6:8-c Swap Agreements. –
I. In this section:
(a) "Obligations" means bonds, notes or other evidences of indebtedness, or lease, installment purchase, or other similar agreements or certificates of participation therein.
(b) "Swap agreement" means:
(1) An agreement, including terms and conditions incorporated by reference therein, which is a rate swap agreement, basis swap, forward rate agreement, commodity swap, interest rate option, forward foreign exchange agreement, rate cap agreement, rate floor agreement, rate collar agreement, currency swap agreement, cross-currency rate swap agreement, currency option, or any other similar agreement, including any option to enter into any of the foregoing;
(2) Any combination of the agreements in subparagraph (1); or
(3) A master agreement for any of the agreements in subparagraphs (1) and (2), together with all supplements.
II. The treasurer, with the approval of the governor and council, may from time to time enter into and amend any swap agreements that the treasurer determines to be necessary or desirable for the purpose of managing an interest rate, currency, commodity price, investment or similar risk that arises in connection with, or is incidental to, the issuance, carrying or securing of obligations or the acquisition or carrying of investments. Swap agreements entered into by the state shall contain such provisions, including payment, term, security, default and remedy provisions, and shall be with such parties, as the treasurer shall determine to be necessary or desirable after due consideration to the creditworthiness of those parties.
III. In connection with entering into any swap agreement the treasurer, with the approval of the governor and council, may enter into credit enhancement or liquidity agreements on behalf of the state, with such payment, security, default, remedy, and other terms and conditions as the treasurer determines.