An Act To Allow the Maine Turnpike Authority To Benefit from Advantageous Interest Rates
Maine Legislature, Session 121, LD 0604
Committee: Transportation

Legislative Document 
No. 604 
S.P.213 
In Senate, February 11, 2003 
An Act To Allow the Maine Turnpike Authority To Benefit from 
Advantageous Interest Rates 
(EMERGENCY) 
Submitted by the Maine Turnpike Authority pursuant to Joint Rule 204. 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Senator SA V AGE of Knox. 
Printed on f"rl:yc led papt'T 
JOY J. O'BRIEN 
Secretary of the Senate 
Emergency preamble. Whereas. Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies: and 
Whereas, 
the 
Maine 
Turnpike 
Authority 
plans 
to 
take 
advantage of currently low interest rates and issue revenue bonds 
in the spring of 2003 to finance certain capital improvements: and 
Whereas, the Maine Turnpike Authority believes that because 
of currently low interest rates it may be advantageous in 2003 to 
refinance a portion of its existing debt; 
Whereas, the Maine Turnpike Authority believes that because 
of currently low interest rates it may be cost-effective in the 
spring 
of 
2003 
to 
enter 
into 
agreements 
that 
may 
provide 
subsequent advantages based on future interest rates; 
Whereas, legislative 
Maine Turnpike Authority 
low prevailing interest 
activities; 
action 
is to 
rates 
is immediately necessary if the 
take advantage of the currently 
in its spring 
2003 
financing 
Whereas, in the judgment of the Legislature, these facts 
create an emergency wi thin the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 23 MRS A §1968~ sub-§l-A is enacted to read: 
I-A. 
Bonds 
for 
refinancing. 
In 
addition 
to 
bonds 
outstanding pursuant to any other provision of this chapter, the 
authority may provide by resolution at any time during calendar 
year 2003 for the issuance of turnpike revenue bonds, including 
notes or other evidences of indebtedness or obligations defined 
to be bonds under this chapter, but not exceeding $10,000,000 in 
principal 
amount 
at 
anyone 
time 
outstanding 
exclusive 
of 
refundings, 
for the purpose of refunding outstanding turnpike 
revenue bonds issued pursuant to this chapter. 
Sec. 2. 23 MRS A §1983 is enacted to read: 
SI983. 
Interest rate agreements 
The authority is authorized to enter from time to time into 
agreements with another party, on terms and conditions that the 
authority determines are necessary or convenient, in which the 
authority agrees to make a payment to, or to receive a payment 
Page l-LRI356(1) 
from, 
the other party based on a 
comparison at a future date 
between an interest rate specified on the date of the agreement 
and a rate derived on or about that future date from an interest 
rate index. 
The authority is authorized to enter into any credit 
enhancement or liquidi ty agreement on terms and condi tions that 
the authority determines are necessary or convenient for carrying 
out this section. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
The bill authorizes the Maine Turnpike Authority to enter 
into 
agreements 
at 
one 
time 
that 
may 
provide 
a 
subsequent 
advantage to the authority based on future interest rates. 
The 
bill also provides 
a 
temporary extension of 
the authority's 
bonding capacity for the year 2003 that will enable it to perform 
refinancing.