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General Laws

Section 6A. In addition to the purposes set forth in sections five and six, the board may apply and disburse monies of the fund to provide for the subsidy or assistance to local governmental units in the payment of debt service costs on loans made by the trust authorized and directed by section twenty-six and twenty-seven of chapter two hundred and three of the acts of nineteen hundred and ninety-two and by section one hundred ninety of chapter sixty of the acts of nineteen hundred and ninety-four.

To provide for such subsidy or assistance, the state treasurer acting on behalf of the commonwealth shall enter into an agreement with the trust that the commonwealth shall provide contract assistance for debt service obligations on loans and other forms of financial assistance made by the trust up to a maximum amount of $26,000,000 per fiscal year of the commonwealth. Such contract assistance agreement shall provide for payments by the commonwealth to the trust at such times during each fiscal year and upon such terms and under such conditions as the trust may stipulate. The trust may pledge such agreement and the rights of the trust to receive amounts thereunder as security for payment of debt obligations issued to the trust. Such agreement shall constitute a general obligation of the commonwealth for which the faith and credit of the commonwealth shall be pledged for the benefit of the trust and of the holders of any debt obligations of the trust which may be secured by the pledge of such agreement or of amounts to be received by the trust under such agreement.

The trust may pledge such agreement and the rights of the trust to receive amounts thereunder as security for the payment of debt obligations issued by the trust.

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