Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Treasurer: bond covenants (the “bond lock”) link guardrails to investor protections; violating them risks litigation and downgrades
Summary
Connecticut State Treasurer told the committee that statutory bond covenants — the so‑called bond lock — tie compliance with the spending, revenue and volatility caps to bond contracts; the covenants were initially included in bonds sold 2018–2020, renewed by the legislature in 2023 and now expire in 2033 absent action
The state treasurer briefed the committee on the bond covenants (often called the bond lock), explaining that the covenants are contract terms in the state’s bond documents that refer to the statutory fiscal guardrails and prohibit certain statutory changes for the protection of bondholders.
The treasurer said the covenant is “a legally binding agreement that restricts actions of the issuer,” and that the intent is to protect bondholders and the issuer’s ability to make scheduled debt‑service payments. The covenants commonly…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
