Section 7-572-3 - Procedures for Tier I and II Municipalities issuing general obligations supported by a special capital reserve fund(a) Any Tier I or Tier II municipality wishing to issue any obligation supported by a Special Capital Reserve Fund (a "SCRF") shall, through its chief executive officer, notify the Secretary and the Treasurer of such desire within one-hundred twenty (120) days of the intended date of the issuance. Such notification shall include the following:(1) A description of the purpose and anticipated amount of the obligation to be supported by the SCRF, the most recent audited financial statements of the municipality, and, in the case of a deficit obligation, a description of the measures that will be implemented to eliminate the deficit.(2) A letter from the municipality's chief executive officer certifying that, and an opinion from its bond counsel to the effect that, the proposed issuance of the obligation will comply with Public Act 93-421, that such municipality has authorized the issuance of such obligations in accordance with the General Statutes, any applicable charter, special act or home rule ordinance and the provisions of Public Act 93-421, and, in the case of a deficit obligation, that the municipality has no outstanding deficit obligations and that it has not issued a deficit obligation in the past five years.(3) Draft agreements and language with respect to the property tax intercept procedure and debt service payment fund to be established with a trustee in accordance with the provisions of Public Act 93-421.(4) Any other information required by Public Act 93-421. The Secretary may, upon a request from the municipality's chief executive officer, reduce the one-hundred twenty (120) day notice requirement for some or all of the items of information outlined above if sufficient cause is found.
(b) In the case of a Tier II municipality, the Secretary, within ten (10) days of the receipt of the documentation required in (a) of this section, shall forward such documentation to the MFAC. The MFAC within thirty (30) days of its receipt of such documentation shall approve or disapprove the issuance of the obligation and provide a written report of such action to the Secretary.(c) The Secretary shall forward a written report on the documentation required in (a) above and on the other issues related to the municipality's financial situation, and, with respect to obligations to be issued by a Tier II municipality, the written report of the MFAC pursuant to (b) of this section, to the Treasurer not less than sixty (60) days before the intended date of issuance of the obligations to be supported by a SCRF, unless the Treasurer, following a request from the municipality's chief executive officer, agrees to reduce this sixty (60) day requirement. The report shall indicate, among other items, the status of the municipality's certification as a Tier I or Tier II municipality. In the report, the Secretary shall indicate the requirements the Secretary wants imposed pursuant to Section 12 of Public Act 93-421 in the indenture or other agreement between the municipality and the trustee related to the establishment of the special capital reserve fund. These requirements shall be in addition to any requirements that may be imposed by the Treasurer in accordance with Section 12 of Public Act 93-421.(d) A municipality may not issue any obligation for which there is a SCRF established pursuant to Section 12 of Public Act 93-421 unless and until the Treasurer approves, in writing, the issuance of the obligation to be secured by the SCRF and the indenture or other agreement between the municipality and the trustee establishing the SCRF. The Treasurer shall not provide such approvals until the Secretary submits to him the information indicated in (c) of this section. The municipality shall comply with such guidelines and standards as may be established by the Treasurer to ensure compliance with Sections 10 through 12 of Public Act 93-421.(e) The Secretary shall refer to the MFAC, pursuant to the provisions of Section 7-395 of the General Statutes, any municipality which notifies the Secretary that it intends to issue obligations under Section 14 or 17 of Public Act 93-421.Conn. Agencies Regs. § 7-572-3