Chapter
04-075
2004 --
H 8472
Enacted
06/11/04
A N A C T
AUTHORIZING
THE TOWN OF SOUTH KINGSTOWN TO FINANCE CAPITAL
TRANSPORTATION
IMPROVEMENT PROJECTS AND TO ISSUE NOT MORE THAN
$200,000
BONDS THEREFOR
Introduced
By: Representatives Shanley, McHugh, Lally, and D Caprio
Date
Introduced: April 28, 2004
It is enacted by the General Assembly as
follows:
Section 1. The
town of South Kingstown is hereby empowered, in addition to authority
previously granted, to issue bonds to an amount
not exceeding two hundred thousand dollars
($200,000) from time to time under its corporate
name and 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 years and the last installment not later
than thirty years after the date of the bonds. For each
issue the amounts payable annually for the
principal and interest combined either shall be as
nearly equal from year to year as is practicable
in the opinion of the officers authorized to issue
the bonds, or shall be arranged in accordance
with a schedule providing for a more rapid
amortization of principal.
Section 2. The
bonds shall be signed by the director of finance and by the president of the
town council and shall be issued and sold in
such amounts as the town council may authorize.
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 town
council authorizing the issue or by separate
resolution of the town 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 premiums and accrued interest shall be
expended (a) for the town's share of the cost of
reconstructing the Asa Pond Dam and for the
restoration of the Silver Lake Avenue Bridge 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.
Section 3. The
town council may by resolution authorize the issue from time to time of
interest bearing or discounted notes in
anticipation of the issue of bonds 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 president of the town
council and shall be payable within five 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 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
town council, may, to the extent that bonds or
notes may be issued hereunder, apply funds in the
treasury of the town to the purposes specified
in section two, such advances to be repaid without
interest from the proceeds of 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 premiums 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 extent not otherwise provided,
to the payment of the cost of the projects, to
the payment of the principal of or interest on bonds
or notes issued hereunder or to any one or more
of the foregoing. 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
accrued interest or from other moneys available
therefor. Any balance of bond or note proceeds
remaining after payment of the cost of the
projects 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 town
council.
Section 7. All
bonds and notes issued under this act and the debts evidenced thereby shall
be obligatory on the town 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 town for the purpose of
ascertaining its borrowing capacity. The town
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 the law to the
contrary, all taxable property in the town shall be
subject to ad valorem taxation by the town
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 town 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
town, acting by resolution of its town 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 project costs 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. The
question of the approval of this act shall be submitted to the electors of
the town at the general state election to be
held on November 2, 2004. The question shall be
submitted in substantially the following form:
"Shall an act, passed at the 2004 session of the
general assembly, entitled 'AN ACT AUTHORIZING
THE TOWN OF SOUTH KINGSTOWN
TO FINANCE CAPITAL TRANSPORTATION IMPROVEMENT
PROJECTS AND TO ISSUE
NOT MORE THAN $200,000 BONDS 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 town
clerk to keep a copy of the act available at his office for
public inspection, but the validity of the
election shall not be affected by this requirement.
Section 12. This
section and the foregoing section shall take effect upon the passage of
this act. The remainder of this act shall take
effect upon the approval of this act by a majority of
those voting on the question at the election
prescribed by the foregoing section.
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LC03268
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