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Official Code of Georgia Annotated

Title 36. LOCAL GOVERNMENT · Chapter 82. BONDS · Article 1. GENERAL PROVISIONS

36-82-9. Certification requirement for pension obligation bonds; requirement for reserve fund.

Active

Current through: Including Acts of the 2025 Session of the General Assembly of Georgia.

  1. (a)

    As used in this Code section, the term:#

    1. (1)

      “Annual savings” means the difference between the annual debt service payments on pension obligation bonds and the annual required contribution to fund the unfunded actuarial accrued liability of the pension fund.#

    2. (2)

      “Level debt structure” means the establishment of a bond repayment schedule that requires equal annual debt service payments, including both principal and interest, over the life of the debt issue.#

    3. (3)

      “Pension obligation bond” means a bond issued as a general obligation bond in accordance with the provisions of this chapter, the proceeds of which are deposited with the government’s retirement system administrator to liquidate, in whole or in part, the government’s unfunded accrued actuarial liability to the government’s retirement plan.#

  2. (b)

    No political subdivision shall issue any pension obligation bond unless the state auditor has certified that such bonds comply fully with the provisions of this Code section.#

  3. (c)

    All pension obligation bonds shall:#

    1. (1)

      Be general obligation bonds subject to the provisions of the Constitution of the State of Georgia and this chapter relating to general obligation bonds;#

    2. (2)

      Be included as a component of the total debt of the political subdivision subject to the debt limits provided in Article IX, Section V of the Constitution of the State of Georgia;#

    3. (3)

      Be issued on a competitive basis;#

    4. (4)

      Specify a level debt structure; and#

    5. (5)

      Specify a maturity not longer than 20 years.#

  4. (d)

    An amount not less than 5 percent of the annual savings shall be deposited into a reserve fund as protection against changes that might impact the future financial condition of the pension system.#

  5. (e)

    Neither the political subdivision issuing pension obligation bonds nor any department, agency, authority, retirement system, or pension fund of such political subdivision shall purchase the pension obligation bonds so issued.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 36-82-9, enacted by Ga. L. 2001, p. 810, § 1.

Code Commission notes

Pursuant to Code Section 28-9-5, in 2001, Code Section 36-82-9, as enacted by Ga. L. 2001, p. 1033, § 1, was redesignated as Code Section 36-82-10.

Law reviews

For note on the 2001 enactment of this Code section, see 18 Ga. St. U.L. Rev. 193 (2001). For article, “Local Government Law,” see 53 Mercer L. Rev. 389 (2001).

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Session of the General Assembly of Georgia.

Text read from t36-ch60-92-(v27a)-2025-pdf.pdf, Volume V27A, 2025 edition, pages 468 to 469; merge action: bound only; file SHA-256 5150ee8c60f7.