1 bill · 2016 Regular Session
Amends existing law to provide that guaranteed bonds that are advance refunded and bond proceeds held in escrow no longer have the benefit of a guaranty.
The purpose of this code change is to clarify that defeased bonds or advance refunded bonds no longer have the State credit enhancement guarantee, as they would have the security of the escrow. This clarification helps define the liability that the State reports under the program and is important for capacity calculations.
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