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General Laws

Section 8. Upon the board’s request, the state treasurer shall pay to the trust for deposit in the fund monies appropriated by the commonwealth to the trust for any purposes of the fund or any account therein. The state treasurer, the secretary of the executive office for administration and finance, the department and the trust shall enter into agreements establishing procedures for payment of amounts appropriated by the commonwealth to the trust. An agreement may include such covenants and undertakings of the commonwealth and the trust as the state treasurer, the secretary of the executive office for administration and finance, the department and the board may deem necessary or desirable, including without limitation provision for payments by the commonwealth in anticipation of receipt of federal capitalization grants or the execution and delivery of loan agreements by the trust. Notwithstanding any law to the contrary, unless otherwise specifically provided therein provisions contained in any act enacted by a vote, taken by the yeas and nays of two-thirds of each house of the general court present and voting thereon, and approved by the governor, authorizing the state treasurer to issue bonds or notes of the commonwealth or otherwise authorizing the commonwealth to borrow money for purposes of providing monies to meet any appropriation to the trust for purposes of the fund shall be deemed to authorize the state treasurer, with the approval of the governor, to enter into agreement or agreements with the trust pledging the full faith and credit of the commonwealth to a schedule of payments to the fund of the amounts therein appropriated including without limitation the amount, time and manner of such payments. The agreements of the commonwealth and the rights of the trust thereunder may be assigned and pledged as security for bonds of the trust. No agreement authorized by this section shall supersede or interfere with the exercise of the powers specifically reserved to the department under section twenty-seven A of chapter twenty-one. Notwithstanding any general or special law to the contrary, in the discretion of the state treasurer, with the approval of the governor, payments to the trust of amounts authorized pursuant to the issuance of bonds by the commonwealth, as provided in this section may be met by the deposit in the fund of bonds of the commonwealth which are so authorized to meet such appropriation. Bonds so deposited may be assigned and pledged as security for bonds of the trust and may mature or be redeemable on such dates and in such amounts, may bear interest at such rate or rates or be deposited in the fund at such discount or premium, may bear such limitations on negotiation or resale by the trust, and may bear such other terms and conditions, as the state treasurer shall determine to be in the best interests of the commonwealth; provided, however, that the effective yield on such bonds shall not exceed the greater of the effective yield on the bonds of the trust which they secure and the effective yield on comparable bonds not so deposited in the fund, as determined by the state treasurer after consultation with the secretary of the executive office for administration and finance. For purposes of section forty-nine of chapter twenty-nine, the net proceeds of bonds deposited in the fund as instrument the principal amount of which increases during the life of the instrument shall be deemed to be the present value of the amount payable thereon at maturity discounted to the date of deposit at the yield on such bonds.

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