§ 69-c. Variable rate bonds. Notwithstanding any other provision of
law to the contrary, any State-supported debt may be issued as variable
rate bonds.

Notwithstanding any other provision of law to the contrary, for
purposes of calculating the present value of debt service and
calculating savings in connection with the issuance of refunding
indebtedness, (i) the effective interest rate and debt service payable
on variable rate bonds in connection with which, and to the extent that,
an authorized issuer has entered into an interest rate exchange or
similar agreement pursuant to which the authorized issuer makes payments
based on a fixed rate and receives payments based on a variable rate
that is reasonably expected by such authorized issuer to be equivalent
over time to the variable rate paid on the related variable rate bonds,
shall be calculated assuming that the rate of interest on such variable
rate bonds is the fixed rate payable by the authorized issuer on such
interest rate exchange or similar agreement for the scheduled term of
such agreement; (ii) the effective interest rate and debt service on
variable rate bonds in connection with which, and to the extent that, an
authorized issuer has not entered into such an interest rate exchange or
similar agreement shall be calculated assuming that interest on such
variable interest rate bonds is payable at a rate or rates reasonably
assumed by the authorized issuer; (iii) the effective interest rate and
debt service on any bonds subject to optional or mandatory tender shall
be a rate or rates reasonably assumed by the authorized issuer; (iv) any
variable rate bonds that are converted or refunded to a fixed rate,
whether or not financed on an interim basis with bond anticipation
notes, shall be assumed to generate a present value savings; and (v)
otherwise, the effective interest rate and debt service on any bonds
shall be calculated at a rate or rates reasonably assumed by the
authorized issuer. Notwithstanding any other provision of law to the
contrary, for calculating the present value of debt service and
calculating savings in connection with the issuance of refunding
indebtedness, the refunding of variable rate debt instruments with new
variable rate debt instruments shall be excluded from any such
requirements, if effectuated for sound business purposes.