Chapter 270
2010 -- H 8211
Enacted 06/25/10
A N A C T
AUTHORIZING THE
CITY OF EAST PROVIDENCE TO REPAIR AND IMPROVE PUBLIC SCHOOL BUILDINGS IN THE
CITY OF EAST PROVIDENCE AND AUTHORIZING THE FINANCING THEREOF, INCLUDING THE ISSUE
OF NOT MORE THAN $15,000,000 BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS
THEREFOR, INCLUDING BUT NOT LIMITED TO ANY BONDS OR NOTES ISSUED PURSUANT TO FINANCING
AGREEMENTS WITH THE RHODE ISLAND HEALTH AND EDUCATIONAL BUILDING CORPORATION
Introduced By: Representatives Melo, DaSilva, Savage, Messier, and Hearn
Date Introduced: June 02, 2010
It is enacted by the
General Assembly as follows:
SECTION 1. The city of
previously granted, to issue bonds and other evidences of
indebtedness (hereinafter “bonds”) up
to an amount not exceeding fifteen million dollars
($15,000,000) from time to time under its
corporate name and seal or a facsimile of such. 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 sinking
fund installments in the case of term
bonds, in annual installments of principal, the first
installment to be not later than three (3) 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, 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 and the mayor and be issued and sold in
such amounts as the city council may
determine 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. Notwithstanding anything
contained in this act to the
contrary, the city may enter into financing agreements with
the Rhode Island Health and
Educational Building Corporation
pursuant to title 16, chapter 7 and title 45, chapter 38.1 of the
general laws and, with respect to bonds or notes issued in
connection with such financing
agreements, if any, the city may elect to have the provisions of
title 45, chapter 38.1 of the
general laws apply to the issuance of the bonds or notes
issued hereunder to the extent the
provisions of title 45, chapter 38.1 of the general laws are
inconsistent herewith. Such election
may be fixed by the proceedings of the city council authorizing
such issuance 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. 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) to repair
and improve public school
buildings in the city of
interest on temporary notes issued under section 3; (c) in
repayment of advances under section 4;
(d) in
payment of related costs of issuance of any bonds or notes; and/or (e) in
payment of
capitalized interest during construction of the project. 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 monies referred to in
sections 6 and 9 shall be deemed appropriated
for the purposes of this act without further action than
that required by this act.
SECTION 3. The city council may by resolution authorize the issuance
from time to time
of interest bearing or discounted notes in anticipation
of the issue of bonds under section 2 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 manual or facsimile signature
of the director of finance 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
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 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 director of finance 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
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
director of finance, with the approval of
the city council may, to the extent that bonds or notes
may be issued hereunder, apply funds in the
general 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 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
in any other applicable law of the state of
pursuant to an investment policy of the city.
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, to the extent
permitted by applicable federal laws, any net
earnings or profits 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, to the
revenues of the city and dealt with as part of the revenues of
the city from property taxes to the
extent permitted by federal law, 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
premium and 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 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 city from property taxes.
In exercising any discretion under this
section, the director of finance shall be governed by any
instructions adopted by resolution of the
city council.
SECTION 7. All bonds and notes issued under this act and the
debt evidenced hereby
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
and any provision of the city charter. No such obligation
shall at any time be included in the debt
of the city for the purpose of ascertaining its
borrowing capacity. 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 monies 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, 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 such officers shall for any reason have
ceased to hold office.
SECTION 9. The city, acting by resolution of its city
council 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
monies 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 a cost of the project
under section 2.
SECTION 10. Notwithstanding anything contained in the city
charter to the contrary,
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 director of finance and the mayor, on behalf
of the city are hereby
authorized to execute such instruments, documents or other
papers as either of the foregoing
deem necessary or desirable to carry out the intent of
this act and are also authorized to take all
actions and execute all documents 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 12. All or any portion of the authorized but
unissued authority to issue bonds
and notes under this act may be extinguished by
resolution of the city council, without further
action by the general assembly, seven (7) years after the
effective date of this act.
SECTION 13. The question of the approval of this act shall
be submitted to the electors
of the city at the next general election but if a
special city-wide election or special state election,
in either case other than a primary, is called for a
date earlier than the date of such general
election, the mayor may direct that the question of the
approval of this act be submitted at such
special 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 city of East
authorizing the financing thereof, including the issue of not
more than $15,000,000 bonds, notes
and other evidences of indebtedness therefor,
including but not limited to any bonds or notes
issued pursuant to financing agreements with the Rhode
Island Health and
Corporation’ 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 city
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.
To the extent of any inconsistency
between this act and the city charter or any law of
special applicability to the city, this act shall
prevail.
SECTION 14. This act shall constitute an enabling act of the
general assembly that is
required pursuant to section 16-7-44 of chapter 7 of title 16
of the general laws.
SECTION 15. This section and sections 13 and 14 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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LC02803
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