Chapter
016
2007 -- H 5189
Enacted 05/03/07
A N A C T
AUTHORIZING THE TOWN
OF CHARLESTOWN TO FINANCE AFFORDABLE HOUSING INITIATIVES IN THE TOWN CONSISTENT
WITH THE APPROVED CHARLESTOWN AFFORDABLE HOUSING PLAN BY THE ISSUANCE OF NOT
MORE THAN $1,000,000 BONDS AND/OR NOTES THEREFOR
Introduced By: Representatives Walsh, and Scott
Date Introduced: January
24, 2007
It is
enacted by the General Assembly as follows:
SECTION
1. The town of Charlestown is hereby empowered, in addition to authority
previously
granted, to issue general obligation bonds and notes 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 (5) 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
treasurer
and 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 town treasurer, and such proceeds, exclusive of premiums
and accrued
interest,
shall be expended (a) to finance affordable housing initiatives in the town
consistent with
the
approved Charlestown affordable housing plan, (b) in payment of the principal
of and/or
interest
on temporary notes issued under Section 3 of this act, (c) in repayment of
advances made
pursuant
to Section 4 of this act and/or (d) in payment of costs of issuance associated
with the
issuance
of bonds or notes hereunder. 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
project shall be carried out and all contracts made therefor on behalf of the
town 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 Section 6 and 9 of this act, shall be
deemed
appropriated
for the purpose of this act without further action than that required by this
act. The
bonds
authorized by this act may be consolidated for the purpose of issuance and sale
with any
other
bonds 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 treasurer and the 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 deem 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 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 town treasurer. Temporary
notes
issued
hereunder shall be signed by the town treasurer 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 issue of
other
notes hereunder, provided the period from the date of an original notes 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 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
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 treasurer in any investment permitted
under section
five.
The moneys in the fund and any investments held as apart 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 treasurer, 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
treasurer
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 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 shall, in the discretion of the town treasurer, 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 issued hereunder may also, in the discretion of
the town
treasurer,
be met from bond or note proceeds exclusive of accrued interest or from other
moneys
available
therefor. Any balance of bond or notes 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
treasurer 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 Rhode
Island
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 2 of this act.
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. 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, seven (7) years after the effective date of this act.
SECTION
12. The borrowing authorized by this act has been approved by the
Charlestown
electorate at a local referendum conducted at the November general election in
2006
and
this act shall become effective without further vote of the Charlestown
electorate or financial
town
meeting.
SECTION
13. This act shall take effect upon passage.
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LC00167
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