Nevada Revised Statutes Title 30. Public Borrowing and Obligations § 349.251. Agreement for exchange of payments based on interest rates for state securities issued or proposed to be issued by Commission: Conditions; rates of interest; term of agreement; agreement does not constitute outstanding indebtedness of State; limitations on rate of interest on state securities inapplicable; money pledged to debt service of state securities may be used to make payments required by agreement

1. A Commission that has issued or proposes to issue state securities may enter into an agreement for an exchange of payments based on interest rates as provided in this section if it finds that such an agreement would be in the best interest of the State.

2. A Commission may enter into an agreement to exchange payments based on interest rates only if:

3. A Commission may agree, with respect to securities that the Commission has issued or proposes to issue bearing interest at a variable rate, to pay sums equal to interest at a fixed rate or rates or at a different variable rate determined pursuant to a formula set forth in the agreement on an amount not to exceed the principal amount of the state securities with respect to which the agreement is made, in exchange for an agreement to pay sums equal to interest on the same principal amount at a variable rate determined pursuant to a formula set forth in the agreement.

4. A Commission may agree, with respect to securities that the Commission has issued or proposes to issue bearing interest at a fixed rate or rates, to pay sums equal to interest at a variable rate determined pursuant to a formula set forth in the agreement on an amount not to exceed the outstanding principal amount of the state securities with respect to which the agreement is made, in exchange for an agreement to pay sums equal to interest on the same principal amount at a fixed rate or rates set forth in the agreement.

5. The term of an agreement entered into pursuant to this section must not exceed the term of the state securities with respect to which the agreement was made.

6. An agreement entered into pursuant to this section is not a debt or indebtedness of the State for the purposes of any limitation upon the indebtedness of the State or any requirement for an election with regard to the issuance of securities that is applicable to the State.

7. Limitations upon the rate of interest on a state security do not apply to interest paid pursuant to an agreement entered into pursuant to this section.

8. A Commission which has entered into an agreement pursuant to this section with respect to those securities may treat the amount or rate of interest on the securities as the amount or rate of interest payable after giving effect to the agreement for the purpose of calculating:

9. Subject to covenants applicable to the securities, any payments required to be made by the Commission under the agreement may be made from money pledged to pay debt service on the securities with respect to which the agreement was made or from any other legally available source.