Chapter 292
2010 -- H 8227
Enacted 06/25/10
A N A C T
AUTHORIZING THE
TOWN OF
Introduced By: Representatives Ruggiero, Jackson, and A Rice
Date Introduced: June 03, 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
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 road construction and drainage and
sidewalk improvements in the town, (b)
for payment of the principal or interest on temporary
notes issued under section three, (c) in
payment of capitalized interest on bonds or notes (d) in
repayment of advances under section
four, or (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 six and
nine, 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
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 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
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 town by
the paying agent at the direction of the
town finance director 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 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 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
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
in any other applicable law of the state of
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 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 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 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 finance director 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 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. 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 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 2,
2010 or such other general or special
election (other than a primary) to be held prior to December
31, 2010, as shall be designated by
the town council. 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
SIDEWALK IMPROVEMENTS 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
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 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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LC02807
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