Chapter 265
2010 -- S 2963
Enacted 06/25/10
A N A C T
AUTHORIZING THE
TOWN OF
Introduced By: Senator M. Teresa Paiva-Weed
Date Introduced: June 02, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. The Town of
previously granted, to issue bonds to an amount not exceeding
Six Million Five Hundred
Thousand Dollars
($6,500,000.00) from time to time under its corporate name and seal or a
facsimile of such 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 manual or
facsimile signatures of the
finance director of the town 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 the resolution
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 finance director, and such
proceeds exclusive of premiums and accrued interest shall be
expended for (a) the construction
of a wind turbine generator facility at
principal of or interest on temporary notes issued under
Section Three of this act or (c) in
repayment of advances under Section Four of this act. 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,
or as may be otherwise directed by the Town Council. The proceeds
of bonds or notes issued under this act, any applicable
federal or state assistance and the other
monies referred to in Section Six of this act 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.
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 authorization or 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 finance director.
Temporary notes issued
hereunder shall be signed by the finance director 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
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 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
of
applicable law 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 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 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 projects or to the
cost of additional improvements
coming within the description of the projects in Section 2
of this act, 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 finance director, be met from bond
or note proceeds exclusive of accrued
interest or from other monies available therefor.
Any balance of bond or note proceeds remaining
after payment of the cost of the projects and said
additional improvements 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 finance director shall be governed by
any instructions adopted by resolution of
the Town Council. The finance director is authorized to take
any action deemed by him or her
necessary to assure that interest on the bonds or notes issued
hereunder remains excludable from
gross income of the recipients thereof for federal income
tax purposes, including, without
limitation, paying to the federal government any rebate of
earnings derived from the deposit or
investment of the proceeds of such bonds or notes that may be
required therefor, (2) to qualify the
bonds under Sections 54AA, 1400U-1, 1400U-2, or 6431 of the
Internal Revenue Code of 1986,
as amended, as Build America Bonds and/or Recovery Zone
Economic Development Bonds or
other similar federal programs, and (3) to comply with the
requirements of federal law, including
without being limited to regulations and other requirements
of the Securities and Exchange
Commission and the
Municipal Securities Rulemaking Board, imposed directly on the Town or
on the underwriters of such bonds and notes.
SECTION 7. All bonds or 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. Without limiting the
generality of the foregoing, bonds and notes may be issued under
this act without any action at
the financial town meeting. 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. To the extent of any
inconsistency between this act and the Town Charter, this act shall
prevail.
SECTION 11. The question of the approval of this act shall
be submitted to the electors
of the town at the November 2, 2010 general election.
The question shall be submitted in
substantially the following form: "Shall an act, passed at the
2010 session of the General
Assembly, entitled ‘AN ACT
AUTHORIZING THE TOWN OF JAMESTOWN TO FINANCE
THE CONSTRUCTION OF A WIND
TURBINE GENERATOR AND TO ISSUE NOT MORE
THAN $6,500,000.00 BONDS
AND NOTES THEREFOR' be approved?" and the warning for
the election shall contain the question to be submitted.
The Town Board of Canvassers may
combine any two or more voting districts for the election and
when so combined shall be treated
as a voting district. If so combined, the Town Board of
Canvassers shall advertise the
combination of districts in a newspaper of general circulation in
the Town. 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 or her office for public inspection,
but the validity of the election shall not be
affected by this requirement.
SECTION 12. This section and Section 11 shall take effect upon
passage. 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 Section
11.
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LC02829
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