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2000 SESSION

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SB 263 Tobacco Settlement Financing Corporation; created.

Introduced by: Walter A. Stosch | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Tobacco Settlement Payments. To the extent set forth in the appropriation and other acts, authorizes the Governor to sell, from time to time, up to 40 percent of the tobacco settlement payments due to the Commonwealth of Virginia under the Master Settlement Agreement entered into with leading United States tobacco manufacturers on November 23, 1998. Sales may include only such payments that are due to the Commonwealth from and after July 1, 2001. Sales would be made to the Tobacco Settlement Financing Corporation, which is designated as a public body corporate and an independent instrumentality of the Commonwealth. The Tobacco Settlement Financing Corporation would issue bonds to raise monies to buy the Commonwealth's rights and title to and in future tobacco settlement payments. Bondholders would be paid from future tobacco settlement payments that are assigned to the Tobacco Settlement Financing Corporation by the Commonwealth. Any bonds issued by the Tobacco Settlement Financing Corporation would be non-recourse to the Commonwealth. Any residual, after payment to bondholders and expenses of the Tobacco Settlement Financing Corporation, would be distributed back to the Commonwealth.


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