Section 69-C. Variable rate bonds

Notwithstanding any other provision of
  law to the contrary, any State-supported debt may be issued as  variable
  rate bonds.
    Notwithstanding  any  other  provision  of  law  to  the contrary, for
  purposes  of  calculating  the  present  value  of  debt   service   and
  calculating  savings  in  connection  with  the  issuance  of  refunding
  indebtedness, (i) the effective interest rate and debt  service  payable
  on variable rate bonds in connection with which, and to the extent that,
  an  authorized  issuer  has  entered  into  an interest rate exchange or
  similar agreement pursuant to which the authorized issuer makes payments
  based on a fixed rate and receives payments based  on  a  variable  rate
  that  is  reasonably expected by such authorized issuer to be equivalent
  over time to the variable rate paid on the related variable rate  bonds,
  shall  be calculated assuming that the rate of interest on such variable
  rate bonds is the fixed rate payable by the authorized  issuer  on  such
  interest  rate  exchange  or similar agreement for the scheduled term of
  such agreement; (ii) the effective interest rate  and  debt  service  on
  variable rate bonds in connection with which, and to the extent that, an
  authorized issuer has not entered into such an interest rate exchange or
  similar  agreement  shall  be  calculated assuming that interest on such
  variable interest rate bonds is payable at a rate  or  rates  reasonably
  assumed  by the authorized issuer; (iii) the effective interest rate and
  debt service on any bonds subject to optional or mandatory tender  shall
  be a rate or rates reasonably assumed by the authorized issuer; (iv) any
  variable  rate  bonds  that  are  converted or refunded to a fixed rate,
  whether or not financed on  an  interim  basis  with  bond  anticipation
  notes,  shall  be  assumed  to generate a present value savings; and (v)
  otherwise, the effective interest rate and debt  service  on  any  bonds
  shall  be  calculated  at  a  rate  or  rates  reasonably assumed by the
  authorized issuer. Notwithstanding any other provision  of  law  to  the
  contrary,  for  calculating  the  present  value  of  debt  service  and
  calculating  savings  in  connection  with  the  issuance  of  refunding
  indebtedness,  the  refunding of variable rate debt instruments with new
  variable  rate  debt  instruments  shall  be  excluded  from  any   such
  requirements, if effectuated for sound business purposes.
    * NB Effective until March 31, 2010