Sec 35-1004. Treatment, calculation and payment of amounts due under swap agreements; exemptions from budget

A. A governmental entity may deduct amounts which the governmental entity is to receive pursuant to swap agreements from the amounts due on its bonds or other long-term obligations for the purposes of determining:

1. Whether a governmental entity has satisfied statutory requirements concerning revenue coverage that are applicable to its bonds or other long-term obligations.

2. Whether a governmental entity has satisfied any maximum rate of interest that may be paid on the bonds or other long-term obligations.

3. The amount of taxes, rates or charges to be levied or collected to pay amounts due upon its bonds or other long-term obligations.

B. Until payment of all obligations under swap agreements and the expiration of the fiscal year in which swap agreements are paid in full, no amounts collected for the purpose of paying amounts due under the swap agreements shall be subject to the provisions of title 42, chapter 17, article 2.