No municipality, including any certified or designated municipality, shall issue any obligation for which there is a special capital reserve fund of any kind which is in any way contributed to or guaranteed by the state unless and until such obligation, and the indenture or agreement establishing such special capital reserve fund, is approved by the Treasurer. The approval of the Treasurer shall be based on documentation provided and certified by such municipality demonstrating to the Treasurer's satisfaction that

1. (1) (A) the secretary has certified the municipality, (B) the municipality has requested designation as a tier I, II or III municipality, or (C) the secretary has designated the municipality as a tier III or IV municipality,
2. (2) the Municipal Finance Advisory Commission, in the case of a certified municipality or designated tier I municipality, or the Municipal Accountability Review Board, in the case of a designated tier II, III or IV municipality, has approved the obligation to be issued under sections 7-560 to 7-579, inclusive,
3. (3) the municipality is not in default on any general obligation after giving effect to an obligation approved under this section,
4. (4) the municipality has funded or made due provision to fund the special capital reserve fund,
5. (5) the financing is in the public interest, and
6. (6) the secretary and the Treasurer have approved the property tax intercept procedure authorized by sections 7-560 to 7-579, inclusive.

(P.A. 93-421, S. 10, 22; June Sp. Sess. P.A. 17-2, S. 356.)

History: P.A. 93-421 effective July 1, 1993; June Sp. Sess. P.A. 17-2 added reference to designated municipalities, amended Subdiv. (1) by designating provision re secretary certified municipality as Subpara. (A), adding Subpara. (B) re municipality requesting designation as tier I, II or III municipality, adding Subpara. (C) re municipality that secretary designated as tier III or IV and amended Subdiv. (2) by adding provision re certified municipalities or designated tier I municipality and the Municipal Accountability Review Board and adding reference to tier III or IV municipality and deleting references to Sec. 7-394b(a), effective October 31, 2017.