Chapter 389
2006 -- S 3104
Enacted 07/06/06
A N A C T
AUTHORIZING
THE TOWN OF SOUTH KINGSTOWN TO FINANCE NEIGHBORHOOD GUILD IMPROVEMENTS AND TO
ISSUE NOT MORE THAN $1,000,000 BONDS THEREFOR
Introduced By:
Senator V. Susan Sosnowski
Date
Introduced: May 16, 2006
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 one million dollars
($1,000,000) 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
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 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
both interior and exterior building renovation and
improvements of the Neighborhood Guild Facility
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
project, 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 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 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 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 7, 2006. The question shall be
submitted in substantially the following form:
“Shall an act, passed at the 2006 session of the
general assembly, entitled ‘AN ACT AUTHORIZING
THE TOWN OF SOUTH KINGSTOWN
TO FINANCE NEIGHBORHOOD GUILD IMPROVEMENTS AND
TO ISSUE NOT MORE
THAN $1,000,000 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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LC03232
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