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This entry was published on 2014-09-22
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Federal insurance or guaranty; taxable bond option
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 9
§ 1867-a. Federal insurance or guaranty; taxable bond option. (a) The
authority is authorized to obtain from any department or agency of the
United States of America or non-governmental insurer any insurance or
guaranty, to the extent now or hereafter available, as to, or of, or for
the payment or repayment of interest or principal, or both, or any part
thereof, on any bonds or notes issued by the authority, or on any
municipal obligations of governmental units or cooperatives purchased or
held by the authority; and to enter into any agreement or contract with
respect to any such insurance or guaranty, except to the extent that the
same would in any way impair or interfere with the ability of the
authority to perform and fulfill the terms of any agreement made with
the holders of the bonds or notes of the authority.

(b) The authority may covenant and consent that the interest on
certain of its bonds shall be includible, under the Internal Revenue
Code of 1954 or any subsequent corresponding internal revenue law of the
United States, in the gross income of the holders of the bonds to the
same extent and in the same manner that the interest on bills, bonds,
notes or other obligations of the United States is includible in the
gross income of the holders thereof under said Internal Revenue Code or
any such subsequent law.