were issued:  PROVIDED, That no more than fifteen percent of the outstanding debt under this chapter with maturities greater than one year may be sold in this manner.