Chapter 428
2005 -- H 6599
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: Representative Robert A. Watson
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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LC03399
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