Chapter
372
2005 -- S 1165
Enacted 07/19/05
A N A C T
AUTHORIZING THE TOWN OF EAST GREENWICH TO FINANCE THE ACQUISITION OF LAND FOR, AND THE CONSTRUCTION, FURNISHING AND EQUIPPING OF, A NEW POLICE STATION AND ITS FACILITIES IN THE TOWN BY THE ISSUANCE OF NOT MORE THAN $8,000,000 BONDS AND/OR NOTES THEREFOR
Introduced By: Senators Lenihan, and Raptakis
Date
Introduced: June 15, 2005
It is
enacted by the General Assembly as follows:
SECTION
1. The town of East Greenwich is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding eight million dollars
($8,000,000)
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 three (3)
years
and the last installment not later than thirty (30) years after the date of the
bonds. All such
bonds
of a particular issue may be issued in the form of zero coupon bonds, capital
appreciation
bonds,
serial bonds or term bonds or a combination thereof. Annual installments of
principal may
be
provided for by maturity of principal in the case of serial bonds or by
mandatory serial
redemption
in the case of term bonds. The amount of principal appreciation each year on
any
bonds,
after the date of original issuance, shall not be considered to be principal
indebtedness for
the
purposes of any constitutional or statutory debt limit or any other limitation.
The appreciation
of
principal after the date of original issue shall be considered interest. Only
the original principal
amount
shall be counted in determining the principal amount so issued and any interest
component
shall be disregarded.
SECTION
2. The bonds shall be signed by the manual or facsimile signatures of the town
finance
director and the president of the town council and shall be issued and sold in
such
amounts
as the town council may authorize by resolution. 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 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.
Interest coupons (if
any)
shall bear the manual or facsimile signature of the town finance director. The
proceeds
derived
from the sale of the bonds shall be delivered to the town finance director, and
such
proceeds,
exclusive of premiums and accrued interest, shall be expended (a) for the
purpose of
financing
the acquisition of land for, and the construction, furnishing and equipping of,
a new
police
station and its facilities in the town ("the project"), (b) in
payment of the principal of or
interest
on the temporary notes issued under section three, (c) in repayment of advances
under
section
four, (d) in payment of the costs associated with the issuance of bonds or
notes hereunder
and/or
(e) in payment of capitalized interest during construction of the project. 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 projects shall be carried out and all
contracts made
therefore
on behalf of the town by the town council or as otherwise may be directed by
the town
council.
The proceeds of bonds or notes issued under this act, any applicable federal or
state
assistance
and the other moneys referred to in sections six and nine 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 town 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. The town finance director and president of
the town
council,
on behalf of the town, are hereby authorized to execute such instruments,
documents or
other
papers as either of them deems necessary or desirable to carry out the intent
of this act and
are
also authorized to take all actions and execute all documents or agreements
necessary to
comply
with federal tax and securities laws, which documents or agreements may have a
term
coextensive
with the maturity of the bonds authorized hereby, including Rule 15c2-12 of the
Securities
and Exchange Commission and to execute and deliver a continuing disclosure
agreement
or certificate in connection with the bonds or notes.
SECTION
3. The town council may by resolution authorize the issuance from time to
time of
interest bearing or discounted notes in anticipation of the issuance 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 town
finance
director.
Temporary notes issued hereunder shall be signed by the manual or facsimile
signatures
of the
town finance director and the president of the town council 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 issuance 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. Any
temporary notes
in
anticipation of bonds issued under this section may be refunded prior to the
maturity of the
notes
by the issuance of additional temporary notes, provided that no such refunding
shall result
in any
amount of such temporary notes outstanding at any one time in excess of two
hundred
percent
(200%) of the amount of bonds which may be issued under this act, and provided
further
that if
the issuance of any such refunding notes results in any amount of such
temporary notes
outstanding
at any one time in excess of the amount of bonds which may be issued under this
act,
the
proceeds of such refunding notes shall be deposited in a separate fund established
with the
bank
which is paying agent for the notes being refunded. Pending their use to pay
the notes being
refunded,
moneys in the fund shall be invested for the benefit of the town by the paying
agent at
the
direction of the town finance director in any investment permitted under
section five. The
moneys
in the fund and any investments held as part of the fund shall be held in trust
and shall be
applied
by the paying agent solely to the payment or prepayment of the principal of and
interest
on the
notes being refunded. Upon payment of all principal of and interest on the
notes, any
excess
moneys in the fund shall be distributed to the town. The town may pay the
principal of and
interest
on notes in full from other than the issuance of refunding notes prior to the
issuance of
bonds
pursuant to Section 1 hereof. In such case, the town's authority to issue bonds
or notes in
anticipation
of bonds under this act shall continue provided that 1) the town council passes
a
resolution
evidencing the town's intent to pay off the notes without extinguishing the
authority to
issue
bonds or notes and 2) that the period from the date of an original note to the
maturity date of
any
other note 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 town finance director, 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 town
finance
director 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 or resolution of the town
council or
pursuant
to an investment policy of the town.
SECTION
6. Any incurred 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 shall, in the discretion of the town finance director,
be applied to
the
cost of preparing, issuing and marketing bonds or notes hereunder to the extent
not otherwise
provided,
to the payment of project costs, to the payment of the principal of or interest
on bonds
or
notes issued hereunder or to any one (1) or more of the foregoing. The costs of
preparing,
issuing
and marketing bonds or notes hereunder may also, in the discretion of the town
finance
director,
be met from bond or note proceeds exclusive of premium and accrued interest or
from
other
moneys available therefore. 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.
To the extent permitted by applicable federal laws, any earnings or net profit realized
from
the deposit or investment of funds hereunder may, upon receipt, be added to and
dealt with
as part
of the revenues of the town from property taxes. In exercising any discretion
under this
section,
the town finance director 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
and any
provision of the town charter. 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 therefore 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 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, and coupons, if
any, if
property 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
therefore
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 of assistance
which may
be
available for the purposes of this act, and any such expenditures may be in
addition to the
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 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. All or any portion of the authorized but unissued authority to issue bonds
and
notes under this act may be extinguished by ordinance of the town council,
without further
action
by the general assembly.
SECTION
12. The question of the approval of this act shall be submitted to the electors
of the
town at a general or local election to be held on a date as shall be designated
by the town
council.
The question shall be submitted in substantially the following form:
"Shall an act, passed
at the
2005 session of the General Assembly, entitled 'An act authorizing the Town of
East
Greenwich
to finance the acquisition of land for, and the construction, furnishing and
equipping
of, a
new police station and its facilities in the town by the issuance of not more
than $8,000,000
bonds
and/or notes therefore' 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 this act available for public inspection, but
the validity of
the
election shall not be affected by this requirement. To the extent of any inconsistency
between
this
act and the town charter, this act shall prevail.
SECTION
13. 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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LC03393
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