O.C.G.A. § 50-17-102 — Interest rate management plans

(a) Prior to executing and delivering a qualiﬁed interest rate management agreement, the state party shall have adopted an interest rate management plan that includes: (1) An analysis of the interest rate risk, basis risk, termination risk, credit risk, market-access risk, and other risks to the state party entering into qualiﬁed interest rate management agreements; (2) The state party’s procedure for approving and executing qualiﬁed interest rate management agreements; (3) The state party’s plan to monitor interest rate risk, basis risk, termination risk, credit risk, market-access risk, and other risks; and (4) Such other provisions as may from time to time be required by the commission, including but not limited to additional provisions due to changes in market conditions for qualiﬁed interest rate management agreements. Any interest rate management plan adopted by the state shall be approved by the commission or by a designated officer of the commission and shall have been reviewed by an independent ﬁnancial adviser approved by the commission. (b) The state party shall conduct an annual review of its interest rate management plan as to the adequacy of the procedures set forth in such plan for the analysis and monitoring requirements set forth in subsection (a) of this Code section. A report summarizing the results of such review shall be submitted annually to the commission and, with respect to any interest rate management plan of a state authority, to the governing body of such state authority. The requirements of this subsection shall not be construed as to require the review of any existing interest rate management plan by an independent ﬁnancial adviser. 281 50-17-103 History. — Code 1981, § 50-17-102, enacted by Ga. L. 2005, p. 642, § 2/SB 227. 50-17-103. Requirements for interest rate management agreements; credit enhancement or liquidity agreements. (a) Each qualiﬁed interest rate management agreement shall meet the following requirements: (1) The maximum term, including any renewal periods, of any qualiﬁed interest rate management agreement of the state may not exceed ten years unless such longer term has been approved by the commission. In addition to approval of the commission required by paragraph (2) of subsection (g) of Code Section 50-17-101, the maximum term, including any renewal periods, of any qualiﬁed interest rate management agreement of a state authority may not exceed ten years unless such longer term has been approved by the governing body of the state authority. The foregoing provisions of this paragraph notwithstanding, in no case may the term of the qualiﬁed interest rate management agreement exceed the latest maturity date of the bonds, notes, debt, or lease or installment purchase contract referenced in the qualiﬁed interest rate management agreement. (2) The state party shall enter into a qualiﬁed interest rate management agreement only with a counterparty meeting the requirements set forth in paragraph (2) of Code Section 50-17-100. (3) Prior to the execution and delivery by the state of any qualiﬁed interest rate management agreement, an interest rate management plan meeting the requirements of Code Section 50-17-102 must have been submitted to the commission and the commission shall have been provided evidence that such qualiﬁed interest rate management agreement is in compliance with the existing interest rate management plan. Prior to the execution and delivery by a state authority of any qualiﬁed interest rate management agreement, an interest rate management plan meeting the requirements of Code Section 50-17-102 must have been submitted to the governing body of the state authority and the governing body of the state authority shall have been provided evidence that such qualiﬁed interest rate management agreement is in compliance with the existing interest rate management plan. (4) Any qualiﬁed interest rate management agreement shall be payable only in the currency of the United States of America. (5) The notional amount of any qualiﬁed interest rate management agreement shall not exceed the outstanding principal amount of the debt or the aggregate payments due under any lease or install282 50-17-103 STATE DEBT, INVESTMENT, & DEPOSITORIES 50-17-105 ment purchase contract to which such agreement relates unless otherwise approved in writing by the commission for any qualiﬁed interest rate management agreement executed by the state or by the governing body of the state authority for any qualiﬁed interest rate management agreement executed by a state authority, subject to the approval of the commission required by paragraph (2) of subsection (g) of Code Section 50-17-101. (b) Any state party may enter into credit enhancement or liquidity agreements in connection with any qualiﬁed interest rate management agreement containing such terms and conditions as the state party determines are necessary or desirable, provided that any such agreement has the same source of payment as the related qualiﬁed interest rate management agreement. History. — Code 1981, § 50-17-103, enacted by Ga. L. 2005, p. 642, § 2/SB 227. 50-17-104. Information required in annual ﬁnancial statements.