11-34-2 - Bonds issued in foreign denominations -- Required conditions and agreements. - Utah Statutes

11-34-2. Bonds issued in foreign denominations -- Required conditions andagreements.
Any bonds issued by a public body may be denominated in a foreign currency, but only if,at the time of the issuance of the bonds, the public body which issues them enters into one ormore foreign exchange agreements, forward exchange agreements, foreign currency exchangeagreements, or other similar agreements with a bank or other financial institution, foreign ordomestic, the senior unsecured long-term debt obligations of which are rated in one of thehighest two rating categories by Moody's Investors Service, Inc. or Standard & Poor'sCorporation or another similar nationally recognized securities rating agency, to protect thepublic body against the risk of a decline in the value of the United States dollar in relation to theforeign currency in which the bonds are denominated. Such agreements shall contain a provisionthat protects against the risk of a decline in the value of the United States dollar with respect tothe interest on the bonds and the principal of the bonds to the maturity or redemption thereof. The costs of such agreements, including without limitation periodic fees and other amounts dueto the other party or parties to such agreements, may be paid by the public body from theproceeds of the bonds and other revenues of the public body.

Amended by Chapter 378, 2010 General Session