Chapter
402
2008 -- H 8410
Enacted 07/05/08
A N A C T
AUTHORIZING THE TOWN
OF MIDDLETOWN TO FINANCE THE ACQUISITION AND PRESERVATION OF OPEN SPACE IN THE
TOWN BY THE ISSUANCE OF NOT MORE THAN $2,000,000 BONDS AND/OR NOTES THEREFOR
Introduced By: Representatives
Long, Jackson, Rice, and Watson
Date Introduced: June 19,
2008
It is
enacted by the General Assembly as follows:
SECTION
1. The town of Middletown is hereby empowered, in addition to authority
previously
granted, to issue bonds to an amount not exceeding two million dollars
($2,000,000)
from
time to time under its corporate name and seal. The bonds of each issue may be
issued in the
form of
zero coupon bonds, capital appreciation bonds, 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. 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. 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 town finance director 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. 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 acquisition and preservation of open space in the town,
(b) for payment of
the
principal or interest on temporary notes issued under Section 3, (c) in payment
of capitalized
interest
on bonds or notes (d) in repayment of advances under Section 4, (e) in payment
of related
costs
of issuance of any bonds or notes. 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
sales 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 other moneys referred to in Section 6 and 9, 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 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.
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 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 finance
director.
Temporary
notes issued hereunder shall be signed by the manual or facsimile signatures of
the
town
finance director and by 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
thereunder, provided
the
period from the date of an original note to the maturity or 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 the 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 the 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
5. The moneys in the fund and any investments held as a 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 2, 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 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 finance director, be applied
to 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 finance
director,
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 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 any order or
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 the 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 the 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.
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
projects
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 projects, 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 authority to issue bonds and notes under this act
may be
extinguished by resolution of the town council, without further action by the
general
assembly.
SECTION
12. The town finance director and the president of the town council, on behalf
of the
town, are hereby authorized to execute such 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
(the Rule) and to execute and deliver a continuing disclosure agreement or
certificate
in connection with the bonds or notes in the form as shall be deemed advisable
by such
officers
in order to comply with the Rule.
SECTION
13. The question of the approval of this act shall be submitted to the electors
of the
town at the election to be held on November 4, 2008 or such other general or
special
election
(other than a primary) 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
2008
session of the general assembly, entitled 'AN ACT AUTHORIZING THE TOWN OF
MIDDLETOWN
TO FINANCE THE ACQUISITION AND PRESERVATION OF OPEN
SPACE
IN THE TOWN BY THE ISSUANCE OF NOT MORE THAN $2,000,000 BONDS
AND/OR
NOTES 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/her office for public
inspection,
but the
validity of the election shall not be affected by this requirement.
SECTION
14. This section and the foregoing section shall take effect upon passage of
the
act. The
remainder of this act shall take effect upon the approval of the act by a
majority of those
voting
on the question at the election prescribed by the foregoing section.
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LC03217
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