Chapter 041
2010 -- H 8144
Enacted 06/12/10
A N A C T
AUTHORIZING THE
CITY OF
Introduced By: Representatives Fierro, Brien, and Baldelli-Hunt
Date Introduced: May 18, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. The city of
previously granted, to issue bonds to an amount not exceeding
Twelve Million Dollars
($12,000,000)
from time to time under its corporate name and seal or a facsimile of such
seal.
The bonds of each issue
shall mature in annual installments of principal, the first installment to be
not later than three (3) years and the last installment
not later than seven (7) 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, statutory, or charter 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
director of finance, the treasurer and the mayor and shall be
issued and sold in such amounts as
the city 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 the proceedings of the city council
authorizing the issue or by separate resolution
of the city 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
facsimile signature of the director of finance and the city
treasurer. The proceeds derived from the
sale of the bonds shall be delivered to the city
treasurer, and such proceeds, exclusive of
premiums and accrued interest, shall be expended (a) to fund
the city’s accumulated general fund
deficit (the "Project"), 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, 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 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. In addition to such funds, there may be
expended for the purposes of this act such
other sums as may be appropriated therefor.
The bonds authorized by this act may be
consolidated for the purposes of issuance and sale with any other
bonds of the city 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
director of finance, the city treasurer and the Mayor, on
behalf of the city, are hereby authorized
to execute such instruments, documents or other papers
as they 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 city council may, by resolution
authorizing the bonds or by separate
resolution, authorize the issuance from time to time of interest
bearing or discounted notes in
anticipation of the issue of bonds under section two 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 by 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
or the city treasurer. Temporary notes
issued hereunder shall be signed by the manual or facsimile
signatures of the director of finance
and the city treasurer and countersigned by the manual or
facsimile signature of the mayor 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 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 (1) 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 (1) 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
city by the paying agent at the direction of the city
treasurer in any investment permitted under
section five. 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 city. The city 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 city’s authority to
issue bonds or notes in anticipation of bonds under this act
shall continue provided that 1) the city
council passes a resolution evidencing the city’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
city treasurer, with the approval of the city
council may, to the extent that bonds or notes may be issued
hereunder, apply funds in the
treasury of the city 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, and
may be deposited or invested by the
city 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
applicable laws of the state of
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 net earnings or profits
realized from the investment of funds hereunder and any
premiums arising from the sale of bonds
or notes hereunder shall, in the discretion of the city
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 (1) or more of the
foregoing. The cost of preparing, issuing and
marketing bonds or notes hereunder may also, in the discretion
of the city treasurer, be met from
bond or note proceeds exclusive of premium and 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. To the extent
permitted by applicable federal law, 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 city from property taxes. In exercising any
discretion under this section, the city
treasurer shall be governed by any instructions adopted by any
order or resolution of the city
council.
SECTION 7. Notwithstanding the foregoing, all bonds
and notes issued under this act
and the debts evidenced thereby shall be obligatory on
the city 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 city for the purpose of ascertaining its
borrowing capacity. In addition, the city 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 city shall be subject to ad
valorem taxation by the city 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 properly executed by the officers of the city 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 city 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 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 of this act.
SECTION 10. Except for the approval required by
Section 45-12-22.4 of the general
laws with respect to deficit funding bonds, 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 or notes issued hereunder shall in
no way depend upon the validity or
occurrence of such action. Chapter III, Section 3 of the
Woonsocket City Charter shall not apply
to bonds or notes issued pursuant to this act.
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 city council, without further
action by the general assembly, seven (7) years after the
effective date of this act.
SECTION 12. To the extent of any inconsistency
between this act and any private,
public, general, or any other law, and the City Charter,
this act shall prevail. This act shall take
effect upon passage without voter approval notwithstanding
Chapter VII, Article 8, §1 of the
Woonsocket City Charter in
conformity with the reserved powers of the General Assembly
pursuant to Article XIII, Section 5 of the Constitution of the
State of
SECTION 13. The provisions of this act are severable,
and if any of its provisions are
held unconstitutional or invalid for any reason by any
court of competent jurisdiction, the
decision of the court shall not affect or impair any of the
remaining provisions.
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LC02655
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