SECTION 1. The city of East Providence is hereby empowered, in addition to authority previously granted, to issue bonds to an amount not exceeding five million dollars ($5,000,000) from time to time under this corporate name and seal or a facsimile of such seal. The bonds of each issue may be issued in the form of serial bonds or term bonds or a combination thereof and shall be payable either by maturity of principal in the case of serial bonds or by mandatory serial redemption in the case of term bonds, in annual installments of principal, the first installment to be not later than five (5) years and the last installment not later than thirty (30) years after the date of the bonds.

SECTION 2. The bonds shall be signed by the manual or facsimile signature of the city director of finance and by the manual or facsimile signature of the mayor and shall be issued and sold at not less than par and accrued interest in such amounts as the city council may authorize by a bond ordinance or ordinances. Sections 4-27(2)(D) and (E) and 4-28 through 4-32 of the city charter shall not apply to such ordinance or ordinances or to bonds or notes issued hereunder, and it shall not be necessary to include the form of notice as set forth in Section 4-27(4) of the city charter when such ordinance or ordinances are published as required therein. The bonds shall be sold at public sale as required by Section 4-33 of the city charter, except that the publication of notices required in such section may be omitted.

The manner of sale, denominations, maturities, interest rates and other terms, conditions and details of any bonds or notes issued under this act may be fixed by the proceedings of the city council authorizing the issue or by separate resolution of the city council or, to the extent provisions for these matters are not so made, they may be fixed by the officers authorized to sign the bonds or notes. The proceeds derived from the sale of the bonds shall be delivered to the director of finance, and such proceeds, exclusive of premium and accrued interest, shall be expended (a) upon the abandonment of the Martin Middle School by the School Department of the City, to finance the design and conversion of the Martin Middle School and its site into a multi-purpose community/recreation complex, or (b) in payment of the principal of or interest on temporary notes issued under Section three, or (c) in repayment of advances under Section four. No purchaser of any bonds or notes under this act shall be in any way responsible for the proper application of the proceeds derived from the sale thereof. The proceeds of bonds or notes issued under this act, any applicable federal or state assistance and the other moneys referred to in Section six shall be deemed appropriated for the purposes of this act without further action than that required by this act. The bond issue authorized by this act may be consolidated for the purposes of issuance and sale with any other bond issue of the city heretofore or hereafter authorized, provided that, notwithstanding any such consolidation, the proceeds from the sale of the bonds authorized by this act shall be expended for the purposes set forth above.

SECTION 3. The city council may by resolution authorize the issue from time to time of interest bearing or discounted notes in anticipation of the issue of bonds under section two or in anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued under this act and the amount of original notes issued in anticipation of federal or state aid may not exceed the amount of available federal or state aid as estimated by the director of finance. Temporary notes issued hereunder shall be signed by the director of finance and by the mayor and shall be payable within five (5) years from their respective dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid from time to time by the issue of other notes hereunder, provided the period from the date of an original note to the maturity of any note issued to renew or pay the same debt or the interest thereon shall not exceed five (5) years.

SECTION 4. Pending any authorization or issue of bonds hereunder or pending or in lieu of any authorization or issue of notes hereunder, the director of finance, with the approval of the city council, may, to the extent that bonds or notes may be issued hereunder, apply funds in the treasury of the city to the purposes specified in section two, such advances to be repaid without interest from the proceeds of the bonds or notes subsequently issued or from the proceeds of applicable federal or state assistance or from other available funds.

SECTION 5. Any proceeds of bonds or notes issued hereunder or of any applicable federal or state assistance, pending their expenditure, may be deposited or invested by the director of finance in demand deposits, time deposits or savings deposits in banks which are members of the Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States of America or by any agency or instrumentality thereof or as may be provided in any other applicable law of the state of Rhode Island.

SECTION 6. Any accrued interest received upon the sale of bonds or notes hereunder shall be applied to the payment of the first interest due thereon. Any premium arising from the sale of bonds or notes hereunder and any earnings or net profit realized from the deposit or investment of funds hereunder shall, in the discretion of the director of finance, be applied to the cost of preparing, issuing and marketing bonds or notes hereunder, to the payment of the cost of the project, to the payment of the principal of or interest on bonds or notes issued hereunder or shall be added to and dealt with as part of the revenues of the city from property taxes to the extent permitted by applicable federal law. The cost of preparing, issuing and marketing bonds or notes hereunder may also, in the discretion of the director of finance, be met from bond or note proceeds exclusive of premium and accrued interest or from other moneys available therefor. Any balance of bond or note proceeds remaining after payment of the cost of the project, and the cost of preparing, issuing and marketing bonds or notes hereunder shall be applied to the payment of the principal of or interest on bonds or notes issued hereunder. In exercising any discretion under this section, the director of finance shall be governed by any instructions adopted by resolution of the city council. The director of finance is authorized to take any action deemed by him or her necessary to assure that interest on the bonds or notes issued hereunder remains excludable from gross income of the holders thereof for federal income tax purposes including, without limitation, paying to the federal government any rebate of earnings derived from the deposit or investment of the proceeds of such bonds or notes that may be required therefor.

SECTION 7. All bonds and notes issued under this act and the debts evidenced thereby shall be obligatory on the city in the same manner and to the same extent as other debts lawfully contracted by it and shall be excepted from the operation of section 45-12-2 of the general laws. No such obligation shall at any time be included in the debt of the city for the purpose of ascertaining its borrowing capacity. The city shall annually appropriate a sum sufficient to pay the principal and interest coming due within the year on bonds and notes issued hereunder to the extent that moneys therefor are not otherwise provided. If such sum is not appropriated, it shall nevertheless be added to the annual tax levy. In order to provide such sum in each year and notwithstanding any provision of law to the contrary, all taxable property in the city shall be subject to ad valorem taxation by the city without limitation as to rate or amount.

SECTION 8. Any bonds or notes issued under the provisions of this act, if properly executed by officers of the city in office on the date of execution, shall be valid and binding according to their terms notwithstanding that before the delivery thereof and payment therefor any or all of such officers shall for any reason have ceased to hold office.

SECTION 9. The city, acting by resolution of its city council, is authorized to apply for, contract for and expend any federal or state advances or other grants or assistance which may be available for the purposes of this act, and any such expenditures may be in addition to other moneys provided in this act. To the extent of any inconsistency between any law of this state and any applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest where applicable, whether contracted for prior to or after the effective date of this act, may be repaid as a cost of the project under Section two.

SECTION 10. Bonds and notes may be issued under this act without obtaining the approval of any governmental agency or the taking of any proceedings or the happening of any conditions except as specifically required by this act for such issue. In carrying out any project financed in whole or in part under this act, including, where applicable, the condemnation of any land or interest in land, and in the levy and collection of assessments or other charges permitted by law on account of any such project, all action shall be taken which is necessary to meet constitutional requirements whether or not such action is otherwise required by statute; but the validity of bonds and notes issued hereunder shall in no way depend upon the validity or occurrence of such action.

SECTION 11. For the purposes of this act, the city may acquire land or other real property, or any interest, estate or right therein, by eminent domain in the manner prescribed by chapter 1 of title 24 of the general laws as it may be amended from time to time, provided that no property or interest, estate or right therein belonging to the state or any political subdivision shall be acquired without its consent and that no property or interest, estate or right therein belonging to or used by a public utility shall be acquired without the consent of the division of public utilities and carriers. Any damages which may be agreed upon or determined under this act, including any interest and other applicable charges, shall constitute a general obligation of the city, but such obligation shall not at any time be included in the debt of the city for the purpose of ascertaining its borrowing capacity.

SECTION 12. The question of the approval of this act shall be submitted to the electors of the city at the general election to be held on November 5, 2002. The question shall be submitted in substantially the following form: "Shall an Act, passed at the 2002 session of the general assembly, entitled 'AN ACT AUTHORIZING THE CITY OF EAST PROVIDENCE TO, UPON THE ABANDONMENT OF THE MARTIN MIDDLE SCHOOL BY THE SCHOOL DEPARTMENT OF THE CITY, TO FINANCE THE DESIGN AND CONVERSION OF THE MARTIN MIDDLE SCHOOL AND ITS SITE INTO A MULTI-PURPOSE COMMUNITY/RECREATION COMPLEX AND TO ISSUE NOT MORE THAN $5,000,000 BONDS AND NOTES THEREFOR' be approved?" and the warning for the election shall contain the question to be submitted. From the time the election is warned and until it is held, it shall be the duty of the city clerk to keep a copy of the act available at his or her office for public inspection, but the validity of the election shall not be affected by this requirement.