Absent bad faith or actual knowledge to the contrary, a counterparty that enters into a swap agreement with a governmental entity may rely on a representation by that governmental entity that it is authorized or empowered to enter into the swap agreement. Notwithstanding the failure by that governmental entity to comply with the provisions of this chapter, that counterparty may enforce the swap agreement against the governmental entity.

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Terms Used In Arizona Laws 35-1003

  • Governmental entity: means this state, any county, city, town, municipality or other political subdivision of this state or any department, agency, board, commission, authority, political subdivision, public corporation or other public entity of any of the foregoing or controlled by any of the foregoing, provided that each of the foregoing must comprise a geographical area with a population of at least three hundred thousand persons according to the most recent United States decennial census or special census. See Arizona Laws 35-1001
  • Swap agreement: means an agreement, between a governmental entity and a financial institution, including an insurance company, bank indemnity company or a company related to a financial institution, pursuant to which payments are to be made by the governmental entity to the financial institution and are also to be made by the financial institution to the governmental entity, and which is entered into in order to manage interest rate risk, investment risk, or commodity prices or is entered into in connection with carrying or securing of obligations of a governmental entity. See Arizona Laws 35-1001
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